Opinion · Supreme Court of the United States
National League of Cities v. Usery
426 U.S. 833
- Type
- Opinion
- Court
- Supreme Court of the United States
- Jurisdiction
- Federal
- Date
- 1976-06-24
- Topic
- employee-benefits-and-executive-compensation
holding that Congress’ use of its power to regulate commerce cannot abrogate a state’s sovereign immunity | holding that state employees are not subject to the Fair Labor Standards Act | noting that appellants “in no way challenge” that FLSA is “undoubtedly within the scope of the Commerce Clause.” | noting that in Buckley v. Valeo and Myers v. United States the Court had struck down laws as unconstitutional encroachments on executive power even though the President had failed to veto them | distinguishing Economic Stabilization Act from Fair Labor Standards Act on basis that former "operated to reduce the pressures upon state budgets rather than increase them" | distinguishing Economic Stabilization Act from Fair Labor Standards Act on basis that former “operated to reduce the pressures upon state budgets rather than increase them” | relating power to determine hours of government workers to unimpeded exercise of State's role as provider of emergency services | offering jobs at below the minimum wage to persons who do not possess "minimum employment requirements" | relating power to determine hours of government workers to unimpeded exercise of State’s role as provider of emergency services | offering jobs at below the minimum wage to persons who do not possess “minimum employment requirements” | noting that in Buckley v. Valeo and Myers v. United States the Court had struck down laws as unconstitutional encroachments on executive power even though the President had failed to veto them | attempting to define the scope of governmental functions protected from federal regulation under the Commerce Clause | declaring unconstitutional the extension of wage and hour provisions of the Fair Labor Standards Act to employees of state and local governments | declaring unconstitutional the extension of wage and hour provisions of the Fair Labor Standards Act to employees of state and local governments | recognizing the importance of financial considerations in structuring local government services | holding state employers were not subject to the FLSA, overruling Wirtz | holding state employers not subject to Fair Labor Standards Act | relying on Tenth Amendment case precedents to strike down FLSA as applied to state and municipal governments | relying on Tenth Amendment case precedents to strike down FLSA as applied to state and municipal governments | invalidating 1974 amendments to the FLSA to the extent that they “impermissibly interfere^] with the integral governmental functions” of states and municipalities | stressing importance of state autonomy as to “those fundamental employment decisions upon which their systems for performance of [their dual functions of administering the public law and furnishing public services] must rest” | stressing importance of state autonomy as to " those fundamental employment decisions upon which their systems for performance of [their dual functions of administering the public law and furnishing public services] must rest " | recognizing a "limit[] upon the power of Congress to override state sovereignty, even when exercising its otherwise plenary powers ... which are conferred by Art. I of the Constitution" and that "an express declaration of this limitation is found in the Tenth Amendment" | recognizing a "limit[] upon the power of Congress to override state sovereignty, even when exercising its otherwise plenary powers ... which are conferred by Art. I of the Constitution” and that "an express declaration of this limitation is found in the Tenth Amendment” | detailing the history of the FLSA 4 Specifically, 29 U.S.C. § 203(r)(2) provides that: [T]he activities performed by any person or persons— (A | attempting to define the scope of governmental functions protected from federal regulation under the Commerce Clause | proposing a “traditional governmental functions” standard for state governmental immunity from federal regulation under the Commerce Clause | proposing a “traditional governmental
Citator
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- 551 opinions
delivered the opinion of the Court.
Nearly 40 years ago Congress enacted the Fair Labor Standards Act,1 and required employers covered by the Act to pay their employees a minimum hourly wage2 and to pay them at one and one-half times their regular
"Whatever their motive and purpose, regulations of commerce which do not infringe some constitutional prohibition are within the plenary power conferred on Congress by the Commerce Clause.” Id., at 115.
The original Fair Labor Standards Act passed in 1938 specifically excluded the States and their political subdivisions from its coverage.6 In 1974, however, Congress enacted the most recent of a series of broadening amendments to the Act. By these amendments Congress has extended the minimum wage and maximum hour provisions to almost all public employees employed by the States and by their various political subdivisions. Appellants in these cases include individual cities and States, the National League of Cities, and the National Governors' Conference;7 they brought an action in the District
I
In a series of amendments beginning in 1961 Congress began to extend the provisions of the Fair Labor Standards Act to some types of public employees. The 1961 amendments to the Act8 extended its coverage to persons who were employed in “enterprises” engaged in commerce or in the production of goods for commerce.9 And in 1966, with the amendment of the definition of employers under the Act, the exemption heretofore extended to the States and their political subdivisions was
In 1974, Congress again broadened the coverage of the Act, 88 Stat, 55. The definition of “employer” in the Act now specifically “includes a public agency,” 29 U. S. C. §203 (d) (1970 ed., Supp, IV). In addition, the critical definition of “[e]nterprise[s] engaged in commerce or in the production of goods for commerce” was expanded to encompass “an activity of a public agency,” and goes on to specify that
“[t]he employees of an enterprise which is a public agency shall for purposes of this subsection be deemed to be employees engaged in commerce, or in the production of goods for commerce, or employees handling, selling, or otherwise working on goods or materials that have been moved in or produced for commerce.” 29 U; S. C. §203 (s)(5) (1970 ed., Supp. IV).
Under the amendments “[p]ublic agency” is in turn defined as including
“the Government of the United States; the government of a State or political subdivision thereof; any agency of the United States (including the United States Postal Service and Postal Rate Commission), a State, or a political subdivision of a State; or any interstate governmental agency.” 29 U. S. C. § 203 (x) (1970 ed., Supp. IV).
By its 1974 amendments, then, Congress has now entirely removed the exemption previously afforded States and their political subdivisions, substituting only the Act’s general exemption for executive, administrative, or pro
Challenging these 1974 amendments in the District Court, appellants sought both declaratory and injunc-tive relief against the amendments’ application to them, and a three-judge court was accordingly convened pursuant to 28 U. S. C. § 2282. That court, after hearing argument on the law from the parties, granted appel-lee Secretary of Labor’s motion to dismiss the complaint for failure to state a claim upon which relief might be granted. The District Court stated it was “troubled” by appellants’ contentions that the amendments would intrude upon the States’ performance of essential governmental functions. The court went on to say that it considered their contentions
“substantial and that it may well be that the Supreme Court will feel it appropriate to draw back from the far-reaching implications of [Maryland v. Wirtz, supra]; but that is a decision that only the Supreme Court can make, and as a Federal district court we feel obliged to apply the Wirtz opinion as it stands.” National League of Cities v. Brennan, 406 F. Supp, 826, 828 (DC 1974).
II
It is established beyond peradventure that the Commerce Clause of Art. I of the Constitution is a grant of plenary authority to Congress. That authority is, in the words of Mr. Chief Justice Marshall in Gibbons v. Ogden, 9 Wheat. 1 (1824), “the power to regulate; that is, to prescribe the rule by which commerce is to be governed.” Id., at 196.
When considering the validity of asserted applications of this power to wholly private activity, the Court has made it clear that
“[e]ven activity that is purely intrastate in char^ acter may be regulated by Congress, where the activity, combined with like conduct by others similarly situated, affects commerce among the States or with foreign nations.” Fry v. United States, 421 U. S. 542, 547 (1975).
Congressional power over areas of private endeavor, even when its exercise may pre-empt express state-law determinations contrary to the result which has commended itself to the collective wisdom of Congress, has been held to be limited only by the requirement that “the means chosen by [Congress] must be reasonably adapted to the end permitted by the Constitution.” Heart of Atlanta Motel v. United States, 379 U. S. 241, 262 (1964).
“While the Tenth Amendment has been characterized as a 'truism/ stating merely that 'all is retained which has not been surrendered,' United States v.*843 Darby, 312 U. S. 100, 124 (1941), it is not without significance. The Amendment expressly declares the constitutional policy that Congress may not exercise power in a fashion that impairs the States’ integrity or their ability to function effectively in a federal system.” 421 U. S., at 547 n. 7.
In New York v. United States, 326 U. S. 572 (1946), Mr. Chief Justice Stone, speaking for four Members of an eight-Member Court13 in rejecting the proposition that Congress could impose taxes on the States so long as it did so in a nondiscriminatory manner, observed:
“A State may, like a private individual, own real property and receive income. But in view of our former decisions we could hardly say that a general non-discriminatory real estate tax (apportioned), or an income tax laid upon citizens and States alike could be constitutionally applied to the State’s capitol, its State-house, its public school houses, public parks, or its revenues from taxes or school lands, even though all real property and all income of the citizen .is taxed.” Id., at 587-588.14
“Both the States and the United States existed before the Constitution. The people, through that instrument, established a more perfect union by substituting a national government, acting, with ample power, directly upon the citizens, instead of the Confederate government, which acted with powers, greatly restricted, only upon the States. But in many articles of the Constitution the necessary existence of the States, and, within their proper spheres, the independent authority of the States, is distinctly recognized.” Id., at 76.
In Metcalf & Eddy v. Mitchell, 269 U. S. 514 (1926), the Court likewise observed that “neither government may destroy the other nor curtail in any substantial manner the exercise of its powers.” Id., at 523.
Appellee Secretary argues that the cases in which this Court has upheld sweeping exercises of authority by Congress, even though those exercises pre-empted state regu
“The power to locate its own seat of government and to determine when and how it shall be changed from one place to another, and to appropriate its own public funds for that purpose, are essentially and peculiarly state powers. That one of the original thirteen States could now be shorn of such powers by an act of Congress would not be for a moment entertained.” Id., at 565.
One undoubted attribute of state sovereignty is the States’ power to determine the wages which shall be paid to those whom they employ in order to carry out their governmental functions, what hours those persons will work, and what compensation will be provided where these employees may be called upon to work overtime. The question we must resolve here, then, is whether these determinations are “ 'functions essential to separate and independent existence,’ ” id., at 580, quoting from Lane County v. Oregon, supra, at 76, so that Congress
In their complaint appellants advanced estimates of substantial costs which will be imposed upon them by the 1974 amendments. Since the District Court dismissed their complaint, we take its well-pleaded allegations as true, although it appears from appellee’s submissions in the District Court and in this Court that resolution of the factual disputes as to the effect of the amendments is not critical to our disposition of the case.
Judged solely in terms of increased costs in dollars, these allegations show a significant impact on the functioning of the governmental bodies involved. The Metropolitan Government of Nashville and Davidson County, Tenn., for example, asserted that the Act will increase its costs of providing essential police and fire protection, without any increase in service or in current salary levels, by $938,000 per year. Cape Girardeau, Mo., estimated that its annual budget for fire protection may have to be increased by anywhere from $250,000 to $400,000 over the current figure of $350,000. The State of Arizona alleged that the annual additional expenditures which will be required if it is to continue to provide essential state services may total $2.5 million. The State of California, which must devote significant portions of its budget to fire-suppression endeavors, estimated that application of the Act to its employment practices will necessitate an increase in its budget of between $8 million and $16 million.
Increased costs are not, of course, the only adverse effects which compliance with the Act will visit upon state and local governments, and in turn upon the citizens who depend upon those governments. In its complaint in intervention, for example, California asserted that it could not comply with the overtime costs (ap
This type of forced relinquishment of important governmental activities is further reflected in the complaint’s allegation that the city of Inglewoód, Cal., has been forced to curtail its affirmative action program for providing employment opportunities for men and women interested in a career in law enforcement. The Inglewood police department has abolished a program for police trainees who split their week between on-the-job training and the classroom. The city could not abrogate its contractual obligations to these trainees, and it concluded that compliance with the Act in these circumstances was too' financially burdensome to permit continuance of the classroom program. The city of Clovis, Cal., has been put to a similar choice regarding an internship program it was running in cooperation with a California state university. According to the complaint, because the interns’ compensation brings them within the purview of the Act the city must decide whether to eliminate the program entirely or to substantially reduce its beneficial aspects by doing away with any pay for the interns.
Quite apart from the substantial costs imposed upon the States and their political subdivisions, the Act displaces state policies regarding the manner in which they will structure delivery of those governmental services which their citizens require. The Act, speaking directly to the States qua States, requires that they shall pay
This dilemma presented by the minimum wage restrictions may seem not immediately different from that faced by private employers, who have long been covered by the Act and who must find ways to increase their gross income if they are to pay higher wages while
The degree to which the FLSA amendments would interfere with traditional aspects of state sovereignty can be seen even more clearly upon examining the overtime requirements of the Act. The general effect of these provisions is to require the States to pay their employees at premium rates whenever their work exceeds a specified number of hours in a given period. The asserted reason for these provisions is to provide a financial disincentive upon using employees beyond the work period deemed appropriate by Congress. According to appellee:
“This premium rate can be avoided if the [State] uses other employees to do the overtime work. This, in effect, tends to discourage overtime work and to spread employment, which is the result Congress intended.” Brief for Appellee 43.
We do not doubt that this may be a salutary result, .and that it has a sufficiently rational relationship to commerce to validate the application of the overtime provisions to private employers. But, like the minimum wage provisions, the vice of the Act as sought to be applied here is that it directly penalizes the States for choosing to hire governmental employees on terms different from those which Congress has sought to impose.
This congressionally imposed displacement of state decisions may substantially restructure traditional ways in which the local governments have arranged their affairs. Although at this point many of the actual effects
Our examination of the effect of the 1974 amendments, as sought to be extended to the States and their political subdivisions, satisfies us that both the minimum wage and the maximum hour provisions will impermissibly interfere with the integral governmental functions of these bodies. We earlier noted some disagreement between the parties regarding the precise effect the amendments will have in application. We do not believe particularized assessments of actual impact are crucial to resolution of the issue presented, however. For even if we accept appellee's assessments concerning the impact of the amendments, their application will nonetheless significantly alter or displace the States' abilities to structure employer-employee relationships in such areas as fire prevention, police protection, sanitation, public health, and parks and recreation. These activities are typical of those performed by state and local governments in discharging their dual functions of administering the public law and furnishing public services.16 Indeed, it is functions such as these which governments are created to provide, services such as these which the States have traditionally afforded their citizens. If Congress may withdraw from the States the authority to make those fundamental employment decisions upon which their systems for performance of these functions must rest, we think there would be little left of the States’ “ ‘separate and independent existence.’ ” Coyle, 221 U. S., at 580. Thus, even if appellants may have overestimated the effect which the Act will have upon
Ill
One final matter requires our attention. Appellee has vigorously urged that we cannot, consistently with the Court’s decisions in Maryland v. Wirtz, 392 U. S. 183 (1968), and Fry, supra, rule against him here. It is important to examine this contention so that it will be clear what we hold today, and what we do not.
With regard to Fry, we disagree with appellee. There the Court held that the Economic Stabilization Act of 1970 was constitutional as applied to temporarily freeze the wages of state and local government employees. The Court expressly noted that the degree of intrusion upon the protected area of state sovereignty was in that case
We think our holding today quite consistent with Fry. The enactment at issue there was occasioned by an extremely serious problem which endangered the well-being of all the component parts of our federal system and which only collective action by the National Government might forestall. The means selected were carefully drafted so as not to interfere with the States’ freedom beyond a very limited, specific period of time. The effect of the across-the-board freeze authorized by that Act, moreover, displaced no state choices as to how governmental operations should be structured, nor did it force the States to remake such choices themselves. Instead, it merely required that the wage scales and employment relationships which the States themselves had chosen be maintained during the period of the emergency. Finally, the Economic Stabilization Act operated to reduce the pressures upon state budgets rather than increase them. These factors distinguish the statute in Fry from the provisions at issue here. The limits imposed upon the commerce power when Congress seeks to apply it to the States are not so inflexible as to preclude temporary enactments tailored to combat a national emergency. “[Although an emergency may not call into life a power which has never lived, nevertheless emergency may afford a reason for the exertion of a living power already enjoyed.” Wilson v. New, 243 U. S. 332, 348 (1917).
With respect to the Court’s decision in Wirtz, we reach a different conclusion. Both appellee and the District Court thought that decision required rejection of appel
Wirtz relied heavily on the Court’s decision in United States v. California, 297 U. S. 175 (1936). The opinion quotes the following language from that case:
“‘[We] look to the activities in which the states have traditionally engaged as marking the boundary of the restriction upon the federal taxing power. But there is no such limitation upon the plenary power to regulate commerce. The state can no more deny the power if its exercise has been authorized by Congress than can an individual.’ 297 U. S., at 185.” 392 U. S., at 198.
But we have reaffirmed today that the States as States stand on a quite different footing from an individual or a corporation when challenging the exercise of Congress’ power to regulate commerce. We think the dicta18 from
So ordered.
The Fair Labor Standards Act of 1938, 52 Stat. 1060, 29 U. S. C. §201 et seq. (1940 ed.).
§206 (a) (1940 ed.).
§ 207 (a)(3) (1940 ed.).
§211 (c) (1940 ed.).
§ 212 (1940 ed.).
Title 29 U. S. C. § 203 (d) (1940 ed.):
“ 'Employer’ includes any person acting directly or indirectly in the interest of an employer in relation to an employee but shall not include the United States or any State or political subdivision of a State ....”
Appellants in No. 74^878 are the National League of Cities, the National Governors’ Conference, the States of Arizona, Indiana, Iowa, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, Oklahoma, Oregon, South Carolina, South Dakota, Texas, Utah, Washington, and Wyoming, the Metropolitan Government of Nashville and Davidson County,
In view of the fact that the appellants include sovereign States and their political subdivisions to which application of the 1974 amendments is claimed to be unconstitutional, we need not consider whether the organizational appellants had standing to challenge the Act. See California Bankers Assn. v. Shultz, 416 U. S. 21, 44-45 (1974).
Pub. L. 87-30, 75 Stat. 65.
29 U. S. C. §§203 (r), 203 (s), 206 (b), 207 (a)(2) (1964 ed.).
80 Stat. 831, 29 U. S. C. §203 (d) (1964 ed., Supp. II).
When the cases were not decided in October Term, 1974, they were set down for reargument, 421 U. S. 986 (1975).
Mr. Justice Brennan’s dissent intimates, post, at 858, that guarantees of individual liberties are the only sort of constitutional restrictions which this Court will enforce as against congressional action. It reasons that “Congress is constituted of representatives in both Senate and House elected from, the States. . . . Decisions upon the extent of federal intervention under the Commerce Clause into the affairs of the States are in that sense decisions of the States themselves.” Post, at 876. Precisely what is meant by the phrase “are in that sense decisions of the States themselves” is not entirely clear from this language; it is indisputable that a common constituency of voters elects both a State’s Governor and its two United States Senators. It is equally indisputable that since the enactment of the Seventeenth Amendment those Senators are not dependent upon state legislators for their election. But in any event the intimation which this reasoning is used to support is incorrect.
In Myers v. United States, 272 U. S. 52 (1926), the Court held that Congress could not by law limit the authority of the President
In quoting from the separate opinion of Mr. Justice Frankfurter in New York v. United States, 326 U. S., at 573, Mr. Justice Brennan fails to add that this opinion attracted only one other adherent. The separate opinion of Mr. Chief Justice Stone, on the other hand, was joined by three other Members of the Court. And the two dissenters advocated a position even more protective of state sovereignty than that advanced by Stone. See Id., at 590-598 (Douglas, J., dissenting).
Mr. Justice Brennan suggests that “the Chief Justice was addressing not the question of a state sovereignty restraint upon the exercise of the commerce power, but rather the principle of implied immunity of the States and Federal Government from taxation by the other . . . .” Post, at 863-864. The asserted distinction, however, escapes us. Surely the federal power to tax is no less a delegated power than is the commerce power: both find their genesis
The complaint recited that a number of appellants were prohibited by their State Constitutions from incurring debts in excess of taxes for the current year. Those Constitutions also impose ceilings upon the percentage rates at which property might be taxed by those governmental units. App. 36-37.
These examples are obviously not an exhaustive catalogue of the numerous line and support activities which are well within the area of traditional operations of state and local governments.
We express no view as to whether different results might obtain if Congress seeks to affect integral operations of state governments by exercising authority granted it under other sections of the Constitution such as the spending power, Art. I, § 8, cl. 1, or § 5 of the Fourteenth Amendment.
The holding of United States v. California, as opposed to the language quoted in the text, is quite consistent with our holding today. There California's activity to which the congressional command was directed was not in an area that the States have regarded as integral parts of their governmental activities. It was, on the contrary, the operation of a railroad engaged in "common carriage by rail in interstate commerce . . . .” 297 U. S., at 182.
For the same reasons, despite Mr. Justice Brennan’s claims to the contrary, the holdings in Parden v. Terminal R. Co., 377 U. S. 184 (1964), and California v. Taylor, 353 U. S. 553 (1957), are likewise unimpaired by our decision today. It also seems appropriate to note that Case v. Bowles, 327 U. S. 92 (1946), has not been overruled as the dissent asserts. Indeed that decision,
MR. Justice Brennan’s dissent leaves no doubt from its discussion, post, at 876-878, that in its view Congress may under its commerce power deal with the States as States just as they might deal with private individuals. We venture to say that it is this conclusion, rather than the one we reach, which is in the words of the dissent a “startling restructuring of our federal system . . . ,” post, at 875. Even the appellee Secretary, defending the 1974 amendments in this Court, does not take so extreme a position.
As the denomination “political subdivision” implies, the local