The Scope of IRCA Preemption

Scales Thanks to Ross Runkel for bringing to my attention this case from the 9th Circuit concerning whether the Legal Arizona Workers Act (LAWA)  is preempted by Immigration Reform and Control Act (IRCA).  In CPLC v. Napolitano (9th Cir 09/17/2008), the court examined LAWA, which allows state courts to suspend or revoke the business licenses of employers who knowingly or intentionally hire “unauthorized aliens.”  As Ross explains:

That act also requires employers to use the federal E-Verify system (an internet-based system that allows an employer to verify an employee’s work authorization status).

But:

The 9th Circuit rejected various facial challenges to the Act, concluding (among other things) that it is not expressly preempted by the federal Immigration Reform and Control Act (IRCA).  In reaching that conclusion, the court determined that the Act fell within the scope of the “savings clause” of IRCA’s express preemption provision as a “licensing law.”

So it seems that IRCA, like ERISA, recognizes federalism concerns by exempting certain types of state laws that have historically been in the domain of state regulation.

Cross posted at Workplace Prof Blog.

Continue ReadingThe Scope of IRCA Preemption

A Civil Conversation With the Party Bosses

Yesterday, a packed room of more than one hundred people at the Law School was treated to the latest installment of On the Issues with Mike Gousha, featuring Wisconsin Republican Party Chairman Reince Priebus and Wisconsin Democratic Party Chairman Joe Wineke.  Gousha began the program by asking Priebus and Wineke about what role Wisconsin will play in the outcome of this year’s presidential election.  Both party chairmen confirmed that Wisconsin is considered “in play” for the presidential election, with recent polling showing Barack Obama with a narrow 2-3 point lead over John McCain in the state.  When asked what factor(s) will determine the election, Priebus suggested that the issue of trust — that is, which candidate voters trust most — will be dispositive.  Wineke countered that the election would turn on the economy.  Both also agreed that get out the vote (GOTV) volunteer efforts will be critical to success, in the state and nationally. 

Continue ReadingA Civil Conversation With the Party Bosses

Addressing the Short-Termer Problem in Corporate Governance

Continuing our faculty workshop series, Nadelle Grossman presented a work in progress earlier this week entitled “Clarifying the Long-Term Nature of Director and Shareholder Fiduciary Duties.”  Her presentation examined the various factors that have magnified the influence of short-term institutional shareholders, such as hedge funds and activist investors, over the decisions of corporate management.  These factors include the way the market punishes firms that fail to meet their quarterly earnings targets, the incentives of money managers to maximize their own fees by boosting the share price of their holdings, and the increasing effectiveness of the shareholder franchise.  Professor Grossman argued that the increasing influence of the “short-termers” has impaired management’s ability to set a long-term strategy for the corporation.  Her thesis is that the fiduciary duties of directors and institutional shareholders should be re-examined in order to promote the adoption of business strategies with longer time frames.

Continue ReadingAddressing the Short-Termer Problem in Corporate Governance