Associated Builders & Contractors of Texas, Inc. v. National Labor Relations Board

826 F.3d 215, 206 L.R.R.M. (BNA) 3393, 2016 U.S. App. LEXIS 10552, 2016 WL 3228174
CourtCourt of Appeals for the Fifth Circuit
DecidedJune 10, 2016
Docket15-50497
StatusPublished
Cited by12 cases

This text of 826 F.3d 215 (Associated Builders & Contractors of Texas, Inc. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Associated Builders & Contractors of Texas, Inc. v. National Labor Relations Board, 826 F.3d 215, 206 L.R.R.M. (BNA) 3393, 2016 U.S. App. LEXIS 10552, 2016 WL 3228174 (5th Cir. 2016).

Opinion

EDITH BROWN CLEMENT, Circuit Judge:

Appellants, Associated Builders and Contractors of Texas, Inc., its chapter member, the Central Texas Chapter of ABC of Texas, and the National Federal of Independent Business/Texas (collectively, the “ABC entities”), are Texas-based trade and advocacy associations that represent construction employers and small business owners. The ABC entities brought a facial challenge to enjoin enforcement of a final rule issued by the National Labor Relations Board (the “Board” or “NLRB”) that modifies procedures relating to union representation elections. Because the new rule, on its face, does not violate the National Labor Relations Act or the Administrative Procedure Act, we AFFIRM.

I.

The challenged NLRB rule amended the procedures for determining, whether a majority of employees wish to be represented by a labor organization for purposes of collective bargaining. 1 See Representation — Case Procedures, 79 Fed. Reg. *219 74308-10 (Dec. 15, 2014). Intended to decrease the time preceding union elections, the rule allows for employees to take a vote on union representation as soon as eleven days after a petition for representation is filed. Among other changes, the rule defers employer challenges to voter eligibility issues until after an election is held; removes the standard twenty-five day delay that normally occurs between the time a regional director directs an election and the actual election; and requires expanded disclosure of employee contact information.

Before the rule became effective, the ABC entities filed this action, arguing that the rule exceeds the Board’s statutory authority under the National Labor Relations Act (“the Act” or “NLRA”) and violates the Administrative Procedure Act (“APA”). The ABC entities, in a motion for summary judgment, requested that the district court vacate the rule changes as facially invalid and enjoin enforcement. 2 In response, the Board filed a combined partial motion to dismiss and cross-motion for summary judgment, contending that deference is owed to decisions of the Board and that the rule changes are reasonable and consistent with the NLRA and the APA. The district court ruled in favor of the Board, and this appeal followed. 3

II.

We review de novo a district court’s grant of summary judgment, “applying the same standard as the district court.” 10 Ring Precision, Inc. v. Jones, 722 F.3d 711, 717 (5th Cir. 2013). We analyze an agency’s interpretation of its authorizing statute using the two-step procedure set forth in Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). First, we ask “whether Congress has directly spoken to the precise question at issue.” Id. at 842, 104 S.Ct. 2778. If it has, “that is the end of the matter,” and we “must give effect to the unambiguously expressed intent of Congress.” Id. at 842-43, 104 S.Ct. 2778. If it has not, we defer to the agency’s reasonable interpretations of the statute. See NLRB v. Ky. River Cmty. Care, Inc., 532 U.S. 706, 713, 121 S.Ct. 1861, 149 L.Ed.2d 939 (2001).

The APA also authorizes us to set aside agency actions if “arbitrary, capricious, an abuse of discretion” or otherwise “not in accordance with law, or unsupported by substantial evidence on the record taken as a whole.” Tex. Clinical Labs, Inc. v. Sebelius, 612 F.3d 771, 775 (5th Cir. 2010); see 5 U.S.C. § 706(2). Our task is to determine whether the agency examined the pertinent evidence, considered the relevant factors, and articulated a “reasonable explanation for how it reached its decision.” Tex. Office of Pub. Util. Counsel *220 v. FCC, 183 F.3d 393, 410 (5th Cir. 1999); see Motor Vehicle Mfrs. Ass’n of U.S. v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 43, 103 S.Ct. 2856, 77 L.Ed.2d 443 (1983). This standard is highly deferential; we apply a presumption of validity. Tex. Clinical Labs, Inc., 612 F.3d at 775. We may not substitute our judgment for that of the agency. See FCC v. Fox Television Stations, Inc., 556 U.S. 502, 513, 129 S.Ct. 1800, 173 L.Ed.2d 738 (2009).

Because the ABC entities bring a facial challenge, they “must establish that no set of circumstances exists under which the [Rule] would be valid.” Center for Individual Freedom v. Carmouche, 449 F.3d 655, 662 (5th Cir. 2006) (quoting United States v. Salerno, 481 U.S. 739, 745, 107 S.Ct. 2095, 95 L.Ed.2d 697 (1987)); see Sherley v. Sebelius, 644 F.3d 388, 397 (D.C. Cir. 2011) (applying the “no set of circumstances” test to a facial statutory challenge); Scherer v. U.S. Forest Service, 653 F.3d 1241, 1243 (10th Cir. 2011) (“To prevail in this and any facial challenge to an agency’s regulation, the plaintiffs must show that there is ‘no set of circumstances’ in which the challenged regulation might be applied consistent with the agency’s statutory authority.” (quoting Reno v. Flores, 507 U.S. 292, 301, 113 S.Ct. 1439, 123 L.Ed.2d 1 (1993))).

III.

The NLRA grants employees the right “to bargain collectively through representatives of their own choosing ... and to ... refrain from ... such activities.” 29 U.S.C. § 157. Section 9 of the Act gives the Board authority to resolve questions of representation, and sets forth the basic steps for that process. When a petition for representation is filed, the Board is required to investigate the petition and “provide for an appropriate hearing upon due notice” before the election is held. Id. § 159(c)(1). The hearing “may be conducted by an officer or employee of the regional office, who shall not make any recommendation with respect thereto.” Id.

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826 F.3d 215, 206 L.R.R.M. (BNA) 3393, 2016 U.S. App. LEXIS 10552, 2016 WL 3228174, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associated-builders-contractors-of-texas-inc-v-national-labor-ca5-2016.