Document: 519 U.S. 316117 S.Ct. 832136 L.Ed.2d 791 CALIFORNIA DIVISION OF LABOR STANDARDS ENFORCEMENT, et al., Petitioners,v.DILLINGHAM CONSTRUCTION, N.A., INC., and Manuel J. Arceo, dba Sound Systems Media. No. 95-789. Supreme Court of the United States Argued Nov. 5, 1996. Decided Feb. 18, 1997. Syllabus * California requires a public works project contractor to pay its workers prevailing wage in project's locale, but allows payment lower participants state-approved apprenticeship program. After respondent Dillingham Construction subcontracted some work on state contract doing business as Media, latter entered collective bargaining agreement that included an scale provided for affiliation with committee ran unapproved Media thereafter relied apprentices, whom it paid apprentice wage. Petitioner Division Apprenticeship Standards issued notice noncompliance both charging paying wage, rather than journeyman apprentices from program violated law. Respondents sued prevent petitioners interfering under subcontract, alleging, inter alia, §514(a) Employee Retirement Income Security Act 1974 (ERISA) pre-empted enforcement The District granted summary judgment, Ninth Circuit reversed, holding was "employee welfare benefit plan'' ERISA §3(1), law "relate[d] to'' plan therefore superseded §514(a). Held: California's does not "relate employee plans, thus is by ERISA. Pp. ___-___. (a) A "relate[s] covered purposes if (1) has "connection with'' or (2) "reference such plan. E.g., Columbia v. Greater Washington Bd. Trade, 506 125, 129, 113 580, 583, 121 513. forbidden reference where acts immediately exclusively upon Mackey Lanier Collection Agency & Service, Inc., 486 825, 108 2182, 100 836, existence plans essential operation, in, e.g., supra, Ingersoll-Rand Co. McClendon, 498 133, 111 478, 112 474. To determine whether connection this looks ERISA's objectives guide scope Congress understood would survive, New York State Conference Blue Cross Shield Plans Travelers Ins. Co., 514 ----, 115 1671, 1672, 131 695, nature law's effect id., at S.Ct., 1676. Where federal said pre-empt action fields traditional regulation, assumes States' historic police powers are unless Congress' clear manifest purpose. (b) Because appears approved programs need be make plans. On face, seems allow only who acquires through "joint committee''-an sponsored efforts management organized labor. comport law, expenses must defrayed out monies placed into separate fund, which triggers coverage. However, applicable regulations class sponsors may provide broad enough include single employer defrays costs general assets. An so funded, See, Massachusetts Morash, 490 107, 115, 109 1668, 1673, 104 98. indifferent funding, and, thus, coverage, programs; accordingly, makes no (c) Nor have In every relevant respect, indistinguishable statute upheld Travelers, supra. As statute, discerns congressional intent areas regulation concerned. U.S., And, like bind plans-legally practical matter-to anything. It merely provides measure economic incentive State's standards authorizing payments enrolled programs. Cf. 715. This could hold based tenuous relation without grave violence presumption intend pre-emption laws traditionally state-regulated areas. 57 F. 3d 712 (CA 9 1995), reversed remanded. THOMAS, J., delivered opinion unanimous Court. SCALIA, filed concurring opinion, GINSBURG, joined. John Rea, San Francisco, CA, petitioners. James Feldman, Washington, DC, amicus curiae, special leave Richard N. Hill, respondents. Justice THOMAS 1 locale. exception requirement permits participating case presents question provision (ERISA), 88 Stat. 829, amended, 29 U.S.C. §1001 seq., supersedes extent prohibits trained We conclude pre-empted. 2 3 Since 1931, Davis-Bacon Act, 46 1494, 40 §§276a 276a-5, required wages projects equal locale similar, private construction jobs. California, 1937, adopted similar contractors awarded their "not less rate per diem character locality performed.'' Cal. Lab.Code Ann. §1771 (West 1989). Under meet promulgated National 50 664, §50 (known popularly Fitzgerald Act).1 See CFR §29.5(b)(5) (1996); §1777.5 1989 Supp.1997). obliged employ they do, permitted those 4 arbiter adequacy Bureau Training (BAT), located within Department Labor. seeks apprentice-wage-eligible receive blessing either BAT "State Agency.'' §29.3 (1996). 1978, agency, Council (CAC), been authorized §29.12 approve purposes. App. 37. also charged CAC approving statute. §3071 Pursuant Secretary Labor standards. §29.5. own standards, 8 Cal.Code Regs. §212 (1996), "substantively similar'' Southern Chapter Associated Builders Contractors, Joint Committee Council, Cal.4th 422, 434, 14 Cal.Rptr.2d 491, 497, 841 P.2d 1011, 1017 (1992) (Southern ABC). uses 5 individual employer, labor union, group employers, organizations, joint management-labor venture (a so-called committee). §3075 B 6 spring 1987, Sonoma County Main Adult Detention Facility. electronic installation 7 When signatory contribute CAC-approved program, Northern Communications Committee. May 1988, after underway, existing union withdrew representation employees. Two months later, new different union. That agreement, earlier one, committee, Electronic (Electronic JATC). agreement. JATC, however, did seek approval until August gain October 1990. retroactive. March 1989, yet another complaint against petitioner Industrial Relations. had non-approved ordered withhold certain violation. 10 suit subcontract. Their alleged, argued JATC meaning §1002(1),2 it, provision, §514(a), §1144(a).3 agreed concluded forestalled saving clause, §514(d), §1144(d).4 Pre-emption determined, "impair savings clause.'' Constr. Inc. Sonoma, 778 F.Supp. 1522, 1530 (N.D.Cal.1991). 11 Appeals reversed. F.3d (1995). Agreeing Court, held it. Id., 718-719. "enforcement mechanism'' parted company preserved clause. 721. decision accorded Tenth Elevator Industry, Calhoon, 957 F.2d 1555 (C.A.10), cert. denied, 953, 406, 331 (1992). Both decisions conflict-as programs, reach clause-with Eighth Minnesota Dept. 47 975 (C.A.8 1995). certiorari, 517 116 1415, 134 541 now reverse. II 12 courts neither party disputes, "plan, [that] established maintained purpose providing . other training programs.'' §1002(1). presented us 13 shortly enactment, we endeavored regularity interpret apply "unhelpful text'' provision. 1677, 695 long acknowledged "clearly expansive.'' has: "a "broad scope,' Metropolitan Life Massachusetts, 471 724, 739 [105 2380, 2388-2389, 85 728] (1985), "expansive sweep,' Pilot Dedeaux, 481 41, [107 1549, 1552-1553, 95 39] (1987); "broadly worded,' 138 [111 482, 474] (1990), "deliberately expansive,' Life, 1552], "conspicuous breadth,' [FMC Corp. Holliday, 52, 58 403, 407, 356] (1990)].'' Morales Trans World Airlines, 504 374, 384, 2031, 2037, 119 157 15 Our applying yielded two-part inquiry: "law to' "if [1] [2] plan.''' 513 (quoting Shaw Delta Air Lines, 463 85, 96-97, 103 2890, 2899-2900, 77 (1983)). inquiry, "impos[ed] requirements [ERISA] programs,'' 130-131, 584; specifically exempted otherwise generally garnishment 828, n. 2, 829-830, 2184, 2185-2186, 836 (1988); common-law cause premised plan, 140, 483-484. Mackey, Trade Ingersoll-Rand, "reference'' will result pre-emption. 16 refer Terms ago, recognized "uncritical literalism'' standard offered scant utility determining §514(a)'s reach. 1677. Rather, connection, look "the survive,'' ibid., well 17 always our jurisprudence, "federal bar worked "assumption were Federal Congress.''' 1676 Rice Santa Fe Corp., 218, 230, 67 1146, 1152, 91 L.Ed. 1447 (1947)) (citation omitted). 18 several amici urge necessarily decline do so. 19 §§3075, 3076 Were true reach, respondents' argument might more persuasive. has, making broader. §230.1(a) ("Registered can obtained craft trade area site work'') (emphasis added); §228(c) (defining "an sponsor''); 1989) (stating "apprenticeship sponsor unilateral employer''). seem, employer's 20 §302(c)(6) Management Relations 1947, 61 157, §186(c)(6), any fund. fund coverage over JATC. Advisory Op. 94-14A (Apr. 20, 1994). But funded 98 (1989), distinction between vacation benefits accumulated benefits, held, constituted plan; policy issue whereby assets, not. distinction, concluded, compelled object policy: 21 "In enacting ERISA, primary concern mismanagement funds finance failure employees funds. end, extensive reporting, disclosure, fiduciary duty insure possibility employee's expectation defeated poor administrator.'' 1673 footnote 22 Benefits assets risks danger expectations services performed,'' hazard unconcerned. Ibid. 23 carried funded/unfunded are, think, analogous §2510.3-1(k) (scholarship plans); §2510.3-1(b)(3)(iv) (training job constitute plan); see (April 29, 1994) (apprenticeship trust 83-32A (June 21, 1983) (in-house professional development financed plan). Although none these answers unfunded suggest-as Morash -that not.5 24 Section 1777.5, then, "functions irrespective plan.'' 139, 483. meeting substantive set forth funding apparatus kind bring ABC, Cal.4th, 429, 1, Cal.Rptr.2d, 494, n.1, P.2d, 1014, 1. 1777.5 attendant Accordingly, turn nonetheless 25 Human Rights Law, prohibited "employers structuring manner discriminates basis pregnancy,'' York's Disability specific benefits,'' 97, 2900. decisions, see, FMC 356 (1990); Alessi Raybestos-Manhattan, 451 504, 101 1895, 68 402 (1981), statutes "mandated structures administration''; cases, amounted "connection[s] 1678. 26 most recent exercise pre-emption, stands considerable contrast. regulated hospital rates, hospitals exact surcharges (ranging 9% 24% statute) patients whose bills variety non-Blue Cross/Blue providers. expected, predominant among purchasers insurance, Brief O.T.1994, 93-1408, p. 1-2, asserted run afoul differential rates commercially insured (collectively Blues'') made commercial insurance relatively expensive-and attractive. resulting cost variations encouraged purchasers, including Blues. Commercial insurers effects requiring dictated them. 27 "indirect influence'' surcharge, noted, "bind administrators particular choice function itself.'' 1679. indirect influence surcharge "preclude uniform administrative practice interstate package wishe[d] one.'' Indeed, concerned action-such medical-care quality workplace regulations- increased thereby potentially affected choices scarcely end pre-emptive words limit nothing. 1681. noted charges time enacted, language nor legislative history mention pre-empting efforts.6 28 think that, At outset, note States. discussed Part I-A, nearly them projects, years prior enactment Similarly, legislated better part century. Shelley-Maloney Apprentice 1939 220, codified §3070 seq. Congress, pre-existing regulating apparently expected continue. (directing "to cooperate agencies engaged formulation promotion apprenticeship''); H.R.Rep. 945, 75th Cong., 1st Sess., (1937). alone immunize efforts; certainly contemplated substantial regulation. applied quite remote expressly concerned-"reporting, responsibility, like.'' 1680 Shaw, 98, 2900). reading nothing say "unsettling,'' 1681.7 Given paucity indication incorporate them, reluctant alter ordinary Act.'' Rice, 1152.8 address substance supplant 30 Like requirement, portion No 428, 493, 1013. If chooses hire project, (although not, wages). So, gained still supply apprentices. Unapproved contractors.9 therefore, requirements, least 31 confronted incentives since before face today even eligible contractors, Act.10 What more, being able approval. 1013 (" [i]n additional financial exist form direct subsidies because completes obtains certificate completion naming him her skilled chosen trade''). cannot gainsaid encouraging programs-including plans-to demonstrated here added inducement created break available tantamount compulsion programs.11 32 ERISA-covered substantially choosing health Blues, carrier. alters incentives, dictate choices, facing regard, "no myriad subject local possibly intended eliminate.'' 1683. sort. with,'' to,'' plans.12 III 33 For reasons stated herein, judgment below remanded further proceedings consistent opinion. 34 ordered. 35 GINSBURG joins, concurring. 36 enacted 1974, accepted certiorari decided, cases resolve conflicts Courts regarding various sorts law.1 acceptance, moreover, diminished (we taken two far Term),2 suggesting succeeded bringing clarity 37 I join Court's fair description application Today's likely ones, field-precisely obeisance all instead acknowledging criteria abandoned. sought faithfully statutory prescription "insofar relate Hence many statements, repeated today, scope,'' sweep,'' worded,'' expansive,'' breadth.'' Ante, __-__. according terms doomed failure, since, curbstone philosopher observed, everything related else. Accord, 1674, text illusory test, willing decree degree sensible person intended-which 38 greatly assist clarifying simply first take wrong; clause meant, test identify field applies-namely, plan[s] described section 1003(a) title exempt 1003(b) title,'' §1144(a). approach Hancock Mut. Harris Trust Sav. Bank, 510 86, 99, 114 517, 526, 126 524 (1993): "we discern solid believing when designed fundamentally analysis.'' accurately describes current jurisprudence course, conflict Silkwood Kerr-McGee 464 238, 248, 615, 621, 78 443 (1984) (explaining principles pre-emption); (1947) (field Florida Lime Avocado Growers, Paul, 373 132, 142-143, 83 1210, 1217-1218, 248 (1963) (conflict preemption). Nothing mysterious that; except establishing "relates irrelevant. syllabus constitutes prepared Reporter Decisions convenience reader. Detroit Timber Lumber 200 321, 337, 282, 287, 499. provides: "The directed formulate promote furtherance necessary safeguard extend inclusion thereof contracts apprenticeship, together employers [and] '' §50. 3(1) defines as: " [A]ny heretofore hereafter organization, both, (A) medical, surgical, care event sickness, accident, disability, death unemployment, day centers, scholarship prepaid legal §1002(1) added). "shall supersede insofar title.'' [n]othing subchapter shall construed alter, amend, modify, invalidate, impair, rule law.'' §1144(d). told [m]ost industry appear plans.'' Amicus Curiae 17, 8. Between April June 1994, 175 "unilateral'' ones. above, Government points do. Insurance Cuomo, 708, 711 (C.A.2 1993) (noting 88% "non-elderly Americans plans''), rev'd fact, very same adopted, short Health Planning Resources Development (NHPRDA), Pub.L. 93-641, 2225, §§1-3, repealed 99-660, VII, §701(a), 3799, "sought encourage help responses growing widely diverging availability services.'' 1682. NHPRDA mind system akin York's, thought unlikely later pre-empt. convinced lack positive harbored intent, evidence-the NHPRDA-that charges. 1673. absence indications superseded. argues NHPRDA: preempted [t]hat authority just what trying induce (internal quotation marks brackets implausible subsequently NHPRDA. inconceivable Act. analogy decisive. does, aid conclusion silence previously foster counsels here. point introduced purpose, part, overruling court Respondent 23, Signatory Members Coalition Preserve 11, Contractors Amici 26-27 (all citing H.R. 1036, 103d Sess. (1993); S. 1580, (1993)). unwillingness amend response evidence believed opinions interpreted scope. rejected arguments before. Firestone Tire Rubber Bruch, 489 101, 114, 948, 956, 80 (1989); Price, 361 304, 313, 326, 332, 334 (1960) ("the views subsequent hazardous inferring one''). York, told, "approximately half requirements.'' al. (citing F.W. Dodge Division, McGraw-Hill Information Systems, (1996)). similar,'' 1017, multistate saddled burden complying conflicting directives Government.'' 142, 484. Then again, one uniformity across impossible. ("prevailing States-or State-may vary substantially, membership trades trades, communities, States''). question. Suffice mandatory, disuniformities conclusive data support present Hobson's choice. inform [w]hile government twenty-seven thirty-one states [a break], estimated fifty percent country federally "approved' 13. §1144(d), forestalls addition bar, addressed following cases: (1995); (1992); 474 Fort Halifax Packing Coyne, 482 107 2211, 96 Taylor, 58, 1542, 55 39 105 728 (1985); (1983); (1981). Boggs Boggs, --- ---- De Buono NYSA-ILA Medical Clinical Services Fund,

Category: 9