Ass'n of Community Organizations for Reform Now v. Department of Industrial Relations

I. Introduction

In this case we hold that California’s minimum wage laws are not unconstitutional as applied to an organization whose purpose is political advocacy, because the compelling state interest in ensuring a minimum wage adequate to maintain a decent standard of living justifies any incidental infringement on the organization’s First Amendment freedoms.

II. Background

The Association of Community Organizations for Reform Now (ACORN) is an Arkansas corporation whose purpose is to advocate for low- and moderate-income persons. ACORN employs workers in California, who recruit members for local community organizations affiliated with ACORN, promote ACORN’s social agenda, circulate petitions, and solicit financial contributions. ACORN pays those workers in varying ways: some receive a straight salary, some receive a salary plus commission, and some receive a straight commission. Their compensation may not rise to the level of California’s minimum wage, which is currently $4.25 per hour. (Cal. Code Regs., tit. 8, § 11000, subd. 2.)

ACORN filed the present action seeking a declaration that California’s minimum wage laws are unconstitutional as applied to ACORN and…