Calop Business Systems, Inc. v. City of Los Angeles

MEMORANDUM

The City of Los Angeles’s Living Wage Ordinance (“LWO”), L.A. Admin. Code §§ 10.37-10.37.14, requires contractors who operate at the City’s airports to pay their employees $14.80 per hour, or $10.30 per hour if the contractor provides health benefits. L.A. Admin. Code § 10.37.2(a). The City’s Office of Contract Compliance found that Calop Business Systems, Inc., violated the LWO over a twelve-day period in January 2010, in which Calop paid its employees only $11.55 per hour and made no health benefit contributions. Calop filed suit against the City, asserting that the LWO is unconstitutionally vague in violation of the due process guarantees of the United States and California Constitutions. Calop also contends that the LWO is preempted by three federal statutes: the Employee Retirement Income Security Act (“ERISA”), the Airline Deregulation Act, and the Railway Labor Act. The district court granted summary judgment for the City on all of Calop’s claims. We have jurisdiction under 28 U.S.C. § 1291 , and affirm in part and dismiss in part.

I

The district court correctly held that Calop lacks standing to argue that the phrase “health benefits” is unconstitutionally…