Chamber of Commerce of the United States v. Brown

Supreme Court of the United States · 2008 · Labor Law

Labor LawNLRA preemptionEmployer speechUnion organizingNLRAMachinists preemptionGarmon preemptionSection 8(c)

Facts

California enacted Assembly Bill 1889 to prohibit certain employers receiving state funds from using those funds to "assist, promote, or deter union organizing." The challenged provisions applied to grant recipients and private employers receiving more than $10,000 in state program funds, and defined prohibited expenditures broadly to include legal fees, consulting fees, and salaries connected to attempts to influence employees' decisions about unionization. The statute also required certifications and recordkeeping, presumed commingled-fund expenditures were partly state-funded, imposed treble financial consequences, and authorized suits by the attorney general or private taxpayers. At the same time, the statute exempted some employer activities that promoted unionization, such as giving unions access to facilities and entering voluntary recognition agreements.

Issue

Whether California Government Code sections 16645.2 and 16645.7, which restrict the use of certain state funds for employer speech assisting, promoting, or deterring union organizing, are preempted by the National Labor Relations Act. More specifically, the question was whether these provisions intrude into a zone of noncoercive labor speech Congress intended to leave unregulated.

Rule

Under Machinists preemption, neither states nor the NLRB may regulate conduct that Congress intended to leave unregulated and controlled by the free play of economic forces. In the labor-speech context, Congress's addition of NLRA section 8(c) expressly protects noncoercive speech by employers and unions about unionization, so a state may not directly or indirectly regulate that speech through targeted spending restrictions when doing so frustrates the federal policy favoring free debate.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

Oregon enacts a statute providing that any private employer receiving more than $25,000 in state workforce-development funds may not use those funds to circulate brochures, hold meetings, or hire consultants to persuade employees for or against union representation. The law applies only when the employer's communications contain no threats, force, or promises of benefit.

If challenged under federal labor law, which argument is strongest?

Explanation. Under Machinists preemption, a state may not regulate conduct Congress intended to leave to the free play of economic forces. The majority explained that NLRA §8(c) expressly protects noncoercive speech by employers and unions about unionization, and a state cannot do indirectly through targeted spending restrictions what it could not do directly. Labeling the rule a use-of-funds restriction does not save it when the law is aimed at suppressing one side of protected labor debate.