Building Industry Electrical Contractors Ass'n v. City of New York
678 F.3d 184
2d Cir.2012Background
- PLA contracts (City PLAs) govern labor terms on City construction projects and require BCTC affiliation for workers.
- City PLAs include union security, hiring hall utilization, fringe benefit contributions, work rules, no-strike clauses, and PLA governs in case of conflicts with CBAs.
- BIECA and UECA challenge PLAs as NLRA preemption; district court held not preempted and dismissed remaining claims.
- PLAs are analyzed under market participant exception to preemption, distinguishing regulation from proprietary purchase of labor services.
- Court compares City actions to private development activities and relies on Boston Harbor doctrine to uphold proprietary procurement as non-regulatory.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether PLAs are preempted by NLRA | BIECA argues PLAs regulate labor market and are preempted | City argues as market participant, PLAs are proprietary, not regulatory | Not preempted; PLAs fall under market participant exception |
| Extracontractual effects of PLAs on union contractors | PLAs compel renegotiation of CBAs, altering extracontractual relations | Extracontractual effects are ordinary PLA consequences; not regulatory | Extracontractual effects do not negate market participant status |
| Motives of City in adopting PLAs | Cronyism/political motive shows regulatory purpose | Motivation is not controlling; facial purpose shows proprietary aim | Motive inquiry rejected; permissible proprietary goals upheld |
Key Cases Cited
- Boston Harbor v. Building & Construction Trades Council, 507 U.S. 218 (U.S. 1993) (market participant exception for public PLAs; procurement, not regulation)
- Wisconsin Dept. of Industry, Labor and Human Relations v. Gould Inc., 475 U.S. 282 (U.S. 1986) (regulatory purpose; preemption when policy deters NLRA violations)
- Chamber of Commerce of United States v. Brown, 554 U.S. 60 (U.S. 2008) (funding conditions with labor policy; not market-participant exception here)
- Rancho Santiago Community College Dist. v. Colfax Corp., 623 F.3d 1011 (9th Cir. 2010) (motive not dispositive; proprietary vs regulatory analysis remains)
- Engine Mfrs. Ass'n v. S. Coast Air Quality Mgmt. Dist., 498 F.3d 1031 (9th Cir. 2007) (context on public-proprietary vs regulatory distinctions)
- Woelke & Romero Framing, Inc. v. NLRB, 456 U.S. 645 (U.S. 1982) (construction industry NLRA framework and preemption discussions)
- Cardinal Towing & Auto Repair, Inc. v. City of Bedford, 180 F.3d 686 (5th Cir. 1999) (examine regulatory vs proprietary scope in municipal action)
