The Fair Labor Standards Act was amended in 1974 so as to extend
the Act's minimum wage and maximum hour provisions to almost all
employees of States and their political subdivisions. Appellants
(including a number of cities and States) in these cases brought an
action against appellee Secretary of Labor challenging the validity
of these 1974 amendments and seeking declaratory and injunctive
relief. A three-judge District Court dismissed the complaint for
failure to state a claim upon which relief might be granted.
Held:
1. Insofar as the 1974 amendments operate directly to displace
the States' abilities to structure employer employee relationships
in areas of traditional governmental functions, such as fire
prevention, police protection, sanitation, public health, and parks
and recreation, they are not within the authority granted Congress
by the Commerce Clause. In attempting to exercise its Commerce
Clause power to prescribe minimum wages and maximum hours to be
paid by the States in their sovereign capacities, Congress has
sought to wield its power in a fashion that would impair the
States' "ability to function effectively in a federal system,"
Fry v. United States, 421 U. S. 542,
421 U. S. 547
n. 7, and this exercise of congressional authority does not comport
with the federal system of government embodied in the Constitution.
Pp.
426 U. S.
840-852.
2. Congress may not exercise its power to regulate commerce so
as to force directly upon the States its choices as to how
essential decisions regarding the conduct of integral governmental
functions are to be made.
Fry v. United States, supra,
distinguished;
Maryland v. Wirtz, 392 U.
S. 183, overruled. Pp.
426 U. S.
852-855.
406 F.
Supp. 826, reversed and remanded.
Page 426 U. S. 834
REHNQUIST, J., delivered the opinion of the Court, in which
BURGER, C.J., and STEWART, BLACKMUN, and POWELL, JJ., joined.
BLACKMUN, J., filed a concurring opinion,
post, p.
426 U. S. 856.
BRENNAN, J., filed a dissenting opinion, in which WHITE AND
MARSHALL, JJ., joined,
post, p.
426 U. S. 856.
STEVENS, J., filed a dissenting opinion,
post, p.
426 U. S.
880.
Page 426 U. S. 835
MR. JUSTICE REHNQUIST delivered the opinion of the Court.
Nearly 40 year ago, Congress enacted the Fair Labor Standards
Act, [
Footnote 1] and required
employer covered by the Act to pay their employees a minimum hourly
wage [
Footnote 2] and to pay
them at one and one-half time their regular
Page 426 U. S. 836
rate of pay for hours worked in excess of 40 during a workweek.
[
Footnote 3] By this Act,
covered employers were required to keep certain records to aid in
the enforcement of the Act, [
Footnote 4] and to comply with specified child labor
standards. [
Footnote 5] This
Court unanimously upheld the Act as a valid exercise of
congressional authority under the commerce power in
United
States v. Darby, 312 U. S. 100
(1941), observing:
"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
312 U. S.
115.
The original Fair Labor Standards Act passed in 1938
specifically excluded the States and their political subdivisions
from its coverage. [
Footnote 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; [
Footnote 7] they brought an action in the District
Page 426 U. S. 837
Court for the District of Columbia which challenged the validity
of the 1974 amendments. They asserted, in effect, that, when
Congress sought to apply the Fair Labor Standards Act provisions
virtually across the board to employees of state and municipal
governments it "infringed a constitutional prohibition" running in
favor of the States as states. The gist of their complaint was not
that the conditions of employment of such public employees were
beyond the scope of the commerce power had those employees been
employed in the private sector, but that the established
constitutional doctrine of intergovernmental immunity consistently
recognized in a long series of our cases affirmatively prevented
the exercise of this authority in the manner which Congress chose
in the 1974 amendments.
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 Act [
Footnote 8] extended its coverage to persons
who were employed in "enterprises" engaged in commerce or in the
production of goods for commerce. [
Footnote 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
Page 426 U. S. 838
removed with respect to employees of state hospitals,
institutions, and schools. [
Footnote 10] We nevertheless sustained the validity of
the combined effect of these two amendments in
Maryland v.
Wirtz, 392 U. S. 183
(1968).
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 professional
Page 426 U. S. 839
personnel, 29 U.S.C. § 213(a)(1), which is supplemented by
provisions excluding from the Act's coverage those individuals
holding public elective office or serving such an officeholder in
one of several specific capacities. 29 U.S.C. § 203(e)(2)(C) (1970
ed., Supp. IV). The Act thus imposes upon almost all public
employment the minimum wage and maximum hour requirements
previously restricted to employees engaged in interstate commerce.
These requirements are essentially identical to those imposed upon
private employers, although the Act does attempt to make some
provision for public employment relationships which are without
counterpart in the private sector, such as those presented by fire
protection and law enforcement personnel.
See 29 U.S.C. §
207(k) (1970 ed., Supp. IV).
Challenging these 1974 amendments in the District Court,
appellants sought both declaratory and injunctive 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
appellee 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).
Page 426 U. S. 840
We noted probable jurisdiction in order to consider the
important questions recognized by the District Court. 420 U.S. 906
(1975). [
Footnote 11] We
agree with the District Court that the appellants' contentions are
substantial. Indeed, upon full consideration of the question, we
have decided that the "far-reaching implications" of
Wirtz
should be overruled, and that the judgment of the District Court
must be reversed.
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
22 U. S. 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 character 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,
421 U. S. 647
(1975). Congressional power over areas of private endeavor, even
when its exercise may preempt 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,
379 U. S.
262(1964).
Page 426 U. S. 841
Appellants in no way challenge these decisions establishing the
breadth of authority granted Congress under the commerce power.
Their contention, to the contrary, is that, when Congress seeks to
regulate directly the activities of States as public employers, it
transgresses an affirmative limitation on the exercise of its power
akin to other commerce power affirmative limitations contained in
the Constitution. Congressional enactments which may be fully
within the grant of legislative authority contained in the Commerce
Clause may nonetheless be invalid because found to offend against
the right to trial by jury contained in the Sixth Amendment,
United States v. Jackson, 390 U.
S. 570 (1968), or the Due Process Clause of the Fifth
Amendment,
Leary v. United States, 395 U. S.
6 (1969). Appellants' essential contention is that the
1974 amendments to the Act, while undoubtedly within the scope of
the Commerce Clause, encounter a similar constitutional barrier
because they are to be applied directly to the States and
subdivisions of States as employers. [
Footnote 12]
Page 426 U. S. 842
This Court has never doubted that there are limits upon the
power of Congress to override state sovereignty, even when
exercising its otherwise plenary powers to tax or to regulate
commerce which are conferred by Art. I of the Constitution. In
Wirtz, for example, the Court took care to assure the
appellants that it had "ample power to prevent . . .
the utter
destruction of the State as a sovereign political entity,'" which
they feared. 392 U.S. at 392 U. S. 196.
Appellee Secretary in this case, both in his brief and upon oral
argument, has agreed that our federal system of government imposes
definite limits upon the authority of Congress to regulate the
activities of the States as States by means of the commerce power.
See, e.g., Brief for Appellee 30-41; Tr. of Oral Arg.
39-43. In Fry, supra, the Court recognized that an express
declaration of this limitation is found in the Tenth
Amendment:
"While the Tenth Amendment has been characterized as a 'truism,'
stating merely that 'all is retained which has not been
surrendered,'
United States v.
Page 426 U. S. 843
Darby, 312 U. S. 100,
312 U. S.
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
421 U. S. 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 Court [
Footnote 13] 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 nondiscriminatory 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
326 U. S.
587-588. [
Footnote
14]
Page 426 U. S. 844
The expressions in these more recent cases trace back to earlier
decisions of this Court recognizing the essential role of the
States in our federal system of government. Mr. Chief Justice
Chase, perhaps because of the particular time at which he occupied
that office, had occasion more than once to speak for the Court on
this point. In
Texas v.
White, 7 Wall. 700,
74 U. S. 725
(1869), he declared that "[t]he Constitution, in all its
provisions, look to an indestructible Union, composed of
indestructible States." In
Lane County v.
Oregon, 7 Wall. 71 (1869), his opinion for the
Court said:
"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
74 U. S. 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
269 U. S.
523.
Appellee Secretary argues that the cases in which this Court has
upheld sweeping exercises of authority by Congress, even though
those exercises preempted state regulation
Page 426 U. S. 845
of the private sector, have already curtailed the sovereignty of
the States quite as much as the 1974 amendments to the Fair Labor
Standards Act. We do not agree. It is one thing to recognize the
authority of Congress to enact laws regulating individual
businesses necessarily subject to the dual sovereignty of the
government of the Nation and of the State in which they reside. It
is quite another to uphold a similar exercise of congressional
authority directed not to private citizens, but to the States as
States. We have repeatedly recognized that there are attributes of
sovereignty attaching to every state government which may not be
impaired by Congress, not because Congress may lack an affirmative
grant of legislative authority to reach the matter, but because the
Constitution prohibits it from exercising the authority in that
manner. In
Coyle v Oklahoma, 221 U.
S. 559 (1911), the Court gave this example of such an
attribute:
"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
221 U. S.
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 221 U. S. 580,
quoting from Lane County v. Oregon, supra, at 74 U. S. 76, so
that Congress
Page 426 U. S. 846
may not abrogate the States' otherwise plenary authority to make
them.
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
allegation 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 (approximately
Page 426 U. S. 847
$750,000 per year) which the Act required to be paid to
California Highway Patrol cadets during their academy training
program. California reported that it had thus been forced to reduce
its academy training program from 2,080 hours to only 960 hours, a
compromise undoubtedly of substantial importance to those whose
safety and welfare may depend upon the preparedness of the
California Highway Patrol.
This type of forced relinquishment of important governmental
activities is further reflected in the complaint's allegation that
the city of Inglewood, 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 service which their citizens require. The Act,
speaking directly to the States
qua States, requires that
they shall pay
Page 426 U. S. 848
all but an extremely limited minority of their employee the
minimum wage rate currently chosen by Congress. It may well be
that, as a matter of economic policy, it would be desirable that
States, just as private employers, comply with these minimum wage
requirement. But it cannot be gainsaid that the federal requirement
directly supplant the considered policy choice of the States'
elected officials and administrator as to how they wish to
structure pay scale in state employment. The State might wish to
employ persons with little or no training, or those who wish to
work on a casual basis, or those who, for some other reason, do not
possess minimum employment requirements, and pay them less than the
federally prescribed minimum wage. It may wish to offer part-time
or summer employment to teenagers at a figure less than the minimum
wage, and, if unable to do so, may decline to offer such employment
at all. But the Act would forbid such choice by the States. The
only "discretion" left to them under the Act is either to attempt
to increase their revenue to meet the additional financial burden
imposed upon them by paying Congressionally prescribed wages to
their existing complement of employees or to reduce that complement
to a number which can be paid the federal minimum wage without
increasing revenue. [
Footnote
15]
This dilemma presented by the minimum wage restriction 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
Page 426 U. S. 849
maintaining current earnings. The difference, however, is that a
State is not merely a factor in the "shifting economic
arrangements" of the private sector of the economy,
Kovacs v.
Cooper, 336 U. S. 77,
336 U. S. 95
(1949) (Frankfurter, J., concurring), but is itself a coordinate
element in the system established by the Framers for governing our
Federal Union.
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
Page 426 U. S. 850
under the proposed amendments remain a matter of some dispute
among the parties, enough can be satisfactorily anticipated for an
outline discussion of their general import. The requirement
imposing premium rates upon any employment in excess of what
Congress has decided is appropriate for a governmental employee's
workweek, for example, appears likely to have the effect of
coercing the States to structure work periods in some employment
areas, such a police and fire protection, in a manner substantially
different from practices which have long been commonly accepted
among local governments of this Nation. In addition, appellee
represents that the Act will require that the premium compensation
for overtime worked must be paid in cash, rather than with
compensatory time off, unless such compensatory time is taken in
the same pay period. Supplemental Brief for Appellee 9-10;
see
Dunlop v. New Jersey, 522 F.2d 54 (CA3 1975),
cert.
pending sub nom. New Jersey v. Usery, No. 75-532. This, too,
appears likely to be highly disruptive of accepted employment
practices in many governmental areas where the demand for a number
of employees to perform important jobs for extended periods on
short notice can be both unpredictable and critical. Another
example of congressional choices displacing those of the States in
the area of what are, without doubt, essential governmental
decisions may be found in the practice of using volunteer firemen,
a source of manpower crucial to many of our smaller towns'
existence. Under the regulations proposed by appellee, whether
individuals are indeed "volunteers " rather than "employees"
subject to the minimum wage provisions of the Act are questions to
be decided in the courts.
See Brief for Appellee 49, and
n. 41. It goes without saying that provisions such as these
contemplate a significant reduction of traditional
Page 426 U. S. 851
volunteer assistance which has been, in the past, drawn on to
complement the operation of many local governmental functions.
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. [
Footnote 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 221 U. S. 580.
Thus, even if appellants may have overestimated the effect which
the Act will have upon
Page 426 U. S. 852
their current levels and patterns of governmental activity, the
dispositive factor is that Congress has attempted to exercise its
Commerce Clause authority to prescribe minimum wages and maximum
hours to be paid by the States in their capacities as sovereign
governments. In so doing, Congress has sought to wield its power in
a fashion that would impair the States' "ability to function
effectively in a federal system,"
Fry, 421 U.S. at
421 U. S. 547
n. 7. This exercise of congressional authority does not comport
with the federal system of government embodied in the Constitution.
We hold that, insofar as the challenged amendments operate to
directly displace the States' freedom to structure integral
operations in areas of traditional governmental functions, they are
not within the authority granted Congress by Art. I, § 8, cl. 3.
[
Footnote 17]
III
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
Page 426 U. S. 853
even less than that worked by the amendments to the FLSA which
were before the Court in
Wirtz. The Court recognized that
the Economic Stabilization Act was "an emergency measure to counter
severe inflation that threatened the national economy." 421 U.S. at
421 U. S.
548.
We think our holding today quite consistent with
Fry.
The enactment at issue there was occasioned by an extremely serious
problem which endangered the wellbeing 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.
"[A]lthough 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,
243 U. S. 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 appellants'
Page 426 U. S. 854
claims. Appellants, in turn, advance several arguments by which
they seek to distinguish the facts before the Court in
Wirtz from those presented by the 1974 amendments to the
Act. There are undoubtedly factual distinctions between the two
situations, but, in view of the conclusions expressed earlier in
this opinion, we do not believe the reasoning in
Wirtz may
any longer be regarded as authoritative.
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
297 U. S.
185."
392 U.S. at
392 U. S.
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 dicta [
Footnote 18] from
Page 426 U. S. 855
United States v. California simply wrong. [
Footnote 19] Congress may not
exercise that power so as to force directly upon the States its
choices as to how essential decision regarding the conduct of
integral governmental functions are to be made. We agree that such
assertions of power, if unchecked, would indeed, as Mr. Justice
Douglas cautioned in his dissent in
Wirtz, allow "the
National Government [to] devour the essentials of state
sovereignty," 392 U.S. at
392 U. S. 205,
and would therefore transgress the bounds of the authority granted
Congress under the Commerce Clause. While there are obvious
differences between the schools and hospitals involved in
Wirtz, and the fire and police departments affected here,
each provides an integral portion of those governmental services
which the States and their political subdivisions have
traditionally afforded their citizens. [
Footnote 20] We are therefore persuaded that
Wirtz must be overruled.
Page 426 U. S. 856
The judgment of the District Court is accordingly reversed, and
the cases are remanded for further proceedings consistent with this
opinion.
So ordered.
* Together with No. 74-879,
California v. Usery, Secretary
of Labor, also on appeal from the same court.
[
Footnote 1]
The Fair Labor Standards Act of 1938, 52 Stat. 1060, 29 U.S.C. §
201
et seq. (194 ed.).
[
Footnote 2]
§ 206(a) (190 ed.).
[
Footnote 3]
§ 207(a)(3) (1940 ed.).
[
Footnote 4]
§ 211(c) (1940 ed.).
[
Footnote 5]
§ 212 (1940 ed.).
[
Footnote 6]
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. . . ."
[
Footnote 7]
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, Tenn. and
the cities of Cape Girardeau, Mo., Lompoc, Cal., and Salt Lake
City, Utah. The appellant in No. 7879 is the State of
California.
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,
416 U. S. 14 15
(1974).
[
Footnote 8]
Pub.L. 87-30, 75 Stat. 65.
[
Footnote 9]
29 U.S.C. §§ 203 (r), 203(8), 206(b), 207(a)(2) (1964 ed.).
[
Footnote 10]
80 Stat. 831, 29 U.S.C. § 203(d) (1964 ed., Supp. II).
[
Footnote 11]
When the cases were not decided in October Term, 1974, they were
set down for reargument,
421 U. S. 83
(175).
[
Footnote 12]
MR. JUSTICE BRENNAN's dissent intimates,
post at
426 U. S. 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
426 U. S. 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 to remove at will an
officer of the Executive Branch appointed by him. In
Buckley v.
Valeo, 424 U. S. 1 (1976),
the Court held that Congress could not constitutionally require
that members of the Federal Elections Commission be appointed by
officers of the House of Representatives and of the Senate, and
that all such appointments had to be made by the President. In each
of these cases, an even stronger argument than that made in the
dissent could be made to the effect that, since each of these bills
had been signed by the President, the very officer who challenged
them had consented to their becoming law, and it was therefore no
concern of this Court that the law violated the Constitution. Just
as the dissent contends that "the States are fully able to protect
their own interests . . . ,"
post at
426 U. S. 876,
it could have been contended that the President, armed with the
mandate of a national constituency and with the veto power, was
able to protect his own interests. Nonetheless, in both cases, the
laws were held unconstitutional because they trenched on the
authority of the Executive Branch.
[
Footnote 13]
In quoting from the separate opinion of Mr. Justice Frankfurter
in
New York v. United States, 326 U.S. at
326 U. S. 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
326 U. S.
590-598 (Douglas, J., dissenting).
[
Footnote 14]
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
426 U. S.
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 in Art. I, § 8. Nor
can characterizing the limitation recognized upon the federal
taxing power as an "implied immunity" obscure the fact that this
"immunity" is derived from the sovereignty of the States and the
concomitant barriers which such sovereignty presents to otherwise
plenary federal authority.
[
Footnote 15]
The complaint recited that a number of appellants were
prohibited by their State Constitution 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.
[
Footnote 16]
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.
[
Footnote 17]
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.
[
Footnote 18]
The holding of
United States v. California, as opposed
to the language quoted in the text, is quit 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
297 U. S.
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, upon which our Brother heavily relies, has no direct
application to the questions we consider today at all. For there
the Court sustained an application of the Emergency Price Control
Act to a sale of timber by the State of Washington, expressly
noting that the
"only question is whether the State's power to make the sales
must be in subordination to the power of Congress to fix maximum
prices in order to carry on war."
Id. at
327 U. S. 102.
The Court rejected the State's claim of immunity on the ground that
sustaining it would impermissibly "impair a prime purpose of the
Federal Government's establishment."
Ibid. Nothing we say
in this opinion addresses the scope of Congress' authority under
its war power.
Cf. n 17,
supra.
[
Footnote 19]
MR. JUSTICE BRENNAN's dissent leaves no doubt from its
discussion,
post at
426 U. S.
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
426 U. S. 875.
Even the appellee Secretary, defending the 1974 amendments in this
Court, does not take so extreme a position.
[
Footnote 20]
As the denomination "political subdivision" implies, the local
governmental units which Congress sought to bring within the Act
derive their authority and power from their respective States.
Interference with integral governmental services provided by such
subordinate arms of a state government is therefore beyond the
reach of congressional power under the Commerce Clause just as if
such services were provided by the State itself.
MR. JUSTICE BLACKMUN, concurring.
The Court's opinion and the dissents indicate the importance and
significance of this litigation as it bears upon the relationship
between the Federal Government and our States. Although I am not
untroubled by certain possible implications of the Court's opinion
-- some of them suggested by the dissents -- I do not read the
opinion so despairingly as does my Brother BRENNAN. In my view, the
result with respect to the statute under challenge here is
necessarily correct. I may misinterpret the Court's opinion, but it
seems to me that it adopts a balancing approach, and does not
outlaw federal power in areas such as environmental protection,
where the federal interest is demonstrably greater and where state
facility compliance with imposed federal standards would be
essential.
See ante at
426 U. S.
852-853. With this understanding on my part of the
Court's opinion, I join it.
MR. JUSTICE BRENNAN, with whom MR. JUSTICE WHITE and MR. JUSTICE
MARSHALL join, dissenting.
The Court concedes, as of course it must, that Congress enacted
the 1974 amendments pursuant to its exclusive power under Art. I, §
8, cl. 3, of the Constitution
Page 426 U. S. 857
"[t]o regulate Commerce . . . among the several States." It must
therefore be surprising that my Brethren should choose this
bicentennial year of our independence to repudiate principles
governing judicial interpretation of our Constitution settled since
the time of Mr. Chief Justice John Marshall, discarding his
postulate that the Constitution contemplates that restraints upon
exercise by Congress of its plenary commerce power lie in the
political process, and not in the judicial process. For, 152 years
ago, Mr. Chief Justice Marshall enunciated that principle to which,
until today, his successors on this Court have been faithful.
"[T]he power over commerce . . . is vested in Congress as
absolutely as it would be in a single government, having in its
constitution the same restrictions on the exercise of the power as
are found in the constitution of the United States.
The wisdom
and the discretion of Congress, their identity with the people, and
the influence which their constituents possess at elections, are .
. . the sole restraints on which they have relied, to secure them
from its abuse. They are the restraints on which the people must
often rely solely, in all representative governments."
Gibbons v.
Ogden, 9 Wheat. 1,
22 U. S. 197
(1824) (emphasis added). [
Footnote
2/1] Only 34 years ago,
Wickard v. Filburn,
317 U. S. 111,
317 U. S. 120
(1942), reaffirmed that,
[a]t the beginning, Chief Justice Marshall . . . made emphatic
the embracing and penetrating nature of [Congress' commerce] power
by
Page 426 U. S. 858
warning that effective restraints on its exercise must proceed
from political, rather than from judicial, processes.
My Brethren do not successfully obscure today's patent
usurpation of the role reserved for the political process by their
purported discovery in the Constitution of a restraint derived from
sovereignty of the States on Congress' exercise of the commerce
power. Mr. Chief Justice Marshall recognized that limitations
"prescribed in the constitution,"
Gibbons v. Ogden, supra,
at
22 U. S. 196,
restrain Congress' exercise of the power.
See Parden v.
Terminal R. Co., 377 U. S. 184,
377 U. S. 191
(1964);
Katzenbach v. McClung, 379 U.
S. 294,
379 U. S. 305
(1964);
United States v. Darby, 312 U.
S. 100,
312 U. S. 114
(1941). Thus, laws within the commerce power may not infringe
individual liberties protected by the First Amendment,
Mabee v.
White Plains Publishing Co., 327 U. S. 178
(1946); the Fifth Amendment,
Leary v. United States,
395 U. S. 6 (1969);
or the Sixth Amendment,
United States v. Jackson,
390 U. S. 570
(1968). But there is no restraint based on state sovereignty
requiring or permitting judicial enforcement anywhere expressed in
the Constitution; our decisions over the last century and a half
have explicitly rejected the existence of any such restraint on the
commerce power. [
Footnote 2/2]
Page 426 U. S. 859
We said in
United States v. California, 297 U.
S. 175,
297 U. S. 184
(1936), for example:
"The sovereign power of the states is necessarily diminished to
the extent of the grants of power to the federal government in the
Constitution. . . . [T]he power of the state is subordinate to the
constitutional exercise of the granted federal power."
This but echoed another principle emphasized by Mr. Chief
Justice Marshall:
"If any one proposition could command the universal assent of
mankind, we might expect it would be this -- that the government of
the Union, though limited in its powers, is supreme within its
sphere of action. This would seem to result necessarily from its
nature. It is the government of all; its powers are delegated by
all; it represents all, and acts for all. . . ."
"The government of the United States, then, though limited in
its powers, is supreme; and its laws, when made in pursuance of the
constitution, form the supreme law of the land, 'any thing in the
constitution or laws of any State to the contrary
notwithstanding.'"
M'Culloch v.
Maryland, 4 Wheat. 316,
17 U. S.
405-406 (1819).
"[It] is not a controversy between equals" when the Federal
Government "is asserting its sovereign power to regulate commerce.
. . . [T]he interests of the nation are more important than those
of any State."
Sanitary District v. United States,
266 U. S. 405,
266 U. S.
425-426 (1925). The commerce power "is an affirmative
power commensurate with the national needs."
North American Co
v. SEC, 327 U. S. 686,
327 U. S. 705
(1946). The Constitution reserves to the States
"only . . . that authority which is consistent with and not
opposed to the grant to Congress. There is no room in our scheme of
government for the assertion of state power in hostility to the
authorized
Page 426 U. S. 860
exercise of Federal power."
The Minnesota Rate Cases, 230 U.
S. 352,
230 U. S. 399
(1913).
"The framers of the Constitution never intended that the
legislative power of the nation should find itself incapable of
disposing of a subject matter specifically committed to its
charge."
In re Rahrer, 140 U. S. 545,
140 U. S. 562
(1891).
My Brethren thus have today manufactured an abstraction without
substance, founded neither in the words of the Constitution nor on
precedent. An abstraction having such profoundly pernicious
consequences is not made less so by characterizing the 1974
amendments as legislation directed against the "States
qua
States."
Ante at
426 U. S. 847.
See ante at
426 U. S. 845,
426 U. S. 854.
Of course, regulations that this Court can say are not regulations
of "commerce" cannot stand,
Santa Cruz Fruit Packing Co. v.
NLRB, 303 U. S. 453,
303 U. S. 466
(1938), and, in this sense, "[t]he Court has ample power to prevent
. . .
the utter destruction of the State as a sovereign
political entity.'" Maryland v. Wirtz, 392 U.
S. 183, 392 U. S. 196
(1968). [Footnote 2/3] But
my
Page 426 U. S. 861
Brethren make no claim that the 1974 amendments are not
regulations of "commerce"; rather, they overrule
Wirtz in
disagreement with historic principles that
United States v.
California, supra, reaffirmed:
"[W]hile the commerce power has limits, valid general
regulations of commerce do not cease to be regulations of commerce
because a State is involved. If a State is engaging in economic
activities that are validly regulated by the Federal Government
when engaged in by private persons, the State too may be forced to
conform its activities to federal regulation."
Wirtz, supra at
392 U. S.
196-197. Clearly, therefore, my Brethren are also
repudiating the long line of our precedents holding that a judicial
finding that Congress has not unreasonably regulated a subject
matter of "commerce" brings to an end the judicial role.
"Let the end be legitimate, let it be within the scope of the
constitution, and all means which are appropriate, which are
plainly adapted to that end, which are not prohibited, but consist
with the letter and spirit of the constitution, are
constitutional."
M'Culloch v. Maryland, supra at
17 U. S.
421.
The reliance of my Brethren upon the Tenth Amendment as "an
express declaration of [a state sovereignty] limitation,"
ante at
426 U. S. 842,
[
Footnote 2/4] not only suggests
that they
Page 426 U. S. 862
overrule governing decisions of this Court that address this
question but must astound scholars of the Constitution. For not
only early decisions,
Gibbons v. Ogden, 9 Wheat. at
22 U. S. 196;
M'Culloch v. Maryland, supra at
17 U. S.
404-407; and
Martin v. Hunter's
Lessee, 1 Wheat. 304,
14 U. S.
324-325 (1816), hold that nothing in the Tenth Amendment
constitutes a limitation on congressional exercise of powers
delegated by the Constitution to Congress.
See F.
Frankfurter, The Commerce Clause Under Marshall, Taney and Waite
390 (1937). Rather, as the Tenth Amendment's significance was more
recently summarized:
"The amendment states but a truism that all is retained which
has not been surrendered.
There is nothing in the history of
its adoption to suggest that it was more than declaratory of the
relationship between the national and state governments as it had
been established by the Constitution before the amendment, or
that its purpose was other than to allay fears that the new
national government might seek to exercise powers not granted, and
that the states might not be able to exercise fully their reserved
powers. . . ."
"From the beginning and for many years, the amendment has been
construed as not depriving the national government of authority to
resort to all means for the exercise of a granted power which are
appropriate and plainly adapted to the permitted
Page 426 U. S. 863
end."
United States v. Darby, 312 U.S. at
312 U. S. 124
(emphasis added). [
Footnote
2/5]
My Brethren purport to find support for their novel state
sovereignty doctrine in the concurring opinion of Mr. Chief Justice
Stone in
New York v. United States, 326 U.
S. 572,
326 U. S. 586
(1946). That reliance is plainly misplaced. That case presented the
question whether the Constitution either required immunity of New
York State's mineral water business from federal taxation or denied
to the Federal Government power to lay the tax. The Court sustained
the federal tax. Mr. Chief Justice Stone observed in his concurring
opinion that
"a federal tax which is not discriminatory as to the subject
matter may nevertheless so affect the State, merely because it is a
State that is being taxed, as to interfere unduly with the State's
performance of its sovereign functions of government."
Id. at
326 U. S. 587.
But 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
Page 426 U. S. 864
and Federal Government from taxation by the other:
"The counterpart of such undue interference has been recognized
since Marshall's day as the implied immunity of each of the dual
sovereignties of our constitutional system from taxation by the
other."
Ibid.
In contrast, the apposite decision that Term to the question
whether the Constitution implies a state sovereignty restraint upon
congressional exercise of the commerce power is
Case v.
Bowles, 327 U. S. 92
(1946). The question there was whether the Emergency Price Control
Act could apply to the sale by the State of Washington of timber
growing on lands granted by Congress to the State for the support
of common schools. The State contended that
"there is a doctrine implied in the Federal Constitution that
'the two governments, national and state, are each to exercise its
powers so as not to interfere with the free and full exercise of
the powers of the other' . . . , [and] that the Act cannot be
applied to this sale because it was 'for the purpose of gaining
revenue to carry out an essential governmental function -- the
education of its citizens.'"
Id. at
327 U. S. 101.
The Court emphatically rejected that argument, in an opinion joined
by Mr. Chief Justice Stone, reasoning:
"Since the Emergency Price Control Act has been sustained as a
congressional exercise of the war power, the [State's] argument is
that the extent of that power as applied to state functions depends
on whether these are 'essential' to the state government. The use
of the same criterion in measuring the constitutional power of
Congress to tax has proved to be unworkable, and we reject it as a
guide in the field here involved.
Cf. United States v.
California, . . . 297 U.S. at
297 U. S.
183-185."
Ibid. [
Footnote
2/6]
Page 426 U. S. 865
The footnote to this statement rejected the suggested dichotomy
between essential and nonessential state governmental functions as
having "proved to be unworkable" by referring to "the several
opinions in
New York v. United States, 326 U.
S. 572."
Id. at
327 U. S. 101
n. 7. Even more significant for our purposes is the Court's
citation of
United States v. California, a case concerned
with Congress' power to regulate commerce, as supporting the
rejection of the State's contention that state sovereignty is a
limitation on Congress' war power. California directly presented
the question whether any state sovereignty restraint precluded
application of the Federal Safety Appliance Act to a state owned
and operated railroad. The State argued
"that, as the state is operating the railroad without profit,
for the purpose of facilitating the commerce of the port, and is
using the net proceeds of operation for harbor improvement, . . .
it is engaged in performing a public function in its sovereign
capacity, and, for that reason, cannot constitutionally be
subjected to the provisions of the federal Act."
297 U.S. at
297 U. S. 183.
Mr. Justice Stone rejected the contention in an opinion
Page 426 U. S. 866
for a unanimous Court. His rationale is a complete refutation of
today's holding:
"That, in operating its railroad, [the State] is acting within a
power reserved to the states cannot be doubted. . . . The only
question we need consider is whether the exercise of that power, in
whatever capacity, must be in subordination to the power to
regulate interstate commerce, which has been granted specifically
to the national government. The sovereign power of the states is
necessarily diminished to the extent of the grants of power to the
federal government in the Constitution. . . ."
"The analogy of the constitutional immunity of state
instrumentalities from federal taxation, on which [California]
relies, is not illuminating. That immunity is implied from the
nature of our federal system and the relationship within it of
state and national governments, and is equally a restriction on
taxation by either of the instrumentalities of the other. Its
nature requires that it be so construed as to allow to each
government reasonable scope for its taxing power . . . which would
be unduly curtailed if either, by extending its activities, could
withdraw from the taxing power of the other subjects of taxation
traditionally within it. . . . Hence, 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."
Id. at 18185 (emphasis added). [
Footnote 2/7]
Page 426 U. S. 867
Today's repudiation of this unbroken line of precedent that
firmly reject my Brethren's ill-conceived abstraction can only be
regarded as a transparent cover or invalidating a congressional
judgment with which they disagree. [
Footnote 2/8] The only analysis even remotely resembling
that
Page 426 U. S. 868
adopted today is found in a line of opinions dealing with the
Commerce Clause and the Tenth Amendment that ultimately provoked a
constitutional crisis for the Court in the 1930's.
E.g., Carter
v. Carter Coal Co., 298 U. S. 238
(1936);
United States v. Butler, 297 U. S.
1 (1936);
Hammer v. Dagenhart, 247 U.
S. 251 (1918).
See Stern, The Commerce Clause
and the National Economy, 1933-1946, 59 Harv.L.Rev. 645 (1946). We
tend to forget that the Court invalidated legislation during the
Great Depression not solely under the Due Process Clause, but also
and primarily under the Commerce Clause and the Tenth Amendment. It
may have been the eventual abandonment of that overly restrictive
construction of the commerce power that spelled defeat for the
Court packing plan, and preserved the integrity of this
institution,
id. at 682,
see, e.g., United States v.
Darby, 312 U. S. 100
(1941);
Mulford v. Smith, 307 U. S.
38 (1939);
NLRB v. Jones & Laughlin Steel
Corp., 301 U. S. 1 (1937),
but my Brethren today are transparently trying to cut back on that
recognition of the scope of the commerce power. My Brethren's
approach to this case is not far different from the dissenting
opinions in the cases that averted the crisis.
See, e.g.,
Mulford v. Smith, supra, at
307 U. S. 51
(Butler, J., dissenting);
NLRB v. Jones & Laughlin Steel
Corp., supra at
301 U. S. 76
(McReynolds, J., dissenting). [
Footnote
2/9]
Page 426 U. S. 869
That no precedent justifies today's result is particularly clear
from the awkward extension of the doctrine of state immunity from
federal taxation -- an immunity conclusively distinguished by Mr.
Justice Stone in California, and an immunity that is "narrowly
limited" because "the people of all the states have created the
national government and are represented in Congress,"
Helvering
v. Gerhardt, 304 U. S. 405,
304 U. S. 416
(1938) (Stone, J.) [
Footnote
2/10] -- to fashion a judicially enforceable restraint on
Page 426 U. S. 870
Congress' exercise of the commerce power that the Court has time
and again rejected as having no place in our constitutional
jurisprudence. [
Footnote
2/11]
"[W]here [Congress]
Page 426 U. S. 871
keeps within its sphere and violates no express constitutional
limitation, it has been the rule of this Court, going back almost
to the founding days of the Republic, not to interfere."
Katzenbach v. McClung, 379 U.S. at
379 U. S.
305.
To argue, as do my Brethren, that the 1974 amendments are
directed at the "States
qua States," and "displac[e] state
policies regarding the manner in which they will structure delivery
of those governmental services which their citizens require,"
ante at
426 U. S. 847,
and therefore "directly penaliz[e] the States for choosing to hire
governmental employees on terms different from those which Congress
has sought to impose,"
ante at
426 U. S. 849,
is only to advance precisely the unsuccessful arguments made by the
State of Washington in
Case v. Bowles and the State of
California in
United States v. California. The 1974
amendments are, however, an entirely legitimate exercise of the
commerce power, not in the slightest restrained by any doctrine of
state sovereignty cognizable in this Court, as
Case v. Bowles,
United States v. California, Maryland v. Wirtz, and our other
pertinent precedents squarely and definitively establish. Moreover,
since
Maryland v. Wirtz is overruled, the Fair Labor
Standards Act is invalidated in its application to all state
employees "in [any areas] that the States have regarded as integral
parts of their governmental activities."
Ante at
426 U. S. 854
n. 18. This standard is a meaningless limitation on the Court's
state sovereignty doctrine, and thus today's holding goes beyond
even what the States of Washington and California urged in
Case
v. Bowles and
United States v. California, and by its
logic would overrule those cases and with them
Parden v.
Terminal R. Co., 377 U. S. 184
(1964), and certain reasoning in
Employees v. Missouri Public
Health Dept., 411 U. S. 279,
411 U. S.
284-285 (1973). I cannot recall another instance in the
Court's history when the reasoning of so many decisions covering so
long a span of time has been
Page 426 U. S. 872
discarded in such a roughshod manner. That this is done without
any justification not already often advanced and consistently
rejected clearly renders today's decision an
ipse dixit
reflecting nothing but displeasure with a congressional
judgment.
My Brethren's treatment of
Fry v. United States,
421 U. S. 542
(1975), further illustrates the paucity of legal reasoning or
principle justifying today's result. Although the Economic
Stabilization Act "displace[d] the States' freedom,"
ante
at
426 U. S. 852
-- the reason given for invalidating the 1974 amendments -- the
result in
Fry is not disturbed, since the interference was
temporary, and only a national program enforced by the Federal
Government could have alleviated the country's economic crisis.
Thus, although my Brethren, by fiat, strike down the 1974
amendments without analysis of countervailing national
considerations,
Fry, by contrary logic, remains
undisturbed, because, on balance, countervailing national
considerations override the interference with the State's freedom.
Moreover, it is sophistry to say the Economic Stabilization Act
"displaced no state choices,"
ante at
426 U. S. 853,
but that the 1974 amendments do,
ante at
426 U. S. 848.
Obviously the Stabilization Act -- no less than every exercise of a
national power delegated to Congress by the Constitution --
displaced the State's freedom. It is absurd to suggest that there
is a constitutionally significant distinction between curbs against
increasing wages and curbs against paying wages lower than the
federal minimum.
Today's holding patently is in derogation of the sovereign power
of the Nation to regulate interstate commerce. Can the States
engage in businesses competing with the private sector and then
come to the courts arguing that withdrawing the employees of those
businesses from the private sector evades the power of the Federal
Government to regulate commerce?
See New York v.
Page 426 U. S. 873
United States, 326 U.S. at
326 U. S. 582
(opinion of Frankfurter, J.). No principle given meaningful content
by my Brethren today precludes the States from doing just that. Our
historic decisions rejecting all suggestions that the States stand
in a different position from affected private parties when
challenging congressional exercise of the commerce power reflect
that very concern.
Maryland v. Wirtz, 392 U.
S. 183 (1968);
United States v. California,
297 U. S. 175
(1936).
Fry only last Term emphasized "that States are not
immune from all federal regulation under the Commerce Clause
merely because of their sovereign status." 421 U.S. at
421 U. S. 548
(emphasis added). For,
"[b]y empowering Congress to regulate commerce . . . , the
States necessarily surrendered any portion of their sovereignty
that would stand in the way of such regulation."
Parden v. Terminal R. Co., supra at
377 U. S. 192;
see Employees v. Missouri Public Health Dept., supra at
411 U. S. 286.
Employment relations of States that subject themselves to
congressional regulation by participating in regulable commerce are
subject to congressional regulation.
California v. Taylor,
353 U. S. 553,
353 U. S. 568
(1957). Plainly it has gotten no earlier since we declared it
"too late in the day to question the power of Congress under the
Commerce Clause to regulate . . . activities and instrumentalities
[in interstate commerce] . . . , whether they be the activities and
instrumentalities of private persons or of public agencies."
California v. United States, 320 U.
S. 577,
320 U. S. 586
(1944).
Also devoid of meaningful content is my Brethren's argument that
the 1974 amendments "displac[e] State policies."
Ante at
426 U. S. 847.
The amendments neither impose policy objectives on the States nor
deny the States complete freedom to fix their own objectives. My
Brethren boldly assert that the decision as to wages and hours is
an "undoubted attribute of state sovereignty,"
Page 426 U. S. 874
ante at
426 U. S. 845,
and then never say why. Indeed, they disclaim any reliance on the
costs of compliance with the amendments in reaching today's result.
Ante at
426 U. S. 846,
426 U. S. 851.
This would enable my Brethren to conclude that, however
insignificant that cost, any federal regulation under the commerce
power "will nonetheless significantly alter or displace the States'
abilities to structure employer employee relationships."
Ante at
426 U. S. 851.
[
Footnote 2/12]
Page 426 U. S. 875
This then would mean that, whether or not state wages are paid
for the performance of an "essential" state function (whatever that
may mean), the newly discovered state sovereignty constraint could
operate as a flat and absolute prohibition against congressional
regulation of the wages and hours of state employees under the
Commerce Clause. The portent of such a sweeping holding is so
ominous for our constitutional jurisprudence as to leave one
incredulous.
Certainly the paradigm of sovereign action -- action
qua State -- is in the enactment and enforcement of state
laws. Is it possible that my Brethren are signaling abandonment of
the heretofore unchallenged principle that Congress "can, if it
chooses, entirely displace the States to the full extent of the
far-reaching Commerce Clause"?
Bethlehem Steel Co. v. New York
State Board, 330 U. S. 767,
330 U. S. 780
(1947) (opinion of Frankfurter, J.). Indeed, that principle
sometimes invalidates state laws regulating subject matter of
national importance even when Congress has been silent.
Gibbons v.
Ogden, 9 Wheat. 1 (1824);
see Sanitary District
v. United States, 266 U.S. at
266 U. S. 426.
In either case, the ouster of state laws obviously curtails or
prohibits the States' prerogatives to make policy choices
respecting subjects clearly of greater significance to the "State
qua State" than the minimum wage paid to state employees.
The Supremacy Clause dictates this result under "the federal system
of government embodied in the Constitution."
Ante at
426 U. S.
852.
My Brethren do more than turn aside longstanding constitutional
jurisprudence that emphatically rejects today's conclusion. More
alarming is the startling restructuring of our federal system, and
the role they create therein for the federal judiciary. This Court
is simply not at liberty to erect a mirror of its own conception of
a desirable governmental structure. If the 1974 amendments
Page 426 U. S. 876
have any "vice,"
ante at
426 U. S. 849,
my Brother STEVENS is surely right that it represents "merely . . .
a policy issue which has been firmly resolved by the branches of
government having power to decide such questions."
Post at
426 U. S. 881.
It bears repeating "that effective restraints on . . . exercise [of
the commerce power] must proceed from political, rather than from
judicial, processes."
Wickard v. Filburn, 317 U.S. at
317 U. S.
120.
It is unacceptable that the judicial process should be thought
superior to the political process in this area. Under the
Constitution, the Judiciary has no role to play beyond finding that
Congress has not made an unreasonable legislative judgment
respecting what is "commerce." My Brother BLACKMUN suggests that
controlling judicial supervision of the relationship between the
States and our National Government by use of a balancing approach
diminishes the ominous implications of today's decision. Such an
approach, however, is a thinly veiled rationalization for judicial
supervision of a policy judgment that our system of government
reserves to Congress.
Judicial restraint in this area merely recognizes that the
political branches of our Government are structured to protect the
interests of the States, as well as the Nation as a whole, and that
the States are fully able to protect their own interests in the
premises. Congress is constituted of representatives in both the
Senate and House elected from the States. The Federalist No. 45,
pp. 311-312, No. 46, pp. 317-318 (J. Cooke ed.1961) (J. Madison).
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. Judicial redistribution of
powers granted the National Government by the terms of the
Constitution violates the fundamental tenet of our federalism
Page 426 U. S. 877
that the extent of federal intervention into the States' affairs
in the exercise of delegated powers shall be determined by the
States' exercise of political power through their representatives
in Congress.
See Wechsler, The Political Safeguards of
Federalism: The Role of the States in the Composition and Selection
of the National Government, 54 Col.L.Rev. 543 (1954). There is no
reason whatever to suppose that, in enacting the 1974 amendments,
Congress, even if it might extensively obliterate state sovereignty
by fully exercising its plenary power respecting commerce, had any
purpose to do so. Surely the presumption must be to the contrary.
Any realistic assessment of our federal political system, dominated
as it is by representatives of the people elected from the States,
yields the conclusion that it is highly unlikely that those
representatives will ever be motivated to disregard totally the
concerns of these States. [
Footnote
2/13] The Federalist No. 46,
supra at 319. Certainly
this was the premise upon which the Constitution, as
authoritatively explicated in
Gibbons v. Ogden, was
founded. Indeed, though the States are represented in
Page 426 U. S. 878
the National Government, national interests are not similarly
represented in the States' political processes. Perhaps my
Brethren's concern with the Judiciary's role in preserving
federalism might better focus on whether Congress, not the States,
is in greater need of this Court's protection.
See New York v.
United States, 326 U.S. at
326 U. S. 582
(opinion of Frankfurter, J.);
Helvering v. Gerhardt, 304
U.S. at
304 U. S.
416.
A sense of the enormous impact of States' political power is
gained by brief reference to the federal budget. The largest
estimate by any of the appellants of the cost impact of the 1974
amendments -- $1 billion -- pales in comparison with the financial
assistance the States receive from the Federal Government. In
fiscal 1977, the President's proposed budget recommends $60.5
billion in federal assistance to the States, exclusive of loans.
Office of Management and Budget, Special Analyses: Budget of the
United States Government, Fiscal Year 1977, p. 255. Appellants
complain of the impact of the amended FLSA on police and fire
departments, but the 1977 budget contemplates outlays for law
enforcement assistance of $716 million.
Id. at 258.
Concern is also expressed about the diminished ability to hire
students in the summer if States must pay them a minimum wage, but
the Federal Government's "summer youth program" provides $400
million for 670,000 jobs.
Ibid. Given this demonstrated
ability to obtain funds from the Federal Government for needed
state services, there is little doubt that the States' influence in
the political process is adequate to safeguard their sovereignty.
[
Footnote 2/14]
Page 426 U. S. 879
My Brethren's disregard for precedents recognizing these
long-settled constitutional principles is painfully obvious in
their cavalier treatment of
Maryland v. Wirtz. Without
even a passing reference to the doctrine of
stare decisis,
Wirtz -- regarded as controlling only last Term,
Fry v.
United States, 421 U.S. at
421 U. S. 548,
and as good law in
Employees v. Missouri Public Health
Dept., 411 U.S. at
411 U. S. 28 --
is, by exercise of raw judicial power, overruled.
No effort is made to distinguish the FLSA amendments sustained
in
Wirtz from the 1974 amendments. We are told at the
outset that "the 'far-reaching implications' of
Wirtz
should be overruled,"
ante at
426 U. S. 840;
later it is said that the "reasoning in
Wirtz" is no
longer "authoritative,"
ante at
426 U. S. 854.
My Brethren then merely restate their essential function test, and
say that
Wirtz must "therefore" be overruled.
Ante at
426 U. S.
855-856. There is no analysis whether
Wirtz
reached the correct result, apart from any flaws in reasoning, even
though we are told that "there are obvious differences" between
this case and
Wirtz. Ante at
426 U. S. 855.
[
Footnote 2/15] Are state and
federal
Page 426 U. S. 880
interests being silently balanced, as in the discussion of
Fry, ante at
426 U. S. 853?
The best I can make of it is that the 1966 FLSA amendments are
struck down and
Wirtz is overruled on the basis of the
conceptually unworkable essential function test, and that the test
is unworkable is demonstrated by my Brethren's inability to
articulate any meaningful distinctions among state-operated
railroads,
see ante at
426 U. S.
854-855, n. 18, state-operated schools and hospitals,
and state-operated police and fire departments.
We are left then with a catastrophic judicial body blow at
Congress' power under the Commerce Clause. Even if Congress may
nevertheless accomplish its objectives -- for example, by
conditioning grants of federal funds upon compliance with federal
minimum wage and overtime standards,
cf. Oklahoma v. CSC,
330 U. S. 127,
330 U. S. 144
(1947) -- there is an ominous portent of disruption of our
constitutional structure implicit in today's mischievous decision.
I dissent.
[
Footnote 2/1]
"A government ought to contain in itself every power requisite
to the full accomplishment of the objects committed to its care,
and to the complete execution of the trusts for which it is
responsible, free from every other control but a regard to the
public good and to the sense of the people."
The Federalist No. 31, p. 15 (J. Cooke ed.1961) (A.
Hamilton).
[
Footnote 2/2]
Some decisions reflect the Court's reluctance to interpret
legislation to alter the federal-state balance of power.
See,
e.g., Employees v. Missouri Public Health Dept., 411 U.
S. 279,
411 U. S.
285-287 (1973);
United States v. Bass,
404 U. S. 336,
404 U. S. 349
(1971). Rather than state any limit on congressional power,
however, these decisions merely rely on our traditional canon of
construction in the face of statutory ambiguity that recognizes a
presumption that Congress normally considers effects on federalism
before taking action displacing state authority. Stern, The
Commerce Clause and the National Economy, 1933-1946, Part Two, 59
Harv.L.Rev. 883, 946 (1946). There is no claim that the 1974
amendments are not clearly intended to apply to the States, nor is
there any suggestion that Congress was unaware of the federalism
issue.
[
Footnote 2/3]
As support for the creation of a state sovereignty limitation on
the commerce power, my Brethren quote this statement in
Wirtz out of context.
Ante at
426 U. S. 842.
This statement is at the end of a paragraph in
Wirtz
recognizing that Congress' commerce power is limited because it
reaches only "
commerce with foreign nations and among the
several States.'" 392 U.S. at 392 U. S. 196,
quoting Santa Cruz Fruit Packing Co. v. NLRB, 303 U.S. at
303 U. S. 466.
The passage that follows the language quoted by the Court
is:
"But while the commerce power has limits, valid general
regulations of commerce do not cease to be regulations of commerce
because a State is involved. If a State is engaging in economic
activities that are validly regulated by the Federal Government
when engaged in by private persons, the State too may be forced to
conform its activities to federal regulation."
392 U.S. at
392 U. S.
196-197. It is clear, then, that this Court's "ample
power" to prevent the destruction of the States was not found in
Wirtz to result from some affirmative limit on the
exercise of the commerce power, but rather in the Court's function
of limiting congressional exercise of its power to regulation of
"commerce."
[
Footnote 2/4]
The Court relies on
Fry v. United States, 421 U.
S. 542,
421 U. S. 547
n. 7 (1975), but I cannot subscribe to reading
Fry as
departing, without analysis, from a principle that has remained
unquestioned for over 150 years. Although the Tenth Amendment "is
not without significance,"
ibid., its meaning is clear: it
declares that our Federal Government is one of delegated powers.
And it is because of this constraint, rather than the state
sovereignty doctrine discovered today by the Court, "that Congress
may not exercise power in a fashion that impairs the States'
integrity or their ability to function effectively in a federal
system."
Ibid. Fry did not say that there is a
limit in the Tenth Amendment on the exercise of a delegated power,
but instead said that "Congress may not exercise power in a fashion
that. . . ." The only import of the footnote in
Fry, then,
is that Congress may not invade state sovereignty by exercising
powers not delegated to it by the Constitution; since the wage
ceilings at issue in
Fry were clearly within the commerce
power, we found no "drastic invasion of state sovereignty."
Id. at
421 U. S. 548
n. 7. Even the author of today's opinion stated in
Fry
that the Tenth Amendment does not, "by its terms," restrict
Congress' power to regulate commerce.
Id. at
421 U. S. 557
(REHNQUIST, J., dissenting).
[
Footnote 2/5]
In support of the first-quoted paragraph, Darby cited 2 J.
Elliot, Debates 123, 131 (2d ed. 1787); 3
id. at 450, 464,
600; 4
id. at 140, 148; 1 Annals of Congress 432, 761,
767-768 (1789); 2 J. Story, Commentaries on the Constitution §§
1907-1908 (2d ed. 1851) ("It is plain, therefore, that it could not
have been the intention of the framers of this amendment to give it
effect, as an abridgment of any of the powers granted under the
constitution, whether they are express or implied, direct or
incidental. Its sole design is to exclude any interpretation, by
which other powers should be assumed beyond those which are
granted").
Decisions expressly rejecting today's interpretation of the
Tenth Amendment also include
Sperry v. Florida ex rel. Florida
Bar, 373 U. S. 379,
373 U. S. 403
(1963);
Oklahoma v. CSC, 330 U. S. 127,
330 U. S. 143
(1947);
Case v. Bowles, 327 U. S. 92,
327 U. S. 102
(1946);
Fernandez v. Wiener, 326 U.
S. 340,
326 U. S. 362
(1945);
Oklahoma ex rel. Phillips v. Atkinson Co.,
313 U. S. 508,
313 U. S. 534
(1941);
United States v. Sprague, 282 U.
S. 716,
282 U. S.
733-734 (1931).
[
Footnote 2/6]
Case also expressed concerns about creating a state
sovereignty limitation on a delegated power that are equally
applicable to restrictions on the commerce power:
"The result would be that the constitutional grant of the power
to make war would be inadequate to accomplish its full purpose. And
this result would impair a prime purpose of the Federal
Government's establishment."
327 U.S. at
327 U. S. 102.
My Brethren intimate that Congress' war power is more properly
viewed as "a prime purpose of the Federal Government's
establishment" than the commerce power.
Ante at
426 U. S. 855
n. 18. Nothing could be further from the fact.
"The sole purpose for which Virginia initiated the movement
which ultimately produced the Constitution was"
"to take into consideration the trade of the United States; to
examine the relative situations and trade of the said States; to
consider how far a uniform system in their commercial regulations
may be necessary to their common interest and their permanent
harmony. . . ."
"No other federal power was so universally assumed to be
necessary, no other state power was so readily relinquished."
H. P. Hood & Sons, Inc. v. Du Mond, 336 U.
S. 525,
336 U. S.
533-534 (1949);
see id. at
336 U. S.
532-535.
[
Footnote 2/7]
Even in the tax area. the States' immunity has not gone
unchallenged. The separate opinion of Mr. Justice Frankfurter in
New York v. United States, 326 U.
S. 572,
326 U. S. 573
(1946), argued that the only limitation on the federal power to tax
was that Congress not discriminate against the States. There is no
such discrimination in the 1974 amendments, since they apply to
both public and private employers. Mr. Justice Frankfurter noted a
distinction between immunities claimed to invalidate state taxes on
federal activities and those urged as a basis for rejecting federal
taxes.
"The federal government is the government of all the States, and
all the States share in the legislative process by which a tax of
general applicability is laid."
Id. at
326 U. S. 577.
See M'Culloch v.
Maryland, 4 Wheat. 316,
17 U. S.
405-406 (1819). He also recognized that immunity in this
area had been significantly eroded since it was first used to
protect state officials from a federal tax in
Collector
v. Day, 11 Wall. 113 (1871).
See, e.g., Graves
v. New York ex rel. O'Keefe, 306 U. S. 466
(1939),
overruling Collector v. Day, supra; Helvering v.
Mountain Producers Corp., 303 U. S. 376
(1938);
Fox Film Corp. v. Doyal, 286 U.
S. 123 (1932).
Even more significantly, Mr. Justice Frankfurter pointed out
that the existence of a state immunity from federal taxation, to
the extent that it was based on any vague sovereignty notions, was
inconsistent with the holding in
United States v.
California, 297 U. S. 175
(1936), that state sovereignty does not restrict federal exercise
of the commerce power. 326 U.S. at
326 U. S.
582.
[
Footnote 2/8]
My Brethren's reliance on
Texas v.
White, 7 Wall. 700,
74 U. S. 725
(1869), and
Lane County v.
Oregon, 7 Wall. 71,
74 U. S. 76
(1869), is puzzling, to say the least. The Brethren make passing
reference to the unique historical setting in which those cases
were decided,
ante at
426 U. S. 844,
but pointedly ignore the significance of the events of those days.
During the tenure of Mr. Chief Justice Chase, the War Between the
States, fought to preserve the supremacy of the Union, was won;
Congress and the States then enacted three constitutional
Amendments, the Thirteenth, Fourteenth, and Fifteenth, enlarging
federal power and concomitantly contracting the States' power,
see Ex parte Virginia, 100 U. S. 339,
100 U. S. 345
(1880); and Congress enacted a variety of laws during
Reconstruction further restricting state sovereignty.
Texas v.
White itself noted that the Constitution empowered Congress to
form a new government in a State if the citizens of that State were
being denied a republican form of government. 7 Wall. at
74 U. S. 729.
And the Court recognized in
Lane County that
"[t]he people of the United States constitute one nation, under
one government, and this government, within the scope of the powers
with which it is invested, is supreme."
7 Wall. at
74 U. S. 76.
[
Footnote 2/9]
Even those dissenting opinions, however, were more faithful to
the Constitution than is today's decision. They relied on the Tenth
Amendment to invalidate federal legislation only because they found
the enactments not within the scope of the commerce power, and thus
not within a power delegated to Congress. More importantly, they
made no distinction between private parties and States; in their
view, what was not commerce for one was commerce for no one. My
Brethren today, however, arrive at their novel constitutional
theory in defiance of the plain language of the Tenth Amendment,
differentiating "the people" from "the States." They apparently
hold that a power delegated to Congress with respect to the former
is, contrary to the clear wording of the Amendment, not delegated
as to the latter, because this conclusion is more consonant with
their view of a proper distribution of governmental power. But,
"however socially desirable the goals sought to be advanced . .
. . advancing them through a freewheeling non-neglected judiciary
is quite unacceptable in a democratic society."
Rehnquist, The Notion of a Living Constitution, 54 Tex.L.Rev.
693, 699 (1976).
Compare Cantor v. Detroit Edison Co.,
428 U. S. 579,
428 U. S. 605
(1976) (BLACKMUN, J., concurring in judgment),
with id. at
428 U. S. 614
(STEWART, J., dissenting).
[
Footnote 2/10]
The danger to the federal power to tax of hypothesizing any
constraint, derived from state sovereignty and monitored by this
Court, was expressly recognized:
"Another reason [for narrowly limiting state sovereignty
restrictions on the power to tax] rests upon the fact that any
allowance of a tax immunity for the protection of state sovereignty
is at the expense of the sovereign power of the nation to tax.
Enlargement of the one involves diminution of the other. When
enlargement proceeds beyond the necessity of protecting the state,
the burden of the immunity is thrown upon the national government,
with benefit only to a privileged class of taxpayers.
See
Metcalf & Eddy v. Mitchell, 269 U. S.
514 [1926];
cf. 76 U. S. Pacific Railroad, 9
Wall. 579,
76 U. S. 588,
76 U. S.
590 [1870]. With the steady expansion of the activity of
state governments into new fields, they have undertaken the
performance of functions not known to the states when the
Constitution was adopted, and have taken over the management of
business enterprises once conducted exclusively by private
individuals subject to the national taxing power. In a complex
economic society, tax burdens laid upon those who directly or
indirectly have dealings with the states tend, to some extent not
capable of precise measurement, to be passed on economically, and
thus to burden the state government itself. But if every federal
tax which is laid on some new form of state activity, or whose
economic burden reaches in some measure the state or those who
serve it, were to be set aside as an infringement of state
sovereignty, it is evident that a restriction upon national power,
devised only as a shield to protect the states from curtailment of
the essential operations of government which they have exercised
from the beginning, would become a ready means for striking down
the taxing power of the nation.
See South Carolina v. United
States, 199 U. S. 437,
199 U. S.
454-455 [1905]. Once impaired by the recognition of a
state immunity found to be excessive, restoration of that power is
not likely to be secured through the action of state legislatures;
for they are without the inducements to act which have often
persuaded Congress to waive immunities thought to be
excessive."
Helvering v. Gerhardt, 304 U.S. at
304 U. S.
416-417 (footnote omitted).
[
Footnote 2/11]
My Brethren also ignore our holdings that the principle of state
sovereignty held to be embodied in the Eleventh Amendment can be
overridden by Congress under the Commerce Clause.
Fitzpatrick
v. Bitzer, 427 U. S. 445
(1976);
Parden v. Terminal R. Co., 377 U.
S. 184 (1964). Although the Eleventh Amendment can be
overcome by exercise of the power to regulate commerce, my Brethren
never explain why the protections of state sovereignty they
erroneously find embodied in the Tenth Amendment cannot similarly
be overcome. Instead, they merely tell us which delegated powers
are limited by state sovereignty,
ante at
426 U.S. 843-844, n. 14, and which are
not,
ante at
426 U. S.
854-855, n. 18,
see also Kleppe v. New Mexico,
ante, p.
426 U. S. 529, but
neither reason nor precedent distinguishing among these powers is
provided.
[
Footnote 2/12]
My Brethren's reluctance to rely on the cost of compliance to
invalidate this legislation is advisable.
"Such matters raise not constitutional issues, but questions of
policy. They relate to the wisdom, need, and effectiveness of a
particular project. They are therefore questions for the Congress,
not the courts."
Oklahoma ex rel. Phillips v. Atkinson Co., 313 U.S. at
313 U. S. 527.
See Employees v. Missouri Public Health Dept.,
411 U. S. 279,
411 U. S. 284
(1973). Although my Brethren accept, for present purposes, the well
pleaded allegations of appellants' complaint, I note that the
Secretary vigorously argues in this Court that appellants' cost
allegations are greatly exaggerated and based on misinterpretations
of the 1974 amendments. For example, the executive vice-president
of the National League of Cities stated in a deposition that the
federal minimum wage would have little impact on city budgets,
since "most cities were already in compliance." App. 124. My
Brethren's concern about the use of volunteers is also unfounded.
No provision proscribes the use of volunteers or regulates their
compensation in any way. Indeed, the Department of Labor's
regulations read the FLSA as providing that payments to individuals
below a certain level are presumptive evidence of volunteer status;
above that level, volunteer status depends on particular
circumstances. 29 CFR § 553.11 (1975). That the question whether an
individual is an employee or a volunteer might be resolved in the
courts has nothing to do with federalism, since Congress has
rationally decided to regulate the wages of state employees under
the Commerce Clause. The Secretary also maintains that
misconceptions permeate the other claims of final impact, such as
the failure to account for overtime exemptions for police and fire
personnel, 29 U.S.C. § 207(k) (1970 ed., Supp. IV), but further
analysis of appellants' allegations would not be profitable, nor
might it even be possible in view of their failure to specify
adequately the method of calculating the costs.
[
Footnote 2/13]
The history of the 1974 amendments is a striking example of the
political process in operation. When Congress, in 1973, passed FLSA
amendments that extended coverage to state and local employees, the
President vetoed the bill and stated among his objections that
"[e]xtension of Federal minimum wage and overtime standards to
State and local government employees is an unwarranted interference
with State prerogatives."
119 Cong.Rec. 28743 (1973). The veto was sustained.
Id.
at 30266, 30292. But when Congress moderated its position and
passed the bill in another form, the President signed it and noted
the compromise:
"S. 2747 also extends coverage to include Federal, State, and
local government employees, domestic workers, and others previously
excluded from coverage. The Congress has reduced some of the
economic and social disruptions this extension could cause by
recognizing the unique requirements of police, fire, and
correctional services."
10 Weekly Comp. of Presidential Documents 392 (1974).
[
Footnote 2/14]
In contrast, my Brethren frequently remand powerless individuals
to the political process by invoking doctrines of standing,
justiciability, and remedies. For example, in
Warth v.
Seldin, 422 U. S. 490
(1975), the Court suggested that some residents of Rochester, N.Y.
"not overlook the availability of the normal democratic process,"
id. at
422 U. S. 508
n. 18, even though they were challenging a suburban zoning
ordinance and had no voice in the suburb's political affairs. In
this case, however, those entities with perhaps the greatest
representation in the political process have lost a legislative
battle, but, when they enter the courts and repeat the arguments
made in the political branches, the Court welcomes them with open
arms, embraces their political cause, and overrides Congress'
political decision.
[
Footnote 2/15]
In contrast, the Court measures the legislation at issue in
Fry in light of today's decision, although, as I have
noted, that consideration amounts to a repudiation of the Court's
holding.
See supra at
426 U. S. 872.
Just as the reasoning of
Wirtz is rejected, however, the
reasoning of
Fry, decided only last Term, must also be
deemed rejected, for it adhered totally to the principles of
Wirtz. That the Economic Stabilization Act was an
emergency measure was not dispositive in
Fry; it merely
rendered the Act "even less intrusive" than the "quite limited"
legislation sustained in
Wirtz. 421 U.S. at
421 U. S.
548.
MR. JUSTICE STEVENS, dissenting.
The Court holds that the Federal Government may not interfere
with a sovereign State's inherent right to pay a substandard wage
to the janitor at the state capitol. The principle on which the
holding rests is difficult to perceive.
The Federal Government may, I believe, require the State to act
impartially when it hires or fires the janitor, to withhold taxes
from his paycheck, to observe safety regulations when he is
performing his job, to forbid him from burning too much soft coal
in the capitol furnace, from dumping untreated refuse in an
adjacent waterway, from overloading a state-owned garbage truck, or
from driving either the truck or the Governor's limousine over 55
miles an hour. Even though these and many other
Page 426 U. S. 881
activities of the capitol janitor are activities of the State
qua State, I have no doubt that they are subject to
federal regulation.
I agree that it is unwise for the Federal Government to exercise
its power in the ways described in the Court's opinion. For the
proposition that regulation of the minimum price of a commodity --
even labor -- will increase the quantity consumed is not one that I
can readily understand. That concern, however, applies with even
greater force to the private sector of the economy where the
exclusion of the marginally employable does the greatest harm and,
in all events, merely reflects my views on a policy issue which has
been firmly resolved by the branches of government having power to
decide such questions. As far as the complexities of adjusting
police and fire departments to this sort of federal control are
concerned, I presume that appropriate tailor-made regulations would
soon solve their most pressing problems. After all, the interests
adversely affected by this legislation are not without political
power.
My disagreement with the wisdom of this legislation may not, of
course, affect my judgment with respect to its validity. On this
issue, there is no dissent from the proposition that the Federal
Government's power over the labor market is adequate to embrace
these employees. Since I am unable to identify a limitation on that
federal power that would not also invalidate federal regulation of
state activities that I consider unquestionably permissible, I am
persuaded that this statute is valid. Accordingly, with respect and
a great deal of sympathy for the views expressed by the Court, I
dissent from its constitutional holding.