['ASSOCIATED BUILDERS AND CONTRACTORS, INC. v. SHIU']

30 F. Supp. 3d 25, 29 Am. Disabilities Cas. (BNA) 804, 2014 U.S. Dist. LEXIS 37106
CourtDistrict Court, District of Columbia
DecidedMarch 21, 2014
DocketCivil Action No. 2013-1806
StatusPublished
Cited by8 cases

This text of 30 F. Supp. 3d 25 (['ASSOCIATED BUILDERS AND CONTRACTORS, INC. v. SHIU']) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
['ASSOCIATED BUILDERS AND CONTRACTORS, INC. v. SHIU'], 30 F. Supp. 3d 25, 29 Am. Disabilities Cas. (BNA) 804, 2014 U.S. Dist. LEXIS 37106 (D.D.C. 2014).

Opinion

MEMORANDUM OPINION

Emmet G. Sullivan, United States District Judge

Plaintiff, the Associated Builders and Contractors, brings this lawsuit to challenge a final rule promulgated by the Department of Labor’s Office of Federal Contract Compliance Programs (“OFCCP”). See Affirmative Action and Nondiscrimination Obligations of Contractors and Subcontractors Regarding Individuals with Disabilities (“Final Rule”), 78 Fed.Reg. 58,682 (Sept. 24, 2013). The Rule, which goes into effect on March 24, 2014, implements Section 503 of the Rehabilitation Act, which requires that government contractors “take affirmative action to employ and advance in employment qualified individuals with disabilities.” 29 U.S.C. § 793(a). Plaintiff asks the Court to enjoin portions of the Rule that it alleges: (1) are contrary to Section 503; (2) are arbitrary and capricious in violation of 5 U.S.C. § 706; and (3) violate the Regulatory Flexibility Act, 5 U.S.C. § 601, et seq. Pending before the Court are the parties’ cross motions for summary judgment. Upon consideration of the motions, the responses and replies thereto, the applicable law, and the administrative record, the Court DENIES plaintiffs motion and GRANTS defendants’ cross motion.

I. Background

A. Section 503 of the Rehabilitation Act

In 1973, Congress enacted the Rehabilitation Act, 29 U.S.C. § 701, et seq., “to empower individuals with disabilities to maximize employment, economic self-sufficiency, independence, and inclusion and integration into society.” Id. § 701(b). Section 503 applies this policy to government contractors:

Any contract in excess of $10,000 entered into by any Federal department or agency for the procurement of personal property and nonpersonal services (including construction) for the United States- shall contain a provision requiring that the party contracting with the United States shall take affirmative action to employ and advance in employment qualified individuals with disabilities. The provisions of this section shall apply to any subcontract in excess of $10,000 entered into by a prime contractor in carrying out any contract for the procurement of personal property and nonpersonal services (including construction) for the United States. The President shall implement the provisions of this section by promulgating regulations within ninety days after September 26,1973.

Id. § 793(a). 1

The current regulations implementing Section 503, which are not challenged here, “apply to every Government contractor that has 50 or more employees and a contract of $50,000 or more.” 41 C.F.R. § 60-741.40(a). All such contractors must “prepare and maintain an affirmative action program.” Id. § 60-741.40(b). This program must include, among other things, a review of job qualification standards that may exclude qualified individuals with disabilities; procedures for internal and external publication of the program; steps to engage in outreach and recruitment of qualified individ *32 uals with disabilities; and regular audits to measure the program’s effectiveness. See id. § 60-741.44. The regulations also require contractors to invite newly hired-employees “to inform the contractor whether the applicant believes that he or she may be covered by the act and wishes to benefit under the affirmative action program.” Id. § 60-741.42(a).

B. Executive Order 11,246

Executive Order 11,246 creates affirmative-action obligations with respect to race and gender. See Exec. Order 11,246, 30 Fed.Reg. 12319 (Sept. 28, 1965); Exec. Order 11,375, 32 Fed.Reg. 14,303 (Oct. 17, 1967). OFCCP’s regulations implementing this Order require most contractors to develop formal affirmative-action programs, 41 C.F.R. § 60-2.10, but construction contractors need only take various affirmative-action steps. See 41 C.F.R. pt. 60-4. The primary reason for this distinction is “the fluid and temporary nature of the construction workforce.” Office of Federal Contract Compliance Programs, Technical Assistance Guide for Federal Construction Contractors at 7 (2009), available at http://www.dol.gov/ofccp/ TAguides/consttag.pdf.

The regulations, nonetheless, impose similar requirements on all contractors to strive to meet benchmarks for workforce diversity. Non-construction contractors must group their workforce by “job group” — jobs with similar duties and wages — and use these groups to “com-parte] ... the representation of minorities and women in its workforce with the estimated availability of minorities and women qualified to be employed.” 41 C.F.R. § 60-2.12. Construction contractors must group their workforce by “construction trade” and use those groups to fdllow “goals and timetables for minority and female utilization.” Id. § 60-4.6;. see also id. § 60-4.2(d). Construction contractors are also required to engage in various affirmative-action steps enumerated in the regulations. See id. § 60-4.3(a).

The regulations also require all contractors to collect and compile data and records related to the gender and race of employees and job applicants. See, e.g., id. § 60-1.7(a) (requiring annual filing of reports containing the number of employees by gender and race); id. § 60-1.12 (requiring contractors to keep “[a]ny personnel or employment record” so that the contractor is “able to identify ... [t]he gender, race, and ethnicity of each employee; and ... [w]here possible, the gender, race, and ethnicity of each applicant”).

C. The Rulemaking Process

OFCCP became concerned that the regulations implementing Section 503 have not sufficiently advanced the employment of qualified individuals with disabilities because “the percentage of people with disabilities in the labor force in March 2010 was 22.5 compared with 70.2 for persons with no disability” and “[t]he unemployment rate for those with! disabilities was 13.9 percent, compared with 10.1 percent for persons with no disability.” See Evaluation of Affirmative Action Provisions of Contractors and Subcontractors Under Section 503 of the Rehabilitation Act, 75 Fed.Reg. 43,116, 43,117 (July 23, 2010). Accordingly, in July 2010, it invited input on ways to strengthen the regulations. See id. Commenters responded “that quantitative and measurable analyses similar to those for minorities and women were needed to make affirmative action for individuals with disabilities ‘more than a paperwork exercise.’ ” Affirmative Action and Nondiscrimination Obligations of Contractors and Subcontractors Regarding Individuals With Disabilities, 76 Fed.Reg. 77,056, 77,057 (Dec. 9, 2011).

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Bluebook (online)
30 F. Supp. 3d 25, 29 Am. Disabilities Cas. (BNA) 804, 2014 U.S. Dist. LEXIS 37106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associated-builders-and-contractors-inc-v-shiu-dcd-2014.