Appeal from the May 12, 2016 order of the United States District Court for the Southern District of New York (Woods, J.) granting summary judgment- to SEIU Local 32BJ, CTW, CLC. Figueroa v. Foster, No. 1:14-cv-8796,
In this case, we are asked to decide whether the duty of fair representation under the National Labor Relations 'Act (“NLRA”) preempts the New York State Human Rights Law (“NYSHRL”) for claims,.of-discrimination filed-by a union member against a labor organization when the labor organization is acting in its capacity as a collective bargaining representative (as distinguished from when it is acting in its capacity as an employer). If the NLRA’s duty of fair representation preempts the NYSHRL, then Title VII as administered by the Equal Employment Opportunity Commission (“EEOC”) will serve as the primary force protecting union members from invidious discrimination by' their labor organizations. If, on the other hand, the NLRA’s duty of fair representation does not preempt the NYSHRL, then the NYSHRL as administered by the New York State Division of Human Rights will provide union members with additional protections against invidious discrimination by their labor organizations.
Because we hold that the NLRA’s duty of fair representation does not necessarily preempt the NYSHRL, even when a'labor organization is acting in its capacity as a collective bargaining agent, in the circumstances of this case, we reverse.
BACKGROUND
I. Factual Background
Defendant-Appellant-Cross-Appellee Commissioner Helen D. Foster (the “Commissioner”) is the Commissioner of the
Plaintiff-Appellee-Cross-Appellant Hector J. Figueroa is the President of SEIU Local 32BJ, CTW, CLC (the “Local”). The Local is a labor organization that is constituted for, the. primary purposes of collective bargaining and of dealing .with employers concerning grievances, labor disputes, and. terms or conditions of employment. The Local currently represents more than 145,000 employees for the purpose of collective bargaining, of which more than 81,000 currently work in the State of New York.
Every collective bargaining agreement to which the Local is a party includes a grievance or arbitration mechanism for resolving disputes, including disputes about employee discipline. When an employee has a dispute with his or her employer, that employee first files a grievance with the Local’s Contract & Grievance Center (the “CGC”). If the CGC decides not to pursue an employee grievance with the employer, the employee can appeal to the Local’s Grievance Appeal Board (the “GAB”).- The GAB then makes findings and a recommendation to the Local’s Executive Board over whether to uphold or overturn the CGC’s decision not to pursue the employee’s grievance. . ,
Between June 1, 2009 and November 4, 2014 when the Local .commenced this action, sixteen individuals, filed complaints with the SDHR alleging one or more violations of the NYSHRL by the Local. Between November. 4, 2014 and April 6, 2016, five additional complaints were filed with the SDHR alleging one or more violations of the NYSHRL by the Local. Each complaint included at least one allegation that the Local “failed to demand arbitration, failed to handle an arbitration properly, or engaged in some other discriminatory [or retaliatory] conduct as the [complainant’s] collective bargaining, representative, in violation of the [NYS] HRL.” App’x at 631. All but one of the complaints were dual filed with the EEOC as the discrimination alleged violated both the NYSHRL and federal law, including Title VII.
The SDHR investigated the merits of each complaint and made a determination regarding whether there was probable cause to believe the Local had committed or was committing an-unlawful discriminatory practice in violation of the NYSHRL. The Local, for its part, contested the jurisdiction of the SDHR over each complaint, asserting that the duty of fair representation arising from the NLRA preempted the NYSHRL and deprived the SDHR of jurisdiction.
' As of April 6, 2016, the SDHR had dismissed sixteen of the twenty-one complaints for lack of probable cause to believe the Local had engaged in the alleged discrimination. Three complaints were withdrawn by the complainants. An additional two complaints remained pending.
II. Procedural Background
On November 4, 2014, Figueroa, in his role as President of the Local, filed a complaint against the Commissioner in the United States District Court for the South: ern District of New York.
On December 8, 2014, the Local filed its First Amended Complaint (“FAC”) in the instant action. The FAC alleges causes of action- pursuant to the Supremacy Clause and 42 U.S.C. § 1983 for declaratory and
On February 3, 2015, the district court denied the Local’s motion for a preliminary injunction. The district court found there would be a harm to the public if the SDHR were enjoined from pursuing claims against the Local under the NYSHRL because “in addition to affecting the State’s ability to enforce the State law that the [Local] claims is preempted by the [NLRA], it will also have an adverse impact on the joint state and federal scheme for the enforcement of antidiscrimination laws, including Title VII.” App’x at 365.
On May 12, 2016, the district court granted summary judgment in favor of the Local and in opposition to the Commissioner and granted the Local declaratory, but not injunctive, relief. Figueroa,
The district court first addressed the duty of fair representation. Id. at *3-*6. The district court explained that the duty of fair representation “arises by implication under the [NLRA],” and is governed by federal law. Id. at *3-*4. The district court accordingly determined that the duty of fair representation “will preempt state law unless a state claim can be shown to arise wholly outside the ambit of the [duty of fair representation].” Id. at *4 (internal quotation marks omitted). The district court noted that the First, Fourth, Fifth, Ninth, and Tenth Circuits had all held that the duty of fair representation preempts substantive state law following the Supreme Court’s holding in Vaca v. Sipes,
In analyzing the relationship between the NYSHRL and the duty of fair representation, the district court first observed that the duty of fair representation protects employees from discrimination, and thus that any state law that protected an employee from discrimination would be preempted. Id. at *5. The district court then noted that “the vast majority of cases in this Circuit hold that the [duty of fair representation] preempts the [NYS] HRL in situations where the union was acting in its capacity as the plaintiffs collective bargaining representative.” Id. (internal quotation marks omitted) (collecting cases). The district court cautioned, however, that the duty of fair representation would not preempt the NYSHRL “[w]hen a union is accused of discrimination based on actions unrelated to its role as a collective bargaining representative,” such as in its role as an employer, because the duty of fair representation is not implicated when no collective bargaining representation is involved. Id. at *6. The district court then reviewed preemption case law and explained that, if the NYSHRL were preempted, it would have to be so based on field preemption because the “NLRA does not expressly preempt state law, nor do the parties argue that enforcement of the [NYS] HRL conflicts with federal law.” Id.
The district court next addressed the Commissioner’s two arguments against preemption: (1) that Vaca does not address preemption of state claims, and (2) that Title VII shows that Congress did not intend for the duty of fair representation to preempt state anti-discrimination law. Id. at *7. The district court disagreed with the Commissioner’s argument that Vaca
The district court, however, granted the Local only declaratory and not injunctive relief. Id. at *10-*11. The Local had proposed a ten-step protocol whereby, essentially, all complaints filed with the SDHR against the Local would be dismissed without investigation unless the complainant was a current, former, or potential employee of the Local. Id. at *10. The district court then held that the Local had not made a showing rising to the level requisite to justify a permanent injunction of that breadth, given the small expenditure of the Local’s time on the filed complaints and the SDHR’s interest in investigating claims filed against the Local that might involve both preempted and non-preempted claims. Id. at *11. The district court was also persuaded that the public interest in the “effective administrative enforcement of anti-discrimination laws” weighed against the Local’s proposed permanent injunction. Id.
On May 13, 2016, judgment was entered granting the Local declaratory relief. The Commissioner’s appeal was timely filed on June 10, 2016, and the Local’s cross-appeal was timely filed on June 13,2016.
DISCUSSION
I. Preemption
A. Standard of Review
“We review de novo the grant of summary judgment on [a] preemption question.” Liberty Mut. Ins. Co. v. Donegan,
B. Analysis
The questions before us are, first, whether to apply field preemption or conflict preemption in evaluating the alleged preemption of the NYSHRL by the duty of fair representation under the NLRA and, second, whether the NLRA’s duty of fair representation preempts the NYSHRL under the applicable doctrine.
1. Field Preemption versus Conflict Preemption
“Under the Supremacy Clause of the Constitution, state and local laws that conflict with federal law are without effect.” N.Y. SMSA Ltd. P’ship v. Town of Clarkstown,
“The doctrine of [preemption] in labor law has been shaped primarily by two competing interests.” Farmer v. United Bhd. of Carpenters & Joiners of Am., Local 25,
It is well established that a union has “a statutory duty fairly to represent'all of th[e] employees [it represents], both in its collective bargaining ... and in its enforcement of the resulting collective bargaining agreement.” Id. at 177,
The anti-discrimination roots of the duty of fair representation are long-established. As the Supreme Court explained, the “statutory duty of fair representation was developed [during the 1940s] in a series of cases involving alleged racial discrimination by unions certified as exclusive bargaining representatives under the Railway Labor Act [ (“RLA”) ], and was soon extended to uriions certified under the [NLRA].” Vaca,
The Local relies on a close rfeading of the Supreme Court’s decision in Vaca to support its argument that the NLRA’s duty of fair representation preempts the NYSHRL pursuant to the doctrine of field preemption. We, too, believe a close reading of Vaca is instructive here, although it leads us to the opposite conclusion.
Vaca involved an employee who brought suit against his union under Missouri state law for arbitrary and malicious failure to perform' the union’s duty to represent the employee in processing the employee’s grievance against his former employer. Resp’t’s Answer Br., Vaca v. Sipes,
The petitioner in Vaca, the union, argued that the Missouri state courts had lacked jurisdiction over the. case because the “gravamen” of the employee’s suit fell under the duty of fair representation and thus could only be brought in federal court. Vaca,
Several of our sister Circuits have relied in part on Vaca in determining that the duty of fair representation preempts certain types of state law claims based on a finding of field, rather than conflict, preemption. For example, the First Circuit has held that the duty of fair representation preempts claims in tort and contract for the breach of duties related to job safety under New Hampshire common law because “[without the collective bargaining agreement, there would be neither a local union nor a union safety committee.” Condon v. Local 2944, United Steelworkers of Am., AFL-CIO, CLC,
A few years later, the Fifth Circuit held that employees’ negligent breach of a common law tort duty claims against a union based on the union’s failure to warn the employees that they could be replaced if they went on strike was preempted by the duty of fair representation. Richardson,
Similarly, the Tenth Circuit held that the duty of fair representation preempted state wrongful discharge and civil conspiracy claims based on religious discrimination. Thomas v. Nat’l Ass’n of Letter Carriers,
At least one Circuit, however, has held that the relationship between state law and the duty of fair representation is better understood under the rubric of conflict,
A recent Ninth Circuit decision similarly applied a conflict, rather than field, preemption analysis in evaluating the NLRA’s duty of fair representation. In Adkins v. Mireles, the Ninth Circuit held that employees’ state law claims for breach of contract, negligent misrepresentation, and intentional infliction of emotional distress were preempted by the NLRA’s duty of fair representation.
Most recently, the Eighth Circuit charted a new analytical course, holding, without relying on Vaca, that the NLRA’s duty of fair representation neither occupied the entire field of discrimination and retaliation in labor relations, nor preempted a plaintiff’s state-law claims based on conflict preemption. Markham v. Wertin,
We think it is clear from a close reading of Vaca, and from the other cases interpreting the duty of fair- representation, that there is not the kind of total field preemption that would foreclose the NYSHRL from claims of discrimination filed by union members against a labor organization even when it is acting in its
2. NLRA’s Duty of Fair Representation and the NYSHRL
“Under all of the[ ] three preemption tests—express, field, and conflict—our task is to determine whether, and to what extent, Congress intended to preempt state law.” Niagara Mohawk Power Corp.,
“Wé begin with the assumption that the historic police powers of the States are not to be superseded by federal law unless that is the clear and manifest purpose of Congress.” Id. (internal quotation marks omitted); see N.Y. SMSA Ltd. P’ship,
Since the NYSHRL falls within New York’s historic- police powers, we must determine whether the “clear and manifest purpose of Congress” was for the NLRA’s duty of fair representation to preempt the NYSHRL. Niagara Mohawk Power Corp.,
. There is no evidence that the NLRA’s duty of fair representation was designed or intended to preempt state laws focused on combatting invidious discrimination, such as the NYSHRL. Instead, our independent review of the. evidence leads us to the opposite conclusion based on the textual and structural relationships between the NLRA, Title VII, and the NYSHRL.
Congress has manifested an intent that the NLRA not preempt Title VII and other federal laws with respect to discrimination. As the Local’s counsel conceded at oral argument, the NLRA’s duty of fair representation is no bar to a union member filing a discrimination claim before the EEOC. Oral Argument at 11:53-12:00, Figueroa v. Foster, Nos. 16-1856, 16-1864 (2d Cir. Apr. 19, 2017), http://www.ca2. uscourts.gov/oraLarguments.html. The Supreme Court recently noted that the NLRA’s “unique purpose, which is to pre-sérve the balance of power between labor and management” “is inapposite in the context of Title VII, which focuses on eradicating discrimination.” Vance v. Ball State Univ., — U.S. —,
The NYSHRL is a predecessor statute, precursor to, and model for Title VII. “New York’s fair employment laws were referred to in the congressional debates by proponents of [Title VII] as an example of existing state legislation effectively combating employment discrimination.” Kremer v. Chem. Constr. Corp.,
Congress explicitly provided in Section 708 of Title VII that “[n]othing in” Title VII “shall be deemed to exempt or relieve any person from any liability, duty, penalty, or punishment provided by any present or future law of any State ... other than any such law which purports to require or permit the doing of any act which would be an unlawful employment practice” as defined in Title VII. 42 U.S.C. § 2000e-7. This explicit disavowal of preemption of state anti-discrimination' laws in the text of Title VII, combined with the discussion of the NYSHRL during the enactment of Title VII, constitute evidence that “Congress considered, and sought to preserve, the States’ coordinate regulatory role in our federal scheme” for protecting individuals from discriminatory employment practices. Niagara Mohawk Power Corp.,
In addition, the text of Title VII also recognizes the existence and continued viability of state mechanisms for protecting individuals from discriminatory employment practices, such as the SDHR. In Sections 706(c) and (e) of Title VII, Congress explicitly recognized that .certain states had established “agencies] with authority to grant ... relief’ from “unlawful employment practice[s]” that would also violate Title VII. 42 U.S.C. § 2000e-5(e)(1); see 42 U.S.C. § 2000e-5(c), Congress also stated in Section 706(d) of Title VII that the EEOC “shall ... notify” such a state
Having set forth the broader principles undergirding this Court’s instant conflict preemption inquiry, the question becomes whether it is either impossible for a private party to comply with both the NLRA’s duty of fair representation and the NYSHRL, or whether the NYSHRL stands as an obstacle to the execution of Congress’s intent as expressed in the NLRA’s duty of fair representation. See Niagara Mohawk Power Corp.,
Regarding the impossibility branch of conflict preemption, we have explained that impossibility occurs when “state law penalizes what federal law requires, or when state law claims directly conflict with federal law.” In re Methyl Tertiary Butyl Ether (MTBE) Prods. Liab. Litig.,
There is no impossibility here. The Local has not argued that the NYSHRL penalizes what the duty of fair representation requires, nor has the Local argued that there is any direct conflict between the NYSHRL’s requirements and the requirements of the NLRA’s duty of fair representation. Although the Local suggests that the NYSHRL penalizes conduct that the duty of fair representation would not penalize, this is not a conflict cognizable under the impossibility branch of conflict preemption. “To meet its burden with respect to the impossibility branch of conflict preemption, [the Local] need[s] to demonstrate that it could not comply with the federal [duty of fair representation]” if it also complied with the NYSHRL. Id. at 100 (emphasis in original). As Title VII prohibits virtually the same discrimination as the NYSHRL prohibits, the Local will be. unable to meet this burden to show impossibility. See Matusick,
The obstacle branch of conflict preemption, on the other hand, “precludes state law that poses an actual conflict with
As noted above, the anti-discrimination roots of the duty of fair representation are long-established. In Vaca, the Supreme Court observed that the “statutory duty of fair representation was developed [in the 1940s] in a series of cases involving alleged racial discrimination by unions certified as exclusive bargaining representatives under the Railway Labor Act [ (“RLA”) ], and was soon extended to unions certified under the [NLRA].”
Indeed, the Local and the Commissioner agree that the NYSHRL serves the same purpose of prohibiting discrimination as does the NLRA’s duty of fair representation. Each serves to reinforce the anti-discriminatory purpose of the other. This mutual service is not a conflict such that the duty of fair representation and the NYSHRL “cannot be reconciled or consistently stand together.” In re MTBE Prod. Liab. Litig.,
This opinion addresses only the Local’s claim that the duty of fair representation preempts the NYSHRL in its entirety when applied to unions acting in their capacity as collective bargaining agents. We do not purport to address every potential conflict between the NYSHRL and federal law. For example, NYSHRL claims are subject to a one-year statute of limitations, see N.Y. Exec. Law § 297(5), whereas private duty of fair representation claims are subject to a six-month statute of limitations, see 29 U.S.C. § 160(b); DelCostello v. Int'l Bhd. of Teamsters,
Accordingly, we reverse the order of the district court granting summary judgment to the Local.
CONCLUSION
For the reasons set forth above, we hold that the NLRA’s duty of fair representation does not preempt the NYSHRL either on the basis of field preemption or as a general matter on the • basis of conflict preemption. We accordingly reverse the declaratory judgment of the district court and deny the Local’s cross-appeal for in-junctive relief.
Notes
. In addition to the three types of preemption, there are “two distinct NLRA [preemption] principles,” neither of which apply to the duty of fair representation. Golden State Transit Corp. v. City of Los Angeles,
The second is Machinists preemption. See Lodge 76, Int’l Ass’n of Machinists & Aerospace Workers, AFL-CIO v. Wis. Emp’t Relations Comm’n,
