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Associated Builders & Contractors of California Cooperation Committee, Inc. v. Becerra

Citations: 231 F. Supp. 3d 810; 2017 U.S. Dist. LEXIS 12799Docket: Case No.: 3:16-cv-02247-BEN-NLS

Court: District Court, S.D. California; January 26, 2017; Federal District Court

Narrative Opinion Summary

In this case, the court evaluated the constitutionality of California Senate Bill 954, which modifies the prevailing wage law by impacting credits for payments made to industry advancement funds, specifically affecting non-union employers. Plaintiffs, including a trade association representing open shop employers and a contractor, argued that SB 954 is preempted by the National Labor Relations Act (NLRA), infringes on First Amendment rights, and violates equal protection rights. The court dismissed the complaint, ruling that SB 954 serves as a minimum labor standard permissible under state police powers and does not interfere with collective bargaining processes, thereby not preempted by the NLRA. The court further held that SB 954 does not impose direct burdens on speech nor demonstrate viewpoint discrimination, dismissing the First Amendment claim. Additionally, the court found that the statute meets the rational basis review, addressing wage security for workers, leading to the dismissal of the equal protection claim. The court also concluded that ABC-CCC lacked standing for its equal protection claim. Consequently, the court denied the plaintiffs' motion for a preliminary injunction and granted the defendants' motions to dismiss and judgment on the pleadings.

Legal Issues Addressed

Constitutionality of State Legislation

Application: The court evaluated the constitutionality of California Senate Bill 954, finding that it does not violate the National Labor Relations Act (NLRA) and serves as a valid exercise of state police power.

Reasoning: The court found that SB 954 is not preempted under Machinists... SB 954 does not impose the same burdens on employers as the statute in Brown... SB 954 does not establish compliance burdens or litigation risks that would compel employers to give up their speech rights.

Equal Protection Under the Fourteenth Amendment

Application: The court dismissed ABC-CCC’s equal protection claim, finding that SB 954 meets the rational basis review as it serves the legitimate state interest of ensuring workers receive their due wages.

Reasoning: SB 954 has a rational basis, addressing the Legislature's concern over unauthorized wage reductions affecting workers... Consequently, SB 954 meets the rational basis review, leading to the dismissal of ABC-CCC’s First Amendment claim.

First Amendment Rights

Application: The court determined that SB 954 does not violate the First Amendment rights of ABC-CCC, as it does not restrict speech or impose financial barriers to speech.

Reasoning: The Court determined that ABC-CCC did not sufficiently demonstrate a plausible claim that SB 954 violates its First Amendment rights... SB 954 does not impose any direct burdens on speech; it reflects a legislative choice to subsidize certain groups while excluding others.

Preemption under the Supremacy Clause

Application: The court held that SB 954 is not preempted by the NLRA, as it constitutes a minimum labor standard and does not interfere with the collective bargaining process.

Reasoning: Machinists preemption does not apply to SB 954, which serves as a minimum labor standard with optional compliance for employers under collective bargaining agreements.

Standing and Ripeness in Constitutional Challenges

Application: The court found the case ripe for adjudication but held that ABC-CCC lacked standing for its equal protection claim as it did not demonstrate a personal injury.

Reasoning: Regarding ripeness and standing, the court determined that the case is ripe for adjudication, but Plaintiff ABC-CCC lacks standing to pursue its equal protection claim.