Municipal – Apprenticeship – Preemption – ERISA

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Where the city of Quincy requires all contractors bidding on city construction projects to maintain an apprenticeship program approved by the Massachusetts Division of Apprentice Training, that requirement is preempted by the Employee Retirement Income Security Act.

“The parties agree that Quincy’s apprenticeship requirement has no reference to an ERISA plan, because it applies to both ERISA and non-ERISA apprenticeship programs (that is, both separately-funded and non-separately-funded programs). … Therefore, the only question is whether Quincy’s apprenticeship requirement has a ‘connection with’ ERISA apprenticeship programs.

“It does. … Quincy’s regulation effectively makes Massachusetts standards mandatory for its bidders’ apprenticeship programs, including any ERISA apprenticeship programs. By setting compulsory standards that apply to ERISA apprenticeship programs, Quincy’s regulation ‘mandate[s] employee benefit structures [and] their administration.’ … It is therefore preempted for its ‘connection with’ ERISA plans.”

Merit Construction Alliance, et al. v. City of Quincy (Lawyers Weekly No. 02-052-13) (5 pages) (Zobel, J.) (USBC) (Civil Action No. 12-10458-RWZ) (Feb. 1, 2013).

 Click here for the full-text opinion.