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Chamber of Commerce v. Lockyer, No. 03-55166 (Sept. 21, 2006)
Ford & Harrison LLP - October 09, 2006 The Ninth U.S. Circuit Court of Appeals has held that a California law that prohibits employers from using money received from the state to deter union organizing is not pre-empted by the National Labor Relations Act (NLRA). See Chamber of Commerce v. Lockyer (Sept. 21, 2006). The neutrality law, AB 1889 (found at California Government Code §§ 16645-16649) was enacted to express California’s policy to remain neutral with regard to union organizing. Ninth Circuit Forbids California Employers From Using State Funds To Address Union Organizing.Littler Mendelson, P.C. - October 05, 2006 In a divided decision with far-reaching implications, the United States Court of Appeals for the Ninth Circuit, sitting en banc, ruled that the State of California can forbid entities that accept state money from using that money to deter union organizing. Chamber of Commerce v. Lockyer, No. 03-55166 (Sept. 21, 2006). This is the third time since April 2004 that the Ninth Circuit has issued a decision in the case. The previous decisions, however, both held that California's prohibition on using state funds to deter union organizing was preempted by the National Labor Relations Act (NLRA). This latest decision will affect any entity that receives state funds or contracts with the State. In order to minimize the decision's effects, employers may want to set up separate accounting systems for money received from the State and money that comes from other sources. Such a dual system should allow employers to easily show that they have not spent any state funds on union organizing.
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