# Petition for Writ of Certiorari — Pacific Merchant Shipping Ass'n v. Aubry

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1992
- **Citation:** 504 U.S. 979

## Text

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No. AUS 19 t99)

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In the ! Supreme Cottier’! °°,
OF THE
United States

OCTOBER TERM, 1991

PACIFIC MERCHANT SHIPPING ASSOCIATION,
AMERICAN INSTITUTE OF MERCHANT SHIPPING,
OFFSHORE MARINE SERVICE ASSOCIATION,
WESTERN OIL & GAS ASSOCIATION AND CLEAN SEAS,
Petitioners,
vs.

LLOYD W. AUBRY, JR., LABOR COMMISSIONER,
DIVISION OF LABOR STANDARDS ENFORCEMENT,
DEPARTMENT OF INDUSTRIAL RELATIONS,
STATE OF CALIFORNIA,

Respondent.

On Writ of Certiorari to the United States
Court of Appeals for the Ninth Circuit

PETITION FOR WRIT OF CERTIORARI

THOMAS E. HILL
Counsel of Record
CAROLINE G. SMITH
MUSICK, PEELER & GARRETT
One Wilshire Boulevard
Suite 2100
Los Angeles, California 90017
(213) 629-7676
GarRY M. BRIGHT
BRIGHT & POWELL
1090 Eugenia Place
Carpinteria, California 93013-2011

(805) 684-8480
Attorneys for Petitioners

Bowne of Los Angeles, Inc., Law Printers. (213) 627-2200

i

QUESTIONS PRESENTED

Respondent is responsible for enforcing California’s
wage and hour laws. This case arises out of Respondent’s
decision to apply state overtime requirements designed
for land-based employment within California to maritime
employment on the high seas. The questions for review
are:

1. Whether federal admiralty law preempts the appli-~
cation of state overtime laws to maritime employment on
the high seas under the constitutional principles esta)-
lished by this Court in cases such as Southern Pacific Co.
v. Jensen, 244 U.S. 205 (1917), and Knickerbocker Ice Co.
v. Stewart, 253 U.S. 149 (1920)?

2. Whether the Fair Labor Standards Act preempts
the application of state overtime laws to maritime employ-
ment on the high seas?

li

LIST OF PARTIES

Petitioners in this Court (plaintiffs-appellees below)
are Pacific Merchant Shipping Association, American
Institute of Merchant Shipping, Offshore Marine Service
Association, Western Oil & Gas Association and Clean
Seas. Respondent in this Court (defendant-appellant be-
low) is Lloyd W. Aubry, Jr., Labor Commissioner, Divi-
sion of Labor Standards Enforcement, Department of
Industrial Relations, State of California. The remaining
parties in the lower court proceedings (i1.e., plaintiff-
intervenors Tidewater Marine Service, Inc. and Western
Boat Operators, Inc.) have not been named as respon-
dents in this Court since their interests are not adverse to
those of Petitioners, and since they have filed their own
separate petition for writ of certiorari in these
proceedings.

RULE 29.1 STATEMENT

Petitioners have no parent or subsidiary companies.

ili
TABLE OF CONTENTS

QUESTIONS PRESENTED...................
rib ves cecevcrcscecereess
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EG cre Gab Nieds sds ccccceseess

CONSTITUTIONAL, STATUTORY AND OTHER
EE GU TUIU ED secs cescccceccces

STATEMENT OF THE CASE.................

ER gS Sel er rr

I cnc cccrucceclebveeeenes
REASONS FOR GRANTING THE WRIT ......

I.

The Ninth Circuit Erred In Holding That Federal
Admiralty Law Does Not Preempt The Applica-
tion Of State Overtime Laws To Maritime Em-
ployment On The High Seas .................

II.

The Ninth Circuit Erred In Holding That The Fair
Labor Standards Act Does Not Preempt The
Application Of State Overtime Laws To Maritime
Employment On The High Seas ..............

SE

10

10

EE ores wees ee dees essen A-1 — A-85

iv

TABLE OF AUTHORITIES

Cases
Page

Agsalud v. Pony Express Courier Corp. of America,

833 F.2d 809 (9th Cir. 1987) ................ 4
Branch v. Schumann,

445 F.2d 175 (Sth Cir. 1971)... 0... cccccccece 14
Byrd v. Byrd,

657 F.2d 615 (4th Cir. 1981) .............06. 14
C.M. Rousseau, Jr. v. Teledyne Movable Offshore, Inc.,

619 F. Supp. 1513 (D.La. 1985), cert. denied,

GT I ED o.0.db dn cc cdepesccctacives 12
California Fed. Sav. & Loan Assn. v. Guerra,

Be eee 4
Chelentis v. Luckenbach Steamship Co., Inc.,

ee Se EY 5 wkceddscuevewenseeeses ex 14
Coastal Iron Works, Inc. v. Petty Ray Geophysical,

783 F.2d 577 (5th Cir. 1986) .............6.. 14
De Canas v. Bica,

le cn cuss oeneekncecen ous 4

Evich v. Morris,
819 F.2d 256 (9th Cir. 1987), cert. denied,
ee ee i a eee ea hasan es 14

Indiana Civil Rights Commission v. American
Commercial Barge Line Co.,
523 N.E.2d 241 (Ind. App. 1988), cert. denied,

ee ee ee oe Ce webeue 14
Knickerbocker Ice Co. v. Stewart,
Bik Se 2. eee 3, 10, 19, 21, 22, 23

Kossick v. United Fruit Co.,
ee a haves ee wan 14

v

TABLE OF AUTHORITIES

CASES

Miles v. Apex Marine Corp.,
498 U.S. —_, 111 S.Ct. 317, 112 L.Ed.2d 275
SEE AeA cca ka hehe es vas ee ee eee eae s 3,17

Mobil Oil Corp. v. Oil, Chemical and Atomic
Workers, International Union, AFL-CIO,

504 F.2d 272 (Sth Cir. 1974) .............. 13, 23, 24
Nelson v. United States,

639 F.3d 460 (Oth Cir. 1960) ......cccccecess 14
Offshore Logistics, Inc. v. Tallentire,

et eS | ee re 10, 14, 21, 22

Oil, Chemical & Atomic Workers, International
Union, AFL-CIO v. Mobil Oil Corp.,

GP Ga Ie CE eo ch oh eeasscaccesccs 14, 20, 21, 23
Pettis Moving Co., Inc. v. Roberts,

784 F.2d 489 (2d Cir. 1986) ................. 4
Ramsauer v. United States,

ee ee ee Ce eNO ovo ie wie CNeacaes 12

Sorensen v. City of New York,
202 F.2d 857 (2d Cir. 1953), cert. denied,

Se We NED ag vac kciva sew cesses eeun 11
Southern Pacific Co. v. Jensen,

ee Re Fs er ee 10, 11, 14, 21
State of Washington v. W.C. Dawson & Co.,

ee ee I ics wawevccusscaasenanks 19, 22
Sun World Lines, Lid. v. March Shipping Corp.,

801 F.2d 1066 (8th Cir. 1986) ............... 14

The Youngstown,
110 F.2d 968 (5th Cir. 1940), cert. denied,
ee Cee ee ED 6 koh web eee cae kl cee eben. 12

Nisin

vi

TABLE OF AUTHORITIES

CASES
Page
Union Fish Co. v. Erickson,
Sane rh rs See 11
United States v. California,
ee ge 13
Watz v. Zapata Off-Shore Co.,
431 F.2d 100 (5th Cir. 1970) ................ 14
West Coast Hotel Co. v. Parrish,
BO Se Pe COD 6k ooo chk hve 4
Williams v. W.M.A. Transit Co.,
472 F.2d 1258 (D.C. Cir. 1972) .............. 4

3 ccceaiiataenaiiataatatiaaaaatcae iia

vil

TABLE OF AUTHORITIES
Federal Statutes

Page
United States Constitution
Article III, Section 2, Clause 1............... 2
28 United States Code
ED cc eccccvecvudecuaveswcunsnss 2
SS LEE EET PETE TTT ET TICE ETE TE 3
29 United States Code
cnt veseaceveeuwbtheawenaes 20
eR PPP eerrreererrrreere ie 15
cc cceccceeusnsevevancevessas 16
I IS go cco cccnseesveesseetwees 16
eR NOD oc cccccrcccececeveseuesess 2
EIT PTET ECT E TEETER Ce 3,18
46 United States Code
I Ee OF OO noc ce cccureservereccseees 21
I ys cues cate cect eavceeweeenseeuts 21
I UD 66 kc ocevescccttarecemeees 13
Mostiows TITANS 2c cc ccccccccsccescenevces 7
es ccc b ev peuswevesuenseues 7
ee ARIE cov cccucvocessevvccncuns 13
ee BNO 6 ccc rte vcvescncvvesssesecs 7
cst cssesssetercewesess eh 7
ee ck eee redue wee eee eee eee es 7
I NEED . vccccveeccusssueoocoses 5
a EEE on occ ckccesenceasvenctes 5
i ga vn ese eee eeeenbeennt> 5

viii
TABLE OF AUTHORITIES
State Statutes

Page
Alaska
gS 8 ee er errr 9
California
Re 8 re 8
Wage Order 4-80, 8 Cal. Code Regs.
ee OE, ss ss wo nn 66% wens 3, 8, 9, 15
Connecticut
Gem. Beat. Gootion S1-7E) .. .. ww cece ce cwceses 9
Hawaii
mov. Stat. Geotion SETOla) .. 2. ccc cccccccccss 9
Maine
Rev. Stat. Ann., tit. 26, Section 664........... 9
Massachusetts
Gen. Laws Ann., ch. 760, Section 1A.......... 9
Minnesota
Stat. Section 177.23(7) (1)-(19) .............. 9
North Carolina
Gen. Stat. Section 95-25.14(c) ............... 9
Pennsylvania
Min. Wage Act Section 5(b) ................. 9
Washington

Rev. Code Section 49.46.130(1) .............. 9

ix

TABLE OF AUTHORITIES

Treatises
Page
Friedell, Benedict on Admiralty (7th Ed. 1987) .. 14
Norris, The Law of Seamen (4th Ed. 1985) ...... 13
Miscellaneous

Joint Hearings on S. 2475 and H.R. 7200 Before the
Senate Comm. on Educ. and Labor and the House
Comm. on Labor, 75th Cong., lst Sess., 81 Cong.
Rec.—Part 7, p. 7875 (1987) ..........ccc0e- 18

No.

In the Supreme Court

OF THE

United States

OCTOBER TERM, 1991

PACIFIC MERCHANT SHIPPING ASSOCIATION,
AMERICAN INSTITUTE OF MERCHANT SHIPPING,
OFFSHORE MARINE SERVICE ASSOCIATION,
WESTERN OIL & Gas ASSOCIATION AND CLEAN SEAS,
Petitioners,
vs.

LLOYD W. AUBRY, JR., LABOR COMMISSIONER,
DIVISION OF LABOR STANDARDS ENFORCEMENT,
DEPARTMENT OF INDUSTRIAL RELATIONS,
STATE OF CALIFORNIA,

Respondent.

On Writ of Certiorari to the United States
Court of Appeals for the Ninth Circuit

PETITION FOR WRIT OF CERTIORARI

Petitioners pray that a writ of certiorari issue to review
the judgment and opinion of the United States Court of
Appeals for the Ninth Circuit entered in these proceed-
ings on November 13, 1990.

2

OPINIONS BELOW

The majority and dissenting opinions of the Ninth
Circuit Court of Appeals are reported at 918 F.2d 1409
and are reprinted in the Appendix beginning at A-1.

The opinion of the United States District Court for the
Central District of California that granted Petitioners’
motion for summary judgment is reported at 709 F.Supp.
1516 and is reprinted in the Appendix beginning at A-46.

JURISDICTION

Petitioners invoke the jurisdiction of this Court pursu-
ant to 28 U.S.C. § 1254(1). The judgment of the Ninth
Cireuit Court of Appeals was entered on November 13,
1990. Petitioners’ timely petition for rehearing with sug-
gestion for rehearing en banc was filed on November 27,
1990, and was denied by the Ninth Circuit on May 28,
1991. See Appendix at A-45.

CONSTITUTIONAL, STATUTORY AND
OTHER AUTHORITY INVOLVED

Article III, Section 2, Clause 1 of the United States
Constitution provides, in pertinent part:

“The judicial power shall extend ... to all cases of
admiralty and maritime jurisdiction.”

Section 13(b) (6) of the Fair Labor Standards Act, 29
U.S.C. § 213(b) (6), provides:

“The provisions of section 207 of this title [relating
to maximum hours and overtime compensation] shall
not apply with respect to —

(6) any employee employed as 4 seaman.”

3

Section 18(a) of the Fair Labor Standards Act, 29
U.S.C. § 218(a), provides, in pertinent part:

“No provision of this chapter or of any order there-
under shall excuse noncompliance with any Federal
or State law or municipal ordinance establishing ...
a maximum workweek lower than the maximum work-
week established under this chapter... .”

California Wage Order 4-80, 8 Cal. Code Regs.
§$§ 11040, et seg., regulates the wages, hours and working
conditions of professional, technical, clerical, mechanical
and similar land-based occupations. Wage Order 4-80 is
reprinted in the Appendix beginning at A-68.

STATEMENT OF THE CASE
1.

Introduction

For over two centuries, maritime employers operating
vessels on the high seas have governed their employment
practices with reference to a uniform system of federal
admiralty law applicable throughout the nation. This case
arises from Respondent’s unprecedented attempt to im-
pose a state scheme of wage and hour regulation onto a
conflicting federal scheme where uniformity is constitu-
tionally mandated.’

Exercising jurisdiction under 28 U.S.C. $1331, the
District Court (Judge A. Wallace Tashima) granted Peti-
tioners’ motion for summary judgment and declared Cali-
fornia’s overtime laws to be preempted insofar as
Respondent seeks to apply those laws to maritime em-

‘This Court has long recognized the constitutional mandate for a
uniform body of federal admiralty law. Knickerbocker Ice Co. v.
Stewart, 253 U.S. 149, 164 (1920). Accord Miles v. Apex Marine Corp.,
498 U.S. ___.,, 111 S.Ct. 317, 322, 112 L.Ed.2d 275 (1990).

+

ployment on the high seas. In a 2 to 1 decision, the Ninth
Circuit reversed the trial court’s judgment, issuing a
majority opinion (authored by Judge Harry Pregerson)
and a separate dissenting opinion (authored by Senior
Judge William P. Copple). Relying exclusively on inappo-
site cases involving land-based workers, the Ninth Circuit
majority upheld Respondent’s actions based on Califor-
nia’s traditional “police powers” over its “resident work-
ers.” (Appendix at A-11.)’

The Ninth Circuit majority opinion misconstrues the
analytical framework applicable to issues of maritime
preemption and misapprehends the controlling facts of
this case. Contrary to the controlling legal premise of the
majority opinion, the issues raised by this admiralty case
cannot properly be addressed under a standard, land-
based preemption analysis. The majority opinion fails to
recognize that a maritime preemption case presents a
fundamentally different set of constitutional issues than is
raised in other types of preemption cases.

In addition, contrary to the controlling factual premise
of the majority opinion, this case does not involve the
application of a limited state law to a narrow category of
maritime workers who are employed “off the California
Coast” and who do not engage in “voyages.” (Appendix
at A-11.) As the District Court properly found, Respon-
dent has expressed his sworn intent to apply California’s

* All of the labor cases cited by the Ninth Circuit majority in
deciding this admiralty case involved land-based employees such as
migrant farmworkers, De Canas v. Bica, 424 U.S. 351 (1976), bank
tellers, California Fed. Sav. & Loan Assn. v. Guerra, 479 U.S. 272
(1987), chambermaids, West Coast Hotel Co. v. Parrish, 300 U.S. 379
(1937), and truck drivers, Agsalud v. Pony Express Courier Corp. of
America, 833 F.2d 809 (9th Cir. 1987), Pettis Moving Co., Inc. v.
Roberts, 784 F.2d 439 (2d Cir. 1986), and Williams v. W.M.A. Transit
Co., 472 F.2d 1258 (D.C. Cir. 1972).

5

overtime laws to maritime workers engaged in (i) coast-
wise voyages, (ii) voyages between California and Canada
or Mexico and (iii) voyages between the Pacific and Gulf
Coasts.’ Respondent has further expressed his sworn
intent to enforce this policy regardless of whether the
maritime employees in question entered into employment
contracts in California or are residents of California or
some other state. These are the controlling facts of this

case.*

*Respondent has only eschewed regulatory authority over vessels
engaged in “foreign” or “intercoastal” voyages as those terms are
defined by the Shipping Act. 46 U.S.C. 10301(a)(1) and
10301 (a) (2). (Appendix at A-57 — A-58.) A voyage between Califor-
nia and any other state on the Pacific or Gulf Coasts is not an
“intercoastal” voyage, and a voyage between California and Canada
or Mezico is not a “foreign” voyage. Respondent’s regulatory ‘re-
straint” also fails to encompass “coastwise” voyages; 1.¢., voyages
between ports in different (non-adjacent) states on the same coast.
46 U.S.C. § 10501.

It is uncontroverted that many of the members of Petitioner trade
associations operate vessels engaged in coastwise voyages, as well as
in voyages between California and Mexico or Canada, or between
California and ports on the Gulf Coast. For the sake of analytical
expedience, the Ninth Circuit majority opinion simply brushes aside
these employer-parties as if they didn’t exist, and proceeds to analyze
_ this action as if it were a two-boat, two-employer case. This factual
error inevitably taints the majority’s analysis and inflicts great
injustice on the vast majority of maritime employers involved in this
case.

*Respondent’s designated policy expert on maritime employment
testified as follows during his deposition:

“Q. [A vessel] is permanently stationed outside the territorial
boundaries of the State of California...,and you have got
employees working on the vessel. Some reside in Nevada;
some reside in Oregon; some reside in California. Do you
have jurisdiction —

A. Yes. (continued ...)

6

The District Court correctly concluded that Califor-
nia’s overtime laws (i) conflict with those provisions of
the Fair Labor Standards Act that relate to maritime
employment and (ii) otherwise impinge upon established
principles of federal admiralty law. In reaching this
conclusion, the District Court embraced the “common
sense’’ notion that rules applicable to land-based employ-
ees working fixed schedules at fixed locations are inher-
ently ill-suited to the unique working conditions of
seamen aboard vessels plying the high seas. Petitioners
respectfully submit that a proper assessment of this case
based on (i) the correct analytical framework, (ii) the
controlling facts and (iii) a modicum of common sense,
compels the conclusion that California’s overtime laws
must be found preempted to the extent that they are
applied to regulate the employment of maritime workers
on the high seas.

Il.
Factual Background

The members of Petitioner trade associations own and
operate vessels registered and regulated pursuant to
federal law and provide maritime employment to individu-

*’... continued)
7 o a ©

Even [over] the Oregon residents?
That’s right. I think so.

Even [over] the Nevada resident?
Right.

a

Q. Do you think that [Respondent] can properly exercise juris-
diction over a non-California resident, non-California inhabi-
tant whose work situs is outside the State of California?

A. Yes.”

Sebo acs.

7

als who are licensed as masters, mates or engineers by the
United States Coast Guard (“USCG”’), or who are other-
wise certificated by the USCG as seamen.” It is common
for these maritime employers to employ on the same
vessel, during the same work period, employees who re-
side in many different states. These employees normally
work continuous periods of service that can last from
days to months depending upon the length of a particular
voyage or other factors. During any given period of
service, an employee will typically live and work on the
vessel until the conclusion of the period of service.

Petitioner Clean Seas is an unincorporated joint under-
taking formed to contain and clean up marine oil spills
and perform other maritime activities. To accomplish its
environmental protection mission, Clean Seas operates
Mr. Clean III, a 181 foot, 292 gross ton ocean-going vessel.
Mr. Clean III is permanently stationed on the high seas
over the Point Pedernales and Point Arguello oil fields on
the Outer Continental Shelf, four to ten nautical miles off
the California Coast. Except when it is actually underway,
Mr. Clean III is normally tied to a mooring buoy located
approximately seven nautical miles off the California
Coast.®

‘The usce has broad regulatory authority with respect to the
licensure and certification of masters, mates, engineers and other
maritime employees. 46 U.S.C. §§ 7101-7114, 7302, 8101(g), 8304(c)
and 8701.

°Since June of 1986, Mr. Clean III has continuously been on station
over the Point Pedernales and Point Arguello oil fields, excepting a
two-month period in a shipyard for the installation of a marine fire-
fighting system, occasional visits to port for repairs, resupply or
annual USCG inspections, and a three-month open ocean oil spill
recovery assignment off the coast of Alaska in connection with the
Prince William Sound oil spill.

8

Mr. Clean III is manned by rotating 12-member crews
consisting of a licensed master, mate and engineer, and
nine USCG-certificated seamen. These individuals are
permanently assigned to Mr. Clean III and the vessel is
their sole work situs. The crewmembers assigned to Mr.
Clean III normally work either 14-day or 7-day periods of
service aboard the vessel, alternating with 14-day or 7-day
periods of leave on shore. Crewmembers are transported
fifty miles via helicopter from California to Mr. Clean III’s
permanent station on the high seas at the beginning and
end of their periods of service.

Respondent is responsible for enforcing California’s
wage and hour laws. These laws are codified in a series of
industrial and occupational Wage Orders issued by the
California Industrial Welfare Commission (“IWC’’). The
IWC has been delegated authority to promulgate Wage
Orders to regulate the wages, hours and working condi-
tions of employees “in’’ California. Cal. Lab. Code § 1173
(emphasis added). Pursuant to this statutory authority,
the IWC has issued Wage Orders covering employees in
12 industries and three occupational groups. Among these
Wage Orders is Wage Order 4-80, which is expressly
limited to professional, technical, clerical, mechanical,
and similar land-based occupations. (Appendix at A-68 —
A-85.)

Commencing in 1987, Respondent began to assert the
right to exercise jurisdiction over, investigate, adjudicate
and prosecute the wage claims of seamen and other
maritime employees, and to do so regardless of whether
the vessels on which these employees work are normally
situated within the state’s territorial waters or operate
entirely on the high seas. In a series of cases involving
Petitioner Clean Seas and other maritime employers,
Respondent exercised jurisdiction over the wage claims of

9

employees assigned to work as members of the crews of
American flag vessels in navigation on both the high seas
and California’s territorial waters. In adjudicating these
claims pursuant to Wage Order 4-80, Respondent coilec-
tively awarded the 12 seamen involved over $800,000 in
overtime pay and interest for periods of employment of
less than 18 months. This collective award essentially
required that crewmembers be compensated at an annual
rate of close to $70,000 for work they had agreed in
writing to perform for as little as $9 an hour.

Wage Order 4-80 is expressly designed to regulate the
wages, hours and working conditions of land-based em-
ployees such as librarians, dental hygienists, bank tellers
and legal secretaries. (Appendix at A-69 — A-70.) Re-
spondent contends that Wage Order 4-80 applies equally
to maritime employment on the high seas. This unprece-
dented state regulatory policy is wholly inimical to well-
settled principles of federal admiralty law and has caused
great concern and confusion within the maritime indus-
try. As a result, Petitioner trade associations (represent-
ing over 100 individual maritime employers) have joined
Clean Seas in this litigation.’

"Petitioners are unaware of any coastal state other than California
that has asserted jurisdiction to apply its overtime laws to maritime
workers employed primarily on the high seas. Indeed, many coastal
states, including the only other state (1.e., Alaska) with a daily
overtime requirement, expressly exempt seamen from their land-
based wage and hour laws. See Alaska Stat. § 23.10.060; Wash. Rev.
Code § 49.46.130(1); N.C. Gen. Stat. 95-25.14(c); Conn. Gen. Stat.
§ 31-761; Mass. Gen. Laws Ann., ch. 760, § 1A; Me. Rev. Stat. Ann.,
tit. 26, § 664; Minn. Stat. § 177.23(7)(1)-(19); Pa. Min. Wage Act
§ 5(b); and Hawaii Rev. Stat. § 387-3(a).

10

REASONS FOR GRANTING THE WRIT

I

The Ninth Circuit Erred In Holding That Federal! Ad-
miralty Law Does Not Preempt The Application Of
State Overtime Laws To Maritime Employment On
The High Seas
The Ninth Circuit majority opinion employs a land-

based preemption analysis predicated on the erroneous

assumption that this case involves the exercise of tradi-
tional state police powers over the employment of resi-
dent workers. The majority state:

“(I]n addressing the preemption question before us,
‘we start with the assumption that the historic pow-
ers of the States were not to be superseded by
[federal legislation] unless that was the clear and
manifest purpose of Congress.’ ”’
(Appendix at A-11, emphasis in original.) However, the
point of departure in a maritime preemption case is not
the sanctity of the states’ police powers, but rather the
constitutional requirement that Congress and the federal
courts develop and maintain a uniform and harmonious
system of national maritime law. Southern Pacific Co. v.
Jensen, 244 U.S. 205 (1917); Knickerbocker Ice. Co. v.
Stewart, 253 U.S. 149.° The preemption analysis adopted

"In Jensen, this Court established principles of maritime preemp-
tion that still govern the admiralty area today. See Offshore Logistics,
Inc. v. Tallentire, 477 U.S. 207 (1986).

This Court stated in Jensen:

“(I]t must now be accepted as settled doctrine that... Congress
has paramount power to fiz and determine the maritime law which
shall prevail throughout the country.

(continued .. .)

11

by the Ninth Circuit majority flies in the face of this
constitutional mandate.

Under the general maritime law of the United States,
maritime workers and their employers are free to deter-
mine, pursuant to agreement, the wages, hours and work-
ing conditions applicable to maritime employment. (See
Ninth Circuit dissenting opinion, Appendix at A-40 —
A-41.) Unlike many industries, the written employment
agreement is a common (and, at times, statutorily-man-
dated) feature of maritime employment, and it is gener-
ally viewed as the governing “law” with respect to such
employment.’ Absent an express contractual right to
overtime pay, the admiralty law does not require that a
seaman receive such pay. Sorensen v. City of New York,
202 F.2d 857, 858-859 (2d Cir. 1953), cert. denied, 347

8’... continued)

[N]o [state] legislation is valid if it contravenes the essential
purpose expressed by an act of Congress, or works material
prejudice to the characteristic features of the general maritime
law, or interferes with the proper harmony and uniformity of that
law in its international and interstate relations.”

244 U.S. at 215, 216 (emphasis added).

*In Union Fish Co. v. Erickson, 248 U.S. 308 (1919); this Court held
California’s statute of frauds to be preempted and concluded that any
claim under a maritime employment contract must be resolved
pursuant to federal admiralty law.

“In entering into this [employment] contract the parties con-
templated no services in California. They were making an en-
gagement for the services of the master of the vessel, the duties to
be performed ... mainly upon the sea. The maritime law controlled
in this respect, and was not subject to limitation because the
particular engagement happened to be made in California. The
parties must be presumed to have had in contemplation the system
of maritime law under which it was made.”

Id. at 313 (emphasis added).

in iinet

12

U.S. 951 (1954) (court finds no federal statutory require-
ment to pay overtime to seamen). Concomitantly, the
admiralty law does not recognize an implied legal right to
overtime pay. Ramsauer v. United States, 21 F.2d 907, 908
(9th Cir. 1927) (court finds no implied right to overtime
under the admiralty law). Accord C.M. Rousseau, Jr. v.
Teledyne Movable Offshore, Inc., 619 F. Supp. 1513,
1518-1519 (D.La. 1985), cert. denied, 484 U.S. 827 (1987)
(maritime employees held bound by employment agree-
ment with respect to overtime claim). Rather, the right to
overtime pay for maritime work has traditionally been
governed exclusively by the employment agreement. The
Youngstown, 110 F.2d 968, 970 (5th Cir. 1940), cert.
denied, 311 U.S. 690 (1940) (overtime performed and
paid for in accordance with employment contract fully
complies with the federal admiralty law).

The lack of an express overtime pay requirement for
seamen under the federal admiralty law in no way reflects
a lack of Congressional concern for the welfare of seamen.
Throughout the history of the United States, seamen (as
“wards of admiralty”) have been the beneficiaries of
special federal statutory and common law protections
wholly inapplicable to land-based workers.

“It has been truly said that the seaman is the ward of
the legislature for perhaps no other class of worker
has received from a national legislative body the pro-
tection, care and the degree of solicitude as that given
to merchant seamen. Practically every phase of the
seaman’s working conditions aboard ship from the
time he first ships out as an apprentice or as an
ordinary seaman, to the disposal of his estate at his
decease, has been accorded legislative attention.

13

Chief among these are the statutes governing his
wages.”

Norris, The Law of Seamen, § 121, p. 424 (4th Ed. 1985)
(emphasis added). A statutory illustration of these facts
is found in subtitle II of Title 46 of the United States
Code. See 46 U.S.C. §§ 2101-14702." This subtitle consists
of a codification of most of the federal maritime safety
and seamen protection laws, including laws regulating the
wages, hours and working conditions of seamen employed
on vessels engaged in various types of voyages. Jd. at
§§ 8101-11507. This comprehensive federal scheme pro-
vides evidence that Congress understood the need for,
and intended to create, a uniform body of federal law to
govern the wages, hours and working conditions of mari-
time employees, and that Congress left no room for the
states to intrude within this legisla ‘ve sphere.

The Ninth Circuit majority concluded that California’s
interest in applying its overtime laws to maritime employ-
ment outside the territorial waters of the state supersedes
any competing federal interests in such employment. This
conclusion simply will not float. As this Court has stated:
“(N]ational interests, responsibilities, and therefore na-
tional rights are paramount in waters lying to the sea-
~ward [of] the three-mile belt.” United States v. California,
332 U.S. 19, 36 (1947). A state surely has no greater
interest in applying its wage and hour laws to maritime
employment (particularly where such employment takes
place on the high seas) than it does in applying its
workers’ compensation laws, employment discrimination

4 good overview of the substantial statutory and common law
protections that have historically been afforded general maritime law
seamen is found in Motil Oil Corp. v. Oil, Chemical and Atomic
Workers, International Union, AFL-CIO, 504 F.2d 272, 284 and n. 6
(5th Cir. 1974).

14

laws, wrongful death laws or right-to-work laws, all of
which have been held preempted by the federal maritime
law.”

See Offshore Logistics, Inc. v. Tallentire, 477 U.S. 207; Oil, Chemical
& Atomic Workers, International Union, AFL-CIO v. Mobil Oil Corp.,
426 U.S. 407 (1976); Southern Pacific Co. v. Jensen, 244 U.S. 205; and
Indiana Civil Rights Commission v. American Commercial Barge Line
Co., 523 N.E.2d 241 (Ind. App. 1988), cert. dented, 492 U.S. 920
(1989).

Through the years, this Court and other federal courts have applied
the maritime preemption principles established in Jensen to invali-
date dozens of state laws. See, ¢.g., Offshore Logistics, Inc. v. Tallen-
tire, 477 U.S. 207 (state wrongful death statutes held preempted by
the federal maritime law); Kossick v. United Fruit Co., 365 U.S. 731
(1961) (state statute of frauds held preempted by the federal
maritime law); Chelentis v. Luckenbach Steamship Co., Inc., 247 U.S.
372 (1918) (state indemnity law held preempted by the federal
maritime law); Evich v. Morris, 819 F.2d 256 (9th Cir. 1987), cert.
denied, 484 U.S. 914 (1987) (California survivor law held preempted
by the federal maritime law); Nelson v. United States, 639 F.2d 469
(9th Cir. 1980) (California wrongful death statute held preempted by
the federal maritime law); Sun World Lines, Ltd. v. March Shipping
Corp., 801 F.2d 1066 (8th Cir. 1986) (state contract law held
preempted by the federal maritime law); Coastal Iron Works, Inc. v.
Petty Ray Geophysical, 783 F.2d 577 (5th Cir. 1986) (state trade
practices law held preempted by the federal maritime law); Byrd v.
Byrd, 657 F.2d 615 (4th Cir. 1981) (state interspousal immunity law
held preempted by the federal maritime law); Branch v. Schumann,
445 F.2d 175 (5th Cir. 1971) (state standard of care held preempted
by the federal maritime law); Watz v. Zapata Off-Shore Co., 431 F.2d
100 (5th Cir. 1970) (state statute of limitation held preempted by the
federal maritime law); and Friedell, Benedict on Admiralty, §§ 112, et
seq., pp. 7-45 (7th Ed. 1987), and over 50 cases cited therein.

‘ —

15

Il.

The Ninth Circuit Erred In Holding That The Fair
Labor Standards Act Does Not Preempt The Applica-
tion Of State Overtime Laws To Maritime Employ-
ment On The High Seas

The District Court and the Ninth Circuit majority
agreed that the Fair Labor Standards Act (‘““FLSA’’), 29
U.S.C. §$§ 201, et seg., and California’s wage and hour laws
(including Wage Order 4-80) are patently inconsistent
with each other. (Appendix at A-21 and A-61.) As applied
to maritime workers, these state and federal laws impose:
(i) different minimum wage rates; (ii) different methods
of calculating hours worked; (iii) different overtime re-
quirements; (iv) different overtime exemptions; and
(v) different methods for calculating the overtime rate of
pay.

The legislative history of the FLSA provides ample
evidence that Congress recognized (i) the unique nature
of maritime employment, (ii) the preexistence of a well-
developed body of federal law to govern such employment
and (iii) the overriding importance of preserving uni-
formity in the regulation of such employment. As origi-
nally enacted in 1938, the FLSA expressly exempted all

“These conflicts are not just legal abstractions; they have real life
consequences. A non-exempt maritime employee working the same
schedule (1.¢., 12 hours per day for seven consecutive days at $10 per
hour) for the same employer on the same vessel would be entitled to
$1,502 more per week under California law than he would be entitled
to under federal law. Multiply this amount by 26 weeks (assuming
that the worker gets every other week off) and you have a $39,052
annual chasm between the state and federal requirements for a $10
per hour employee. Muitiply this $39,052 figure by thousands of
employees and the staggering financial implications of Respondent’s
ill-considered enforcement position become clear.

16

seamen from its minimum wage and maximum hour provi-
sions. In subsequent years, including 1945, 1948, 1955
and 1961, repeated efforts were made to repeal this
complete exemption for seamen. During the many Con-
gressional hearings held to consider such a repeal, repre-
seutatives from the maritime industry testified at length
regarding the unsuitability of land-based wage and hour
rules to maritime employment. Congress was told that
rules used to calculate the hours worked by land-based
employees are simply inapplicable to maritime employ-
ment where employees work and live on vessels for ex-
tended periods of service. Congress was further advised
that the FLSA’s overtime requirements are ill-suited to
maritime employment, and that the maximum hour pro-
tections afforded seamen under the Shipping Act are
sufficient to ensure employee safety and prevent over-
work. Finally, Congress was warned that the extension of
the FLSA’s overtime provisions to seamen would destroy
existing principles of uniformity in the federal admiralty
law under which maritime employers had governed their
conduct for decades.

Congress did amend the FLSA in 1961 to extend the
Act’s minimum wage provisions to seamen employed on
American flag vessels. 29 U.S.C. § 206. In taking this
action, however, Congress also established a special
method by which the hours worked by seamen are to be
calculated. 29 U.S.C. § 206(a) (4). Congress thereby reaf-
firmed its view that many of the wage and hour rules
developed for land-based employees are simply ill-suited
for application to sea-based employment. At the same
time, Congress again declined to repeal the overtime
exemption for seamen. Indeed, Congress has seen fit to
retain this exemption for over fifty years despite repeated
legislative attempts at repeal.

17

As recently as last term, this Court emphasized the
importance of affording substantial deference in admi-
ralty cases to the policy considerations underlying those
federal statutes that govern the maritime area. In Miles v.
Apex Marine Corp., 498 U.S. —_, 111 S.Ct. 317, 323, this
Court stated:

“In this era, an admiralty court should look prima-
rily to... legislative enactments for policy guidance.
We may supplement the statutory remedies where
doing so would achieve the uniform vindication of such
policies consistent with our constitutional mandate, but
we must also keep strictly within the limits imposed by
Congress. Congress retains superior authority in these
matters, and an admiralty court must be vigilant not to
overstep the well-considered boundaries imposed by fed-
eral legislation. These statutes both direct and limit
our actions” (emphasis added).

Here, the manifest purpose behind the overtime exemp-
tion for seamen in the FLSA was to free maritime
commerce from impractical land-based wage rules and
preserve the preexisting uniformity in maritime wage regu-
lation. In enacting the FLSA, Congress never intended
the wages, hours and working conditions of seamen and
other maritime employees to be subject to a myriad of
conflicting and potentially ever-changing state laws and
regulations.”®

The Ninth Circuit majority was unable to glean any Congres-
sional intent from the FLSA’s legislative history to preclude the
application of state overtime laws to seamen or other maritime
employees. The majority concede, however, that “Congress intended
to prevent overlapping regulation of wage and hour conditions of
seamen by different federal agencies.” (Appendix at A-17, emphasis
added.) Indeed, during the Congressional hearings preceding the

(continued .. .)

18

Given the patent conflicts between the FLSA and
California’s wage and hour laws, the District Court and
the Ninth Circuit agreed that a finding of preemption in
this case would be automatic were it not for the FLSA’s
state law savings provision. 29 U.S.C. §218(a). This
provision provides, in pertinent part, as follows:

“No provision of this Chapter or of any order there-
under shall excuse noncompliance with any Federal
or State law or municipal ordinance establishing a
minimum wage higher than the minimum wage estab-
lished under this Chapter or a maximum workweek
lower than the maximum workweek established under
this Chapter.”

The FLSA’s savings provision has been construed to
permit state legislatures in regulating land-based employ-
ment to enact higher minimum wage rates and lower
maximum workweek standards than those set forth in the
FLSA.

" (... continued)

enactment of the FLSA, Senator (later Supreme Court Justice)
Black stated:

“(I]t was the policy of the committee, in cases where regulation
of hours and wages are given to other governmental agencies, to
write the bill in such way as not to conflict with such regulation.
That action was taken with reference to maritime workers.”

See Joint Hearings on S. 2475 and H.R. 7200 Before the Senate Comm.
on Educ. and Labor and the House Comm. on Labor, 75th Cong., Ist
Sess., 81 Cong. Rec.—Part 7, p. 7875 (1937). The Ninth Circuit
majority simply defy logic by concluding that Congress, in enacting
the seamen exemption and other special maritime provisions of the
FLSA, sought to safeguard maritime commerce from overlapping
federal regulations while simultaneously exposing such commerce to
a crazy-quilt patchwork of conflicting state regulation.

19

It is axiomatic that Congress may not delegate its
legislative authority over maritime matters to the States.
In Knickerbocker Ice Co. v. Stewart, 253 U.S. 149 (1920),
this Court addressed the constitutionality of an act
through which Congress sought to grant the states au-
thority to apply their workers’ compensation laws to
maritime employment. In holding such action to be an
unconstitutional delegation of legislative power, this
Court stated:

“TWle conclude that Congress undertook to permit
application of Workmen’s Compensation Laws of the
several states to injuries within the admiralty and
maritime jurisdiction....And, so construed, we
think the enactment is beyond the power of Congress.
Its power to legislate concerning rights and liabili-
ties within the maritime jurisdiction, and remedies
for their enforcement, arises from the Constitution
.... The definite object of the [constitutional] grant
was to commit direct control to the Federal govern-
ment; to relieve maritime commerce from unneces-
sary burdens and disadvantages incident to
discordant legislation; and to establish, so far as
practicable, harmonious and uniform rules applicable
throughout every part of the Union.”

Id. at 163-164 (emphasis added). Accord State of Wash-
ington v. W.C. Dawson & Co., 264 U.S. 219, 227 (1924)
(“{[C]ongress has power to alter, amend or revise the
maritime law by statutes of general application ...; but
[this power] may not be delegated to the several states’

(emphasis added) ).

Consistent with this Court’s holdings in Knickerbocker
Ice and State of Washington, the District Court found that
the FLSA’s savings provision would represent an uncon-
stitutional delegation of legislative authority to the states

20

if held applicable to maritime employment on the high
seas. (Appendix at A-62.) The District Court therefore
construed the savings provision properly in finding it to
be inapplicable to all maritime employees whose work
situs is a vessel normally situated on the high seas.

The District Court’s construction of the FLSA’s sav-
ings provision is entirely consistent with the limiting
constructions that this Court has placed on the much
broader savings provisions found in other federal laws
regulating maritime matters on the high seas. In Oil,
Chemical & Atomic Workers, International Union,
AFL-CIO v. Mobil Oil Corp., 426 U.S. 407 (1976), this
Court was asked to construe the scope of the savings
provision found in the National Labor Relations Act
(“NLRA”), see 29 U.S.C. § 164(b), that preserves state
“right-to-work” laws. In Mobil Oil, the operator of a fleet
of oil tankers transporting petroleum products between
Texas and certain Atlantic Coast ports sought a declara-
tory judgment invalidating an agency shop agreement
executed by a union on behalf of the certificated seamen
employed on those tankers. Th: employer argued that
since its headquarters were in Texas, and since the vast
majority of the subject seamen were residents of Texas
and had applied for employment and been hired in Texas,
the Texas right-to-work statute served to invalidate the
agency shop agreement under the NLRA’s savings provi-
sion. In sum, the employer argued (similar to Respon-
dent’s argument in this case) that since the subject
seamen had more contacts with Texas than with any other
state, the labor laws of Texas (including the Texas right-
to-work law) must be applicable to their employment.

This Court rejected these arguments because the sub-
ject employees performed most of their services aboard

21

vessels on the high seas. In reaching its conclusion, this
Court stated:

“Because most of the employees’ work is done on the
high seas, outside the territorial bounds of the State
of Texas, Texas’ right-to-work laws cannot govern the
validity of the agency shop provision at issue here. It
is immaterial that Texas may have more contacts
than any other state with the employment relation-
ship in this case .... It is therefore fully consistent
with national labor policy to conclude, if the predomi-
nant job situs 1s outside the boundary of any State, that
no State has a sufficient interest in the employment
relationship and that no State’s right-to-work laws
can apply.”

426 U.S. 407, 420-421 (emphasis added).

This Court similarly placed a limiting construction on
another federal savings provision affecting maritime af-
fairs in Offshore Logistics, Inc. v. Tallentire, 477 U.S. 207
(1986). The issue presented in Tallentire was whether the
Death On The High Seas Act (“DOHSA”), 46 U.S.C.
§§ 761, et seg., provides the exclusive remedy for the
wrongful death of a seaman employed on the high seas, or
whether a state statute may also provide a wrongful death
remedy in such a situation. In deciding this issue, this
Court was forced to construe DOHSA’s broad savings
provision that preserves “any State statute giving or
regulating rights of action or remedies for death.” 46
U.S.C. § 767. Although the actual language of this savings
provision does not exclude deaths on the high seas, this
Court held tne provision to be inapplicable to such deaths.

In Tallentire, this Court relied on the principles of
maritime law enunciated in the Jensen and Knickerbocker
Ice cases in evaluating Congress’ intent in enacting

~

22

DOHSA’s savings provision. This Court imputed to Con-
gress knowledge of the constitutional limitations on Con-
gress’ power to delegate legislative authority to the states
with respect to maritime affairs. In direct contrast to the
analysis of Congressional intent employed by the Ninth
Circuit majority in the instant case, this Court in Tallen-
tire concluded that Congress could not have intended
DOHSA’s savings provision to preserve state laws pur-
porting to regulate deaths on the high seas, since such
intent would have envisioned an unconstitutiona! delega-
tion of legislative authority to the states.

“To read [Section] 7 as intended to preserve intact
largely non-existent or ineffective state law remedies
for wrongful death on the high seas would, of course,
be incongruous. Just as incongruous is the idea that a
Congress seeking uniformity in maritime law would
intend to allow widely divergent state law wrongful
death statutes to be applied on the high seas.”

477 U.S. 207, 230 (emphasis added).

The Ninth Circuit majority opinion tip toes around this
Court’s holdings in Knickerbocker Ice and State of Wash-
ington by summarily dismissing the District Court’s rea-
soning with respect to the FLSA’s savings provision. The
majority opinion states:

‘“‘We disagree with the District Court’s holding that
section 218, if construed to allow [Respondent’s]
actions with respect to maritime employees on the
high seas, would in effect be a delegation of congres-
sional maritime powers to the state. California’s
actions in this case represent an exercise of tradi-
tional police powers firmly in place before Congress
enacted the FLSA .... Thus Congress did not ‘dele-
gate’ authority to the states through Section 218, but

23

simply made clear its intent not to disturb the tradi-
tional exercise of the states’ police powers with re-
spect to wages and hours more generous than the
federal standards. We cannot read section 218 as a
delegation, and, therefore, conclude that Knicker-
bocker Ice does not control this case.”

(Appendix at A-24 — A-25, emphasis in original.)

This analysis with respect to the FLSA’s savings provi-
sion is fundamentally wrong. Over 200 years of federal
admiralty jurisprudence confirms that the states do not
have the unfettered right to exercise ‘traditional police
powers” over maritime employment on the high seas. As
this Court has stated: “The Constitution ... took from the
states all power... to interfere with [the] proper harmony
and uniformity in [admiralty law].” Knickerbocker Ice Co.
v. Stewart, 253 U.S. 149, 160 (emphasis added). In
ratifying the Constitution and becoming states, the states
relinquished all power to enact maritime legislation that
is disruptive of the national uniformity mandated by the
Constitution.”

The idea that a state may apply its labor laws to any
maritime worker who the state decides has sufficient
“contacts” with it is wholly antithetical to the concept of a

In Mobil Oil, 426 U.S. 407, this Court upheld the reasoning of the
Fifth Circuit’s en banc dissenting opinion in that case which states:

“In no employment field is the master-servant relationship so
predominantly controlled by federal maritime law than in that
existing aboard ship between the master of the vessel and the
men who man it. Indeed, it does not appear that there is any
aspect of the employment relationship which [state] law may
properly control....In practical effect, state regulation of this
employer-employee relationship stops at the water’s edge.”

504 F.2d 272, 285 (5th Cir. 1974) (emphasis added).

24

uniform system of federal admiralty law. Regardless of
the number of “contacts” that an employee has with any
state, the paramount need for national uniformity re-
mains constant with respect to maritime employment on
the high seas. As former Justice Powell aptly noted in his
concurring opinion in Mobil Oil:

‘“Seamen... have been accorded a special status and
protection under federal maritime law unknown to
state law in the domain of the master-servant rela-
tionship. Unlike the land-based worker, the seaman’s
employment and all of the rights and restrictions
flowing therefrom, are determined by federal statutory
and admiralty law, not state law....

The consistent and traditional control by federal law
of every phase of maritime employment relationships
and contracts refutes the proposition that [an em-
ployee’s} contacts with [a state] justify injecting
state law into federal maritime affairs.’ ”’

426 U.S. 407, 421-422 (emphasis added).

In sum, the Ninth Circuit majority grievously erred in
holding that the FLSA’s savings provision can properly
be construed to preserve state laws that seek to regulate
the employment of seamen and other maritime employees
on the high seas. Since the FLSA’s savings provision is
constitutionally inapplicable to such employment, and
since California’s overtime laws are in patent conflict with
the FLSA, it follows that the state laws at issue should
properly have been held preempted by the federal admi-
ralty law.

25

CONCLUSION

For the foregoing reasons, review by this Court is
appropriate and certiorari should be granted.

ses

Respectfully submitted,

THOMAS E. HILL

Counsel of Record
CAROLINE G. SMITH
MUSICK, PEELER & GARRETT

Gary M. BRIGHT
BRIGHT & POWELL
Attorneys for Petitioners

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APPENDIX

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A-1

FOR PUBLICATION

United States Court of Appeals
FOR THE NINTH CIRCUIT

PACIFIC MERCHANT SHIPPING ASSOCIATION;
AMERICAN INSTITUTE OF MERCHANT SHIPPING;
OFFSHORE MARINE SERVICE ASSOCIATION;
WESTERN OIL AND GAS ASSOCIATION;
CLEAN SEAS,
Plaintiffs-Appellees,

VS.

LLOYD W. AUBRY, JR.,

Labor Commissioner, Division of Labor Standards
Enforcement, Department of Industrial
Relations, State of California,
Defendant-Appellant,
vs.

TIDEWATER MARINE SERVICE, INC.;
WESTERN BoaT OPERATORS, INC.,
Plaintiff /Intervenors-Appellees.

No. 89-55379 D.C. No. CV-88-0848-AWT
OPINION

Appeal from the United States District Court
for the Central District of California
A. Wallace Tashima, District Judge, Presiding

Argued and Submitted
June 5, 1990 — Pasadena, California

Filed November 13, 1990
Before: James R. Browning and Harry Pregerson,
Circuit Judges, and William P. Copple, District Judge.*

*The Honorable William P. Copple, Senior United States District
Judge, District of Arizona, sitting by designation.

A-2

OPINION
PREGERSON, Circuit Judge:

Lloyd W. Aubry (“Aubry”), California’s labor commis-
sioner, enforced California’s overtime pay laws against
Clean Seas, an employer operating vessels off the Califor-
nia coast. Pacific Merchant Shipping Association and
other shipping associations’ (“PMSA”) brought suit in
the district court on behalf of Clean Seas and other
member companies, seeking declaratory and injunctive
relief on the ground that California’s overtime pay laws
are preempted by federal admiralty law. Tidewater
Marine Service, Inc., and Western Boat Operations, Inc.
(“Tidewater”) intervened in the action after an employee
filed an overtime wage claim with the California Division
of Labor Standards Enforcement. The district court
granted summary judgment for PMSA and Tidewater,
declared Aubry’s actions preempted by federal admiralty
law, and enjoined further enforcement of California’s
overtime pay laws against Clean Seas, Tidewater, and
other maritime employers. Pacific Merchant Shipping
Ass’n v. Aubry, 709 F. Supp. 1516 (C.D. Cal. 1989). We
have jurisdiction over the district court’s final order
under 28 U.S.C. § 1291. We reverse.

BACKGROUND

I. Admiralty Terminology

At the outset, and for the sake of clarity, we explain
basic admiralty terminology used by the district court
and in this opinion.

‘American Institute of Merchant Shipping; Offshore Marine Ser-
vice Association; Western Oil and Gas Association.

a ae Le

Le eh ee eat Pier 9 er et 8 ee * TT

8 em et

Bla eS ee

~~

A-3

A. Maritime Employees:

Historically, those who work on ships have been called
“seamen.” As a matter of general maritime law, the term
“seamen” includes a broad range of marine workers
whose work on a vessel on navigable waters contributes to
the functioning of the vessel, to accomplishment of its
mission, or to its operation or welfare. See 46 U.S.C.
§ 10101(2); Norris, The Law of Seamen, §§ 2.1, 2.3, 2.10
(4th ed. 1985). “Seamen”’ is also used, in a much nar-
rower sense, in the Fair Labor Standards Act (“FLSA”),
29 U.S.C. §$§ 201-219, to define a category of maritime
workers exempted from coverage under federal overtime
pay provisions. See 29 U.S.C. § 213(b) (6).” Under federal
regulations, a “seaman” exempted from the FLSA’s over-
time pay provisions is one who works “primarily as an aid
in the operation of [a] vessel as a means of transporta-
tion, provided he performs no substantial amount of work
of a different character.” See 29 C.F.R. § 783.31 (1989). A
“substantial amount of work of a different character” is
more than 20 percent of the time worked by an employee
during any given work week. 29 C.F.R. § 783.37 (1989).

This appeal involves workers who are FLSA-exempt
“seamen” and workers who, while not exempted from the
F'LSA’s overtime pay provisions, are still “seamen” in the
broader, general sense. Because the distinction is impor-

*Under the FLSA, with certain exceptions, all hours worked in
excess of 40 hours per week must be compensated at “a rate not less
than one-and-one-half times the regular rate.”’ 29 U.S.C. § 207(a) (1).
The statute also provides in relevant part:

The provisions of section 207 of this title shall not apply with
respect to —

(6) any employee employed as a seaman....

29 U.S.C. § 213(b).

A-4

tant, and to avoid confusion, we use the following terms to
describe the employees affected by this opinion: a “mari-
time employee” is a “seaman” in the general maritime
sense; and a “seaman” is a maritime employee exempted
from the FLSA’s overtime pay provisions under 29 U.S.C.
§ 213(b) (6).

B. Seas:

Two zones of “navigable waters” are involved in this
appeal. The “territorial sea” is the sea from shore to three
nautical miles off shore. The “high seas” are ocean waters
outside the territorial sea, i.e., more than three miles
offshore.

C. Voyages:

The Shipping Act, 46 U.S.C. §§ 2101-14701, divides
“voyages” into three types. “Foreign voyages” are voy-
ages between ports in the United States and ports in
foreign countries (except Canada, Mexico, and the West
Indies). See 46 U.S.C. § 10301 (a) (1). “Intercoastal voy-
ages” are voyages between ports on the Atlantic and
Pacific coasts. See 46 U.S.C. § 10301(a) (2). “Coastwise
voyages” are voyages “between a port in one State and a
port in another State (except an adjoining State).” See
46 U.S.C. § 10501(a). United States Coast Guard regula-
tions define “coastwise vessels” as those “normally navi-
gating the waters of any ocean or the Gulf of Mexico 20
nautical miles or less offshore.” 46 C.F.R. § 70.10-13
(1988).

II. Facts and Procedural History

PMSA and the other associations involved in this ap-
peal are maritime trade associations that represent
merchant maritime shippers, other maritime employers,

A-5

and employers in the oil and gas industry. Among these
organizations’ members are Clean Seas and Tidewater.
Clean Seas is an unincorporated, cooperative association,
formed by several major oil companies to contain and
clean up marine oil spills off the California coast. Tidewa-
ter provides offshore transportation and support services
worldwide, and provides transportation services to oil
drilling platforms from one to 12 nautical miles of the
California coast.

Clean Seas operates three vessels: Mr. Clean, Mr. Clean
II, and Mr. Clean III. The employees whose wage claims
led to this appeal work on Mr. Cleaa II and Mr. Clean III
(three on Mr. Clean II; nine on Mr. Clean III). Both
vessels’ duties involve control and clean up of oil spills
and other environmentally hazardous discharges in the
Santa Barbara Channel off the California coast. Mr. Clean
II is a 138-foot vessel moored in Port San Luis Harbor,
California, where it remains moored approximately one-
quarter mile offshore about 90 percent of the time. Mr.
Clean III is a 181-foot vessel permanently stationed on the
high seas off the California coast. Mr. Clean III conducts
containment and clean up operations around four oil
drilling and production platforms over the Pedernales
and Arguello oil fields, from four to ten nautical miles off
the California coast. When not on active duty, Mr. Clean
III is tied to a buoy approximately seven miles off the
California coast.

Clean Seas employees who work on Mr. Clean III are
organized into two crews of six.’ Each crew works seven
day “hitches” at sea, alternating with seven day rest
periods on shore. While at sea, Clean Seas employees

®*The record does not indicate whether Mr. Clean III crewmembers
are organized this way.

A-6

typically work 12 hour shifts, alternating with 12 hour
rest periods. Mr. Clean III crew members are transported
to the vessel by helicopter from the Santa Barbara Air-
port. Of the 12 Clean Seas employees involved in the
underlying action, two were licensed “mates” and ten,
who worked primarily on clean up operations, were certi-
fied as “seamen” by the United States Coast Guard.* The
specific terms of Clean Seas’ employees’ work are usually
set out in contracts negotiated between each employee
and Clean Seas.

Tidewater operates two types of vessels off the Califor-
nia coast. Tidewater’s supply boats are 180- to 190-foot
vessels with seven-member crews that pick up and deliver
cargo at the Port Hueneme Pier, south of Santa Barbara,
for delivery at various offshore oil platforms. Tidewater’s
crew boats are 65-foot vessels with two-member crews
that transport passengers, light supplies and mail from

‘Under applicable federal regulations, the United States Coast
Guard inspects vesseis and issues certificates to qualifying maritime
employees. See 46 C.F.R. §§ 71.01-71.75 (1988). A “mate” is a
“qualified officer in the deck department other than the master.” 46
C.F.R. § 10.103 (1989). Marine employees are certified as “seamen”
upon meeting a range of age and training requirements. 46 C.F.R.
§§ 12.01-1 to 12.25-40 (1989). Certification as a “seaman” under
Coast Guard regulations does not bear on an employee's status as a
“seaman” for purposes of exemption from federal overtime laws
under 29 U.S.C. § 213(b) (6). See 29 C.F.R. 783.31-.37 (1989).

The district court made no findings on the question whether Clean
Seas’ employees were FLSA-exempt seamen. That question is one of
fact, and must be decided by the district court. Icicle Seafoods, Inc. v.
Worthington, 475 U.S. 709, 714, on remand, Worthington v. Icicle
Seafoods, Inc., 796 F.2d 337 (9th Cir. 1986). In this case, however,
because we hold that California may apply its overtime provisions to
both the FLSA-exempt seamen and the non-exempt maritime employ-
ees involved in this suit, we need not remand the case to the district
court to determine the status of Clean Seas’ employees.

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A-7

the Carpinteria and Ellwood piers, also near Santa Bar-
bara, to offshore oil platforms. These vessels are on call at
all times. When a vessel is called, it goes to a pier to pick
up cargo or passengers, travels to its destination, and
then returns to the pier.

The employee whose wage claim led to Tidewater’s
intervention in this action was a deck engineer on a crew
boat. The parties agree that the employee is a seaman
exempted from the FLSA’s overtime provisions under 29
U.S.C. § 213(b) (6). Typically, Tidewater crew boat crews
work 7 day hitches alternating with 7 day rest periods
onshore; employees work 12 hour shifts alternating with
12 hour rest periods. The specific terms of most Tidewater
crew members’ work are set out in employment contracts
negotiated between individual employees and Tidewater.

The record indicates that all the Clean Seas employees
and the Tidewater employee are California residents who
live in California when not on board ship. The workers are
hired in California, receive paychecks at California ad-
dresses, and pay California taxes.

In 1987, the twelve Clean Seas employees filed claims
for unpaid overtime compensation with the California
Labor Commissioner. The California Labor Code grants
the Labor Commissioner authority to enforce Wage Or-
ders issued by the California Industrial Welfare Commis-
sion (“IWC’’). See Cal. Lab. Code §§ 98, 1173. IWC Wage
Order 4-80 sets out wage and overtime requirements with
respect to “professional, technical, clerical, mechanical,
and similar occupations.” Cal. Code Regs. § 11345(2) (c).
After a hearing, Aubry applied Wage Order 4-80 to the
Clean Seas crewmembers and granted an average of
$45,000 in back wages to each of the 12 Clean Seas
employees. PMSA then filed the complaint for declaratory
and injunctive relief underlying this appeal. Meanwhile,

A-8

in February 1988, Frank Kleman, the Tidewater em-
ployee, filed a claim for $50,000 unpaid over-time compen-
sation (for a 12-month period) with the California Labor
Commission. Tidewater then intervened in PMSA’s fed-
eral court action. Kleman’s case and all other similar
administrative claims were stayed pending the outcome of
the federal court action.

After a hearing on cross-motions for summary judg-
ment, the district court granted PMSA and Tidewaters’
request for declaratory and injunctive relief, holding that
California cannot apply its overtime provisions to mari-
time employees employed primarily on the high seas or to
seamen. 709 F. Supp. at 1526. The district court enjoined
all enforcement of Californie’s overtime pay provisions
against employers of these maritime workers.

Aubry filed a timely notice of appeal.

JURISDICTION AND SCOPE OF RELIEF

Because PMSA and Tidewaters’ complaints sought to
enjoin enforcement of California law based on federal
preemption, this case “arose under” federal law, and the
district court properly exercised jurisdiction over
PMSA’s action for injunctive relief. See Southern Pac.
Transp. Co. v. Public Utils. Comm’n of State of Cal., 716
F.2d 1285, 1288-89 (9th Cir. 1983), cert. denied, 466 U.S.
936 (1984); Shaw v. Delta Air Lines, Inc., 463 U.S. 85, 96
n.14 (1983).

Actions for declaratory and injunctive relief, however,
must be carefully limited in scope to meet the “case and
controversy” requirements of Article III of the Constitu-
_ tion. O’Shea v. Littleton, 414 U.S 488, 493-95 (1974);
Maryland Casualty Co. v. Pac. Coal and Oil Co., 312 U.S.
270, 273 (1941). Before the district court, PMSA, Tide-

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A-9

water, and Aubry argued at length over the precise scope
of the declaratory and injunctive relief action. PMSA and
Tidewater sought a ruling on all employees of its mem-
bers with respect to a broad range of California labor
code provisions. 709 F. Supp. at 1522-23. Aubry, on the
other hand, sought to limit the scope of the action to only
those employees to which he had applied California’s
overtime provision. Jd.

Applying the constitutional rule that “[a] plaintiff who
challenges a statute must demonstrate a realistic danger
of sustaining a direct injury as a result of the statute’s
operation or enforcement,” Babbit v. United Farm Workers
Nat’l Union, 442 U.S 289, 298 (1979), the district court
limited the scope of relief to cover only application of
California’s overtime pay laws to (1) FLSA-exempt
seamen, whether working within the territorial zone or on
the high seas; and (2) maritime employees working pri-
marily on vessels on the high seas that are not engaged in
foreign, intercoastal, or coastwise voyages. 709 F. Supp.
at 1522-23,-1526.° The district court expressly stated that

‘There is some ambiguity in the record and in the district court's
opinion about whether the relief granted also covered maritime
employees working primarily on vessels on the high seas that are
engaged in coastwise voyages. The district court cited the deposition
testimony of a California Division of Labor Standards Enforcement
official that suggested that Aubry intended to apply California
overtime wage laws to non-inhabitant maritime employees. The court
apparently concluded that the commissioner might possibly apply
California law to employees who voyage from California to other
states, 709 F. Supp. at 1255, and that the threat of enforcement of
California wage laws against employers engaged in coastwise voyages
was sufficient to present a justiciable controversy under Article III of
the Constitution as to those employers. On the other hand, the overall
thrust of the district court’s analysis strongly suggests that the
discussion was limited to employees, like those who brought claims in
the underlying state administrative action, who work only on vessels

A-10

its decision did not affect the rights of non-FLSA exempt
maritime employees working within California’s territo-
rial waters. 709 F. Supp. at 1523 n.7.° We conclude that,
within these limits, the scope of the declaratory relief met
the Constitution’s case and controversy requirements. See
Babbitt v. United Farm Workers Nat'l Union, 442 U.S. at
298-305.

STANDARD OF REVIEW

We review a grant of summary judgment de novo.
Kruso v. International Tel. & Tel. Corp., 872 F.2d 1416,
1421 (9th Cir. 1989), cert. denied, 110 S. Ct. 3217 (1990).

DISCUSSION

This appeal turns on one core issue: Does federal law
preempt California from applying its overtime pay laws to

off the California coast that do not engage in foreign, intercoastal, or
coastwise voyages. See 709 F. Supp. 1519, 1523-25. This ambiguity
may be due to the fact that the employees involved in this action work
on coastwise vessels, see 46 C.F.R § 70.10-13 (1988) (defining “coast-
wise vessels” as vessels “normaliy navigating the waters... 20
nautical miles or less offshore”), but were not in fact engaged in
coastwise voyages, see 709 F. Supp. at 1524. We resolve any arguable
ambiguity over the scope of the relief granted by the district court by
limiting the scope of our opinion to those employees described and
discussed by the district court, i.e., maritime employees who work off
the California coast on vessels that do not engage in foreign, inter-
coastal, or coastwise voyages. We do not address the question
whether Aubrey is preempted by federal law from applying Califor-
nia’s overtime pay laws to maritime employees employed primarily on
the high seas on coastwise vessels engaged in coastwise voyages.

*‘PMSA agrees in its brief to this court that Aubry “is currently
free to apply California’s overtime laws to non-FLSA-exempt, general
maritime law seamen [i.e., maritime employees] with respect to work
that takes place primarily within California's territorial waters.”

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A-11

seamen working on territorial waters and on the high seas
off the California coast and to maritime employees work-
ing primarily on the high seas off the California coast,
when the vessels on which the employees work do not
engage in foreign, intercoastal, or coastwise voyages? For
the reasons stated below, we hold that it does not.

PMSA and Tidewater contend that California’s over-
time pay laws are preempted by two federal statutes—the
Shipping Act and the FLSA—and by general admiralty
law. To decide whether a federal statute preempts state
law, “our sole task is to ascertain the intent of Congress.”’
California Fed. Sav. & Loan Ass’n v. Guerra, 479 U.S. 272,
280 (1987). Federal law preempts state law if (1) Con-
gress expressly so states, (2) Congress enacts compre-
hensive laws that leave no room for additional state
regulation, or (3) state law actually conflicts with federal
law. Id. at 280-81: see Silkwood v. Kerr-McGee Corp., 464
U.S. 238, 248 (1984); Chevron U.S.A., Inc. v. Hammond,
726 F.2d 483, 486 (9th Cir. 1984), cert. dented, 471 U.S.
1140 (1985).

States, however, possess broad authority under their
police powers to regulate the employment relationship to
protect resident workers. De Canas v. Bica, 424,U.S. 351,
356 (1976). Thus, in addressing the preemption question
before us, “ ‘we start with the assumption that the historic
powers of the States were not to be superseded by
[federal legislation] unless that was the clear and mani-
fest purpose of Congress.’” Chevron U.S.A., Inc. v. Ham-
mond, 726 F.2d at 488 (quoting Rice v. Santa Fe Elevator
Corp., 331 U.S. 218, 230 (1947)) (emphasis added in
Hammond).

A-12

I. The Shipping Act

PMSA and Tidewater assert that Congress preempted
Aubry’s actions in this case by extensively regulating
maritime employment through the Shipping Act. The
district court rejected this contention and held thai
Aubry’s enforcement of California’s overtime provisions
to maritime employees on the high seas and seamen is not
preempted by statutory maritime law. See 709 F. Supp.
1523-24. According to the district court, “[m]aritime
statutes simply do not purport to govern the overtime
wages of employees such as those in this action.” 709 F.
Supp. at 1524. We agree with the district court’s conclu-
sion that the Shipping Act does not preempt California
overtime pay laws with respect to the seamen and mari-
time employees at issue in this case.

The Shipping Act does govern some maritime employ-
ees’ wages, hours, and working conditions. See 46 U.S.C.
$§ 10301-10908. As the district court noted, however,
these provisions do not apply to the employees involved in
this appeal, because they cover only vessels engaged in
foreign, intercoastal, or coastwise voyages. Id.’ Further,
while all maritime employees are covered by certain provi-
sions relating to “protection and relief,” e.g., aecommoda-
tions on ship, 46 U.S.C. §11101, medical care for
maritime workers, 46 U.S.C. § 11102, and limitations on
attachment of wages, 46 U.S.C. § 11109, these provisions
in no way regulate overtime pay.

"The district court found: “The crewmembers whose claims precipi-
tated this action were not on ‘voyages’ that fall under any of these
three categories. Their vessels either stayed on the high seas sur-
rounding the oil rigs or ‘voyaged’ between one port and the oii rigs.”
709 F. Supp. at 1519.

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A-13

PMSA and Tidewater both argue, however, that to
apply California’s overtime pay laws to maritime employ-
ees and seamen conflicts with 46 U.S.C. § 8104, which sets
“manning requirements” — including maximum hours
and minimum “watches” — for maritime workers.° Under
46 U.S.C. § 8104(b),

[o]n an oceangoing or coastwise vessel of not more
than 100 gross tons (except a fishing, fish processing,
or fish tender vessel), a licensed individual may not
be required to work more than 9 of 24 hours when in
port, including the date of arrival, or more than 12 of
24 hours at sea, except in an emergency when life or
property are [sic] endangered.

Maritime employers who violate this section are subject to
civil penalties. 46 U.S.C. § 8104(i), (j). PMSA and Tide-
water contend that California’s overtime pay laws, which
require overtime pay for hours worked in excess of eight
hours per day, conflict with this federal statutory provi-
sion by creating a maximum below the 12 hour maximum
established in section 8104(b).

We reject this contention. We addressed a similar
argument in Agsalud v. Pony Express Courier Corp. of
Am., 833 F.2d 809 (9th Cir. 1987) (“Agsalud”’). In that
case, a motor carrier contended that the state of Hawaii’s
overtime pay law was preempted by the federal Motor
Carrier Act, 49 U.S.C. §§ 3101-3104. Regulations issued
under the Motor Carrier Act generally provided for a
maximum work week of 60 hours, while the Hawaii statute
required overtime pay for work in excess of 40 hours per
week. Jd. at 810. We held that, absent a showing that the

"Section 8104 is not limited to vessels engaged in foreign, inter-
coastal, or coastwise voyages, and, therefore, applies to the employees
at issue in this case. See 46 U.S.C. § 8101-81085.

A-14

state law had the effect of establishing a firm maximum on
hours worked different from the maximum set by federal
law, Hawaii’s overtime pay provisions did not conflict
with federal law, and were not preempted. Jd. We ex-
plained that “[o]ne need not be an economist to realize
that some employers may continue to provide more than
40 hours of work even though an overtime premium is
required, because paying the premium may be cheaper
than the alternatives of not providing service to custom-
ers or hiring new help.” Jd.

Our reasoning in Agsalud applies with equal force here.
PMSA and Tidewater have made no showing that the
effect of Aubry’s enforcement action will be to set a firm
maximum different from that set in 46 U.S.C. § 8104. The
argument that California’s overtime pay law conflicts with
section 8104 of the Shipping Act and is preempted,
therefore, fails.

While the Shipping Act does comprehensively regulate
maritime activities, it does not regulate overtime pay for
the workers involved in this case. The Shipping Act does
not preempt California from applying its overtime pay
laws to the seamen and maritime employees involved in
this action.

Il. The FLSA

After rejecting PMSA and Tidewaters’ Shipping Act
preemption argument, the district court held that the
FLSA preempted California overtime pay laws with re-
_ spect to the employees at issue in this case. The district
court concluded that, with respect to FLSA-exempt
seamen, Congress’ decision to exclude seamen from the
federal act’s overtime provisions evinced its intent to
preempt all state overtime laws as to those employees,
whether on territorial waters or on the high seas. 709

A-15

F.Supp. at 1525. The district court further held that, with
respect to general maritime employees, California over-
time provisions conflict with the FLSA, and that the
FLSA’s savings clause’ cannot save state laws regulating
workers on vessels “primarily situated on the high seas.”’
709 F.Supp. at 1524-25.

A. Exemption of Seamen from the FLSA

We address first the question whether, by exempting
seamen from federal overtime coverage under 29 U.S.C.
213(b) (6), Congress preempted California’s overtime
laws with respect to seamen. We hold that section
213(b) (6) does not preempt California from applying the
state’s overtime pay laws to FLSA-exempt seamen work-
ing off the California coast.

The Seamen involved in this case work both on Califor-
nia’s territorial waters and on the high seas.’° The district
court held that the FLSA preempts California’s overtime
provisions as applied to seamen on the high seas and on
territorial waters, reasoning that, because seamen are
exempt from federal overtime provisions under the
FLSA, 29 U.S.C. §213(b)(6), “Congress has spoken
directly on the issue of overtime pay for seamen.” 709
F.Supp. at 1525. This holding raises an important issue
regarding the effect of a specific exemption of a category
of maritime workers — seamen — from coverage under
federal law, i.e., should the specific legislative provision

*Under 29 U.S.C. § 218(a), no provision of the FLSA preempts
another federal, state, or municipal law from “establishing a mini-
mum wage higher than the minimum wage established under [the
FLSA] or a maximum workweek lower than the maximum workweek
established under [the FLSA].”

As noted above, “seamen” as used by the district court is defined
more narrow!y than “maritime employee.”

A-16

exempting seamen from the FLSA’s overtime compensa-
tion standards be read broadly to indicate congressional
intent to preclude states from regulating the subject of
seamen’s overtime compensation?

No Ninth Circuit case squarely addresses this issue.
We turn, then, to an examination of the language and
legislative history of the FLSA.

When Congress originally enacted the FLSA of 1938, it
exempted seamen from coverage under the act’s minimum
‘wage and overtime provisions. In 1961, Congress brought
seamen employed on American vessels under the FLSA’s
minimum wage provisions, but maintained their exemp-
tion from coverage under the act’s overtime provisions. At
no time has Congress expressly prohibited states from
applying their overtime laws to seamen. Further, PMSA
and Tidewater point to nothing in the legislative history
of § 213(b) (6) — either in the 1938 act or in the 1961
amendments to the FLSA — that suggests that Congress
intended to preclude application of state overtime provi-
sions to seamen. Our review of the legislative history has
revealed no such congressional intent.”

"See Joint Hearings on S. 2475 and H.R. 7200 Before the Senate
Comm. on Education and Labor and the House Comm. on Labor, 75th
Cong., lst Sess. 544-549, 1216-17 (1937); 82 Cong. Rec. 1784 (1937);
82 Cong. Rec. 7875 (1937). See also Hearings on Various Bills
Regarding Minimum Wage Legislation Before the Subcomm. on Labor
Standards of the House Comm. on Education and Labor, 86th Cong., 2d
Sess. 885-92, 895-96, 920-48, 1522-23 (1960); Hearings on H.R. 3935
and Various Bills Regarding Minimum Wage Legislation Before the
Special Subcomm. on Labor of the House Comm. on Education and
Labor, 87th Cong., lst Sess. 63-64, 83, 379-80, 597-99 (1961); Hear-
ings on S. 256, 8. 879, 8. 895 and Bills Amending the Fair Labor
Standards Act Before the Subcomm. on Labor of the Senate Comm. on
Labor and Public Welfare, 87th Cong., lst Sess. 15, 41, 376-93, 558,

A-17

The legislative history of the FLSA does show that
Congress considered the special circumstances of mari-
time and other types of labor when it exempted seamen
and other employees from the FLSA’s overtime and
minimum wage provisions. Federal Amicus argues, how-
ever, and we agree, that in exempting seamen from cover-
age under the 1938 act’s overtime and minimum wage
provisions, Congress intended to prevent overlapping reg-
ulation of wage and hour conditions of seamen by differ-
ent federal agencies. See Joint Hearings on 8. 2475 and
H.R. 7200 Before the S-nate Comm. on Education and
Labor and the House Comm. on Labor, 75th Cong., Ist
Sess. 546-49, 1216-17 (1937); 82 Cong. Rec. 1784-85, 7875
(1937); see also 29 C.F.R. § 783.29 (1989) (discussing
legislative history of exemption).’ Further, the extensive
legislative history of the 1961 amendments to the FLSA
makes clear Congress’ determination that federal mini-
mum wage levels for seamen were necessary, but discloses
nothing indicating that, by leaving the exemption of

682-83 (1961); H.R. Rep. No. 75, 87th Cong., lst Sess. 13-14, 31
(1961); S. Rep. No. 145, 87th Cong., lst Sess. 103 (1961).

“Under the FLSA of 1938 as proposed, all wage and hour claims
were to be handled by a new Labor Standards Board. At the time
Congress was considering the proposed legislation, however, mari-
time employees’ wage and hour claims were handled by the Maritime
Commission under the Merchant Marine Act of 1936. See Joint
Hearings on 8. 2475 and H.R. 7200 Before the Senate Comm. on
Education and Labor and the House Comm. on Labor, 75th Cong., lst
Sess. 1216-17. At least one witness testifying on behalf of organized
labor supported the exemption of seamen from the FLSA’s overtime
and minimum wage provisions on the ground that overlapping federal
agency jurisdiction over seamen’s wage and hour claims could
threaten gains already achieved by organized maritime labor before
the Maritime Commission. See id. at 544-49 (testimony of Ralph
Emerson, Legislative Representative, National Maritime Union of
America).

A-18

seamen from the FLSA’s overtime provisions in place,
Congress intended to preclude states from applying over-
time pay provisions to FLSA-exempt seamen.”®

Related case authority supports the conclusion that,
absent clear congressional intent to the contrary, the
exemption of seamen from the FLSA’s overtime provi-
sions does not, per se, preempt California from applying
its overtime pay laws to seamen. In Agsalud, for example,
we held that the exemption of truck drivers engaged in
interstate transportation of goods from the FLSA’s over-
time provisions did not preempt state overtime laws as to
those workers. 833 F.2d at 810. In reaching that conclu-
sion, we expressly adopted the reasoning of Pettis Moving
Co., Inc. v. Roberts, 784 F.2d 439 (2d Cir. 1986) (‘Pettis
Moving Co.”), and Williams v. W.M.A. Transit Co., 472
F.2d 1258 (D.C. Cir. 1972) (“Williams’’), two cases
involving the question whether exemption of certain em-
ployees from the FLSA’s wage provisions, per se,
preempts state law with respect to those employees. See
Agsalud, 833 F.2d at 810.

In Pettis Moving Co., a New York motor carrier argued
that, because Congress exempted employees of interstate
motor carriers from coverage under the FLSA’s overtime

See Hearings on Various Bills Regarding Minimum Wage Legisla-
tion Before the Subcomm. on Labor Standards of the House Comm. of
Education and Labor, 86th Cong., 2d Sess. 885-92, 895-96, 920-48,
1522-23 (1960); Hearings on H.R. 3935 and Various Bills Regarding
Minimum Wage Legislation Before the Special Subcomm. on Labor of
the House Comm. on Education and Labor, 87th Cong., lst Sess. 63-64,
83, 379-80, 597-99 (1961); Hearings on 8. 256, 8. 879, 8. 895 and Bills
Amending the Fair Labor Standards Act Before the Subcomm. on Labor
of the Senate Comm. on Labor and Public Welfare, 87th Cong., 1st
Sess. 15, 41, 376-93, 558, 682-83 (1961); H.R. Rep. No. 75, 87th Cong.,
lst Sess. 13-14, 31 (1961); S. Rep. No. 145, 87th Cong., Ist Sess. 103
(1961).

A-19

provisions, New York could not apply its overtime pay
laws to those employees. The Second Circuit first empha-
sized that “[t]raditional powers of the states... are not
superseded by federal acts unless that was the clear and
manifest purpose of Congress.” 784 F.2d at 441 (citing
Ray v. Atlantic Richfield Co., 435 U.S. 151, 157 (1978) ).
The court then noted that the FLSA’s savings clause
“explicitly permits states to set more stringent overtime
provisions than the FLSA,” and held that “Congress did
not prevent the states from regulating overtime wages
paid to workers exempt from the FLSA.” 7d. at 441.

In Williams, the D.C. Circuit addressed the question
whether the District of Columbia’s minimum wage laws
could be applied to bus drivers who were employed by
interstate motor carriers and, therefore, were exempted
from the FLSA’s minimum wage provisions. That court
also relied on the FLSA’s savings clause in finding no
preemption: “This section expressly contemplates that
workers covered by state law as well as FLSA shall have
any additional benefits provided by the state law —
higher minimum wages; or lower maximum workweek. By
necessary implication it permits state laws to operate
even as to workers exempt from FLSA.” 472 F.2d 1261.

Finally, at least one district court in our circuit has
held that Congress’ exemption of certain maritime em-
ployees from coverage under a maritime wage statute did
not preempt a state from regulating those employees’
wages. In Sewell v. M/V Point Barrow, 556 F. Supp. 168
(D. Alaska 1983) (Fitzgerald, D.J.), workers employed
on vessels engaged in offshore test drilling off the Alaska
coast filed an action to recover unpaid wages and for
penalties under state and federal law. After holding the
employees were exempted from coverage under the fed-

A-20

eral statute,‘ the court reached the employer’s contention
that “the exemption of coastwise vessels from the [fed-
eral] penalty provisions...demonstrate[d] a congres-
sional intent that seamen employed on coastwise vessels
not receive delayed wage payment penalties.” Jd. at 169.
The court rejected this argument based on its conclusion
that Congress did not intend, by exempting coastwise
seamen, to preempt state wage penalty laws, but rather
intended that coastwise seamen would be treated like
other workers under state law. Jd. at 170.

Based on these authorities and on general principles of :
federal preemption, we hold that, in light of the plain
language of the FLSA’s savings clause and in the absence |
of a clear indication from Congress to the contrary, |

§ 213(b) (6) does not preclude enforcement of Califor-
nia’s overtime provisions to protect the California-resi-
dent seamen in this case. The district court erred by
holding that section 213(b) (6) preempts California over-
time pay laws with respect to FLSA-exempt seamen on
the high seas and within the territorial zone off the
California coast.

B. Non-FLSA-Exempt Maritime Employees on the
High Seas

We next address the question whether the FLSA
preempts California from applying the state’s overtime

“The employees sought penalties for failure to pay wages under 46
U.S.C. § 596, which provides that an employer who fails to pay wages
shal] pay a penalty equal to two days’ wages for each unpaid day.
Under 46 U.S.C. § 544, however, employees on “coastwise” voyages
are exempted from 46 U.S.C. § 596. The district court in Sewell v.
M/V Point Barrow held that the employees who brought the action
were employed on vessele engaged in coastwise trade and were
exempt from coverage under 46 U.S.C. § 596.

A-21

pay laws to maritime workers, not exempt from the
FLSA, who work on vessels situated primarily on the high
seas off the California coast.

The parties agree that California’s overtime pay laws
and the FLSA overtime provisions that cover non-exempt
maritime employees conflict, and that California’s provi-
sions are more generous than the FLSA.” The key issue
is whether the FLSA’s savings clause allows California to
apply its more generous overtime laws to the maritime
workers involved in this case. The savings clause provides
in relevant part:

No provision of this chapter or of any order there-
under shall excuse noncompliance with any federal or
State law or municipal ordinance establishing a mini-
mum wage higher than the minimum wage estab-

According to the district court, “the California overtime provi-
sions and the FLSA provisions produce widely differing results.” 709
F. Supp. at 1524. The most important differences between Califor-
nia’s overtime pay provisions and the FLSA are as follows: under
California law, overtime at one and one-half times an employee's
regular rate must be paid after eight hours work per day, 8 Cal. Code
Regs. § 11040.3(A)(1), while under the FLSA, overtime must be
paid after 40 hours work per week, 29 U.S.C. § 207(a); 29 C.F.R.
§ 778.101; under California law, all hours in excess of 12 per day must
be paid at double time, 8 Cal. Code Regs. § 11040.3(A) (2), while the
FLSA contains no such provision; under California law, “hours
worked” is defined broadly, to include “the time during which an
employee is subject to the contro! of an employer,” 8 Cal. Code Regs.
§ 11040.2(H), while under the FLSA “hours worked” as applied to
seamen includes only hours when the employee is “actually on duty,”
29 U.S.C. § 206(a) (4); and under California law, payments to em-
ployees on a “fluctuating workweek” basis — i.e., by fixed salary that
reflects average hours worked — are not permitted, Skyline Homes,
Inc. v. Dept. of Indus. Relations, 165 Cal. App. 3d 239, 211 Cal. Rptr.
792 (1985), while under the FLSA, such payments are allowed in
certain limited circumstances, 29 C.F.R. § 778.114.

A-22

lished under this chapter or a maximum workweek
lower than the maximum workweek established under
this chapter....

29 U.S.C. § 218(a).

Aubry and federal amicus contend that the savings
clause signals Congress’ intent that the wage and hour
standards set in the FLSA are a floor, and that states are
free to establish wage and hour levels higher or more
generous than the FLSA standards. They further argue
that Congress, in enacting the FLSA, evinced no intent to
preclude maritime workers’ benefiting from the savings
clause. The district court rejected this argument, based
on its conclusion that principles of federal admiralty law
require that the FLSA’s savings clause be construed
restrictively in this case. The district court reasoned:

[T]he FLSA’s savings clause cannot properly be
construed to save state laws that seek to regulate the
employment of maritime employees whose work situs
is a vessel normally situated on the high seas. This is
so because Congress may not constitutionally dele-
gate its maritime jurisdiction to the states. Such a
delegation would destroy the harmony and uniform-
ity of admiralty law established by the Constitution.
Thus, under compulsion of the Constitution, the sav-
ings clause must be interpreted as not applying to
maritime employees employed primarily on the high
seas.

709 F. Supp. at 1524-25 (citations omitted). According to

the district court, while this restrictive interpretation of

the savings clause “lacks direct precedential support,”
common sense demanded it. Jd. at 1525.

For the reasons stated below, we hold that the district
court erred. Neither the FLSA, by its terms, nor general

paiidaiiansiimeatiititindl

Ae Raga tee. had oP a a aa

A-23

admiralty law preempts California from applying the
state’s overtime pay laws to non-exempt maritime workers
at issue in this case.

1. Jensen and its Progeny

The district court based its restrictive reading of sec-
tion 218 on a long line of cases, beginning early in this
century, in which courts limited states’ power to regulate
maritime activities on the ground that the United States
Constitution requires uniformity in admiralty law. Arti-
ele III, Section 2 of the Constitution provides in part that
the judicial power of the United States shall extend “to
all cases of admiralty and maritime jurisdiction.” The
Supreme Court has held that this provision, by implica-
tion, grants Congress the power to revise and supplement
the maritime law, and grants federal courts power to
develop the general maritime law. See Romero v. Interna-
tional Terminal Operating Co., 358 U.S. 354, 360-61
(1959).

In Southern Pac. Co. v. Jensen, 244 U.S. 205, 216 (1917)
(“Jensen”), the Supreme Court restricted states’ author-
ity in maritime matters based on this constitutional grant
of authority to the federal government. Under the so-
called Jensen doctrine, no state legislation concerning
navigation is valid

if it contravenes the essential purpose expressed by
an act of Congress or works material prejudice to the
characteristic features of the general maritime law,
or interferes with the proper harmony and uniformity
of that law in its international and interstate
relations.

A-24
This

limitation, at the least, is essential to the effective
operation of the fundamental purposes for which
[the maritime] law was incorporated into our na-
tional laws by the Constitution itself.

Jensen, 244 U.S. at 216. This rule was extended in Knick-
erbocker Ice Co. v. Stewart, 253 U.S. 149 (1920) (“Knicker-
bocker Ice’), where the Supreme Court struck down an
act of Congress that directly granted states authority to
apply state workers compensation laws to maritime em-
ployers. The Court stated that the delegation was “‘be-
yond the power of Congress.” 7d. at 164.

Here, the district court reasoned that the constitutional
considerations underlying Jensen and Knickerbocker Ice
foreclosed straightforward application of the FLSA’s sav-
ings clause to a specific category of workers — maritime
employees employed primarily on the high seas. According
to the district court, allowing the FLSA’s savings clause
to permit California’s actions in this case would effect a
delegation of maritime authority, invalid under Knicker-
. bocker Ice, and would otherwise be invalid as destructive
of harmony in federal admiralty law.

We disagree with the district court’s holding that
section 218, if construed to allow Aubry’s actions with
respect to maritime employees on the high seas, would in
effect be a delegation of congressional maritime powers to
the state. California’s actions in this case represent an
exercise of traditional police powers firmly in place before
Congress enacted the FLSA. See West Coast Hotel Co. v.
Parrish, 300 U.S. 379, 393 (1937) (“In dealing with the
relation of employer and employed, the [state] has neces-
sarily a wide field of discretion in order that there may be
suitable protection of health and safety, and that peace

A-25

and good order may be promoted through regulations
designed to insure wholesome conditions of work and
freedom from oppression.”). Thus Congress did not
“delegate” authority to the states through section 218,
but simply made clear its intent not to disturb the
traditional exercise of the states’ police powers with
respect to wages and hours more generous than the
federal standards. We cannot read section 218 as a
delegation, and, therefore, conclude that Knickerbocker
Ice does not control this case.

This conclusion, however, does not settle the issue
before us. General principles of admiralty law still limit
states’ authority to regulate maritime activities. We must
determine whether, under Jensen and its progeny, those
principles require a restrictive reading of section 218 in
this case.

“The Jensen doctrine, though easily stated, is not easily
applied.” 1 Friedell, Benedict on Admiralty, § 112, at 7-36
(7th ed. 1987).’® ‘the Supreme Court long ago rejected a
rigid per se rule that all state regulation of maritime
activities is constitutionally invalid. In Askew v. American
Waterways Operators, Inc., 411 U.S. 325, 338 (1973), for
example, a unanimous court explained that Jensen and
Knickerbocker have been “limited by subsequent holdings
of [the} Court.” In Romero v. Intl Terminal Operating
Co., 358 U.S. at 373, the Court explained that Jensen’s
limitation on state authority “still leaves the States a
wide scope.” See also Just v. Chambers, 312 U.S. 383, 388

See generally 1 Friedell, Benedict on Admiralty, §§ 11-114, at 7-31
to 7-72 (reviewing doctrine limiting power of states to independently
regulate maritime matters); Gilmore and Black, The Law of Admi-
realty 49-50 (same); D. Robertson, Admiralty and Federalism 200
(1970) (same); Currie, Federalism and the Admiralty: “The Devil’s
Own Mess,” S. Ct. Rev. 158 (1960) (same).

A-26

(1941) (state may modify or supplement maritime law);
Maryland Casualty Co. v. Cushing, 347 U.S. 409, 429
(Black, J., dissenting) (except in limited circumstances,
“states are free to make laws relating to maritime
affairs’).

Yet the Court has demonstrated the continuing force of
Jensen. In Offshore Logistics, Inc. v. Tallentire, 477 U.S.
207 (1986) (‘‘Tallentire’’), the Court held that the federal
admiralty law — specifically, the Death on the High Seas
Act (DOHSA), 46 U.S.C. §§ 761-768 — preempted Loui-
siana’s wrongful death statute, notwithstanding a
DOHSA savings clause that provided that “[t]he provi-
sions of any State statute giving or regulating rights of
action or remedies for death shall not be affected” by the
DOHSA. The Court cited Jensen for the proposition that
““*tnjo [state] legislation is valid if it contravenes the
essential purpose expressed by an act of Congress.’”’ Jd.
at 298 (quoting Jensen, 244 U.S. at 216); see also Askew v.
American Waterways Operators, Inc., 411 U.S. at 344
(acknowledging that Jensen “has vitality left’’).

Our review of relevant case authority leads us to con-
clude that the general rule on preemption in admiralty is
that states may supplement federal admiralty law as
applied to matters of local concern, so long as state law
does not actually conflict with federal law or interfere with
the uniform working of the maritime legal system.’’ The

"See 1 Friedell, Benedict on Admiralty § 112, at 7-36; Gilmore and
Black, The Law of Admiralty 50 (2d ed. 1975); Tribe, American
Constitutional Law 304 (2d ed. 1988). There is ample support for this
rule in our circuit. See Chevron U.S.A., Inc. v. Hammond, 726 F.2d
483, 496 (9th Cir. 1984), cert denied, 471 U.S. 1140 (1985) (state law
should be preempted only to the extent necessary to protect the
achievement of the aims of the federal act in question); Wasyl, Inc. v.
First Boston Corp., Inc., 813 F.2d 1579, 1582 (9th Cir. 1987) (same);

Ne ee eee ee eed

iy Dos,

A-27

questions, then, are (1) whether applying California’s
overtime provisions to maritime employees on the high
seas contravenes an act of Congress, and (2) whether
applying the provisions would unduly disrupt uniformity
in maritime law.

2. Does California’s Overtime Pay Law Contravene
an Act of Congress?

The district court found, and we agree, that the mari-
time employees “fall in the interstices between express
federal maritime statutes.” 709 F. Supp. at 1525. Mari-
time statutes do not apply to maritime employees, like
these, who are not on vessels making foreign, intercoastal,
or coastwise voyages. In addition, Congress has specifi-
cally allowed states to enforce overtime laws more gener-
ous than the FLSA, 29 U.S.C. § 218(a), and we find no
indication that Congress intended that maritime employ-
ees not benefit from more generous state wage and hour
laws. California’s attempt to supplement federal law in
this case does not present an irreconcilable conflict with
the statutory maritime law or with the FLSA; it does not
“contravene the essential purpose expressed by an act of
Congress.” Cf. Tallentire, 477 U.S. at 298; Jensen, 244 U.S.
at 216.

Bergen v. F/V St. Patrick, 816 F.2d 1345, 1348-49 (9th Cir. 1987)
(“ ‘there is a basic difference between filling a gap left by Congress’
silence and rewriting rules that Congress has affirmatively and
specifically enacted’”’) (quoting Mobile Oil Corp. v. Higginbotham,
436 U.S. 618, 624-25 (1978)); Sewel v. M/V Point Barrow, 556 F.
Supp. 168, 169 (D. Alaska 1983) (“admiralty courts may recognize
and enforce rights and obligations created by state law”). Other
circuits’ cases also support the rule. See Carey v. Bahama Cruise
Lines, 864 F.2d 201, 207 (1st Cir. 1988); Ezzon Corp. v. Chick Kam
Choo, 817 F.2d 307, 317-18 (5th Cir. 1987), rev’d on other grounds,

U.S. , 108 S. Ct. 1684 (1988); Steelsnet, Inc. v. Caribe Towing

Corp., 779 F.2d 1485, 1488 (11th Cir. 1986).

A-28

This case, therefore, differs significantly from two re-
cent Supreme Court decisions the district court relied on
in narrowly construing section 218 of the FLSA: Oil,
Chem., & Atomic Workers, Int’l Union, AFL-CIO v. Mobil
Oil Corp., 426 U.S. 407 (1976) (“Mobil Oil’), and Tailen-
tire. Mobil O1l Corp. and Tallentire both involved interpre-
tation of savings clauses in federal statutes, and the
Court construed the savings clauses narrowly in each
case. Mobil Oil and Tallentire, however, do not require a
restrictive interpretation of section 218 of the FLSA in
this case.

The issue in Mobil Oil was whether Texas could apply
its “right-to-work” laws to workers employed on oil tank-
ers on the high seas off the Texas coast. Like the present
case, Mobil O1l required interpretation of a savings clause
— federal labor statutes expressly allow so-called union
“agency shop” agreements,’® 29 U.S.C. § 158(a) (3), but
also allow states to prohibit such agreements through
“right-to-work” laws, 29 U.S.C. § 164(b). The Court, as a
matter of statutory interpretation, held that tie savings
clause at issue could not be read to allow Texas to apply
its right-to-work laws to maritime employees who worked
on the high seas outside of the state’s territorial waters.
In so holding, however, the Court relied on clear legisla-
tive history expressing congressional intent to restrict the
savings clause’s reach. Congress, the Court concluded,
“viewed [the savings clause] as allowing a State to ban
[agency shop] agreements calling for work to be per-
formed within the State.” 426 U.S. at 418 (emphasis

“An ‘agency shop’ agreement generally provides that while em-
ployees do not have to join the union, they are required . . . to pay the
union & sum equal to the union initiation fee and are obligated as well
to make pericdic payments to the union equal to the union dues.”
Mobil Oil, 426 U.S. at 409 n.1.

ee ee en ae ee

A-29

added). Further, the Court noted that the purpose and
effect of Texas right-to-work law directly conflicted with
the federal statute. Jd. at 417.

In Tallentire, the Court held that a DOHSA savings
clause that allowed wrongful death actions in state courts
for deaths on the high seas did not allow states to apply
their substantive state wrongful death laws to deaths on
the high seas, but instead only preserved state court
jurisdiction to hear wrongful death actions under the
DOHSA. 477 U.S. at 220-32. As in Mobil Corp., the Court
based its restrictive interpretation of the savings clause
at issue on the language, purpose, and legislative history
of the federal statute.’ And again, the Court noted the
clear conflict between the state law and federal statute:
“No reasonable doubt could be entertained of the dis-
placement of state remedies for deaths occurring on the
high seas because the conflicting federal standard was not
derived just from general federal maritime law; it was
explicitly provided for by federal legislation directly on
point.” Jd. at 228. Further, the Court noted that an
express purpose of Congress in enacting the DOHSA was
to achieve uniformity in wrongful death actions for deaths
on the high seas. Jd. at 230-31.

In contrast to the savings clauses at issue in Mobil Oui
and Tallentire, we find no indication in the language or
legislative history of the FLSA’s savings clause that
Congress intended that section 218 not allow states to
apply more generous overtime pay laws to maritime work-

That history revealed strong expressions by bill supporters that
federal law would apply exclusively to actions for deaths on the high
seas. See Tallentire, 477 U.S. at 223-30. See also Gray, Applicability of
State Wrongful Death Statutes on the High Seas, 18 J. Mar. L. & Com.
67, 81-88 (1987) (discussing Tallentire and legislative history of
DOHSA savings clause).

—

A-30

ers working on the high seas. In addition, California’s
more protective overtime provisions are compatible with,
rather than conflict with, the federal statute. Compatible
state law may supplement federal admiralty law. See
Chevron U.S.A., Inc. v. Hammond, 726 F.2d at 495-501
(finding no conflict between federal maritime statute and
more stringent state maritime law provisions); Sewell v.
M/V Point Barrow, 556 F. Supp. at 170-71 (same).
Neither Mobil Oil nor Tallentire requires preemption in
this case.”

3. Does California’s Overtime Pay Law Unduly
Disrupt Uniformity in Admiralty Law?

The district court based its holding in part on the
“eommon sense” notion that “the uniformity of federal
admiralty law would be destroyed if the states were
permitted to ‘add on’ to the federa! law enacted by
Congress.” 709 F. Supp. at 1525. Likewise, PMSA and
Tidewater argue on appeal that allowing states to enforce
their overtime provisions against maritime employers
would produce a “crazy-quilt pattern of regulation.”

Cases in our circuit relied on by PMSA and Tidewater are also
distinguishable on the ground that the state laws invalidated as
preempted by federal law in those cases were in direct conflict with
federal admiralty law. See Evich v. Morris, 819 F.2d 256, 257-58 (9th
Cir.), cert. denied, 484 U.S. 914 (1987) (state survival action pre-
empted by conflicting federal maritime survival law); Bergen v. F/V
St. Patrick, 816 F.2d 1345, 1348-49 (9th Cir. 1987) (state punitive
damages remedy in wrongfu! death action preempted by DOHSA,
which disallows punitive damages remedy); Nelson v. United States,
639 F.2d 469, 473 (9th Cir. 1980) (state wrongful death action
preempted by conflicting federal maritime wrongful death law);
Daughtry v. Diamond M Co., 693 F. Supp. 856, 961-63 (C.D. Cal.
1988) (state procedural rules on effect of s..clement on joint
tortfeasors’ duty to contribute preempted by conflicting federal
procedural rules).

ieee eiaimeeen

A-31

The Constitution tolerates some disharmony in admi-
ralty law. As discussed above, states may supplement
admiralty law, and states’ supplementation of admiralty
law necessarily creates some discord in that law.” Never-
theless, Mobil Oil, Tallentire, and Jensen and its progeny
make clear that the interest in uniformity in admiralty
law must be considered in determining the validity of
state regulation of maritime activities. Our circuit has
also acknowledged the importance of uniformity in admi-
ralty law. See, e.g., Evich v. Morris, 819 F.2d 256, 257-58
(9th Cir.), cert. denied, 484 U.S. 914 (1987); Nelson v.
United States, 639 F.2d 469, 473 (9th Cir. 1980). We are
left, therefore, with the difficult question whether apply-
ing California’s overtime provisions to maritime employ-
ees who work on vessels on the high seas that do not
engage in foreign, intercoastal, or coastwise voyages un-
duly disrupts harmony in the federal admiralty system, so
as to render unconstitutional Aubry’s actions. We hold
that it does not.

Whether Aubry’s application of California’s overtime
provisions unduly disrupts federal maritime harmony in
violation of the Constitution depends on the balance of
federal and state interests involved in application of the
overtime provisions. See Kossick v. United Fruit Co., 365
U.S. 731, 741-42 (1961); East River 8. 8. Corp. v. Trans-
america Delaval, 476 U.S. 858, 864 n.2 (1986); Exzon
Corp. v. Chick Kam Choo, 817 F.2d 307, 317 (5th Cir.
1987), rev’d on other grounds, 108 S. Ct. 1684 (1988);

7 All state laws, if given effect in admiralty cases, interfere to a
degree with the uniformity of admiralty law.” Friedell, 1 Benedict on
Admiralty § 12, at 7-36; see also Romero v. International Terminal
Operating Co., 358 U.S. at 374 (“Maritime law is not a monistic
system.”).

A-32

Steelmet, Inc. v. Caribe Towing Corp., 779 F.2d 1485, 1488
(11th Cir. 1986).

We conclude that the balance tips in favor of California
in this case. Under California law, the Labor Commission
is charged with enforcing state wage provisions to ensure
the health, safety, and welfare of resident employees. Cal.
Labor Code § 1173. Here Aubry has attempted to provide
additional protection to employees involved in work of
critical importance to the state — containment and clean-
up of marine oil spills. In addition, the record indicates
that the maritime employees involved in this case are
California residents, were interviewed and hired in Cali-
fornia, and pay California taxes. Their contacts with the
state are quite close: the vessels involved in this case do
not make coastwise, intercoastal, or foreign voyages; Mr.
Clean IT is moored in a California harbor 90 percent of the
time and works exclusively on oil rigs off the California
coast; and Mr. Clean III is stationed exclusively off the
California coast and visits only California ports.

PMSA and Tidewater contend, however, that Califor-
nia’s interest in enforcing its overtime pay laws in this
case are undercut by Aubry’s failure to comply with state
administrative and procedural requirements regarding
wage and hour rulemaking and law enforcement. This
argument is misplaced. We emphasize that we are not
deciding here whether Aubry’s actions are valid as a
matter of California administrative and labor law. Our
task is te determine only whether, in this case, federal law
preempts California’s overtime pay provisions. The state’s
interests in applying its overtime provisions here are
plain. PMSA and Tidewaters’ challenges to Aubry’s ac-
tion on state law grounds must be directed to the state’s
agencies and courts, and we assume here that the labor

A-33

commissioner’s actions comply fully with state law and
procedures.”

In contrast to the [sic] California’s strong interests,
Federal interests in precluding enforcement of Califor-
nia’s overtime provisions in this case are relatively weak.
There is no indication that Congress, in enacting the
FLSA’s savings clause, intended to preempt states from
according more generous protection to maritime employ-
ees on the high seas off a state’s coastal waters. Further,
the purpose behind the FLSA is to establish a national
floor under which wage protections cannot drop, not to
establish absolute uniformity in minimum wage and over-
time standards nationwide at levels established in the
FLSA.

In some circumatances, comity requires that federal courts ab-
stain from considering actions for declaratory and injunctive relief
against state proceedings. See Fresh Int’l Corp. v. Agricultural Labor
Relations Bd., 805 F.2d 1353 (9th Cir. 1986); Younger v. Harris, 401
U.S. 37 (1971). According to the parties, however, no state court is
currently considering the issues raised in this appeal. “ ‘{T]he salient
fact’ in determining whether Younger abstention is appropriate ‘is
whether federal-court interference would unduly interfere with the
legitimate activities of the state.’’’ Sable Communications of Cal. v.
Pacific Tel. & Tel., 890 F.2d 190 (9th Cir. 1989) (quoting Middlesex
County Ethics Comm. v. Garden State Bar Ass’n, 457 U.S. 423, 433
n.12 (1982)). Here, we address only the purely federal question of
whether federal statutes and general admiralty law preempt Califor-
nia’s overtime pay laws. We do not address any state law issues
raised by Aubry’s actions. Because there is no ongoing state adjudi-
cation of the claims here at issue, and because the state law chal-
lenges to Aubry’s actions necessarily involve issues distinct from
those federal issues now before us, concerns of comity underlying the
Younger abstention doctrine are not present here. See Id.; Fresh Intl
Corp. v. Agricultural Labor Relations Bd., 805 F.2d at 1358. The
district court was not required to abstain.

A-34

Most important, because the maritime employees in-
volved in this action are California residents who work on
vessels that operate exclusively off the California coast,
application of the state’s overtime law will not disrupt
international or interstate commerce. Uniformity in mari-
time law « required “only where the essential features of
an exclusive federal jurisdiction are involved.” 1 Friedell,
Benedict on Admiralty § 111, at 7-32; see Just v. Chambers,
312 U.S. at 388. The minimal impact that Aubry’s actions
would have on international and interstate maritime com-
merce leads us to conclude that the “essential features”
of exclusive federal jurisdiction are not unduly burdened
in this case.”

We have focused in this section on the question
whether, under general admiralty principles, California is
preempted from applying the state’s overtime pay laws to
non-exempt maritime employees who work on vessels
situated primarily on the high seas that do not engage in
foreign, intercoastal, or coastwise voyages. But our analy-
sis applies as well to FLSA-exempt seamen who work on
such vessels. As we held above, allowing California to
apply its overtime pay laws to seamen does not conflict
with the FLSA; exemption from the FLSA’s overtime
provisions does not, per se, preempt state overtime laws.
Also, the balance between state and federal interests is
the same with respect to the seamen at issue in this case
as it is with respect to nonexempt maritime workers. The

“This further distinguishes the present case from Mobil Oil, in
which the Court noted the practical difficulties of allowing applica-
tion of the state law in that case. See 426 U.S. at 418-19. In Mobil Oil,
of the workers to which Texas sought to apply its laws, over half were
residents of other states; over one-third listed New York, rather than
Texas, as their port; and all were on vessels that voyaged regularly
from Texas to New York or Rhode Island and back. 426 U.S. at 411.
The practical problems present in Modi! are not present in this case.

A-35

Tidewater employee involved in the underlying action is a
California resident; he works, like other California-based
Tidewater employees, exclusively in California ports and
on the high seas off the California coast. Thus, as with the
maritime workers, we hold that allowing Aubry to apply
California’s overtime pay laws to the seamen involved in
this suit does not unduly disrupt federal admiralty law,
and, for that reason, is not constitutionally invalid.

Our conclusion that Aubry may constitutionally apply
California’s overtime provisions to maritime employees
and seamen who work on the high seas off the California
coast on vessels that do not engage in foreign, inter-
coastal, or coastwise voyages is supported by two recent
decisions in this circuit. In Chevron U.S.A., Inc. v. Ham-
mond, 726 F.2d 483, we upheld an Alaska statute gov-
erning the discharge of ballast by oil tankers in Alaska’s
territorial waters where federal maritime law — the Port
and Tanker Safety Act of 1978, 46 U.S.C. § 391 — also
regulated coastal ballast discharge. We recognized in
Hammond Alaska’s strong interest in preventing oil pollu-
tion off its coast, noting that “[t]he subject matter of
environmental regulation ... has long been regarded by
the [Supreme] Court as particularly suited to local regu-
lation.” Id. at 488. We concluded that state and federal
regulation of the oil tankers were compatible, and that
“there is no ... dominant national interest in uniformity
in the area of coastal environmental regulation.” Jd. at
492.™ California has an equally strong interest in protect-

*We did note in Hammond that the interest in uniformity in
environmental regulation is greater where regulations cover activities
on the high seas. 726 F.2d at 492 n.2. Our concern there, however, was
clearly with regulation of international oil transport and international
environmental protection efforts. Jd. Here, as discussed above, the
federal interest in uniformity is not as great, because the employees

A-36

ing maritime employees that reside in the state and work
to protect California’s coastal environment. Hammond
thus lends support to Aubry’s actions on the facts of the
present case.

Also, in Sewell v. M/V Point Barrow, 566 F. Supp. 168,
the Alaska District Court applied the state’s wage laws to
certain maritime employees working off the Alaska coast.
The statute involved provided penalties, in the form of
extra wage payments, to state workers not timely paid by
maritime employers. Jd. at 169-70. The district court held
that, even though federal law did not provide such penal-
ties for the employees in the case, enforcement of the
Alaska statute was “fully compatible with federal mari-
time law,” and no “feature of federal maritime law...
would be impaired or frustrated by application of [the
statute].” Id. at 170. Sewell thus supports the conclusion
that California may constitutionally apply its more gener-
ous overtime laws to protect California-resident workers
employed on the high seas off California’s coast under the
circumstances of this case.

The district court erred by holding that, under princi-
ples of federal admiralty law, the FLSA’s savings clause
cannot allow Aubry to apply California overtime laws that
afford greater protection than the FLSA to California-
resident maritime employees working primarily on the
high seas off the California coast on vessels that do not
engage in foreign, intercoastal, or coastwise voyages,
whether or not the employees are exempted from the
FLSA’s overtime provisions.

involved in this case are not engaged in foreign, intercoastal, or
coastwise voyages.

A” abate, - valid

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CONCLUSION

Neither the Shipping Act nor the FLSA precludes
Aubry’s actions in this case, and, under the principles
underlying Jensen and its progeny, applying California’s
overtime pay laws to these workers is not constitutionally
invalid. Here, California’s interest in protecting Califor-
nia-resident workers is great, the employees involved in
the action work exclusively in waters off the California
coast on vessels not engaged in foreign, intercoastal, or
coastwise voyages, and Congress has shown no intent to
preclude more generous state regulation of maritime
workers. Aubry is not preempted from applying Califor-
nia’s overtime provisions to the seamen and maritime
employees involved in this suit.

The district court’s judgment is REVERSED.
COPPLE, Senior District Judge, dissenting:

Judge Pregerson’s majority decision explains in exten-
sive detail the factual and procedural background of this
appeal. Those facts will therefore only be highlighted.
Twelve maritime employees filed complaints with the
California Labor Commission seeking recovery of unpaid
overtime wages due under the provisions of the California
Industrial Welfare Commission Orders (8 Cal. Code of
Regulations § 11345, et seg.). These maritime employees
were hired by CLEAN SEAS, a company that owns and
operates vessels which provide open ocean oil spill con-
tainment and recovevy. The vessels are usually stationed
over oil fields located in the Santa Barbara Channel
approximately four to ten nautical miies off the California
coast.

Some of the maritime employees are organized into
crews that alternate work assignments in which they work
seven days on the vessel followed by seven days rest on

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shore. At the beginning and end of the seven day work
assignments, the employees are transported via helicopter
or vessel to and from the California coast.

In addition to those twelve employees, a deck engineer
employed by TIDEWATER also filed a claim with the
California Labor Commissioner for overtime against his
employer. For that reason, TIDEWATER filed a com-
plaint in intervention and was an intervenor on appeal.
TIDEWATER provides offshore transportation in the
Santa Barbara Channel between its pier or mooring buoy
and oil rigs located between one and twelve miles
offshore.

The Labor Commissioner of the State of California held
a hearing pursuant to Cal. Lab. Code $98 et seq. and
made an award to each employee for unpaid overtime
wages. In response to these awards, the employers along
with various maritime associations filed a complaint for
declaratory and injunctive relief in the District Court.

The District Court found that al! of the employees in
this action were engaged in activities on vessels which
either stayed on the high seas surrounding the oil rigs or
travelled between one port and the oil rigs located on the
high seas. The District Court concluded that California
could not apply its wage and hour provisions upon these
employees who were primarily employed on the high seas
because the Fair Labor Standards Act (“FLSA’’), 29
U.S.C. § 201, et seg., preempted the application of such
state laws to employees on the high seas. In so conclud-
ing, the District Court granted the employers’ request for
declaratory and injunctive brief, but limited the scope of
the relief to, “(i) the FLSA-exempt seamen, whether
working within the territorial zone or on the high seas,
and (ii) maritime employees working ;rimarily on vessels
on the high seas that are not engaged in foreign or

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intercoastal voyages.” Pacific Merchunt Shipping Ass’n v.
Aubry, 709 F.Supp. 1516, 1526 (C.D. Cal. 1989). The
District Court rejected a general federal admiralty law
preemption argument, but held that the FLSA preempted
California overtime pay laws with respect to the employ-
ees in this case.

A Court of Appeals may affirm a district court decision
either on the same grounds, or on different grounds as
those relied upon by the district court. J.M. Martinac
Shipbuilding v. Director, Office of Workers Compensation
Programs, 900 F.2d 180 (9th Cir. 1990). Therefore, it is
appropriate to examine whether the Distr ct Court’s deci-
sion

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385009_2619%3A1. Public record. Not legal advice.
