Chamber of Commerce v. Brown
As labor activism swells on both coasts with the ongoing writers' strike in Hollywood and the stagehands' strike in New York, the Supreme Court has agreed to decide what role the states should play in calibrating the delicate balance between employers and unions.
In the case accepted earlier this month, Chamber of Commerce v. Brown, No. 06-939, a consortium of California companies are challenging a law that prohibits the use of state funds to "assist, promote, or deter union organizing." Cal. Gov't Code Secs. 16645.2, 16645.7. Companies that accept state funds are permitted to use their own money for labor-oriented speech, but must keep careful records documenting that they segregated the public money.
The companies argue that the state law is preempted by a provision of the National Labor Relations Act. The NLRA Sec. 8(c) provides that companies' anti-labor speech cannot be considered evidence of an unfair labor practice so long as it does not threaten or coerce workers. The companies contend that California's law violates the NLRA's safe harbor for anti-union speech, and is therefore preempted.
California urged the Court not to grant review, arguing that its law did not alter the rights of companies to discourage unionization, but merely guaranteed that such speech would be privately funded. Moreover, the state argued, the challenge was premature as there was little evidence how the law would work in practice.
The issue of state participation in the labor relations scheme is a controversial one. The Ninth Circuit entered two panel opinions, both holding the California law preempted, before the court issued a split en banc opinion holding that it was not. The Second Circuit Court of Appeals reached a different conclusion when passing on a substantially similar law.
In addition, states have become increasingly active in the labor relations field. More than a dozen states are considering adopting legislation similar to the California law.Questions presented: Whether a state law prohibiting employers from using state funds to encourage or discourage union organization is preempted by the National Labor Relations Act