Dillingham Construction N.A., Inc. v. County of Sonoma

The issue presented in this case is whether ERISA preempts the application of a state prevailing wage law that requires payment of prevailing wages to employees in apprenticeship programs that have not received state approval but allows the payment of lower apprenticeship wages to employees participating in state approved programs. We hold that it does.

I. CALIFORNIA APPRENTICESHIP REGULATIONS

As described by the district court, California’s administrative framework for regulating apprenticeships is complex. Rules and regulations establishing minimum standards of wages, hours and working conditions for apprentices are created by the California Apprenticeship Council (“CAC”) which is located within the Division of Apprenticeship Standards (“DAS”). The California Code of Regulations provides that “[apprenticeship programs shall be established by written standards approved by the Chief of DAS” and sets forth a detailed list of program standards that must be covered before the program is approved. Cal.Code Regs. tit. 8, § 212.

The CAC exercises approval authority over apprenticeship programs pursuant to the Fitzgerald Act, 29 U.S.C. § 50 and its implementing regulations, 29 C.F.R.…