# Prologue — Shannon v. 520 South Michigan Avenue Associates, Ltd. (No. 09-14)

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Prologue
- **Published:** January 1, 2009

## Text

PETITION

FOR
WRIT OF

CERTIORARI

x

09-14 JUN29 2009

No. OFFICE OF THE CLERK

In the
Supreme Court of the United States

CATHERINE SHANNON, DIRECTOR OF THE ILLINOIS
DEPARTMENT OF LABOR, ET AL., PETITIONERS,

U.

520 SOUTH MICHIGAN AVENUE ASSOCIATES, LTD.,
RESPONDENT.

On Petition for a Writ of Certiorari
to the United States Court of Appeals
for the Seventh Circuit

PETITION FOR A WRIT OF CERTIORARI

RICHARD G. MCCRACKEN

PAUL L. MORE

Davis Cowell & Bowe, LLP

595 Market St., Ste. 1400

San Francisco, California
94105

(415) 597-7200

WESLEY KENNEDY

N. ELIZABETH REYNOLDS

Allison Slutsky &
Kennedy PC

230 W. Monroe, Ste. 2600

Chicago, Illinois 60606

(312) 364-9400

LISA MADIGAN
Attorney General

of Illinois
MICHAEL A. SCODRO*
Solicitor General
JANE ELINOR NOTZ
Deputy Solicitor General
CARL J. ELITZ
Ass’t Attorney General
100 West Randolph Street
Chicago, Illinois 60601
(312) 814-3698

* Counsel of Record

Attorneys for Petitioners

nil

QUESTION PRESENTED

Whether, in conflict with other circuits and
decisions of this Court, the court of appeals incorrectly
held that a state statute cannot be a “minimum labor
standard”—and therefore cannot survive preemption by
the National Labor Relations Act, 29 U.S.C. §151 et
seq.—if the law is tailored to account for occupational
and regional differences or is “stringent” in its require-
ments.

i
RULE 14.1(b) STATEMENT

A list of all parties to the proceeding in the court
whose judgment is sought to be reviewed is as follows:

Defendant-Appellee/Petitioner: Catherine Shannon,
Director of the Illinois Department of Labor.

Intervenor-Appellee/Petitioner: UNITE HERE Local 1.

Plaintiff-Appellant/Respondent: 520 South Michigan
Avenue Associates, Ltd., d/b/a The Congress Plaza Hotel
& Convention Center.

il

TABLE OF CONTENTS

Page
QUESTION PRESENTED ....cccccccccnccenons i
FOULS 14.10) SLA TRIN ccc cee ences il
TABLES OF AUTIIURETIBS 2... cw cece eecsscns vi
PP UTM EIYY 5 occas enews eseekieevaeus 1
Per 6.65 os nek onset eee ees 2
CONSTITUTIONAL PROVISION AND
SEALE Ee PERV RIVED ow cece crews aes 2
piggy 9 0 by y+. Sarr ima ern ADs errr ene yr 3
ee ES 5 hs 0 eS a ORK e eae eee a)

REASONS FOR GRANTING THE PETITION ... 12

I. Courts Are Divided Over Whether
Targeted Minimum Labor Standards
Are Preempted By The NLRA .......... 13

Il. The Decision Below Is Incompatible
With Decisions Of This Court ......... . 23

III]. The Issue Presented Is One Of
Critical Importance, And The
Decision Below Casts Doubt On
Many Existing Workplace Protection
EMG. 56a. . OCRR SACRE ECR es 35

ee as eee gla Sma a ick Ie la

A. 520So. Mich. Ave. Assocs., Ltd., d/b/a
The Congress Plaza Hotel &
Convention Ctr. v. Shannon, 549 F.3d
RE Cr, ois ccc bs tcc vieees la

B. 520 So. Mich. Ave. Assocs., Ltd., d/b/a
The Congress Plaza Hotel &
Convention Ctr. v. Shannon,
No. 06 C 4552 (N.D. Ill. Sept. 17, 2007) . . 48a

C. 520 So. Mich. Ave. Assocs., Ltd., d/b/a
The Congress Plaza Hotel &
Conventicn Ctr. v. Shannon, No. 06 C
4552 (N.D. Ill. Apr. 20, 2009) (final
OUTENE Oe PD he ee ei ee cee seas 77a

D. 520 So. Mich. Ave. Assocs., Lid., d/b/a
The Congress Plaza Hotel &
Convention Ctr. v. Shannon, No. 06 C
4552 (N.D. Ill. Apr. 20, 2009) (order
denying injunctive relief) ............. 79a

E. 520 So. Mich. Ave. Assocs., Ltd., d/b/a
The Congress Plaza Hotel &
Convention Ctr. v. Shannon, No.
07-3377 (7th Cir. Jan. 28, 2009)
(order denying rehearingen banc) ..... 8la

V

F. The Room Attendant Amendment to
the Illinois One Day Rest in Seven
Act, 820 Ill. Comp. Stat. 140/3.1
(yO BER IERSISGE Caaf tani 9 eres ans Pa 82a

G. Ill. Hotel & Lodging Ass’n v. Ludwig,
869 N.E.2d 846 (Ill. App. Ct. 2007) .... 85a

Vi

TABLE OF AUTHORITIES

Page(s)
CONSTITUTIONAL PROVISIONS:
ee ee cebu a cieseaeéeees sre 2
Corpo Greet. Are. TT, 8 OGG . ww cc ccc ce ereens 41

CASES:

520 S. Mich. Ave. Assocs., Ltd., d/b/a The Congress
Plaza Hotel & Convention Ctr. v. Shannon,
549 F.3d 1119 (7th Cir. 2008) .......... passim

Associated Builders & Contractors of
S. Cal.,Inc. v. Nunn,
356 F.3d 979 (9th Cir. 2004) ....... 10-11, 15, 16

Barentine v. Ark.-Best Freight Sys., Inc.,
NE cs cv sce e ert eeneeess 25

Barnes v. Stone Container Corp..,
942 F.2d 689 (9th Cir. 1991) ............... 18

Bd. of Trs. of Carpenters Pension Fund for
N. Cal. v. Reyes, 688 F.2d 671
a SE er 21

Cal. Div. of Labor Standards Enforcement v.
Dillingham Constr., N.A., Inc.,
ee Sy 5 rer 35

vil
Chamber of Commerce v. Bragdon,
64 F.3d 497 (9th Cir. 1995) ............ passim
DeCanas v. Bica, 424 U.S. 351 (1976) ...... 3, 24, 31

Delgado v. Bd. of Election Comm’rs of City of
Chicago, 865 N.E.2d 183 (Ill. 2007) ......... 21

Dillingham Constr., N.A., Inc. v. County of
Sonoma,190 F.3d 1034
Uk 5 wh oa wk 6 dee eee eS 11, 14

Expert Elec., Inc. v. Levine,
654 F.2d 1227 (2d Cir. 1977) .... 0... cee cee 21

Exxon Corp. v. Governor of Md.,

(gt Mies. | rr

Fort Halifax Packing Co., Inc. v. Coyne,
ee OE hic kw Kees eo eae passim

Gen. Elec. Co. v. N.Y. Dep’t of Labor,
601 F.2d 36 Gd Cir. 1968)... cc ce cee 16

Gen. Elec. Co. v. N.Y. State Dep’t of Labor,
698 F. Supp. 1093 (S.D.N.Y. 1988) ....... 16, 17

Golden State Transit Corp. v. City of Los Angeles, —
ep ge Cs) ene are 8

Hearne v. Bd. of Educ. of City of Chicago,
186 F.3ea 770 (7th Cir. 1008) ...........00-. 19

Vill

Hinterlong v. Baldwin,

720 N.E.2d 315 (Ill. App. Ct. 1999) ......... 21
Holden v. Hardy, 169 U.S. 366 (1898) .......... 36
Hull v. Dutton, 935 F.2d 1194 (11th Cir. 1991) ... 18

Ill. Hotel & Lodging Ass’n v. Ludwig,
869 N.E.2d 846 (Ill. App. Ct. 2007) ..... passim

Ill. Hotel & Lodging Ass’n v. Ludwig,
yy 9 8 3 ot Ri Ry 6 rn 9

Lividas v. Bradshaw,
RE SS eran nave 3, 33

Lodge 76, Int’l Ass’n of Machinists & Aerospace
Workers v. Wis. Employment Relations
Comm'n, 427 U.S. 132 (1976) .......... passim

Malone v. White Motor Corp..,
ik ES ey). | 26, 33

Metro. Life Ins. Co. v. Massachusetts,
Fe Cr Pe CRUE six bb oa ke boas eee wa passim

Nat’l Broad. Co. v. Bradshaw,
70 F.3d 69 (9th Cir. 1995) .............. 11,15

NLRB v. Nash-Finch Co., 404 U.S. 138 (1971) .... 8

New Orleans v. Dukes. 427 U.S. 297 (1976)

1X

N.Y. Tel. Co. v. N.Y. State Dep't of Labor,
440 Ue EE ek wesc ccc ccc eee 27

People v. Carpenter, 888 N.E.2d 105 (Ill. 2008) ... 21

Rein v. David A. Noyes & Co.,
665 N.E.2d 1199 (Tll. 1996) ................ 21

Rhoades v. Casey, 196 F.3d 592 (5th Cir. 1999) ... 21

Roundout Elec., Inc. v. NYS Dep’t of Labor,

835 F.3d 162 (2d Cir. 20038) ..............00. 16
San Diego Bldg. Trades Council v. Garmon,

SOO Ue. Mee ca we ssc cet ccc ee 7-8
S. Cal. Edison Co. v. Pub. Utils. Comm’n,

140 Cal. App. 4th 1085 (2006) .......... 18, 22
Tahoe-Sierra Pres. Council, Inc. v. Tahoe Reg’l

Planning Agency,

322 F.3d 1064 (9th Cir. 2003) .............. 21

The St. Thomas-St. John Hotel & Tourism
Ass’n, Inc. v. Gov’t of the United States Virgin
Islands, 218 F.3d 232 (3d Cir. 2000) ........ 18

Viceroy Gold Corp. v. Aubry,
75 F.3d 482 (9th Cir. 1996) ............. 11,15

Wash. Servs. Contractors Coalition v. District of
Columbia, 54 F.3d 811 (D.C. Cir. 1995) ... 11,17

X

Weiland v. Telectronics Pacing Sys., Inc.,
TOL Nee LEGS CH. BOBO) occ cccccececen 21

STATUTES, REGULATIONS, AND CODES

pie hake fo | 5} Sneed ne arte 2
got Sol oo ef” er rrr 3
Ete OR Serr eae ry rn rs 8
ee Se ae Go .6 6 ska elke de eee ee 8
43 Pa. Cons. Stat. Ann. § 1301.207(c)

SE Cas a ERD eae ee ee ES 37
210 Ill. Comp. Stat. 85/10.9(b) (2008) ........... 37
§20 Ill. Comp. Stat. 1380/1 (2008) ............... 39
820 Il]. Comp. Stat. 130/2 (2008)............... 39
820 Ill. Comp. Stat. 140/3.1 (2008) ......... passim
820 Ill. Comp. Stat. 140/6 (2008) ............... 20
Alaska Stat. § 23.10.410 (2009) ................ 38
Ariz. Rev. Stat. Ann. § 23-364(B) (2009) ........ 40
Ariz. Rev. Stat. Ann. § 23-364(G) (2009) ........ 40

Colo. Rev. Stat. Ann. § 8-13-102 (West 2009) ..... 38

XI

Ind. Code Ann. § 5-16-7-1 (West 2009) .......... 39
Me. Rev. Stat. Ann. tit. 26, § 603(5) (2009) ...... 37
Mass. Gen. Laws. Ann. ch. 149, § 27

I 5 0 os ce pha wT ath ek ead ks 6 als es 4]
Mo. Ann. Stat. § 290.020 (West 2009)........... 38
Neb. Rev. Stat. § 48-212 (2008) ................ 37
N.J. Stat. Ann. § 34:20-9 (West 2009) ............ 40
N.Y. Lab. Law § 162 (McKinney 2009) .......... 37
R.I. Gen Laws § 23-17.20-3(b) (2009) ........... 38
Tenn. Code Ann. § 12-4-405 (West 2009) ........ 39
Tex. Gov’t Code Ann. § 2258.021(a)(1) (2009) .... 39
W. Va. Code Ann. § 21-5F-3 (West 2009) 38
Wash. Rev. Code § 49.28.140 (West 2009) ...... 38
Wis. Stat. Ann. § 103.49(d)(1) (West 2009) ...... 39
Wis. Stat. Ann. § 103.85(2) (West 2009) ......... 37
Wis. Stat. Ann. § 103.96(2) (West 2009) ......... 4]

7 Colo. Code Regs. § 1103-1(8) ................ 36

Xi}

Md. Procure. Regs. 21.11.10.01 § (B)(4), (5)
at ate ae Ct ht ee ree ae ia ag . 89

San Diego, Cal., Municipal Code § 22.4230
I ore ogre al. De uatas SP a aimare<5 gl A

Santa Fe, N.M., Municipa) Ordinance 28-1.6(B) .. 40
S.F., Cal., Admin. Code § 12W.7 ............... 40
OTHER:

http://quickfacts.census.gov/qfd/states/17/
17031.html .......... CP ares | 20

http://www.census.gov/statab/ranks/
es ss rae eae ba noe beac et _os ae

http://www.dllr.state.md.us/labor/livingwage

fagqa.shtml#15 39

http://www.no-smoke.org/pdf/100o0rdlisttabs.pdf.. 39

In the
Supreme Court of the United States

No.

——

CATHERINE SHANNON, DIRECTOR OF THE ILLINOIS
DEPARTMENT OF LABOR, ET AL., PETITIONERS,

U.

520 SOUTH MICHIGAN AVENUE ASSOCIATES, LTD.,
RESPONDENT.

On Petition for a Writ of Certiorari
to the United States Court of Appeals
for the Seventh Circuit

PETITION FOR A WRIT OF CERTIORARI

Petitioners, Catherine Shannon, Director of the
Illinois Department of Labor, and UNITE HERE Local
1, respectfully petition for a writ of certiorari to review
the judgment of the United States Court of Appeals for
the Seventh Circuit.

OPINIONS BELOW

The opinion of the United States Court of Appeals
for the Seventh Circuit, App. la-47a, is reported at 549
F.3d 1119 (7th Cir. 2008). The opinion of the district
court, App. 48a-76a, is unreported.

Z

JURISDICTION

The Seventh Circuit Court of Appeals entered
judgment on December 15, 2008, App. la-47a, and
denied rehearing en banc on January 28, 2009, App.
8la. On April 28, 2009, Justice Stevens extended the
time within which to file a petition for writ of certiorari
until June 27, 2009. The jurisdiction of this Court rests
upon 28 U.S.C. § 1254(1).

CONSTITUTIONAL PROVISION AND
STATUTE INVOLVED

The Supremacy Clause provides:

This Constitution, and the Laws of the United
States which shall be made in Pursuance
thereof; and all Treaties made, or which shall
be made, under the Authority of the United
States, shall be the supreme Law of the Land;
and the Judges in every State shall be bound
thereby, any Thing in the Constitution or Laws
of any State to the Contrary notwithstanding.

U.S. Const. art. VI, cl. 2. The Room Attendant Amend-
ment to the Illinois One Day Rest in Seven Act
(“Amendment”), 820 Ill. Comp. Stat. 140/3.1 (2008), is
set forth at App. 82a-84a.

2

INTRODUCTION

In enacting the National Labor Relations Act
(“NLRA”), 29 U.S.C. § 151 et seg., Congress did not
“intend|j to disturb” the States’ “‘broad authority
under their police powers to regulate the employment
relationship to protect workers within’” their borders.
Metro. Life Ins. Co. v. Massachusetts, 471 U.S. 724, 756
(1985) (quoting DeCanas v. Bica, 424 U.S. 351, 356
(1976)). ther, “Congress developed the framework
for self-organization and collective bargaining of the
NLRA within the larger body of state law promoting
public health and s«fety.” Jbid. Accordingly, the NLRA
does not preempt “minimum labor standard[s]” created
by state law, Fort Halifax Packing Co., Inc. v. Coyne,
482 US. 1, 7 (1987), but instead “employers and
employees come to the bargaining table with rights
under state law that form a ‘backdrop’ for their
negotiations,” id. at 21 (quoting Metro. Life, 471 U.S. at
757). Applying these principles, this Court has repeat-
edly rejected claims that substantive workplace stand-
ards are preempted, see Fort Halifax, 482 U.S. at 19-23;
Metro. Life, 471 U.S. at 748-758, and has similarly
rejected a preemption challenge to suits to enforce such
standards, see Lividas v. Bradshaw, 512 U.S. 107, 121-
125 (1994).

The Court’s serial rejection of preemption chal-
lenges to state minimum labor standards should have
resulted in uniform precedent on the subject. But dif-

4

ferences over the proper reading of certain key terms in
the Court’s decisions have bred mischief and confusion
in the lower courts, as exemplified by the decision
below. More than twenty years after the Court’s sem-
inal preemption decisions on the subject, the Seventh
Circuit in this case bemoaned what it perceived as
“sparse” “guidance” on what constitutes a “minimum
labor standard,” App. 22a, and identified discord among
lower court decisions over the proper scope of the
States’ authority to enact workplace protection
legislation without running afoul of federal law, App.
24a-26a. Adopting the approach it deemed the “better
reasoned” among the competing lower court analyses,
App. 26a, the Seventh Circuit held that an Illinois
statute requiring hotel employers in Cook County to
provide periodic rest breaks to their room attendants is
preempted by the NLRA.

The court determined that the rest break law in
question is not a minimum labor standard because the
law’s protections are tailored to account for occupa-
tional and regional differences and are, in the court’s
view, overly “stringent.” But this view—that lowest-
common-denominator laws setting the same minimum
standards regardless of material differences are not
preempted, but that better-tailored laws are—is not
only illogical, but it conflicts with the decisions of other
federal and state courts of appeal, is impossible to
square with this Court’s precedents, and threatens a

5

myriad of existing state and local workplace laws. This
Court should grant certiorari to provide state and local
governments with essential guidance on the limits of
their police power to regulate the workplace.

STATEMENT

1. The Amendment went into effect in 2005. It re-
quires hotel employers to provide their room attend-
ants with two fifteen-minute paid rest breaks and one
thirty-minute unpaid meal period during each workday
in which the room attendant works at least seven hours.
See 820 Ill. Comp. Stat. 140/3.1(b), (c) (2008). Attend-
ants who fail to receive the mandated break periods
have a private cause of action for three times their
regular hourly wage for each workday in which the
breaks are not provided, and attendants are protected
against retaliation for invoking their rights under the
Amendment. See 820 Ill. Comp. Stat. 140/3.1(, (g)
(2008). The anti-retaliation provision creates a pre-
sumption of retaliation that the employer may rebut.
See 820 Ill. Comp. Stat. 140/3.1(g) (2008).

2. As originally introduced in the Illinois legis-
lature, the Amendment applied to all hotels in the State.
See Ill. Hotel & Lodging Ass’n v. Ludwig, 869 N.E.2d
846 (Ill. App. Ct. 2007) (“Ludwig”) (hereinafter, all
citations to Ludwig are to the attached appendix). After
“(llegislators from downstate areas * * * stressed the
different competitive pressures faced by hotels and

6

motels in their regions,” a compromise bill was intro-
duced that applied the law solely to hotels in Cook
County, where Chicago is located. App. 92a. As adopt-
ed, the Amendment applies to all hotels and other
transient occupancy establishments (union and
nonunion alike) in Cook County. See 820 Ill. Comp.
Stat. 140/3.1(b) (2008).

3. In 2007, the Illinois Appellate Court upheld the
Amendment against a constitutional challenge brought
by the Illinois Hotel and Lodging Association (“Associ-
ation”), a statewide trade organization of hotels with
members operating in Cook County. See App. 86a. The
court rejected the Association’s claims that the Amend-
ment was preempted by the NLRA, as well as claims
that the Amendment violated the Illinois Constitution’s
prohibition against special legislation and the federal
and state Equal Protection Clauses. See App. 85a-86a.

The state appellate court determined that the
Amendment “was introduced and passed to protect
hotel room attendants from overwork.” App. 87a. The
evidence demonstrated that these “attendants
essentially work on a piece-rate system,” meaning that
“(bJoth union and nonunion hotels require room attend-
” App.
86a. Thus, “[a]lthough they are paid by the hour, room
attendants are required to deliver a quantified amount
of work during their shift and can be disciplined if they
fail to do so.”

ants to clean a quota of rooms each work shift.

Ibid. The court found that many room

7

attendants skip rest breaks to meet their quotas, con-
tributing to physical injury. See App. 87a. And the risk
of injury has only increased in recent years, as hotels
have added heavier mattresses, more pillows, and ad-
ditional amenities to compete for travelers’ business,
resulting in an increased number and intensity of tasks
required to clean a room. See ibid.

The Illinois Appellate Court then rejected the
Association’s state law and federal equal protection
claims, which were premised on the Amendment’s
application in Cook County alone, because the ILlinois
General Assembly’s decision to treat hotels located in
Cook County differently from hotels located elsewhere
in the State was reasonable. See App. 93a-95a. As the
court explained, “Cook County has more hotel room
attendants than the rest of the State combined,” and
“the revenue per available room for all Chicago hotels
* * * was higher than any other area of the State.” App.
84a. “The legislature rationally could have concluded
from such evidence that [the Amendment] would
protect hotel room attendants from overwork in the
jurisdiction where the majority of such employees would
be impacted and in the jurisdiction best positioned to
absorb the costs of [the] new regulations.” App. 94a-
95a.

The court further rejected the Association’s claim
that the Amendment is preempted under either the
“Garmon,” see San Diego Bldg. Trades Council uv.

8

Garmon, 359 U.S. 236 (1959), or the “Machinists,” see
Lodge 76, Int’l Ass’n of Machinists & Aerospace
Workers v. Wis. Employment Relations Comm ’n, 427
U.S. 132 (1976), doctrine of NLRA preemption. See
App. 95a-102a.’ The court explained that because the
Amendment “‘affect[s] union and nonunion employees
equally’” and “‘neither encouragels] nor discourage|s]
the collective-bargaining processes that are the subject
of the NLRA,”’” it is “a minimum labor standard” and
thus survives under this Court’s labor preemption cases.

“ce

, Garmon preemption precludes States from regulating

activity arguably protected by section 7 of the NLRA (protecting
employees’ rights to self-organization, to bargain collectively, to
form, join, or assist labor organizations, and to “engage in other
concerted activities for the purpose of collective bargaining or
other mutual aid or protection,” as well as to refrain from these
activities, 29 U.S.C. § 157) or prohibited by section 8 (pro-
hibiting unfair labor practices by employers and labor organiz-
ations, see 29 U.S.C. § 158). See Garmon, 359 U.S. at 241-245.
Machinists preemption bars state regulation of conduct that
Congress neither protected through section 7 nor prohibited
though section 8 but instead “left ‘to be controlled by the free
play of economic forces.’” Machinists, 427 U.S. at 140 (quoting
NLRB v. Nash-Finch Co., 404 U.S. 138, 144 (1971)).
Machinists thus precludes States from enacting laws that
interfere with the collective bargaining process, such as laws re-
quiring employers to settle labor disputes to receive regulatory
permits. See Golden State Transit Corp. v. City of Los Angeles,
475 U.S. 608, 615-616 (1986).

9

App. 101la (quoting Metro. Life, 471 U.S. at 755). The
Supreme Court of Illinois declined the Association’s
request for leave to appeal. See J///. Hotel & Lodging
Ass’n v. Ludwig, 875 N.E.2d 1111 (Ill. 2007).

4. While Ludwig was pending in the Illinois courts,
respondent, which is not a member of the Association,
filed this action in federal court, raising claims similar
to the ones that would fail in that case—that the
Amendment violates due process, equal protection, and
[llinois’s prohibition against special legislation, and is
preempted by the NLRA and the Labor Management
Relations Act (““LMRA”). See App. 8a. On petitioners’
motions to dismiss, the district court upheld the
Amendment, finding the Illinois Appellate Court’s
opinion rejecting “almost identical” federal claims in
Ludwig to be “well-reasoned” and “persuasive,” and
declining jurisdiction over the supplemental state-law
claims. App. 50a, 76a.

5. On appeal, the Seventh Circuit rejected the
result reached by the state appellate court, reversed the
district court, and held that the Amendment is
preempted by the NLRA under the Machinists doctrine.
See App. 46a-47a. The court acknowledged that
Machinists preemption “is concerned with the process
and not the substantive terms of the bargain,” whereas

the Amendment “establishes a_ substantive
requirement” rather than working a direct change to
the process of bargaining and self-organization. App.

10

38a. And the court further recognized this Court’s
holdings that “minimum labor standards,” which are
not preempted by the NLRA, are defined as those that
“affect union and nonunion employees equally, and
neither encourage nor discourage the collective-
bargaining processes that are the subject of the NLRA.’”
App. 22a-23a (quoting Metro. Life, 471 U.S. at 755).
Finally, the court acknowledged that the Amendment
both “facially affects union and nonunion employees
equally,” App. 23a, and in practice applies to both union
and nonunion attendants because “not all room
attendants in Cook County are unionized,” App. 32a.
The court nevertheless held that the Amendment did
not qualify as a minimum labor standard.

The court reasoned that—although the Amendment
applies to union and nonunion workers alike—it cannot
set a “genuine minimum labor standard” because it “is
not a statute of general application.” App. 23a. Accord-
ing to the court, the Amendment’s “narrow scope of
application,” to room attendants in Cook County hotels,
“serves as a disincentive to collective bargaining,” App.
30a, and thereby runs afoul of the NLRA. For this
conclusion, the Seventh Circuit relied on Chamber of
Commerce v. Bragdon, 64 F.3d 497 (9th Cir. 1995). The
court acknowledged that the Ninth Circuit has since
repudiated Bragdon’s characterization of minimum
labor standards as laws “applicable to all employees,”
id. at 502. See App. 26a (noting holding of Associated

ll

Builders & Contractors of S. Cal., Inc. v. Nunn, 356
F.3d 979, 990 (9th Cir. 2004), that “state substantive
labor standards * * * are not invalid simply because they
apply to particular trades, professions, or job classifi-
cations rather than to the entire labor market”). But
the Seventh Circuit deemed the Bragdon approach
“better reasoned” than the later decisions rejecting it.
App. 26a. The court further recognized that a “series of
cases,” including decisions of this Court, the Ninth
Circuit, and the D.C. Circuit, had upheld workplace
protection laws “that apply only to particular occu-
pations, industries or categories of employers” against
preemption challenges, but distinguished the instant
case because it addressed a law limited “by location” as
well as “by trade.” App. 25a-26a.’

In addition, the Seventh Circuit also reasoned that
the Amendment does not qualify as a minimum labor
standard because “minimum” “implies alow threshold.”
App. 34a. According to the court, the Amendment’s

protections do not comprise a “true minimum labor

9
«

The Seventh Circuit purported to distinguish Fort Halifax,
482 U.S. 1; Dillingham Construction N.A., Inc. v. County of
Sonoma, 190 F.3d 1034 (9th Cir. 1999); Viceroy Gold
Corporation v. Aubry, 75 F.3d 482 (9th Cir. 1996); National
Broadcasting Company v. Bradshaw, 70 F.3d 69 (9th Cir. 1995);
and Washington Services Contractors Coalition v. District of
Columbia, 54 F.3d 811 (D.C. Cir. 1995), on this ground. App.
25a-26a.

12

standard” because they are “higher” than those for
other Illinois workers, App. 32a-33a; they are too
“stringent,” App. 38a; and, in the court’s view, they
“would be very difficult for any union to bargain for,”
App. 35a. As aresu't, the court hypothesized, the man-
dated rest breaks would “interfere” with room
attendants’ pay and quota structure under respondent’s
expired collective bargaining agreement, and the
Amendment’s rebuttable presumption of retaliation
would similarly undermine the dispute-resolution
mechanisms set forth in that agreement. App. 40a-43a.

REASONS FOR GRANTING THE PETITION

In using Machinists preemption to invalidate a state
workplace law applicable to union and nonunion
employees alike, the Seventh Circuit broke from this
Court’s definition of a “minimum labor standard” in
Metropolitan Life and Fort Halifax. The Seventh
Circuit’s redefinition of a “minimum labor standard”
conflicts with both federal and state appellate court
decisions, including a ruling by the Illinois Appellate
Court rejecting the same preemption challenge to the
same Illinois law. Moreover, the Seventh Circuit’s
decision contributes significantly to uncertainty over
the scope of state and local power to enact workplace
protection laws, and it casts doubt on myriad of laws
governing the workplace already on the books. Only
this Court can impose much-needed clarity on this
critical area of state and local lawmaking, and establish

13

definitively—notwithstanding the Seventh Circuit’s
decision in this case, resurrecting a Ninth Circuit ruling
whose reasoning that court has disavowed—-that federal
law does not require States wishing to provide
workplace protections to do so only with untailored,
one-size-fits-all rules.

I. Courts Are Divided Over Whether Targeted
Minimum Labor Standards Are Preempted By
The NLRA. |

1. The Seventh Circuit’s determination that the
Amendment is not a “minimum labor standard” is
impossible to reconcile with decisions of the Second,
Ninth, and D.C. Circuits. These cases recognize that,
to avoid preemption, state laws need only be general in
the sense that they apply to union and nonunion
workers alike (as all agree the Amendment does). See
Metro. Life, 471 U.S. at 753; Fort Halifax, 482 U.S. at
19-20. Nothing in these cases limits the States’ ability
to tailor workplace protections based on geographical
and/or occupational differences.

Indeed, in holding that the Amendment’s “narrow
scope” prevented it from being a minimum labor
standard, App. 30a, the Seventh Circuit recognized that
“a series of cases” have held that regulations that
“apply only to particular occupations, industries or
categories of employers have survived preemption
challenge[s],” App. 25a. But the court below relied on
the Ninth Circuit’s decision in Chamber of Commerce v.

14

Bragdon, which it characterized as “better reasoned”
than conflicting decisions that have rejected the
Bragdon approach. App. 26a. Bragdon held that a
county ordinance prescribing wage and benefit levels for
private construction contractors was preempted under
the Machinists doctrine. See 64 F.3d at 504. The Ninth
Circuit reasoned that the ordinance was “incompatible
with the goals of the NLRA” because it “provide[d] for
specific minimum wages and benefits to be paid to each
craft and only to those workers who are engaged in the
specific construction projects covered by the
Ordinance.” Jd. at 501, 502. In line with Bragdon, it
was thus critical to the Seventh Circuit’s preemption
analysis that the Amendment “lack[ed] * * * general
application.” App. 29a. The court ultimately concluded
that to survive preemption, a minimum labor standard
must target substantially all of the labor market. See
ibid. On this point—essential to the holding below—the
Seventh Circuit’s decision is in square conflict with
other decisions of the Ninth Circuit, as well as the rule
in the Second and D.C. Circuits.

First, although downplayed by the Seventh Circuit,
see App. 28a-29a n.9, the Ninth Circuit itself has
rejected the Bragdon analysis on which the decision
below relied. Thus, in Dillingham Construction N.A.,
Inc. v. County of Sonoma, 190 F.3d 1034 (9th Cir. 1999),
the court held that a law requiring payment of
prevailing wages to apprentices on public construction

15

projects was a “minimum labor standard|[] immune from
NLRA preemption.” Jd. at 1039; see also Viceroy Gold
Corp. v. Aubrey, 75 F.3d 482, 489-490 (9th Cir. 1996)
(overtime law applying only to miners not preempted);
Nat’! Broad. Co., Inc. v. Bradshaw, 70 F.3d 69, 71-72
(9th Cir. 1995) (same for law applying only to broadcast
employees).

Subsequently, in Associated Builders & Contractors
of Southern Califorina, Inc. v. Nunn, 356 F.3d 979 (9th
Cir. 2004), the court expressly rejected Bragdon in
holding that a law requiring contractors to pay
registered apprentices on private construction projects
certain wage rates based on their “craft and
geographical area”—just like the ordinance challenged
in Bragdon—was not Machinists preempted. Jd. at 983,
990-991. The court warned that “Bragdon must be
interpreted in the context of Supreme Court authority
and our other, more recent rulings on NLRA pre-
emption,” which make clear that “the NLRA does not
authorize us to pre-empt minimum labor standards
simply because they are applicable only to particular
workers in a particular industry.” Jd. at 990; accord
ibid. (“It is now clear * * * that state substantive labor
standards * * * are not invalid simply because they

16

apply to particular trades, professions, or job classifi-
cations rather than to the entire labor market.”).°

Not only does the Seventh Circuit’s decision part
ways with current Ninth Circuit case law, but it is also
inconsistent with the rule adopted by the Second and
D.C. Circuits. In General Electric Company v. New York
Department of Labor, 891 F.2d 25 (2d Cir. 1989), the
Second Circuit upheld New York’s prevailing wage law
against a claim that it was NLRA preempted because it
was not universal in scope, applying only to public
works contracts, see id. at 26, 27-28; see also Roundout
Elec., Inc. v. NYS Dep’t of Labor, 335 F.3d 162, 169 (2d
Cir. 2003) (declining to follow Bragdon). The Second
Circuit adopted the reasoning of the district court, see
id. at 27, that it “d{id] not matter that the coverage of
the statute is limited.” Gen. Elec. Co. v. N.Y. State Dep’t
of Labor, 698 F. Supp. 1093, 1098 (S.D.N.Y. 1988). As
the district court had explained, “coverage of minimum
wage statutes is rarely universal”; accordingly, that “the
state ha[d] a rational reason for applying this statute to
the employees of private contractors engaged in
performing public work and for setting its minimum
standards at the level it has selected” was sufficient to
sustain the law. Ibid. It was similarly irrelevant that

2
v

Although Nunn rejected Bragdon’s reasoning, it did not
overrule Bragdon, see 556 F.3d at 990-991, adding to the
confusion in the lower courts.

17

the prevailing wage law required minimum wages in
excess of those applicable to other occupations: “The
common thread in the Supreme Court’s ‘minimum labor
standard’ concept is not a dictionary definition of
‘minimum,’ nor a requirement that the minimum
standards be neutral in their effect on the cc. ‘ective bar-
gaining process, but a judgement that the substantive
rights which the state seeks to create are consistent
with the ‘general legislative goals of the NLRA.’” Jd. at
1100 (quoting Metro. Life, 471 U.S. at 757).

Likewise, in Washington Services Contractors
Coalition v. District of Columbia, 54 F.3d 811 (D.C. Cir.
1995), the D.C. Circuit upheld labor legislation requir-
ing only “contractors who employ 25 or more persons
and perform food, janitorial, maintenance, or non-
professional health care services” to retain a pred-
ecessor’s employees for ninety days after taking over a
service contract. Jd. at 813-814. In rejecting a Machin-
ists preemption claim to this targeted iaw, the court
held that the NLRA “does not preempt local regulation
of any facet of the employment relationship, but rather
only those laws that disturb the labor dispute resolution
system established by the NLRA.” Jd. at 817 (emphasis
in original). Because the law at issue was “substantive
employee protective legislation having nothing to do
with rights to organize or bargain collectively,” Machin-
ists preemption did not apply. Jd. at 818.

18

Thus, the result under Bragdon and in the Seventh
Circuit would have been different in either the Second
or D.C. Circuits; the fact that legislation applied only to
certain workers would have subjected it to Machinists
preemption in those cases. The Third Circuit has
declined to follow Bragdon on this point as well, as have
the California courts. See The St. Thomas-St. Jokn
Hotel & Tourism Ass’n, Inc. v. Gov’t of the United States
Virgin Islands, 218 F.3d 232, 244 (3d Cir. 2000); S. Cal.
Edison Co. v. Pub. Utils. Comm’n, 140 Cal. App. 4th
1085, 1102-1103 (2006).*

4

Beyond relying on Bragdon, the Seventh Circuit supported
its view that only laws applying to substantially all of the labor
market qualify as minimum labor standards with citations to
Barnes v. Stone Container Corporation, 942 F.2d 689 (9th Cir.
1991), and Hull v. Dutton, 935 F.2d 1194 (11th Cir. 1991). See
App. 24a-25a. But Barnes did not involve a challenge to a
minimum labor standard, but rather whether an individual
could invoke Montana’s Wrongful Discharge Act during an
impasse in collective bargaining negotiations. See 942 F.2d at
693. And in Hull, the challenged Alabama statute applied only
to the State’s own employees, making it “an expression of the
state’s power as an employer to regulate relations with its
employees, rather than the state’s authority to regulate in the
interest of the health, welfare, and mores of its citizens.” 935
F.2d at 1198-1199. The Seventh Circuit’s misreading of these
cases is additional evidence of confusion over the meaning of

the term “minimum labor standard.”

19

2. The decision below makes an effort to
distinguish some of the cases in the foregoing line by
observing that the Amendment is limited geographically
as well as by trade, but this observation is of no legal
moment and does nothing to reconcile the Seventh
Circuit with other courts. Such geographic targeting is
a common and necessary feature of laws in Illinois and
elsewhere. The Amendment, as originally drafted,
would have applied statewide. See App. 9la. But, as
the Seventh Circuit itself has recognized, Chicago and
Cook County differ fundamentally from the rest of the
State. See Hearne v. Bd. of Educ. of City of Chicago,
185 F.3d 770, 774 (7th Cir. 1999) (“the Illinois statute
books are riddled with laws that treat communities with
more than 500,000 residents—i.e., Chicago—differently
from smaller ones”). The Amendment thus was limited
to Cook County after downstate hotels successfully de-
monstrated that Cook County’s hotel industry differed
fundamentally from that in other areas of the State.
See App. 94a-95a. The Illinois legislature appropriately
“concluded from such evidence that [the Amendment]
would protect hotel room attendants from overwork in
the jurisdiction where the majority of such employees
would be impacted and in the jurisdiction best
positioned to absorb the costs of [the Amendment’s]
new regulations.” I[bid.

Nor is Cook County merely “one of Illinois’s 102
counties,” as the Seventh Circuit described it. App. 26a.

20

With 5.3 million residents (forty-three percent of
Illinois’s population), Cook County is among the largest
counties in the nation and has a population exceeding
that of twenty-nine States. See http://quickfacts.cen
sus.gov/qfd/states/17/17031.htm] (last visited Jun. 26,
2009) (Cook County); http://www.census.gov/statab/
ranks/rank01.html (last visited Jun. 26, 2009) (State
rankings). Given Cook County’s substantial population
and concentration of hotels, the Seventh Circuit’s
concern about the geographic scope of the Amendment
is nonsensical. That leaves only the fact that the
Amendment does not apply statewide, but that is
logically immaterial. If state subdivisions may pass
workplace protection laws—as they routinely do, see
infra pp. 39-40, it is inconceivable that a state law
limited to an area with a larger population risks any
greater interference with federal labor law.

3. Finally, the decision below not only is irrecon-
cilable with the rulings of three circuit courts, but it also
creates a conflict between state and federal law within
the Seventh Circuit. The Seventh Circuit invalidated
the Amendment notwithstanding that the Illinois Ap-
pellate Court had recently upheld it against an identical
preemption challenge. These conflicting rulings leave
petitioner Shannon, who is charged with enforcing the
Amendment, see 820 Ill. Comp. Stat. 140/6 (2008), in an
untenable sitvation requiring this Court’s intervention.

21

The Illinois Appellate Court’s decision is res judi-
cata as to every hotel belonging to the Association that
brought that case. See, e.g., Rein v. David A. Noyes &
Co., 665 N.E.2d 1199, 1204 (Ill. 1996); Tahoe-Sierra
Pres. Council, Inc. v. Tahoe Reg’! Planning Agency, 322
F.3d 1064, 1082 «9th Cir. 2003); Expert Elec., Inc. v.
Levine, 554 F.2d 1227, 1233 (2d Cir. 1977).° And while
Illinois courts must follow this Court on issues of federal
preemption, they are not bound by the Seventh Circuit’s
preemption decisions, see, e.g., Weiland v. Telectronics
Pacing Sys., Inc., 721 N.E.2d 1149, 1153-1154 (ill.
1999); Hinterlong v. Baldwin, 720 N.E.2d 315, 323 (Ill.
App. Ct. 1999), meaning that even non-Association
members (other than respondent) remain subject to
enforcement actions. For these entities, Ludwig is stare
decisis in the Circuit Court of Cook County, the only
jurisdiction where the Amendment applies. See, e.g.,
People v. Carpenter, 888 N.E.2d 105, 111 (Ill. 2008);
Delgado v. Bd. of Election Comm’rs of City of Chicago,
865 N.E.2d 183, 188 (Ill. 2007). As a practical matter,
however, petitioner Shannon is reluctant to flout the

5

The Seventh Circuit’s rejection of Ludwig does not chang
this result. See, e.g., Rhoades uv. Casey, 196 F.3d 592, 602 (5th
Cir. 1999); Bd. of Trs. of Carpenters Pension Fund for N. Cal.
v. Reyes, 688 F.2d 671, 673 (9th Cir. 1982).

22

holding of the Seventh Circuit. As a result, she is
inhibited from performing her statutory duty to enforce
the Amendment.

Illinois is not the only State in which a state and
federal court are at odds over whether a law must be
broadly applicable to constitute a “minimum labor
standard.” For example, although the Ninth Circuit has
yet to overrule Bragdon expressly, that case has been
squarely rejected by California’s state appellate court.
In upholding a prevailing wage requirement limited to
workers on one type of construction project against a
Machinists challenge, the California Court of Appeal
“decline[d] to follow Bragdon,” which the court
described as “inconsistent” with this Court’s “rule * * *
that state regulation of the substantive terms of
employment * * * is not subject to Machinists pre-
emption.” S. Cal. Edison, 140 Cal. App. 4th at 1103-
1104 (citing Metro. Life, 471 U.S. at 758).

Thus state officials face a legal dilemma: is their
authority to regulate workplace standards limited to
laws applicable to substantially all of the labor
market—as Bragdon and the Seventh Circuit hold—or
may they, as their own state courts have determined,
target workplace protections to categories of workers
who really need them and employers that can best
tolerate them. This intra-State uncertainty is an
additional reason why this Court should grant certiorari
review.

23

II. The Decision Below Is Incompatible With
Decisions Of This Court.

After bemoaning that this Court’s “guidance” on
what constitutes a “minimum labor standard” is
“sparse,” App. 22a, the Seventh Circuit proceeded to
fundamentally alter the concept. According to the
court, the Amendment does not qualify as a “minimum
labor standard” because it is “not a statute of general
application,” App. 23a, but rather is targeted to a
particular occupation in a particular locale. The court
further sought to bolster its holding by characterizing
the statute as exceeding “a low threshold” and as
unduly “stringent.” App. 34a, 38a. But on top of
breaking from other circuits, the Seventh Circuit’s
doctrinal innovations are incompatible with this Court’s
cases, which make clear that the term “minimum labor
standard” merely denotes a substantive labor standard
applicable to union and nonunion workplaces alike.
Even the Seventh Circuit acknowledged that the
Amendment easily satisfies this definition. See App.
23a (Amendment “facially affects union and nonunion
employees equally”). The court should have gone no
further.

1. In Metropolitan Life, this Court rejected an
NLRA preemption challenge to a Massachusetts law
requiring minimum mental-healthcare benefits for all
employees, including those subject to benefit plans
negotiated pursuant to collective-bargaining agree-

24

ments. See 471 U.S. at 727, 758. The Court expressly
disapproved the view that required-benefit laws like
Massachusetts’s were preempted because they “in effect
mandate terms of collective-bargaining agreements,”
and thereby remove “the choice of terms” in such
agreements from “the free play of economic forces.” Id.
at 748. As the Court explained, “[t]he NLRA is concern-
ed primarily with establishing an equitable process for
determining terms and conditions of employment, and
not with particular substantive terms of the bargain
that is struck.” Jd. at 753. In addition, there generally
is “no incompatibility” “between federal! rules designed
to restore the equality of bargaining power[] and state
or federal legislation that imposes minimal substantive
requirements on contract terms negotiated between
parties to labor agreements.” Id. at 754.

This Court thus determined that Congress did not
intend the NLRA to displace state laws that are “un-
related * * * to the processes of bargaining or self-
organization.” Metro. Life, 471 U.S. at 756. Rather,
States are free to enact “minimum labor standards”
pursuant to their “‘broad authority under their police
powers to regulate the employment relationship to
protect workers.’” Jd. at 755, 756 (quoting DeCanas,
424 U.S. at 356). “Minimum labor standards,” the
Court further explained, are laws that “affect union and
nonunion employees equally,” and, thus, they are not
preempted under Machinists because they “are not laws

25

designed to encourage or discourage employees in the
promotion of their interests collectively” but, instead,
“‘sive specific minimum protections to individual
workers and * * * ensure that each employee * * *
receive[s]’” statutorily mandated protections. Jd. at 755
(quoting Barentine v. Ark.-Best Freight Sys., Inc., 450

U.S. 728, 739 (1981) (emphasis in original)).

2. Subsequent to Metropolitan Life’s holding that
state “minimum labor standards” are not preempted by
the NLRA, this Court in Fort Halifax made clear that a
state law need not be applicable to substantially all of
the labor market to qualify as such a standard, for the
Court in that case sustained a narrowly targeted statute
against an NLRA preemption challenge. The Court
upheld a Maine law requiring an employer that termin-
ates operations at a plant with one hundred or more
employees (or relocates those operations more than one
hundred miles away) to provide severance pay to any
employee who had worked in the plant for more than
three years. See 482 US. at 4 n.1, 5, 23. Thus, the
state statute was not broadly applicable; it applied only
to larger plant closings, distant relocations, and longer-
tenured employees.

Even though the law was limited in its application,
this Court upheld the Maine statute as a “minimum
labor standard” akin to the one sustained in
Metropolitan Life. Like the Massachusetts law, Maine’s
plant-closing law “provide[d] protections to individual

26

union and nonunion workers alike, and thus ‘neither
encourage([d] nor discouragel[d] the collective-bargain-
ing processes that are the subject of the NLRA.’” 482
U.S. at 20-21 (quoting Metro. Life, 471 U.S. at 755).
The Court acknowledged that “the Maine statute
glave] employees something for which they otherwise
might have to bargain,” but the same could be said for
almost any workplace law, and “‘there is nothing in the
NLRA * * * which expressly forecloses all state
regulatory power with respect to those issues * * * that
may be the subject of collective bargaining.’” Id. at 21-
22 (quoting Malone v. White Motor Corp., 435 U.S. 497,
504-505 (1978)); see also id. at 21 (“the mere fact that
a state statute pertains to matters over which the
parties are free to bargain cannot support a claim of pre-
emption”). In short, the Maine statute was “‘a valid
and unexceptional exercise of the [State’s] pclice
power.’” Id. at 22 (quoting Metro. Life, 471 U.S. at 758)
(alteration in original).

3. Notwithstanding the actual holdings of
Metropolitan Life and Fort Halifax, the Seventh Circuit,
like the Ninth Circuit in Bragdon, seems to have been
led astray by some of the more general language in
those decisions. The court below focused on the use of
the phrase “laws of general application” in Metropolitan
Life to describe minimum labor standards, App. 23a
(emphasis in original), and the description of such
standards as “minimal” and as a “backdrop” to negoti-

27

ations in Metropolitan Life and Fort Halifax, respect-
ively, App. 34a. Contrary to the Seventh Circuit’s
approach, however, nothing in this Court’s decisions
indicates that these references were intended to bar
States from adopting anything but “low threshold” or
untailored laws that apply broadly to all sectors of the
labor market.

As explained, Metropolitan Life itself held that
“minimum labor standards” are those that “affect union
and nonunion employees equally.” 471 U.S. at 755.
And the Court’s reference to a “law of general appli-
cation,” id. at 750 n.28, 753, was derived from New York
Telephone Company v. New York State Department of
Labor, 440 U.S. 519 (1979), where a plurality of the
Court used the phrase to distinguish laws targeting
unionized workplaces, see id. at 533 (“Section 591(1) is
not a ‘state la[w] regulating the relations between
employees, their union and their employer,’ as to which
the reasons underlying the pre-emption doctrine have
their ‘greatest force.’ Instead * * * the statute is a law
of general applicability.”) (internal citation omitted).

This view is consistent with this Court’s approval in
Fort Halifax of a narrowly-targeted law and with the
State’s recognized police power authority to regulate the
employment relationship. The Seventh Circuit sought
to distinguish the Amendment from Maine’s plant-
closing law by claiming that the latter, although
admittedly not universally applicable, “still had a very

28

broad application.” App. 24a. But the court made no
effort to explain why aplant-closing law targeted to only
a limited class of large businesses in a very small State
is more broadly applicable than a law targeted to one
occupation in a county that is larger than 29 States.
Rather, it reasoned merely that the Amendment’s
limitation to one Illinois county “serves as a dimin.-
centime to collective bargaining” and “makes it possible
to target union-heavy counties (or union-light counties),
and thus reward (or punish) union activit[ies].” App.
30a, 32a. But this Court rejected precisely these claims
in Fort Halifax. There, the Court noted that “[t)h[e]
argument—that a State’s establishment of minimum
substantive labor standards undercuts collective
bargaining—was considered and rejected in Metropo!-
itan Life,” 482 U.S. at 20, thus doing away with the
Seventh Circuit’s concern about “disincentivies]” to
collective bargaining. And as for the suggestion that the
Amendment might affect in practice union workplaces
more heavily than nonunion, Fort Halifax also rejected
an argument that the Maine statute was preempted
because it “dlid] not fall equally upon union and non-
union employees.” Jd. at 22 n.15.

Indeed, the idea that a workplace standard is
preempted because it affects a trade or locale meeting
some undefined threshold of unionization not only con-
flicts with this Court’s precedents but would make it
impossible for States to set workplace standards in any

29

industry with a significant union presence, even when
large numbers of the affected workforce were non-
unionized. This result, which “penalizes] workers who
have chosen to join a union by preventing them from
benefitting from state labor regulations imposing
minimal standards on nonunion employers,” “would
turn the policy that animated the [NLRA] on its head.”
Metro. Life, 471 U.S. at 756. The Seventh Circuit’s ap-
poach also is unworkable in practice, for it offers no
meaningful standard for determining when an industry
or locale is sufficiently “union-heavy” or “union-light”
to trigger federal preemption. Thus, the Seventh Cir-
cuit’s reliance on the phrase “law of general applica-
tion” to invalidate the Amendment because of its
targeted scope is inconsistent with this Court’s holdings
and their underlying rationales.

4. The Seventh Circuit’s decision also resulted from
a lack of clarity in the term “minimum labor standard”
itself. Pointing to this Court’s characterization of mini-
mum labor standards as involving “minimal substantive
requirements,” App. 34a, the lower court held that the
Amendment “does not qualify as a ‘minimum’ labor
standard” because “‘[mlinimum,’ * * * implies a low
threshold,” whereas the Amendment “establishes terms
of employment that would be very difficult for any
union to bargain for,” App. 34a-35a; see also App. 38a

30

(“[t]he more stringent a state labor substantive
standard, the more likely it is that the state law
interferes with the bargaining process”).

But this interpretation of the phrase “minimum
labor standard” is incompatible with the rationales of
Metropolitan Life and Fort Halifax. Speculation about
whether a statutorily mandated benefit would have
been “difficult” to achieve in bargaining played no role
in the Court’s analysis in these cases. In fact, the
nature of the benefits at issue refutes the Seventh
Circuit’s view that only insubstantial state regulations
may escape NLRA preemption: neither the severance-
pay provision in Fort Halifax (requiring one week’s pay
for each year of employment to all employees who had
worked more than three years, see 482 U.S. at 4n.1) nor
the mental-healthcare benefit in Metropolitan Life
(requiring coverage for “‘mental or nervous conditions’”
that provides sixty days per year in a mental hospital
and treats confinement in a general hospital “‘no
differently] than * * * any other illness,’” 471 U.S. at
730 n.11) (quoting statute), may fairly be characterized
as a law with “minimal substantive impact” on
collective bargaining agreements, App. 34a.°

6

Indeed, the Metropolitan Life Court cited with approval
myriad state mandated-benefit laws, none of which satisfy the
Seventh Circuit’s “low threshold” requirement. See 471 U.S.

at 730 n.10 (describing state laws requiring “alcoholism
(continued...)

31

Equally misplaced is the Seventh Circuit’s view that
the Amendment is not a “true minimum labor stand-
been” because the Illinois One Day Rest in Seven Act,
which the Amendment modified, “already established a
minimum labor standard for breaks.” App. 32a-33a.
Under the court’s analysis, once a State sets a labor
standard that applies broadly, it may never adopt
different standards later for occupations warranting
greater protection. This is a radical and novel limitation
on the States’ “great latitude” and “‘broad authority
under their police powers to regulate the employment
relationship to protect workers,’” including by respond-
ing to unique and changing workplace conditions.
Metro. Life, 471 U.S. at 756 (quoting DeCanas, 424 U.S.
at 356). It also is an unwise limitation, for it favors one-
size-fits-all legislation over more carefully tailored law-
making. Rather, as the Court’s endorsement of sub-
stantial state workplace regulation in Metropolitan Life
and Fort Halifax makes plain, the term “minimum labor
standard” simply means a floor from which individuals
and unions must negotiate upwards.

’ (...continued)

coverage,” “certain birth-defeci coverage,” “outpatient kidney-
dialysis coverage,” and coverage for “reconstructive surgery for
insured mastectomies”). Tosay the least, these substantial and
costly benefits might well be difficult for union negotiators to
achieve in bargaining.

32

Not only is the Seventh Circuit’s rule inconsistent
with this Court’s decisions, but it is unworkable. The
court set forth no standard for determining whether a
workplace law is too “stringent” or provides a benefit
that would be “very difficult for any union to bargain
for.” App. 35a-38a. As a result, the rule is an invitation
to prohibited judicial second-guessing of economic
legislation. See Exxon Corp. v. Governor of Md., 437
U.S. 117, 124 (1978); New Orleans v. Dukes, 427 US.
297, 303 (1976) (per curia).

5. The Seventh Circuit also broke from this Court’s
case law in suggesting that federal law preempts
workplace regulations without an “opt-out” for labor
agreements setting different standards. See App. 33a.
The court concluded that “when the parties are not free
to devise their own arrangement preemption applies
because the statute intrudes on the collective bargaining
process.” App. 34a. But this runs afoul of Fort Halifax,
where the Court was careful to point out that the
Massachusetts statute in Metropolitan Life “permitted]
no collective bargaining” but nevertheless “escaped]
NLRA pre-emotion.” 482 U.S. at 22 (emphasis in orig-
final).

6. Finally, the court below claimed that preemption
was necessary because the Amendment “interfered]”
with the terms of respondent’s expired collective
bargaining agreement, App. 43a, both because its cause
of action for retaliation was inconsistent with the

33

agreement’s dispute-resolution mechanism, and because
its mandated breaks supposediy undermined the room-
cleaning quota system established hy the agreement, see
App. 40a-43a. But this Court’s holdings create no ex-
caption based on the happenstance that some set of
employees somewhere in the jurisdiction are already
subject to a collective bargaining agreement covering
the same topic. See Fort Halifax, 482 U.S. at 21-22
(“the mere fact that a state statute pertains to matters
over which the parties are free to bargain cannot
support a claim of pre-emotion, for ‘there is nothing in
the NLRA * * * which expressly forecloses all state
regulatory power with respect to those issues * * * that
may be the subject of collective bargaining’”) (quoting
Malone, 435 U.S. at 504-505 (1978) (ellipses in orig-
final)).

In fact, such an exception would be nonsensical, for
it would effectively preclude unionized employees from
benefitting from state labor protections imposing
minimum standards on nonunion employers, something
the NLRA clearly does not contemplate. See Lividas,
512 U.S. at 130 (“Denying represented employees basic
safety protections might ‘encourage’ collective bargain-
in over that subject * * *, but we have never suggested
that labor law’s bias toward bargaining is to be served
by forcing employees or employers to bargain for what
they would otherwise be entitled to as a matter of
course.”). Rather, the fact that, in some instances, a

34

new state law will cause employers and unions to go
back to the bargaining table is fully consistent with the
NLRA, which envisions bargaining with the various
state workplace regulations as a floor or “backdrop.”
Metro. Life, 471 U.S. at 757.

* *K *

Thus, for several reasons, the Seventh Circuit’s
decision is impossible to reconcile with this Court’s
decisions. Its misapplication of the terms “law of
general application” and “minimum labor standard”
threaten added confusion in this important area of
federal-state relations. Worse, the decision calls into
question numerous state and local workplace standards
already on the books, seeinfra pp. 35-41, and it is likely
to chill legislatures from enacting necessary new ones.
This Court’s certiorari review is needed to resolve this
uncertainty about the States’ authority to regulate the
workplace and to clarify language used in its previous
decisions controlling this area of law.

35

II. The Issue Presented Is One Of Critical
Importance, And The Decision Below
Casts Doubt On Many Existing Workplace
Protection Laws.

In cases “where federal law is said to bar state
action in fields of traditional state regulation,” this
Court “always” “works] on the assumption that the
historic police powers of the States [are] not to be
superceded by [federal law] unless that was the clear
and manifest purpose of Congress.” Cal. Div. of Labor
Standards Enforcement v. Dillingham Constr., N.A.,
Inc., 519 U.S. 316, 325 (1997) (internal quotations and
citations omitted); accord Fort Halifax, 482 U.S. at 21
(“pre-emotion should not be lightly inferred * * * since
the establishment of labor standards falls within the
traditional police power of the State”). Not withstand-
in the Court’s conclusion, applying this presumption
against preemption, that Congress did not intend the
NLRA “to disturb the myriad state laws * * * that set
minimum labor standards, but were unrelated in any
way tothe processes of bargaining or self-organization,”
Metro. Life, 471 U.S. at 756, the decision below calls into
question a wide variety of state and local laws
regulating the nation’s workplaces.

The features of the Amendment on which the
Seventh Circuit relied to find preemption are common
to many workplace statutes, and the court provided no
principled basis to distinguish Illinois’s statute from

36

many such laws. As a result, the Seventh Circuit’s
decision, if allowed to stand, will encourage litigation
over the validity of existing laws and inhibit state and
local governments from enacting lawful reforms that
their citizens favor. It also will require state legislated-
urea to forego sensible targeting of workplace regular-
tigons to those employees most in need of certain
protections or those employers most able to bear the
additional cost of compliance. Instead, state legislatures
will be forced to craft “one-size-fits-all” regulations
rather than risk costly litigation and the possibility of
judicial invalidation.

Workplace legislation always has targeted particular
occupations and locales. See, e.g., Holden v. Hardy, 169
U.S. 366, 389-390 (1898) (upholding work hours law
covering only mine workers). Indeed, many modern
state workplace safety laws establish special protec-
tigons for particular occupations and _indus-
tries—typically, as occurred here, in response to
identified conditions peculiar to those jobs. See App.
86a-874 (noting unique workplace stresses on hotel
room attendants as result of “quota system” and
increased work intensity). On the precise issue
here—rest and meal breaks—many States have
requirements that vary by job description, reflecting
differences in the need for and feasibility of taking
breaks. See, e.g., 7 Colo. Code Regs. § 1103-1(8)
(employees in four industries—retail and _ trade,

37

commercial and support service, food and beverage, and
health and medical—must receive a paid ten-minute
rest break for each four-hour work period and a
thirty-minute meal break after five hours); Neb. Rev.
Stat. § 48-212 (2008) (employees in assembly plants,
workshops, and other mechanical establishments must
receive thirty-minute meal break during each eight-hour
shift and be allowed to leave the premises during this
break); N.Y. Lab. Law § 162 (McKinney 2009)
(mandating thirty-minute meal break for most
employees whose shifts exceed six hours, but requiring
sixty-minute meal break for factory workers); 43 Pa.
Cons. Stat. Ann. § 1301.207(c) (West 2009) (seasonal
farm workers may not work more than five hours
without meal or rest period); Wis. Stat. Ann. § 103.85(2)
(West 2009) (exempting janitors, security personnel,
persons involved in the manufacture or distribution of
dairy products, and “persons employed in bakeries, flour
and feed mills, hotels, and restaurants” from
Wisconsin’s One Day Rest in Seven Act).

Similarly, pretections against mandatory overtime
often target particular occupations, like nurses and
miners, seen as vulnerable to overwork. See, e.g., 210
Ill. Comp. Stat. 85/10.9(b) (2008) (barring hospitals
from requiring nurses to work mandatory overtime);
Me. Rev. Stat. Ann. tit. 26, § 603(5) (2009) (nurses
cannot be disciplined for refusing to work overtime, and
must be allowed at least ten hours of off-duty time

38

immediately following twelve or more consecutive hours
of worktime); R.I. Gen Laws § 23-17.20-3(b) (2009) (in
no case will nurse be required to work longer than
twelve hours except when there is an unforeseeable
emergency); Wash. Rev. Code § 49.28.140 (West 2009)
(nurses may not be required to work overtime); W. Va.
Code Ann. § 21-5F-3 (West 2009) (no nurse may be
forced to work overtime except in cases where patient’s
safety is at risk); Alaska Stat. § 23.10.410 (2009) (with
certain exceptions, miner may not be employed in
underground mine or work more than ten hours in
twenty-four hours); Colo. Rev. Stat. Ann. § 8-13-102
(West 2009) (mine workers may be forced to work more
than eight hours only if there is written work plan
outlining conditions under which longer workday would
be permitted and employees are given reasonable notice
of proposed increase in work schedule); Mo. Ann. Stat.
§ 290.020 (West 2009) (mining employees may not be
required to work longer than eight hours).

It is likewise common for state standards to apply
differently in different geographic locations. Generally,
such measures provide heightened protections for
workers in urban areas, in light of higher costs of living
or different industry or economic conditions, as was true
here. See App. 94a-95a (Amendment “protect[s] hotel
room attendants from overwork in the jurisdiction
where the majority of such employees would be
impacted and in the jurisdiction best positioned to

39

absorb the costs of [the] new regulations.”). The proto-
typical example is prevailing wage statutes, long used by
States to establish minimum pay for public projects on
a county-by-county (as well as trade-by-trade) basis,
with higher rates for workers in urban than rural areas.
See, e.g., 820 Ill. Comp. Stat. 130/1, 2 (2008) (setting
prevailing wage as prevailing hourly rate including
fringe benefits for work of similar character in same
locality); accord Ind. Code Ann. § 5-16-7-1 (West 2009);
Tenn. Code Ann. § 12-4-405 (West 2009); Tex. Gov’t
Code Ann. § 2258.021(a)(1) (2009); Wis. Stat. Ann.
§ 103.49(d)(1) (West 2009).’ Local ordinances also rou-
tinely provide different substantive workplace rules.
See, e.g., http://www.no-smoke.org/pdf/100ordlisttabs.
pdf (last visited Jun. 26, 2009) (chart collecting U.S.
local smoke-free workplace ordinances).

In addition, while the Seventh Circuit found fault
with the Amendment’s anti-retaliation provision, such
provisions are routinely used to promote improved
compliance in the face of limited enforcement resources.
For example, state and local laws often provide for

More recently, state “living wage” laws have set minimum
pay levels by geographic region. See, e.g., Md. Procure. Regs.
21.11.10.01 § (B)(4), (5) (2009), and http://www.dllr.state.
md.us/labor/livingwagefaqa.shtml#¥15 (last visited Jun. 26,
2009) (minimum wage for employees under certain state
services contracts is nearly three dollars an hour higher for
workers in urban counties).

40

rebuttable presumptions of retaliation against workers
who assert their rights. See, e.g., Ariz. Rev. Stat. Ann.
§ 23-364(B) (2009) (adverse action within ninety days of
assertion of minimum wage law rights “raise[s] a
presumption that such action was retaliation, which
may be rebutted by clear and convincing evidence that
such action was taken for other permissible reasons”);
NJ. Stat. Ann. § 34:20-9 (West 2009) (rebuttable
presumption arises upon adverse action within ninety
days of asserting rights under law protecting against
independent contractor classification in construction);
San Diego, Cal., Municipal Code § 22.4230 (2005) (same
for adverse action within ninety days of providing
information toward or cooperating in compliance
investigation); Santa Fe, N.M., Municipal Ordinance
28-1.6(B) (same for adverse action within sixty days of
asserting or communicating information regarding
rights); S.F., Cal., Admin. Code § 12W.7 (same for
adverse action within ninety days of filing complaint,
cooperating with investigation, opposing any unlawful
practice, or informing person of rights).

Likewise, while the Seventh Circuit held that the
Amendment's treble damages provision “can in no sense
be considered ‘minimal,’” App. 37a, many States require
treble damages or similarly substantial penalties to
secure compliance with their minimum wage and
workplace safety laws. See, e.g., Ariz. Rev. Stat. Ann.
§ 23-364(G) (2009) (requiring mandatory treble

4]

damages for mini-mum wage violations plus daily
penalties for retaliation against workers seeking to
enforce their rights); Ohio Const. Art. II, § 34a (same);
Mass. Gen. Laws. Ann. ch. 149, § 27 (West 2008) (treble
damages for minimum wage violations); Wis. Stat. Ann.
§ 103.96(2) (West 2008) (triple backpay for willful
violations of anti-retaliation provisions under migrant
worker protection law).

* * *

The ruling below calls into question these and other
substantive state and local laws governing the work-
place. This Court’s intervention thus is essential to
resolve the lower courts’ uncertainty over the scope of
the States’ police power in this critical area of state
regulation.

42

CONCLUSION

The petition for a writ of certiorari should be
granted.

Respectfully submitted.

RICHARD G. MCCRACKEN LisA MADIGAN

PAUL L. MORE Attorney General
Davis Cowell & Bowe, LLP of Illinois

595 Market St., Ste. 1400 MICHAEL A. ScoDRO*

San Francisco, California Solicitor General
94105 JANE ELINOR NotTz
(415) 597-7200 Deputy Solicitor General
WESLEY KENNEDY CaRL J. ELITz
N. ELIZABETH REYNOLDS Ass’t Attorney General
Allison Slutsky & 100 West Randolph Street
Kennedy PC Chicago, Illinois 60601

230 W. Monroe, Ste. 2600 (312) 814-3698
Chicago, Illinois 60606
(312) 364-9400 * Counsel of Record

JUNE 2009

la

APPENDIX A

In the
United States Court of Appeals
For the Seventh Circuit

No. 07-3377

520 SOUTH MICHIGAN AVENUE ASSOCIATES,
LTD., d/b/a THE CONGRESS PLAZA HOTEL &
CONVENTION CENTER, Plaintiff-Appellant,

Vv.

CATHERINE SHANNON, Director of the Illinois
Department of Labor, Defendant-Appellee,
and UNITE HERE LOCAL 1, Intervenor-Appellee.

Appeal from the United States District Court for the
Northern District of Illinois, Eastern Division.

No. 06 C 4552 — Joan Humphrey Lefkow, Judzge.

Argued Feb. 19, 2008.
Decided Dec. 15, 2008.
Rehearing En Banc Denied Jan. 28, 2009

Before MANION, KANE, and TINDER, Circuit
Judges.

MANION, Circuit Judge. 520 S. Michigan
Avenue Associates. Ltd., doing business as The
Congress Plaza Hotel & Convention Center (“Congress

2a

Plaza”), sued the Director of the Illinois Department of
Labor (“Illinois”), seeking a declaratory judgment that
Illinois statute 820 ILCS 140/3.1, the Hotel Room
Attendant Amendment (“Attendant Amendment”) to
the One Day Rest in Seven Act, 820 ILCS 140/1 et seq.,
is unconstitutional. Unite Here Local 1, a labor union,
intervened and together with Illinois moved to dismiss
pursuant to Fed.R.Civ.P. 12(b)(6). The district court
granted the defendant’s and intervenor’s motions to
dismiss, rejecting Congress Plaza’s arguments that the
Attendant Amendment was preempted by the National
Labor Relations Act (“NLRA”), 29 U.S.C. § 151 et seq.,
and violated its due process and equal protection rights.
Congress Plaza appeals. Because the Attendant Am-
endment is preempted by the NLRA, we reverse.

iB

Congress Plaza is located on Michigan Avenue in
Chicago, Illinois, in Cook County. Congress Plaza,
employs, among others, room attendants who clean
guest rooms. The Unite Here Local 1 union (“Unite
Here”) represents the approximately 130 room attend-
ants working at Congress Plaza, as well as several
hundred room attendants working at other Cook Coun-
ty hotels. As of the date of oral argument, Congress
Plaza and Unite Here’s latest collective bargaining
agreement (“CBA”) had expired on December 31, 2002.
Since June 2003, Unite Here members have engaged
in a work stoppage while negotiating a new CBA.
Congress Plaza has continued to abide by the terms of

3a

the expired CBA, requiring a work day of eight
productive hours and providing meals free of charge to
its room attendants, along with clean and sanitary
facilities. Congress Plaza also customarily provides one
half-hour unpaid lunch break.

In the midst of Congress Plaza’s negotiations
with Unite Here, the Illinois legislature passed the
Hotel Rooin Attendant Amendment (“Attendant Am-
endment”) to the One Day Rest in Seven Act. Tire One
Day Rest in Seven Act was originally enacted in July
1935 and currently provides that “[e]very employer
shall allow every employee except those specified in this
Section at least twenty-four consecutive hours of rest in
every calendar week in addition to the regular period of
rest allowed at the close of each working day.”* 820

1 . - , os .
Under current law, Illinois exempts seven categories of

employees from the mandated rest day: “(1) Part-time
employees whose total work hours for one employer during a
calendar week do ‘not exceed 20; and (2) Employees needed in
case of breakdown of machinery or equipment or other
emergency requiring the immediate services of experienced and
competent Jabor to prevent injury to person, damage to
property, or suspension of necessary operation; and (3)
Employees employed in agriculture or coal mining; and (4)
Employees engaged in the occupation of canning and process-
ing perishable agricultural products, if such employees are
employed by an employer in such occupation on a seasonal basis
and for not more than 20 weeks during any calendar year or 12

month period; and (5) Employees employed as watchmen or
(continued...)

4a

ILCS 140/2. The One Day Rest in Seven Act further
provides: “Every employer shall permit its employees
who are to work for 7 1/2 continuous hours or longer,
except those specified in this Section, at least 20
minutes for a meal period beginning no later than 5
hours after the start of the work period.”* 820 ILCS
140/3. The section mandating a 20-minute meal period
“does not apply to employees for whom meal periods are

established through the collective bargaining process.”
Id.

, (...continued)

security guards; and (6) Employees who are employed in a
bonafide executive, administrative, or professional capacity or
in the capacity of an outside salesman, as defined in Section
12(a)(1) of the federal Fair Labor Standards Act, as amended,
and those employed as supervisors as defined in Section 2(11)
of the National Labor Relations Act, as amended; and (7)
Employees who are employed as crew members of any
uninspected towing vessel, as defined by Section 2101(40) of
Title 46 of the United States Code, operating in any navigable
waters in or along the boundaries of the State of Illinois.” 820
ILCS 140/2.

9

“This Section does not apply to employees who monitor
individuals with developmental disabilities or mental illness, or
both, and who, in the course of those duties, are required to be
on cal] during an entire 8 hour work period; however, those
employees shall be allowed to eat a meal during the 8 hour work
period while continuing to monitor those individuals.” 820

ILCS 140/3.

5a

The Attendant Amendment to the One Day Rest
in Seven Act provides, in full:

§ 3.1. Hotel room attendants.

(a) As used in this Section, “hotel room
attendant” means a person who cleans or puts
in order guest rooms in a hotel or other
establishment licensed for transient occu-
pancy.

(b) This Section applies only to hotels and
other establishments licensed for transient
occupancy that are located in a county witha
population greater than 3,900,000.°

(c) Notwithstanding any other provision of
law, every hotel room attendant shall receive
a minimum of two 15-minute paid rest breaks
and one 30-minute meal period in each
workday on which the hotel room attendant
works at least 7 hours. An employer may not
require any hotel room attendant to work
during a break period.

. Only one county out of the 102 counties in Illinois — Cook

County — has a population of more than three million people.
As of the 2000 census, Cook County’s population was 5,376,741.
See http://illinoisgis.ito.state.il.us /census2000/county_cersus.
asp?ct=PO0O010001 (last visited August 15, 2008}. DuPage
County has the next highest population base, but as of 2000,
not even one million people resided there. /d.

6a

(d) Every employer of hotel room attendants
shall make available at all times a room on
the employer’s premises with adequate sea-
ting and tables for the purpose of allowing
hotel room atte.idants to enjoy break periods
in aclean and comfortable environment. The
room shall have clean drinking water pro-
vided without charge.

(e) Each employer of hotel room attendants
shall keep a complete and accurate record of
the break periods of its hotel room attend-
ants.

(f) An employer who violates this Section
shall pay to the hotel room attendant 3 times
the hotel room attendant’s regular hourly
rate of pay for each workday during which the
required breaks were not provided.

(g) It is unlawful for any employer or an
employer’s agent or representative to take
any action against any person in retaliation
for the exercise of mghts under this Section.
In any civil proceeding brought under this
subsection (f), if the plaintiff establishes that
he or she was employed by the defendant,
exercised rights under this Section, or alleged
in good faith that the defendant was not
complying with this Section, and was
thereafter terminated, demoted, or otherwise
penalized by the defendant, then a rebuttable

7a

presumption shall arise that the defendant’s
action was taken in retaliation for the
exercise of rights established by this Section.
To rebut the presumption, the defendant
must prove that the sole reason for the
termination, demotion, or penalty was a
legitimate business reason.

(h) In addition to the remedies provided in
Sections 6 and 7, a person claiming violation
of this Section shall be entitled to all remedies
available under law or in equity, including but
not limited to damages, back pay, reinstate-
ment, or injunctive relief. Any person termin-
ated in violation of this Section shall recover
treble his sv her lost normal daily compen-
sation and fringe benefits, together with
interest thereon, and any consequential
damages suffered by the employee. The court
shall award reasonabie attorney’s fees and
costs to a prevailing plaintiff in an
enforcement action under this Section.

820 ILCS 140/3.1.

After the Illinois legislature passed the Atten-
dant Amendment and the governor signed it into law,
the Illinois Hotel and Lodging Association filed a
declaratory judgment action in state court against the
Director of the Illinois Department of Labor, seeking to
have the Attendant Amendment declared uncon-
stitutional. The state trial court granted the Illinois

8a

Department of Labor summary judgment, concluding
that the Attendant Amendment was not preempted, and
that the Attendant Amendment did not violate the
Illinois Constitution’s prohibition on special legislation
or the plaintiff's right to equal protection. Ill. Hotel &
Lodging Ass’n v. Ludwig, No. 05CH13796, *10 (Circuit
Court of Cook County, Illinois). The Illinois appellate
court affirmed. See Ill. Hotel & Lodging Ass’n v. Lud-
wig, 869 N.E.2d 846 (Ill. App. Ct. lst Dist. 2007). The
Supreme Court of Illinois declined to hear the Illinois
Hotel and Lodging Association’s appeal. Ill. Hotel &
Lodging Ass’n v. Ludwig, 875 N.E.2d 1111 (Ill. 2007).

While the Illinois Hotel and Lodging Associ-
ation’s case was making its way through the Illinois
state court system, Congress Plaza, which is not a
member of that trade organization, filed its own
challenge to the Attendant Amendment in federal court.
Congress Plaza argued that the Attendant Amendment
‘s preempted by the National Labor Relations Act
(“NLRA”), 29 U.S.C. § 151 et seqg., and section 301 of the
Labor Management Relations Act (“LMRA”), 29 U.S.C.
§ 185(a). Congress Plaza also alleged that the Attendant
Amendment violated its due process and equal
protection rights, as well as provisions of the Illinois
Constitution. Congress Plaza sought a permanent
injunction prohibiting enforcement of the Attendant
Amendment.

Illinois and Unite Here filed separate motions to
dismiss under Fed.R.Civ.P. 12(b)(6). Illinois also filed

9a

a motion to dismiss under Fed.R.Civ.P. 12(b)(1), claim-
ing Eleventh Amendment immunity from the state
claims. The district court granted the defendants’
motions to dismiss Congress Plaza’s preemption and
equal protection and due process claims. 520 S. M:ch-
igan Ave. Assoc., Ltd. v. Shannon, 2007 WL 2728757 at
*8-11 (N.D.Ill. 2007). The district court then declined
jurisdiction over Congress Plaza’s state law claims. Id.
at *11. Congress Plaza appeals.

II.

On appeal, Congress Plaza argues that the NLRA
preempts the Attendant Amendment.* Whether the
NLRA preempts the Attendant Amendment is a pure
legal question and therefore we review the district
court’s decision de novo. See Cannon v. Edgar, 33 F.3d
880, 883 (7th Cir. 1994). Moreover, our de novo review

4

Congress Plaza does not pursue its §301 LMRA pre-
emption claim on appeal. Moreover, while Congress Plaza
states in its Statement of the Case that it “also claims the
amendment violates the special legislation provision of the
Illinois Constitution and constitutes an arbitrary legislative
classification,” Appellant Br. at 2, it does not present these
claims in its Issues Presented For Review. Congress Plaza also
does not make any argument in support of its state law claims.
Accordingly, Congress Plaza has waived any argument based on
state law. See Hildebrandt v. Ill. Dep’t of Natural Res., 347
F.3d 1014, 1025 n.6 (7th Cir. 2003) (holding that when a party
presents no argument in its brief with respect to a particular

claim, any arguments with respect to that claim are waived).

10a

is not limited by the state court’s decision in Ill. Hotel &
Lodging Ass’n v. Ludwig, 869 N.E.2d 846, holding that
the Attendant Amendment is not preempted by the
NLRA. We “owe[ ] no deference to state-court inter-
pretation of the United States Constitution.” TMJ
Implants, Inc. v. Aetna, Inc., 498 F.3d 1175, 1181 (10th
Cir. 2007) (citing Ace Cycle World, Inc. v. Am. Honda
Motor Co., 788 F.2d 1225, 1228 (7th Cir. 1986)).°

Our review of preemption begins with the
Constitution’s Supremacy Clause. See Cannon, 33 F.3d
at 883. The Supremacy Clause provides:

This Constitution, and the Laws of the United
States which shall be made in Pursuance thereof;
and all Treaties made, or which shall be made,
under the Authority of the United States, shall
be the supreme Law of the Land; and the Judges

. When the question of federal preemption of state law is at

issue, state and federal courts, perhaps not surprisingly, may
reach starkly divergent views on the United States
Constitution, as illustrated most clearly in Geier v. American
Honda Motor Co., 529 U.S. 861 (2000). In Geier, the Supreme
Court held that a state tort claim against Honda for failing to
provide a driver’s side air bag was preempted by a federal
regulation. Prior to the Supreme Court’s ruling, every federal
circuit which considered the issue had held that the state law
was preempted, while state courts uniformly held to the

contrary — that federal law did not preempt state law. Geier,
529 U.S. at 866.

lla

in every State shall be bound thereby, any Thing
in the Constitution or Laws of any State to the
Contrary notwithstanding.

U.S. Const. art. VI, cl. 2. Thus, under Article VI of the
Constitution, federal law is the “supreme Law of the
Land,” and “it preempts state laws that ‘interfere with,
or are contrary to, federal law.’” Boomer v. AT & T
Corp., 309 F.3d 404, 417 (7th Cir. 2002) (quoting
Hillsborough County v. Automated Medical Laborat-
ories, Inc., 471 U.S. 707, 712, 105S.Ct. 2371, 85 L.Ed.2d
714 (1985)).

In Metropolitan Life Ins. Co. v. Massachusetts,
471 U.S. 724 (1985), the Supreme Court summarized
the task courts face when confronted with the issue of
preemption, stating:

In deciding whether a federal law pre-empts a
state statute, our task is to ascertain Congress’
intent in enacting the federal statute at issue.
Pre-emption may be either express or implied,
and is compelled whether Congress’ command is
explicitly stated in the statute’s language or
implicitly contained in its structure and purpose.

Id. at 738 (internal quotations omitted).

As the Supreme Court recently explained in
Chamber of Commerce v. Brown, 1288S. Ct. 2408 (2008),
“the NLRA itself contains no express preemption
provision.” Jd. at 2412. Thus, the issue facing us is one
of implied preemption. With implied preemption, a state

12a

law should be sustained “unless it conflicts with federal
law or would frustrate the federal scheme, or unless whe
courts discern from the totality of the circumstances
that Congress sought to occupy the field to the exclusion
of the States.” Malone v. White Motor Corp., 435 U.S.
497 (1978). Further, in the context of the NLRA, a
state law is preempted by implication if it conflicts with
the underlying goals and policies of the NLRA or stands
“as an obstacle to the accomplishment and execution of
the full purposes and objectives” of Congress. Livadas
v. Bradshaw, 512 U.S. 107, 120 (internal quotation om-
itted).

From these general preemption principles, the
Supreme Court has developed two relevant NLRA
preemption doctrines: Garmon preemption and Mach-
inists preemption. See San Diego Bldg. Trades Council
v. Garmon, 359 U.S. 236 (1959); Machinists ov.
Wisconsin Employment Relations Comm’n, 427 U.S. 132
(1976).° The first doctrine, Garmon preemption, seeks
to prevent conflicts between state and local regulation
and Congress’s integrated scheme of regulation
embodied in Sections 7 and 8 of the NLRA. Garmon,

A third preemption doctrine, based on § 301 of the LMRA,
“pre-empts state law only insofar as resolution of the state-law

claim requires the interpretation of a collective-bargaining
agreement... .” Lingle v. Norge Div. of Magic Chef, 486 U.S.
399, 410 n. 8 (1988). Congress Plaza argued to the district court
that § 301 preempts the Attendant Amendment, but as noted
above, it does not pursue that argument on appeal

13a

359 U.S. at 244-45. Garmon preemption further seeks
to protect the NLRB’s primary jurisdiction in cases
involving sections 7 and 8 of the NLRA. Id. See also
Livadas v. Bradshaw, 512 U.S. 107, 117, n. 11 (1994).

The second relevant NLRA preemption doctrine
is Machinists preemption. See Machinists v. Wis. Emp-
loyment Relations Comm ’n, 427 U.S. 132 (1976). As the
Supreme Court explained in Metropolitan Life, 471 U.S.
724, this “second pre-emption doctrine protects against
state interference with policies implicated by the struct-
ure of the Act itself, by pre-empting state law and state
causes of action concerning conduct that Congress
intended to be unregulated.” Jd. at 749. This preemp-
tion doctrine governs “preemption questions that arose
concerning activity that was neither arguably protected
against employer interference by §§ 7 and 8(a)(1) of the
NLRA, nor arguably prohibited as an unfair labor pract-
ice by § 8(b) of that Act. 29 U.S.C. § 157, 158(a)(1) and
(b).” Id. Thus, in Machinists, the Court held “that a
State may not penalize a concerted refusal to work over-
time that was neither prohibited nor protected under
the NLRA, for ‘Congress intended that the conduct
involved be unregulated because [it] left [the conduct]’
to be controlled by the free play of economic forces.”
Metropolitan Life, 471 U.S. at 750 (quoting Machinists,
427 U.S. at 140, 96 S. Ct. 2548). While initially,
Machinists preemption sought “to determine whether
certain weapons of bargaining neither protected by § 7
nor forbidden by § 8(b) could be subject to state
regulation, [i]t has been used more recently to deter-

l4a

mine the validity of state rules of general application
that affect the right to bargain or to self-organization.”
Metropolitan Life, 471 U.S. at 749 n. 27 (internal
citations omitted). As the Supreme Court recently
explained in Brown, “Machinists preemption is based
on the premise that Congress struck a balance of
protection, prohibition, and laissez-faire in respect to
union organization, collective bargaining, and labor
disputes.” Brown, 128 S. Ct. at 2412 (internal quota-
tions omitted). We also elaborated on the concept of
Machinists preemption in Cannon, explaining that this
doctrine “prohibits state and municipal regulations of
areas that Congress left to the free play of economic
forces.” Cannon, 33 F.3d at 885 (internal quotations
and citations omitted).

Congress Plaza argues that the Attendant Am-
endment is preempted by both Machinists preemption
and Garmon preemption. At oral argument, though, in
response to our query, Congress Plaza acknowledged
that it believes Machinists preemption the stronger of
the two arguments. We agree. See Metropolitan Life,
471 U.S. at 751 (considering whether a state law estab-
lishing minimal mental health benefits in insurance
plans was preempted by the NLRA and stating that
“alll parties correctly understand this case to involve
Machinists pre-emption”). Therefore, we begin with
Congress Plaza’s argument that Machinists preempts
the Attendant Amendment.

15a

Congress Plaza argues Machinists preempts the
Attendant Amendment because the Attendant Amend-
ment “intrudes on the parties’ collective bargaining
process” and alters the “free play of economic forces.”
In response, Illinois and Unite Here (herein-after
collectively “appellees”) argue that the Attendant
Amendment is a minimum labor standard and as such
is not preempted by the NLRA, citing Metropolitan Life,
471 U.S. 724 and Fort Halifax, 482 U.S. 1.

In Metropolitan Life, 471 U.S. 724, two insurance
companies (“appellants”), which issued group-health
insurance policies in Massachusetts, argued that a
Massachusetts statute requiring “any general health-
insurance policy that provides hospital and surgical
coverage, or any benefit plan that has such coverage, to
provide as well a certain minimum of mental-health
protection,” was preempted by ERISA and the NLRA.
Id. at 730. The appellants in Metropolitan Life argued
that “[b]lecause welfare benefits are a rnandatory sub-
ject of bargaining under the labor law, .. . the NLRA
pre-empts any state attempt to impose minimum-
benefit terms on the parties.” Jd. at 751-52.

The Supreme Court rejected this argument, con-
cluding that “[t]he evil Congress was addressing [with
the NLRA]... was entirely unrelated to local or federal
regulation establishing minimum terms of employ-
ment.” Jd. at 754. Accordingly, the Court held that “[n]o
incompatibility exists, therefore, between federal rules
designed to restore the equality of bargaining power,

16a

and state or federal legislation that imposes minimal
substantive requirements on contract terms negotiated
between parties to labor agreements, at least so long as
the purpose of the state legislation is not incompatible
with these general goals of the NLRA.” Id. at 754-55.
The Court further expounded on the meaning of
minimum state labor standards, stating they “affect
union and nonunion employees equally, and neither
encourage nor discourage the collective-bargaining
processes that are the subject of the NLRA. Nor do they
have any but the most indirect effect on the right of self-
organization established in the Act.” Jd. at 755. “Most
significantly,” continued the Court, there was “no
suggestion in the legislative history of the [NLRA] that
Congress intended to disturb the myriad state laws then
in existence that set minimum labor standards, but
were unrelated in any way to the processes of bar-
gaining or self-organization.” Jd. at 756. Rather, the
Court “believe[d] that Congress developed the frame-
work for self-organization and collective bargaining of
the NLRA within the larger body of state law promoting
public health and safety.” Jd. The Supreme Court add-
ed:

Federal labor law in this sense is interstitial,
supplementing state law where compatible, and
supplanting it only when it prevents the accomp-
lishment of the purpose of the federal Act. Thus
the Court has recognized that it cannot declare
pre-empted all local regulation that touches or
concerns in any way the complex interrelation-

17a

ship between employees, employers, and unions;
obviously, much of this is left to the States.
When a state law establishes a minimal employ-
ment standard not inconsistent with the general
legislative goals of the NLRA, it conflicts with
none of the purposes of the Act.

Id. at 756-57 (internal quotation omitted).

The Supreme Court then applied the afore-
mentioned principles to the case at hand and held:

Massachusetts’ mandated-benefit law is an
insurance regulation designed to implement the
Commonwealth’s policy on mental-health care,
and as such is a valid and unexceptional exercise
of the Commonwealth’s police power. It was
designed in part to ensure that the less wealthy
residents of the Commonwealth would be
provided adequate mental-health treatment
should they require it. Though [the insurance
statute], like many laws affecting terms of
employment, potentially limits an employee’s
right to choose one thing by requiring that he be
provided with something else, it does not limit
the rights of self-organization or collective
bargaining protected by the NLRA, and is not
pre-empted by the Act.

Id. at 758. Accordingly, the Supreme Court held that
Massachusetts’ mandated-benefit law is not preempted
by the NLRA. 7d.

18a

Just two years later, in Fort Halifax Packing Co.
v. Coyne, 482 U.S. 1 (1987), the Supreme Court again
addressed the issue of the relationship between
“minimum labor standards” and preemption. In Fort
Halifax, an employer challenged a Maine statute
requiring employers to provide severance pay to certain
employees. Jd. at 5. Employees qualified if their em-
ployers laid off 100 or more employees, or relocated
more than 100 miles away, so long as the employee had
worked at the plant at least three years. Id. Severance
pay was not required if the employee accepted employ-
ment at the new plant location or if a contract with the
employee addressed the issue of severance pay. Id. Fort
Halifax argued the state law was preempted because,
while it did not directly regulate economic activity, it
indirectly undercut the collective bargaining process. Id.
at 20. The Supreme Court first noted that it had
rejected in Metropolitan Life the argument “that a
State’s establishment of minimum substantive labor
standards undercuts collective bargaining... .” Id. at
20. The Court then explained its holding in Metropol-
itan Life noting, among other things “that the NLRA is
concerned with ensuring an equitable bargaining
process, not with the substantive terms that may
emerge from such bargaining.” /d.

After the Court in Fort Halifax further explained
Metropolitan Life, the Court stated that

[ijt is true that the Maine statute gives employ-
ees something for which they otherwise might

19a

have to barg n. That is true, however, with
regard to any state law that substantively
regulates employment conditions. Both emp-
loyers and employees come to the bargaining
table with rights under state law that form a
“backdrop” for their negotiations.

Id. at 21. The Court rejected the claim of preemption,
stating “the mere fact that a state statute pertains to
matters over which the parties are free to bargain
cannot support a claim of pre-emption, for there is
nothing in the NLRA... which expressly forecloses all
state regulatory powers with respect to those issues . . .
that may be the subject of collective bargaining.” Jd. at
21-22 (internal quotation omitted).

The Supreme Court in Fort Halifax concluded
that the Maine statute “is not pre-empted by the NLRA,
since its establishment of a minimum labor standard
does not impermissibly intrude upon the collective-
bargaining process.” Id. at 23.

The Supreme Court’s decisions in Metropolitan
Life and Fort Halifax stand for several propositions.
First, the NLRA is concerned primarily with estab-
lishing an equitable process for bargaining, and not the
substantive terms of bargaining. Fort Halifax, 482 U.S.
at 20; Metropolitan Life, 471 U.S. at 753-54. Second, a
state law is not preempted by the NLRA merely because

it regulates a mandatory subject of bargaining. Fort

Halifax, 482 U.S. at 21; Metropolitan Life, 471 U.S. at
757. And third, the NLRA does not preempt a state law

20a

which “establishes a minimum labor standard that does
not intrude upon the collective-bargaining process.”
Fort Halifax, 482 U.S. at 7; see also Metropolitan Life,
471 U.S. at 754-55 (“No incompatibility exists,
therefore, because federal rules designed to restore the
equality of bargaining power, and state or federal
legislation that imposes minimal substantive require-
ments on contract terms negotiated between parties to
labor agreements, at least so long as the purpose of the
state legislation is not incompatible with these general
goals of the NLRA.”).

Against this backdrop, then, we return to the
parties’ arguments. As noted above, Congress Plaza
claims that the Attendant Amendment is preempted by
Machinists because it “intrudes on the parties’ collect-
ive bargaining process” and alters the “free play of
economic forces.” In response, based on Metropolitan
Life and Fort Halifax, appellees claim that the Atten-
dant Amendment is a minimum labor standard and is
thus not preempted. Congress Plaza rejects this char-
acterization of the Attendant Amendment (as a
minimum labor standard), relying on this court’s
decision in Cannon.

In Cannon, a gravediggers’ union, a union mem-
ber, and union leaders sued the State of Illinois, claim-
ing that the Burial Rights Act was preempted by the
NLRA and therefore violated the Supremacy Clause of
the Constitution. Cannon, 33 F.3d at 881. The Burial
Rights Act required cemeteries’ management and labor

2la

unions to agree to establish a pool of workers who would
provide religiously required interments during a labor
dispute. Jd. at 882. Additionally, the Burial Rights Act
provided that “(t]he failure of a cemetery authority or a
labor union to negotiate in good faith to establish a pool
of workers as provided [in the Act] constitutes a willful
violation of this Section,” in which case the court shall
“grant appropriate relief, including . . . an award of
attorney’s fees and the imposition of a fine not to exceed
$1,000 for each interment which is found to have been
delayed in violation of this Section.” Jd. at 882 n.1
(quoting 820 ILCS 135/2.1). After setting forth the gov-
erning law, this court held that the Burial Rights Act
was preempted by both Garmon preemption and
Machinists preemption. Id. at 885. We explained that
“the Burial Rights Act is a direct intrusion by the state
into the collective bargaining process. The Burial
Rights Act purports to regulate a particular term of the
bargaining process — that of a pool of workers — and,
further requires the parties to actually agree on a
particular pool of workers or face sanctions at the hands
of the Illinois courts.” Id. at 884. The court in Cannon
held “the NLRA does not tolerate this kind of invasion
by astate into the collective bargaining process. ...” Id.
Cannon further held that the Burial Rights Act was
preempted by Machinists, because it “intrude[d] on the
collective bargaining process in a variety of ways; it
orders the parties to negotiate as to a _ specific
substantive condition — that of a pool of workers to

perform interments during labor disputes. And, more

22a

invasive, the Burial Rights Act orders the parties to
agree on a pool of workers, or face sanctions for a failure
to do so.” Id. at 885.

Appellees argue in response that Cannon is
distinguishable because the statute at issue in Cannon,
the Burial Rights Act, required the parties to bargain
collectively over the issue of a pool of workers, whereas
the Attendant Amendment does not mandate
bargaining, but instead establishes a minimum labor
standard which does not interfere with the collective
bargaining process. However, this is a distinction
without a difference. As the Supreme Court recently
explained, “{iJn NLRA pre-emption cases, judicial con-
cern has necessarily focused on the nature of the
activities which the States have sought to regulate,
rather than on the method of regulation adopted.”
Brown, 1285S. Ct. at 2414 (internal quotations omitted).
What a state cannot do directiy, it also cannot do
indirectly. Id. at 2415.

The question then is whether the Attendant Am-
endment establishes a minimum labor standard that
does not interfere with collective bargaining. If so, then
the regulation (direct or indirect) is permissible. To
address whether the Attendant Amendment establishes
a minimum labor standard, we turn again to the
Supreme Court. Unfortunately, though, the Supreme
Court’s guidance is sparse. In Metropolitan Life, the
Court merely noted that minimum labor standards
“affect union and nonunion employees equally, and

23a

neither encourage nor discourage the collect-
ive-bargaining processes that are the subject of the
NLRA.” 471 U.S. at 755. The Court added that
minimum labor standards have only “the most indirect
effect on the right of self-organization established in the
- Act... [and] are not laws designed to encourage or
discourage employees in the promotion of their interests
collectively ....” Id. (quoting Barrentine, 450 U.S. at
739 (emphasis in the original)).

While the Attendant Amendment facially affects
union and nonunion employees equally, for several
reasons we conclude that it does not constitute a
genuine minimum labor standard. First, unlike the
statutes at issue in Metropolitan Life and Fort Halifax,
the Attendant Amendment is not a statute of general
application. In Metropolitan Life, the state law at issue
did not regulate employment, but rather regulated
insurance policies and it applied to all “general
health-insurance polic[ies]” and “any benefit plans.”
Metropolitan Life, 471 U.S. at 730. Significantly, in
Metropolitan Life, the Court characterized the law as
one of general application, stating: “Congress appar-
ently did not consider the question of whether state
laws of general application affecting terms of
collective-bargaining agreements subject to mandatory
bargaining were to be preempted.” Jd. at 753 (emphasis
added). See also Livadas, 512 U.S. at 123 n.17 (stating
that “Congress is understood to have legislated against
a backdrop of generally applicable [state] labor stan-
dards”). In Fort Halifax, the state’s severance statute

24a

applied to all employers who laid off 100 or more
employees (or relocated 100 or more miles away). Fort
Halifax, 482 U.S. at 5. While not universal in app-
lication (since it only applied to larger layoffs or distant
relocations), the statute still had a very broad app-
lication. See, e.g., Carpenters Local Union No. 26 v.
U.S. Fidelity & Guar. Co., 215 F.3d 136, 145 (1st Cir.
2000) (stating, in the context of ERISA preemption, that
a law of general application “applies to a sufficiently
broad, sufficiently generalized universe of situations”).

Other circuits likewise characterize “minimum
labor standards” as laws of general application. See
Chamber of Commerce v. Bragdon, 64 F.3d 497, 503
(9th Cir. 1995) (“This is also not the type of regulation
of general application that assures that certain coverage
provisions be included in all health insurance contracts,
such as in Metropolitan Life; nor is it the type of
regulation seeking to alleviate a particular hardship
such as plant closings that affect the employees and the
community.”); Barnes v. Stone Container Corp., 942
F.2d 689, 692 (9th Cir. 1991) (“The Supreme Court has
upheld state statutes which, although they affect
employees covered by collective bargaining agreements,
are statutes of general applicability and do not primarily
‘regulate relations between employees, their union, and
their employer.’ ”) (emphasis in original) (quoting New

York Tel. Co. v. New York State Dep't. of Labor, 440 U.S.
519, 533 (1979)); Hull v. Dutton, 935 F.2d 1194, 1198
(11th Cir. 1991) (holding that Alabama’s longevity pay
statute is not a “minimum labor standard” in part

25a

because the “statute applies only to its own employees
and not to its citizens generally”). The Attendant
Amendment, however, does not have the general
applicability seen in these cases. Rather, it applies to
only one occupation (room attendants), in one industry
(the hotel industry), in one county (Cook county).’
These limitations distinguish the Attendant Amend-
ment materially from the statutes of general app-

lication considered in Metropolitan Life and Fort
Halifax.

The appellees argue that minimum labor
standards that apply only to particular occupations,
industries or categories of employers have survived
preemption challenge, citing a series of cases. See
Appellee Br. at 20-21 citing among others, Fort Halifax,
482 U.S. at 5 (plant closing law that applied to layoffs
with 100 or more employees not preempted);
Dillingham v. Sonoma County, 190 F.3d 1034, 1041 (9th
Cir. 1999) (minimum standards that applied only to
apprentices in skilled construction trades not pre-
empted); Viceroy Gold Corp. v. Aubry, 75 F.3d 482, 485,
490 (9th Cir. 1996) (overtime regulation applying only
to miners not preempted); Nat. Broadcasting Co. v.
Bradshaw, 70 F.3d 69, 71-72 (9th Cir. 1995) (California
regulation applying only to broadcast employees not

The statute by its terms applies to any county with a
population of three million or more, but as noted above, out of
102 counties, only Cook county has the requisite number of

residents.

26a

preempted); and Wash. Serv. Contractors Coalition v.
District of Columbia, 54 F.3d 811, 819 (D.C.Cir. 1995).*
The appellees further rely on the Ninth Circuit’s deci-
sion in Associated Builders & Contractors of So. Cal.,
Inc. v. Nunn, 356 F.3d 979, 990 (9th Cir. 2004), wherein
the court stated that “state substantive labor standards,
including minimum wages, are not invalid simply
because they apply to particular trades, professions, or
job classifications rather than the entire labor market.”

Unlike these cases, though, the Attendant Am-
endment is not just limited by trade — it is also limited
by location; the Attendant Amendment is astate statute
that applies only in one county in Illinois — Cook
county. That fact distinguishes this case from the series
of cases cited by Appellees, including Nunn; the Attend-
ant Amendment is not just limited to a particular trade,
profession, or job classification; it is also a state statute
limited to only one of Illinois’ 102 counties.

Moreover, we find the Ninth Circuit’s decision in
Bragdon better reasoned. In Bragdon, 64 F.3d 497, the
Chamber of Commerce sued a California county and

Appellees noted parenthetically that Washington Serv.
Contractors, 54 F.3d 811, held a “local ordinance applying only
to janitorial contractors not preempted.” Appellee Br. at 21.
Contrary to Appellees’ assertion, however, the statute at issue
in Washington Serv. Contractors, 54 F.3d 811 was not limited
to janitorial contractors, but applied to persons who performed

“food, janitorial, maintenance, or non-professional health care
services.” Id. at 814.

27a

county officials, challenging an ordinance that required
employers to pay “prevailing wages” to employees on
private construction projects costing over $500,000. Jd.
at 498. The Ordinance stated that its purpose was “to
promote safe construction, minimize the risk of accid-
ents on industrial projects, prevent erosion of the wage
scale, and alleviate the burden on the County’s health
and welfare services and law enforcement, caused by
low-paid workers.” Jd. The “prevailing wages” were de-
fined by the California Department of Industrial
Relations, which determined the “prevailing wage” “by
reference to established collective bargaining agree-
ments within the locality.” Jd. at 498-99. More specific-
ally, “{t]he Director uses formulas that average the
wages and benefits for each craft pursuant to collective-
bargaining agreements applicable in each labor mav-
ket.” Id. at 502. Under the Ordinance, construction
companies were required to agree to pay the state-
determined prevailing wage before the County would
issue a building permit. Jd. at 499. The Chamber of
Commerce argued that the Ordinance was pre-empted
by the NLRA. Jd. The county responded that the pre-
vailing wage ordinance was a “minimum labor stan-
dard” and as such was not preempted. After explaining
general preemption principles, the Machinists doctrine,
and summarizing the Supreme Court’s decisions in
Metropolitan Life and Fort Halifax, the Ninth Circuit
held that the Ordinance establishing the prevailing

wage for construction workers was pre-empted by
Machinists. Id. at 504. In so holding, the Ninth Circuit

28a

concluded that the ordinance was “also very different
from a minimum wage law, applicable to all employees,
guaranteeing a minimum hourly rate.” Bragdon, 64
F.3d at 502 (emphasis added). The Bragdon court also
stressed that the Ordinance at issue was “much more
invasive .. . than the isolated statutory provisions of
general application approved in Metropolitan Life and
Fort Halifax.” Id. The court in Bragdon reasoned:

This is also not the type of regulation of general
application that assures that certain coverage
provisions be included in all health insurance
contracts, such as in Metropolitan Life; nor is it
the type of regulation seeking to alleviate a
particular hardship such as plant closings that
affect the employees and the community. This
Ordinance, by contrast, sets detailed minimum
wage and benefit packages, distinct for each craft
involved in certain limited construction projects.
This minimum varies from time-to-time as new
averages are calculated. The district court noted
that unlike the law upheld in Metropolitan Life,
the Ordinance is more properly characterized as
an example of an interest group deal in public-
interest clothing.

Id. at 503 (internal quotation omitted).”

: While the panel in Nunn expressed disagreement with

some aspects of its Ninth Circuit colleagues’ earlier decision in

Bragdon, see Nunn, 356 F.3d at 990, there were two
(continued...)

29a

Like the Bragdon court, we find the lack of
general application in the Attendant Amendment
significant. In exempting “minimum labor standards”
from the preemptive force of the NLRA, Metropolitan
Life and Fort Halifax both involved laws of general
application and the Supreme Court has characterized
“minimum labor standards” as laws of general app-
lication. Metropolitan Life, 471 U.S. at 753; Fort Hali-
fax,482 U.S. at 5. The Attendant Amendment’s narrow
scope distinguishes it from minimum labor standards
which are not subject to preemption, and places the
Attendant Amendment in the “zone protected and
reserved for market freedom.” Brown, 1285S. Ct. at 2412
(quoting Building & Constr. Trades Council v. Assoc.
Builders & Contractors of Mass./R.I., Inc., 507 U.S. 218,
227 (1993)).

: (...continued)

distinguishing features in Bragdon that separated it from
Nunn. As Nunn recognized, “Congress authorized states to
establish apprenticeship standards and to regulate the
conditions governing the implementation of apprenticeship
programs, whether the apprentices were working on public or
private projects,” and this “differentiates California’s
apprenticeship regulations from the Contra Costa County
ordinance at issue in Bragdon.” Nunn, 356 F.3d at 990-91. The
court in Nunn further distinguished Bragdon, reasoning
“{sjecond and equally important, unlike in the case of the
Contra Costa County ordinance at issue in Bragdon, here
contractors may completely avoid the applicability of the
California apprenticeship regulations” by not hiring appren-
tices. Id. at 991.

30a

The Attendant Amendment’s narrow scope of
application also serves as a disincentive to collective
bargaining. As the Supreme Court explained in
Metropolitan Life, a minimum labor standard should
“neither encourage nor discourage the collective-
bargaining process that are the subject of the NLRA.”
471 U.S. at 755. Yet by passing a statute with such a
narrow focus (one occupation, in one industry, in one
county), there seems to be a disincentive to collective
bargaining and instead encouragement for employers or
unions” to focus on lobbying at the state capital instead
of negotiating at the bargaining table.”

© Unite Here lobbied for the Attendant Amendment. The
appellees argue its lobbying is irrelevant, because “[f]ederal pre-
emption doctrine evaluates what legislation does, not why legis-
lators voted for it or what political coalitions led to its enact-
ment.” Appellee Br. at 27 (quoting Northern Ill. Chapter of
Assoc. Builders & Contractors v. Lavin, 431 F.3d 1004, 1007
(7th Cir. 2005)). We agree that Unite Here’s lobbying is irrel-
evant, but what is relevant is that the law discourages collective
bargaining.

‘1 The legislative debate shows that several state legislators

recognized this incentive. See, e.g., ILS. Tran. 2005 Reg. Sess.
No. 44, Senator Roskam (“These folks, if they want to win fair
and square, by golly go negotiate. Put it on the table and
negotiate. Look one another in the eye and bargain. Say we’re
not going to dothis job unless you give us these fifteen minutes
ortwenty minutes or have our smoke breaks or take a diet Coke
break or whatever you want to do, but we ought not do this.”);

ILS. Tran. 2005 Reg. Sess. No. 45, Senator Pankau (“The main
(continued...)

3la

The Ninth Circuit explained this phenomenon in
Bragdon, 64 F.3d 497 (9th Cir. 1995). As noted above,
in Bragdon, the Ninth Circuit struck an Ordinance
estab-lishing a prevailing wage for certain private
construc-tion projects. Jd. at 498. In striking the
Ordinance, the Ninth Circuit noted that the same or
similar justific-ations for the exercise of police power in
one business or industry “could be advanced for most
any business or industry.” Jd. at 504. The Ninth
Circuit recognized the impact, stating:

A precedent allowing this interference with the
free play of economic forces could be easily app-
lied to other businesses or industries in estab-
lishing particular minimum wage and benefit
packages. This could redirect efforts of employees
not to bargain with employers, but instead, to
seek to set minimum wage and benefit packages
with political bodies. This could invoke defensive
action by employers seeking to obtain caps on
wages in various businesses or industries. This
could be justified as an exercise of police power
on community welfare grounds of lowering con-
struction costs to attract business to the area or

't (...continued)

item in this particular bill is this is a bargainable issue. It has
been bargained before. It has been presented many times before
this particular labor union. So, why are — if they can’t get it in
their own negotiations, why are they coming down here to us to

put it into law?”).

32a

lowering costs to consumers so as to make prod-
ucts or services more available to the gereral
public. This substitutes the free-play of poiitical
forces for the free play of economic forces that
was intended by the NLRA.

Id. at 504.

Additionally, while on its face this law applies to
union and non-union employees equally, the statute’s
narrow application equates more to a benefit for a bar-
gaining unit than an individual protection. While not
all room attendants in Cook county are unionized, by
regulating only one county the state makes it possible to
target union-heavy counties (or union-light counties),
and thus reward (or punish) union activity. Illinois’
approach further allows non-union employees to ben-
efit from the bargaining of the union which took place,
not at the bargaining table, but at the legislature. In
Bragdon, the Ninth Circuit held that Machinists
preempted an Ordinance which “targets particular
workers in a particular industry and is developed and
revised from the bargaining of others, affects the
bargaining process in a way that is incompatible with
the general goals of the NLRA.” Bragdon, 64 F.3d at
504.

The One Day Rest in Seven Act further shows
that the Attendant Amendment is not a true minimum
labor standard. As noted above, prior to passage of the
Attendant Amendment, the One Day Rest in Seven Act
already established a minimum labor standard for

33a

breaks, requiring employers to provide one unpaid
twenty-minute meal break, although this mandate did
“not apply to employees for whom meal periods are
established through the collective bargaining process.”
820 ILCS 140/3. That minimum labor standard still
applies in Illinois, but the Attendant Amendment sets
a higher standard. [Illinois argues that there is no
reason that it cannot increase the minimum, but that is
not what Illinois did. Rather, Illinois retained its
minimum labor standard and crafted a higher standard
for a specific occupation, in a specific industry, in a spec-
ific county. In explaining minimum labor standards,
the Supreme Court spoke of the laws as establishing a
“backdrop” for their negotiations. Fort Halifax, 482
U.S. at 21. The One Day Rest in Seven Act established
such a state-wide backdrop, while the Attendant Am-
endment overrode the local bargaining process by
imposing confining requirements on one occupation, in
one industry, in one county.

Moreover, the One Day Rest in Seven Act
exempts from coverage employees covered by a
collective bargaining agreement that provides for break
rooms and meal breaks. The Attendant Amendment
does not contain a similar exemption. As the Supreme
Court explained in Fort Halifax, “(t]he fact that the
parties are free to devise their own severance pay
arrangements... strengthens the case that the statute
works no intrusion on collective bargaining [because the
State] has sought to balance ‘he desirability of a
particular substantive labor standard against the nght

34a

of self-determination regarding the terms and con-
ditions of employment.” Fort Halifax, 482 U.S. at 22.
While a “statute that permits no collective bar-gaining
on asubject [may] escape NLRA preern.:ption,” id., when
the parties are not free to devise their own arrangement
preemption applies because the statute intrudes on the
collective bargaining process. That is especially true
where a similar statute of general applicability allows
for such bargaining, but the narrowly targeted law does
not.

Furthermore, the Attendant Amendment does
not qualify as a “minimum” labor standard. “Min-
imum,” as used by the Supreme Court, implies a low
threshold. In fact, in Metropolitan Life, the Supreme
Court spoke ofa state or federal legislation that imposes
“minimal substantive requirements on contract terms
negotiated between parties to labor agreements.” 471
U.S. at 754. The Supreme Court also spoke of minimum
labor standards as forming the backdrop for
negotiations, Fort Halifax, 482 U.S. at 21, again in-
dicating a low-threshold law which serves as a floor.
Our sister circuits have likewise read “minimum labor
standard” as a minimal substantive impact on contracts.
See Bragdon, 64 F.3d at 500 (stating that “[w]hen a
state law establishes a minimal employment standard
not inconsistent with the general legislative goals of the
NLRA, it conflicts with none of the purposes of the
Act”) (emphasis in origina!); Hull, 935 F.2d at 1198
(noting that “[a]lthough the Supreme Court did not
define what it considered to be a ‘minimum labor

35a

standard,’ ” such statutes are “valid and unexceptional
exercise[s] of the [state’s] police power,” and a state
“longevity pay statute is not such a beast”) (internal
quotation omitted). The Attendant Amendment is much
more than a mere backdrop to negotiations because it
establishes terms of employment that would be very
difficult for any union to bargain for. Specifically, in
addition to the requirement for two paid fifteen-minute
breaks and an unpaid thirty-minute lunch break, the
Attendant Amendment creates a presumption of retal-
iation and shifts the burden of proof to the employer.’*

2 Specifically, 820 ILCS 140/3.1(g) provides: “It is
unlawful for any employer or an employer’s agent or
representative to take any action against any person in
retaliation for the exercise of rights under this Section. In
any civil proceeding brought under this subsection (f), if the
plaintiff establishes that he or she was employed by the
defendant, exercised rights under this Section, and was
thereafter terminated, demoted, or otherwise penalized by
the defendant, then a rebuttable presumption shall arise
that the defendant’s action was taken in retaliation for the
exercise of rights established by this Section. To rebut the
presumption, the defendant must prove that the sole reason
for the termination, demotion, or penalty was a legitimate
business reason.” Thus * .nstance, if a hotel fired a room
attendant because the :oom attendant failed to clean the
required daily quota of rooms, but the room attendant
alleged that the real reason for his or her termination was
that he or she had taken the statutorily mandated breaks,
820 ILCS 140/3.1(g) creates a presumption of retaliation.

(continued...)

36a

See 820 ILCS 140/3.1. We are aware of no law or
contract that establishes such a shifting of the burden
of proof, nor which requires proof from the employer
that the “sole reason,” id., for any disciplinary conduct
was a legitimate business reason. Moreover, this
presumption and the shifting of the burden of proof
applies indefinitely; it does not matter how long ago it
was that an employee exercised rights under the
Attendant Amendment or alleged the employer was not
complying with the terms of the Attendant Amendment.
Once either occurs the defendant-employer will from
then on have the burden of proof.’®

In addition to shifting the burden of proof to the
employer, the Attendant Amendment provides that,
along with back pay and reinstatement, an employee
terminated in violation of the Attendant Amendment

2 (...continued)
The burden of proof would then shift to the hotel to prove
that the sole reason for the termination was “a legitimate

business reason.”

'S At oral argument, Unite Here’s attorney stated that the

presumption only applies if the employee is disciplined within
ninety days of asserting that his employer is not complying with
the terms of the Attendant Amendment. However, following
oral argument, United Here’s attorney submitted a letter to
correct this

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386017_0708%3A0. Public record. Not legal advice.
