American Association Of Retired Persons v. Equal Employment Opportunity Commission

489 F.3d 558, 40 Employee Benefits Cas. (BNA) 2287, 2007 U.S. App. LEXIS 12869, 89 Empl. Prac. Dec. (CCH) 42,842, 100 Fair Empl. Prac. Cas. (BNA) 1483
CourtCourt of Appeals for the Third Circuit
DecidedJune 4, 2007
Docket05-4594
StatusPublished

This text of 489 F.3d 558 (American Association Of Retired Persons v. Equal Employment Opportunity Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Association Of Retired Persons v. Equal Employment Opportunity Commission, 489 F.3d 558, 40 Employee Benefits Cas. (BNA) 2287, 2007 U.S. App. LEXIS 12869, 89 Empl. Prac. Dec. (CCH) 42,842, 100 Fair Empl. Prac. Cas. (BNA) 1483 (3d Cir. 2007).

Opinion

489 F.3d 558

AMERICAN ASSOCIATION OF RETIRED PERSONS; Jack W. MacMillan; Frank H. Smith, Jr.; Frank A. Wheeler; Fred Dochat; Gerald Fowler; M. Elaine Clay, Appellants
v.
EQUAL EMPLOYMENT OPPORTUNITY COMMISSION.

No. 05-4594.

United States Court of Appeals, Third Circuit.

Argued: February 27, 2007.

Filed: June 4, 2007.

Christopher G. Mackaronis (Argued), Brickfield, Burchette, Ritts and Stone, Laurie A. McCann, American Association of Retired Persons, Washington, DC, Stephen G. Console, Philadelphia, PA, Counsel for Appellants.

Anthony A. Yang (Argued), United States Department of Justice, Appellate Section, Marleigh D. Dover, United States Department of Justice, Washington, DC, Counsel for Appellees.

Barbara B. Brown, Neal D. Mollen, Paul, Hastings, Janofsky & Walker, Washington, DC, for Counsel for Amicus-Appellee Chamber of Commerce of the United States.

Douglas L. Greenfield, Bredhoff & Kaiser, Washington, DC, Counsel for Amicus-Appellees National Education Association; American Federation of Teachers; International Union, United Automobile, Aerospace and Agricultural Implement Workers of America; American Federation of State, County and Municipal Employees; United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union; and International Association of Fire Fighters.

Ann E. Reesman, McGuiness, Norris & Williams, Washington, DC, Counsel for Amicus-Appellees Equal Employment Advisory Council; HR Policy Association; America's Health Insurance Plans; American Benefits Council; ERISA Industry Committee; National Rural Electric Cooperative Association; Society for Human Resource Management; American Council on Education; College and University Professional Association for Human Resources; and WorldatWork.

Before: MCKEE and ALDISERT, Circuit Judges, and RESTANI*, Judge.

OPINION OF THE COURT

RESTANI, Judge.

Appellants American Association of Retired Persons, et al. ("AARP"), appeal a judgment of the United States District Court for the Eastern District of Pennsylvania. The District Court vacated, on the basis of a significant change in law, a previous grant of summary judgment in favor of AARP, and instead granted summary judgment in favor of the Equal Employment Opportunity Commission ("EEOC"). At issue is a regulation that would exempt from the Age Discrimination in Employment Act ("ADEA")1 employer coordination of retirement benefits with, inter alia, Medicare benefits. AARP challenges the regulation as contrary to the terms of the ADEA, and seeks to reinstate the District Court's permanent injunction against implementation of the regulation. We will affirm the District Court's order granting summary judgment in favor of the EEOC on grounds other than those relied on by the District Court.

BACKGROUND

On July 14, 2003, the EEOC published a notice of proposed rulemaking to exempt from the prohibitions of the ADEA "the practice of altering, reducing or eliminating employer-sponsored retiree health benefits when retirees become eligible for Medicare or a State-sponsored retiree health benefits program." Age Discrimination in Employment Act; Retiree Health Benefits, 68 Fed.Reg. 41,542, 41,542 (EEOC July 14, 2003) (notice of proposed rulemaking).2 AARP brought suit in the Eastern District of Pennsylvania on February 4, 2005, challenging the proposed regulation under the Administrative Procedure Act, 5 U.S.C. §§ 551, et seq. ("APA"), and the ADEA. AARP v. Equal Employment Opportunity Comm'n, 383 F.Supp.2d 705, 708 (E.D.Pa.2005) ("AARP I").

Initially, the District Court granted summary judgment in favor of AARP, holding that the challenged regulation was contrary to law under this court's decision in Erie County Retirees Ass'n v. County of Erie, 220 F.3d 193 (3d Cir.2000). In Erie County, consistent with the position of the EEOC in that action, we held that, as Medicare eligibility is age dependent, the ADEA did not permit reduction or termination of retiree health benefits upon Medicare eligibility unless the employer met the "equal benefit or equal cost" defense set forth in section 4 of the ADEA.3 Id. at 217. Accordingly, here the District Court stated that "[b]ecause the Third Circuit held in Erie County that Congress intended the ADEA to apply to the exact same behavior that the EEOC would exempt, the EEOC's challenged exemption is contrary to Congressional intent and the plain language of the ADEA." AARP I, 383 F.Supp.2d at 710. The District Court permanently enjoined the EEOC from "publishing or otherwise implementing the regulation at issue." Id. at 712. The EEOC appealed that judgment.

On June 27, 2005, while the first appeal was pending, the Supreme Court decided National Cable and Telecommunications Ass'n v. Brand X Internet Services, 545 U.S. 967, 125 S.Ct. 2688, 162 L.Ed.2d 820 (2005). Brand X held that prior judicial interpretation of a statute bars subsequent agency interpretations only where the precedent "unambiguously forecloses the agency's interpretation, and therefore contains no gap for the agency to fill." Brand X, 545 U.S. at 983, 125 S.Ct. 2688. The EEOC moved for relief from judgment in the District Court, citing Brand X as an intervening change of law with respect to the court's application of Erie County and arguing that its proposed regulation was consistent with the statute. AARP v. Equal Employment Opportunity Comm'n, 390 F.Supp.2d 437, 441-42 (E.D.Pa.2005) ("AARP II"). The District Court granted the motion, vacating its decision in AARP I and granting summary judgment in favor of the EEOC. Id. at 462. The District Court stayed its order lifting the permanent injunction pending any appeal. Id. at 463. AARP appeals.

JURISDICTION AND STANDARD OF REVIEW

The District Court had jurisdiction under 28 U.S.C. § 1331. We have jurisdiction under 28 U.S.C. § 1291. We review the District Court's grant of summary judgment de novo. Concerned Citizens Alliance, Inc., v. Slater, 176 F.3d 686, 693 (3d Cir.1999).

DISCUSSION

At issue is whether the proposed regulation is within the EEOC's authority under the ADEA, and whether the regulation is valid under the APA.

I. The Proposed Regulation is Within the EEOC's Exemption Authority Under Section 9 of the ADEA

There is a well-trodden two-step approach to judicial review of an agency regulation. Chevron, U.S.A., Inc. v. Natural Res. Def. Council,

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489 F.3d 558, 40 Employee Benefits Cas. (BNA) 2287, 2007 U.S. App. LEXIS 12869, 89 Empl. Prac. Dec. (CCH) 42,842, 100 Fair Empl. Prac. Cas. (BNA) 1483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-association-of-retired-persons-v-equal-employment-opportunity-ca3-2007.