US Chamber urges Supreme Court review of California labor law

06 Jan '07

2 min read

The National Chamber Litigation Center (NCLC) petitioned for U.S. Supreme Court review of a decision in Chamber of Commerce of the United States of America v. Lockyer that upheld a California law restricting employers' rights to oppose unionization of their employees, and opens employers to possible triple damages if they do not comply.

"This California law upsets the delicate balance of rights between employers and employees established 70 years ago with passage of the National Labor Relations Act," said Stephen Bokat, NCLC's executive vice president. "Since 1947, federal law has protected an employers' right to express its views on unionization and that right should be upheld."

California Assembly Bill 1889, signed into law in 2000, forbids employers from using state monies to assist, promote, or deter union organizing. The Chamber, joined by other associations and businesses, successfully sued the state on federal preemption grounds in 2002.

A three judge appeals court panel unanimously affirmed, reheard the case, and upheld its initial ruling. The appeals court, however, was overruled by the full Ninth Circuit in a 12-3 decision issued in September 2006, prompting the Chamber's appeal for Supreme Court review.

"Employers can comply with AB 1889 by creating a separate system of books segregating state and private funds, but that creates an accounting nightmare for them," Bokat stated. "However, smaller employers who are totally dependent on state funds would not be able to comply in this manner."

NCLC, the public policy law firm of the U.S. Chamber of Commerce, is a membership organization that advocates fair treatment of business in the courts and before regulatory agencies. The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

U.S. Chamber of Commerce

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