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California's Fair Employment and Housing Act (FEHA), prohibits discrimination in employment and housing. In September 1978, California amended the FEHA to proscribe certain forms of employment discrimination on the basis of pregnancy. It requires these employers to provide female employees an unpaid pregnancy disability leave of up to four months. This was construed to require California employers to reinstate an employee returning from such pregnancy leave to the job she previously held unless it is no longer available due to business necessity. In the latter case, the employer must make a reasonable, good-faith effort to place the employee in a substantially similar job. The statute does not compel employers to provide paid leave to pregnant employees. Title VII of the Civil Rights Act of 1964 also prohibits various forms of employment discrimination, including discrimination on the basis of sex. However, in General, Electric Co. v. Gilbert, the Court ruled that discrimination on the basis of pregnancy was not sex discrimination under Title VII. Congress then passed the Pregnancy Discrimination Act of 1978 (PDA). The PDA specifies that sex discrimination includes discrimination on the basis of pregnancy. A woman employed as a receptionist by P took a pregnancy disability leave in 1982, but when she notified P that she was able to return to work, she was informed that her job had been filled and that there were no similar positions available. She then filed a complaint with respondent Department of Fair Employment and Housing (D), which charged P with violating California law. Before a hearing was held on the complaint, P brought an action in Federal District Court, seeking a declaration that California law pre-empted by Title VII. The District Court granted summary judgment for P, but the Court of Appeals reversed. P appealed.

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