Board of Trustees of the Glazing Health & Welfare Trust v. Chambers
168 F. Supp. 3d 1320
D. Nev.2016Background
- Plaintiffs are trustees of multiemployer (Taft‑Hartley/ERISA) employee benefit trusts that collect and distribute fringe benefits for union members.
- Nevada amended NRS 608.150 via Senate Bill 223 (SB223), adding provisions that explicitly refer to and impose duties involving Taft‑Hartley/ERISA benefit trusts (e.g., notice and information requirements to trustees).
- Plaintiffs filed suit seeking a declaration that SB223 is pre‑empted in its entirety by ERISA; the case was decided on cross‑motions for summary judgment.
- The court considered whether SB223 "relates to" ERISA plans under ERISA § 514(a) and applicable Ninth Circuit tests for connection with plans.
- The court also analyzed whether, if parts of SB223 were pre‑empted, the remainder of the statute was severable under Nevada law and legislative intent.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether SB223 is pre‑empted by ERISA § 514(a) | SB223 references and regulates Taft‑Hartley/ERISA trusts and thus "relates to" ERISA plans and is pre‑empted | The statute is a labor‑law enforcement measure regulating contractor/subcontractor liability, not ERISA plans, so it is not pre‑empted | The court held SB223 is pre‑empted: it expressly references ERISA plans and imposes reporting/notice duties affecting plan‑employer relationships |
| Whether the pre‑empted portions are severable from SB223 | Even if parts are pre‑empted, severing would leave valid provisions intact (e.g., shortened limitations) | The amendments were enacted as an integrated package; legislature did not include a severability clause specific to these changes | The court held the pre‑empted provisions are not severable; because the amendments were intended to operate together, the entire SB223 is pre‑empted |
Key Cases Cited
- Mackey v. Lanier Collection Agency & Serv., Inc., 486 U.S. 825 (state laws that reference or are designed to affect ERISA plans are preempted)
- Metropolitan Life Ins. Co. v. Massachusetts, 471 U.S. 724 (ERISA’s preemption displaces state laws within its sphere)
- Shaw v. Delta Air Lines, Inc., 463 U.S. 85 (a law "relates to" an ERISA plan if it has a connection with or reference to such a plan)
- NLRB v. Amax Coal Co., 453 U.S. 322 (Taft‑Hartley trusts are employee benefit trusts governed by ERISA)
- Greater Washington Bd. of Trade v. United States, 506 U.S. 125 (existence of ERISA plans essential to operation of a state law supports preemption)
- Ingersoll‑Rand Co. v. McClendon, 498 U.S. 133 (state law reference to ERISA plans can trigger preemption)
- McBride v. PLM Int’l, Inc., 179 F.3d 737 (9th Cir. test for whether a state law has a connection with ERISA plans)
