CHAMBER OF COMMERCE OF THE UNITED STATES v. BROWN

Legal Principle at Issue

Does federal labor law preempt a California law that prohibits employers receiving state funds from using those funds to influence union organizing efforts?

Action

Reversed and remanded. Petitioning party received a favorable disposition.

Facts/Syllabus

A California statute known as “Assembly Bill 1889” (AB 1889) prohibits several classes of employers that receive state funds from using the funds “to assist, promote, or deter union organizing.” Organizations whose members do business with California sued to enjoin enforcement of AB 1889. The District Court granted the plaintiffs partial summary judgment, holding that the National Labor Relations Act pre-empts AB 1889 because they regulate employer speech about union organizing under circumstances in which Congress intended free debate. The U.S. Court of Appeals for the Ninth Circuit reversed, concluding that Congress did not intend to preclude states from imposing such restrictions on the use of their own funds.