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FEC Record: Advisory Opinions

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AO 2014-04: State Law Does Not Apply to SSF's Payroll Deductions

Under the Federal Election Campaign Act (the Act) and Commission regulations, Enterprise Holdings, Inc. may use payroll deduction for contributions to its SSF. According to the New York State Department of Labor, the state’s restrictions on corporate payroll deductions do not apply to solicitations by federal separate segregated funds (SSFs). As such, the Commission need not address whether the federal statutory provisions and regulations that permit those deductions preempt the state law.

Background
Enterprise Holdings, Inc. – the corporate parent of Enterprise Rent-A-Car, Alamo Rent-A-Car, and National Car Rental – asked whether the Act and Commission regulations preempt a New York state law that limits the types of payroll deductions employers may provide for their employees. N.Y. Lab. Law § 193 and N.Y. Comp. Codes R. & Regs. Tit. 12, § 195-4.5(f).

During the comment period for the advisory opinion request, the New York State Department of Labor clarified that the state law does not apply to the salary deductions proposed by Enterprise or to any other SSF deductions made in accordance with the Act and Commission regulations.

Analysis
Enterprise’s use of payroll deductions to process voluntary contributions to Enterprise
PAC is permissible under the Act and Commission regulations. The regulations expressly permit a corporation to use payroll deductions to facilitate the making of voluntary contributions from the corporation’s executive and administrative personnel to its SSF. 11 CFR 114.1(f), 114.2(f)(4)(i) and 114.5(k)(1); see also Advisory Opinion 2010-12 (Procter & Gamble).

Because the New York State Department of Labor has clarified that the state statute and regulation at issue do not apply to the requestor’s payroll deductions for its SSF, the Commission need not reach the preemption question presented in the request.

Date issued: 06/26/2014; Length: 4 pages.

(Posted 07/02/2014; By: Alex Knott)

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The FEC Record is produced by the Information Division, Office of Communications. Toll free 800-424-9530; Local 202-694-1100; Email info@fec.gov. Greg Scott, Director; Alex Knott, Senior Writer/Editor; Dorothy Yeager, Production Manager