Legal Document

506 U.S. 125 113 S.Ct. 580 121 L.Ed.2d 513 The DISTRICT OF COLUMBIA and Sharon Pratt Kelly, Mayor, Petitioners,v.The GREATER WASHINGTON BOARD TRADE. No. 91-1326. Argued Nov. 3, 1992. Decided Dec. 14, Syllabus * Section 2(c)(2) of the District Columbia Workers' Compensation Equity Amendment Act 1990 requires employers who provide health insurance for their employees to equivalent coverage injured eligible workers' compensation benefits. Respondent, an employer affected by this requirement, filed action in Court against petitioners, its seeking enjoin enforcement § on ground that it is pre-empted 514(a) Employee Retirement Income Security 1974 (ERISA), which provides ERISA supersedes state laws "relate any employee benefit plan" covered ERISA. Although petitioners conceded relates ERISA-covered plan, court granted motion dismiss. Relying Court's decision Shaw v. Delta Air Lines, Inc., 463 85, 103 2890, 77 490, held not because also respondent's exempt from coverage, respondent could comply with provision creating a separate unit administer required Appeals reversed, holding pre-emption compelled 514(a)'s plain meaning ERISA's structure. Held: A law "relate[s] to" plan purposes if refers or has connection such even designed affect effect only indirect. See, e.g., Ingersoll-Rand Co. McClendon, 498 133, 139, 111 478, ----, 112 474. measures care reference "the existing coverage," welfare subject regulation. It does matter 2(c)(2)'s requirements ERISA-exempt plans, since exemptions do limit 514's pre-emptive sweep once determined plan. See Alessi Raybestos-Manhattan, 451 504, 525, 101 1895, 1907, 68 402. Petitioners' reliance Shaw, supra, misplaced, statute at issue there did Nor support Metropolitan Life Ins. Massachusetts, 471 724, 105 2380, 85 728, position two-part analysis under relating would survive preemption through separately administered plans. Pp. ____. 292 U.S.App.D.C. 209, 948 F.2d 1317 (1991), affirmed. THOMAS, J., delivered opinion Court, REHNQUIST, C.J., WHITE, BLACKMUN, O'CONNOR, SCALIA, KENNEDY, SOUTER, JJ., joined. STEVENS, dissenting opinion. Donna M. Murasky, Washington, D.C., petitioners. Lawrence P. Postol, respondents. Justice THOMAS Court. 1 We hold requirement 88 Stat. 829, as amended, 29 U.S.C. 1001 et seq. 2 sets out comprehensive system federal regulation private including both pension plans "welfare defined 3 include, inter alia, "plan, fund, program" maintained purpose providing medical other benefits beneficiaries "through purchase otherwise." 3(1), 1002(1). 4 defines broad scope coverage. Subject certain exemptions, applies generally all sponsored organization. 4(a), 1003(a). Among 4(b) are those "maintained solely complying applicable workmen's unemployment disability laws." 4(b)(3), 1003(b)(3). assures will be exclusive. "shall supersede State insofar they may now hereafter relate 514(a), 1144(a). Several categories laws, criminal regulating insurance, banking, securities, excepted 514(b), 1144(b), but none these exceptions here. Effective March 6, 1991, 1990, 37 D.C. Register 6890, amended several portions District's law, Code Ann. §§ 36-301 36-345 (1981 Supp.1992). added following requirement: 5 "Any shall while receives receive chapter." 36-307(a-1)(1) (Supp.1992). 6 Under 2(c)(2), must up 52 weeks "at same level had time received was benefits." 36-307(a-1)(3). 7 Respondent Greater Washington Board Trade, nonprofit corporation sponsors employees, Mayor Kelly "equivalent"-benefits petitioners' App. Pet. Cert. 21a. Petitioners sense challenged "are set plans." Id., 22a. our 490 (1983), however, "by 'separate administrative unit' 24a (quoting 108, 2905-2906). 8 reversed. (1991). structure 215-216, F.2d, 1323-1324. In court's view, pre-empts regardless whether Ibid. further concluded result advance policies served pre-emption. 217-218, 1325-1326. By tying levels provided have serious impact administration content plan." 217, 1325. Because below conflicts Second Circuit's R.R. Donnelley & Sons Prevost, 915 787 (1990), cert. denied, 499 1415, 468 upheld challenge Connecticut sub stantially similar we certiorari. 503 1584, 118 303 (1992). affirm. II 9 repeatedly stated "if U.S., 97, S.Ct., 2900. E.g., 483, 474 (1990); FMC Corp. Holliday, 52, 58, 403, 356 Mackey Lanier Collection Agency Service, 486 825, 108 2182, 2185, 100 836 (1988); Pilot Dedeaux, 481 41, 47, 107 1549, 1552-1553, 95 39 (1987); 739, 2389, 728 (1985). This reading true ordinary to," see Black's Law Dictionary 1288 (6th ed.1990), thus gives "deliberately expansive" language chosen Congress. Life, 46, 1552. Morales Trans World Airlines, 504 2031, 2037, 119 157 (and fall within 514(b) exception) "even specifically indirect," Ingersoll-Rand, "consistent substantive requirements," 2389.1 10 regulated basis alone pre-empted. measured coverage" level." D.C.Code (3) employee's "existing turn, involves fund program 1002(1).2 Such employer-sponsored programs regulation, 1003(a), imposing yield ERISA.3 conclusion consistent Agency, struck down Georgia exempted garnishment procedure. 828, n. 2, 829-830, 2184, 2185-2186. follows where Texas common-law cause wrongful discharge based employer's desire avoid paying into fund. Even though sought no benefits, "lost future wages, mental anguish punitive damages," 136, (internal quotations omitted), claim "premised on" existence 140, 482. 11 makes difference part of, therefore 4(b), 1003(b), 514 question 402 (1981) ("It moment New Jersey intrudes indirectly rather than directly, called 'pension regulation' "). position. dealt, relevant part, York pay weekly disabled equal " 'one-half average wage.' 90, 4, 2896, N.Y. Work.Comp. 204.2 (McKinney Supp.1982-1983)). related exclusively . laws" 106-108, 2904-2905. fact administering multibenefit mean purposes. id., 2905. simply long "as unit, provide[d] by" qualify 4(b)(3). 107, ,S.Ct., Thus, unlike Act, 12 nevertheless point (1985), described Human Rights State's Disability Benefits 'relate[d] to' governed ERISA." 2388-2389. dictum argue should construed require two-step analysis: still 4(b). Tr. Oral Arg. 16-17. But 514(b)(2)(A)'s safe harbor 739-747, 2388-2393; purport add, passing gloss 514(a). And although conclude "employee plan[s]" general, 100, 2901, Law, barred discrimination fell provision. 100-106, 2901-2905. As explained, Shaw—though mandating creation ERISA4—did does, end matter. cannot engraft onto one-step statute. 13 judgment accordingly 14 Affirmed. 15 dissenting. 16 basic case presents Congress intended prevent computing entire remuneration when portion converting unnecessarily dicta interpreting words used 1144(a), rule underestimating significance exemption reached incorrect unusually important case. 17 today's world typical just her take-home pay; often includes fringe vacation insurance. If loses job, reason either negligently inflicted physical injury, normal contract tort principles allow recover damages loss earnings—including value I understand reasoning today, merely announced "specifically refers" each component calculation. Ante, ____.1 18 Workmen's substitute actions employers. They typically base amount award earnings injury. Columbia's example, "average wages" standard nature 36-308 (1988 correspondingly reduced wage, decided supplement reflecting worker receives. seems today never coverage—at least statutes regulations refer 19 true, points out, 96-97, 2899-2900, "related "in phrase, quoted later opinions.2 Indeed, been reiterated so petitioner proposition equally until phrase necessary actual holdings. 20 Given open-ended implications burgeoning volume litigation involving claims,3 think take fresh look enacted. Let me begin repeating qualifying itself emphasizing one word statutory text overlooked. 21 After explaining why two noted: 22 "Some too tenuous, remote, peripheral manner warrant finding 'relates Cf. American Telegram Telegraph Merry, 592 118, (CA2 1979) (state spouse's income enforce alimony orders pre-empted). present plainly borderline question, express views about appropriate draw line." 21, 21. 23 deciding line drawn, so-called "pre-emption" use "pre-empt." provisions "supersede section 1003(a) title 1003(b) title." 1144(a) (emphasis added). Thus displaces field ERISA; expressly disavows intent plans; silent possible subjects were decide nothing more itself, find (more precisely, "supersession") receiving entirely unregulated ERISA.4 24 narrow ground, legislative history prior holdings given supersession broader reading. prohibited structuring discriminated pregnancy, contain superseding regulatory provisions. 98, directly regulate make administrators operate differently, my opinion, law's mere insufficient concluding pre-empted—particularly almost excluded anomalous superseded area 25 administrator changes grant better package insured, converse windfall going high wages little coverage.5 encourage higher instead surely infer congressional category Moreover, requiring worker's reflect his package, attempts replace fully lost earning power every employee. Nothing suggests efforts enact fair complete remedies work-related injuries; difficult imagine how measure without referring specific Any wishes equitable goal forced predetermined rate bears relation worker. thereby shed most characteristic element: postinjury individual preinjury compensation. 26 Instead mechanically earlier dictionary definitions "relate" guide construction, pause consider, first, wisdom disfavoring second, concerns identified expansive statement Shaw. explained Congressman Dent, "crowning achievement" legislation 'reservation Federal authority [of] sole With field, round protection afforded participants eliminating threat conflicting inconsistent local regulation.' 99, 2901 120 Cong.Rec. 29197 (1974)). 27 inch poses whatsoever enters uncharted territory. Where ultimately lead, venture predict. am persuaded, already taken step neither nor foresaw. 28 Accordingly, respectfully dissent. syllabus constitutes prepared Reporter Decisions convenience reader. United States Detroit Lumber Co., 200 321, 337, 282, 287, 50 L.Ed. 499. Pre-emption occur, "tenuous, peripheral" many general applicability, Mackey, 830-838, 12, 2185-2190, 12; cf. ----. Fort Halifax Packing Coyne, 482 1, 2211, 96 (1987), "plan" connote some minimal, ongoing "administrative" scheme practice, "a one-time, lump-sum payment triggered single event" 2217-2218. contend ERISA, concede 14. pre-empt extent "governmental" "church" 4(b)(1) (2), 1003(b)(1) (2). "Welfare plans" include "benefits event sickness, accident, [or] disability." Similar arguments considered rejected cases. Martori Bros. Distributors James-Massengale, 781 1349, 1358-1359 (CA9), modified, 791 799, 479 949, 435, 93 385 (1986); Teper Park West Galleries, 431 Mich. 202, 216, 427 N.W.2d 535, 541 Schultz National Coalition Hispanic Mental Health Services Organizations, 678 F.Supp. 936, 938 (DC 1988); Jaskilka Carpenter Technology Corp., 757 175, 178 (Conn.1991). 138-139, ---- - 58-59, 11, 2217, 47-48, 2388-2389, years ago Judge read "nearly cases reach clause" "common left courthouse door." F.Supp., (1988). recent LEXIS search indicates over 2,800 judicial opinions addressing growth consequence growing emphasis to", pre-empting what referred sense". Cipollone Liggett Group, 505 2608, 2636, 407 (1992): "Consideration issues arising Supremacy Clause 'start[s] assumption historic police powers [are] unless [is] clear manifest Congress.' Rice Santa Fe Elevator 331 218, 230, 67 1146, 1152, 91 1447 (1947). ' "[t]he ultimate touchstone" analysis. Malone White Motor 435 497, 98 1185, 1189-1190, 55 443 (1978) Retail Clerks Schermerhorn, 375 96, 103, 84 219, 223, 179 (1963)). "In absence command, actually Pacific Gas Elec. Energy Resources, Conservation Development Comm'n, 461 190, 204, 1713, 1722, 75 752 thoroughly occupies reasonable inference room it." Fidelity Savings Loan Assn. De la Cuesta, 458 141, 153, 102 3014, 3022, 73 664 (1982) Sante [67 1152] )." One statute's goals "to promote fairer compensation." Preamble reprinted 6890 (Nov.1990).

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