Garcia v. San Antonio

Metropolitan Transit Authority

Case Overview

CITATION

ARGUED ON

REARGUED ON

DECIDED ON

DECIDED BY

OVERRULED

379 U.S. 294

Mar. 19, 1984

Oct. 1, 1984

Feb. 19, 1985

National League of Cities v. Usery (1976)

Legal Issues

Does the Commerce Clause of the Constitution grant Congress the authority to regulate the wages and work requirements of employees working for a municipal mass transit system operated by a local government?

Holding

Yes, the Commerce Clause grants Congress the authority to regulate a municipal mass transit system, and that authority does not threaten state sovereignty under the Tenth Amendment.

San Antonio MTA bus in 1978 | Credit: VIA Metropolitan Transit

Background

In 1938, Congress passed the Fair Labor Standards Act (FLSA), which originally didn’t apply to state and local government employees. Over time, however, Congress amended the Act to extend minimum wage and overtime coverage to certain public employees, including those in mass transit. In 1976, the Supreme Court ruled in National League of Cities v. Usery that the Tenth Amendment prohibited Congress from applying the FLSA to state and local governments performing “traditional governmental functions.” The San Antonio Metropolitan Transit Authority (SAMTA) subsequently told its employees that it was no longer obligated to provide them with overtime pay.

In 1979, the Wage and Hour Division of the U.S. Department of Labor determined that SAMTA’s operations were not a “traditional governmental function” and therefore remained subject to the FLSA’s overtime requirements. In response, SAMTA filed a lawsuit in the U.S. District Court for the Western District of Texas, seeking a declaratory judgment that its transit operations were exempt from federal regulation under the National League of Cities precedent. At the same time, Joe Garcia and other SAMTA employees filed their own suit to recover their unpaid overtime wages, and Garcia was subsequently allowed to intervene as a defendant in SAMTA’s declaratory judgment action alongside the Department of Labor.

The District Court initially ruled in favor of SAMTA, finding that local mass transit was a traditional governmental function and thus exempt from the FLSA. After the Supreme Court vacated and remanded that decision, the District Court once again held for SAMTA. Garcia and the Department of Labor appealed directly to the U.S. Supreme Court, and they were granted certiorari.

5 - 4 decision for Garcia

Garcia

San Antonio

White

Brennan

Blackmun

Stevens

Marshall

O’Connor

Rehnquist

Burger

Powell

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