Commissioner of the Department of Workplace Standards, Education and Labor Cabinet v. Kalkreuth Roofing and Sheet Metal, Inc.

CourtCourt of Appeals of Kentucky
DecidedOctober 11, 2024
Docket2023-CA-0649
StatusPublished

This text of Commissioner of the Department of Workplace Standards, Education and Labor Cabinet v. Kalkreuth Roofing and Sheet Metal, Inc. (Commissioner of the Department of Workplace Standards, Education and Labor Cabinet v. Kalkreuth Roofing and Sheet Metal, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Commissioner of the Department of Workplace Standards, Education and Labor Cabinet v. Kalkreuth Roofing and Sheet Metal, Inc., (Ky. Ct. App. 2024).

Opinion

RENDERED: OCTOBER 11, 2024; 10:00 A.M. TO BE PUBLISHED

Commonwealth of Kentucky Court of Appeals

NO. 2023-CA-0649-MR

COMMISSIONER OF THE DEPARTMENT OF WORKPLACE STANDARDS, EDUCATION AND LABOR CABINET APPELLANT

APPEAL FROM FRANKLIN CIRCUIT COURT v. HONORABLE PHILLIP J. SHEPHERD, JUDGE ACTION NO. 22-CI-00155

KALKREUTH ROOFING AND SHEET METAL, INC.; AND KENTUCKY OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION APPELLEES

OPINION AFFIRMING

** ** ** ** **

BEFORE: ECKERLE, A. JONES, AND TAYLOR, JUDGES.

ECKERLE, JUDGE: The Franklin Circuit Court affirmed a Final Decision and

Order of Appellee, the Kentucky Occupational Safety and Health Review

Commission (“the Commission”), dismissing a citation and penalty against Appellee, Kalkreuth Roofing and Sheet Metal, Inc. (“Kalkreuth”). Appellant, the

Commissioner of the Department of Workplace Standards, Education, and Labor

Cabinet (“the Cabinet”), had issued the citation and recommended a penalty. It

now seeks review of the dismissal and urges reinstatement of its charges.

The underlying citation alleged that Kalkreuth violated 29 Code of

Federal Regulation (“C.F.R.”) § 1926.501(b)(10) when it allowed its employees to

work within a warning line system on a flat or low-sloped roof without any

secondary fall protection. However, the Commission and the Circuit Court

interpreted the regulation as requiring secondary protection only if the work was

being performed outside the warning line requiring dismissal of the citation. The

Cabinet asks us to reverse the Circuit Court contending the regulation requires the

use of secondary fall protection whenever a warning line system is employed

regardless of where the work is being performed in relation to the warning line.

We conclude that the regulation and definition can be read together

congruently, giving meaning to each, as required in statutory interpretation. This

reading supports the interpretation offered by the Commission, Kalkreuth, the

national trade organization, the underlying citation, and the practice that has been

in place in the industry for many years. The Cabinet’s recent conclusion, finding

an ambiguity in the definition section of the regulation, unnecessarily strains the

principles controlling the review and legal interpretations of the terms used in

-2- regulations. It also unilaterally attempts to overturn long-standing and well-

established practices without any showing that those practices have caused any

harm or danger. Hence, we affirm the Circuit Court’s Order upholding the

Commission’s decision to dismiss the Cabinet’s citation against Kalkreuth.

I. FACTUAL AND PROCEDURAL HISTORY

In 2018, Kalkreuth was performing roofing work on the Kentucky

International Convention Center in Louisville, Jefferson County. During a routine

investigation, the Cabinet noticed a Kalkreuth employee working on a flat or low-

sloped, large roof inside a “warning line system” – an area marked by a warning

barrier over six feet from the roof’s edge. The language used in the definition of

the terms used throughout the roofing industry and the regulations governing it are

central to the issues before us. Undisputedly, all employees were working within

the boundary of the warning line, and they used this demarcation line as the sole

method of fall protection without any supplementation.

On November 28, 2018, the Cabinet issued a citation to Kalkreuth for

one violation of 29 C.F.R. § 1926.501(b)(10), for failing to use a secondary fall-

protection system. This citation carried a $2,000.00 penalty. Kalkreuth contested

the citation, and the Cabinet filed a Complaint with the Commission. The Cabinet

took the position, apparently for the first time, that the regulation required

Kalkreuth’s employees to use a supplemental fall-protection measure when

-3- working within a warning line system on a low-slope or flat roof. Kalkreuth

countered that a July 23, 1996, advisory letter (“the Ellis letter”),1 and several

advisory letters issued thereafter, interpreted the regulation differently and required

additional safety measures only when workers went beyond the warning line

system.

On September 13, 2021, the Commission’s Hearing Officer (the

“Officer”) issued Findings of Fact, Conclusions of Law, and a Recommended

Order upholding the Cabinet’s citation. The Officer concluded that the language of

the regulation and definition required Kalkreuth’s employees to use supplemental

safety measures in addition to the warning line system, whether within or outside

of it, when working on a low-sloping or flat roof. However, the Officer also found

that Kalkreuth had relied in good faith on the Ellis letter. Thus, the Officer found a

violation, but recommended that no penalty be imposed.

Both Kalkreuth and the Cabinet submitted countervailing petitions

seeking review. On February 2, 2022, the Commission issued a final Decision and

Order dismissing both the citation and the civil penalty. The Commission

concluded that the Cabinet failed to meet its burden of proving that Kalkreuth

1 The Ellis letter was written by Russell B. Swanson, from the Directorate of Construction- Occupational Safety and Health Administration (“OSHA”) – Office of Construction Standards and Compliance Assistance, in response to an inquiry from Dr. J. Nigel Ellis of Dynamic Scientific Controls regarding several interpretations of OSHA’s standards regarding fall protection.

-4- violated the standard set forth in the regulation. The Commission further

concluded that the Cabinet failed to prove that Kalkreuth’s actions exposed its

employees to a fall hazard.

The Cabinet then appealed the Commission’s Decision and Order to

the Franklin Circuit Court under Kentucky Revised Statutes (“KRS”) 13B.140 and

338.091. In an Opinion and Order issued on May 8, 2023, the Circuit Court

affirmed the Commission. The Circuit Court concluded that the regulation

required supplemental fall protection in addition to the warning line system only

when workers went beyond that line. The Cabinet now appeals to this Court.

Additional facts will be set forth below as necessary.

II. STANDARD OF REVIEW

As an initial matter, we note that there has been a recent change in law

on an issue that has tangential impact on this case. Kentucky has generally

adhered to the doctrine of “Chevron deference,” first enunciated by the United

States Supreme Court 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). Under this

doctrine, courts may defer to an agency’s interpretation of an ambiguous statute or

regulation if it “is based on a permissible construction of the statute.” Id. at 843,

104 S. Ct. at 8782. But following briefing in this case, the United States Supreme

Court abrogated the Chevron doctrine in Loper Bright Enterprises v. Raimondo,

-5- 144 S. Ct. 2244, 2254, 219 L. Ed. 2d 834 (U.S. Jun. 28, 2024).2 The Supreme

Court reinforced the principle that it is the function of the courts, not the agencies

whose actions the courts review, to decide all relevant questions of law and

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Commissioner of the Department of Workplace Standards, Education and Labor Cabinet v. Kalkreuth Roofing and Sheet Metal, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/commissioner-of-the-department-of-workplace-standards-education-and-labor-kyctapp-2024.