Emerson Electric Co. v. Schlesinger

609 F.2d 898, 21 Fair Empl. Prac. Cas. (BNA) 475, 1979 U.S. App. LEXIS 10270, 21 Empl. Prac. Dec. (CCH) 30,390
Court of Appeals for the Eighth Circuit·Decided November 21, 1979·No. Nos. 79-1158, 79-1187·Published·Cited by 9 cases

Opinion

HEANEY, Circuit Judge.

Emerson Electric Company and McDonnell Douglas Corporation appeal from a ruling of the District Court upholding the validity of a 1974 “Memorandum of Understanding” providing, inter alia, for the sharing of information between the Equal Employment Opportunity Commission (EEOC) and the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP).1 Because appellants assert a number of grounds in support of their appeal and the issues involved in this case are relatively complex, a detailed examination of the facts underlying this appeal is necessary.

I.

Appellants, as United States government contractors, must comply with the requirements of Executive Order 11246, as amended by Executive Order 11375,2 and the OFCCP regulations promulgated thereunder.3 Current regulations require the appellants to submit certain reports to a compliance agency designated by the OFCCP. Included among the documents required are annual “affirmative action programs” (AAPs) prepared for each of the contractors’ facilities. AAPs contain detailed analyses of the facility’s work force, reports of the contractor’s success or failure in taking affirmative action to employ and advance minority group members and women, and self-imposed goals for correcting deficiencies. See 41 C.F.R. §§ 60-2.10 to .14 (1978). In addition, the appellants are required to file Employer Information (EEO-1) Reports with both the compliance agency and the EEOC. These reports contain other information used in determining whether unlawful employment practices are being committed. The compliance agency analyzes the contractor’s AAPs and supporting documents to determine whether the contractor has complied with the Executive Orders. OFCCP officials then prepare and file Compliance Review Reports and Complaint Investigation Reports on the contractors.

The 1974 Memorandum of Understanding that is the subject of the current dispute provides that the EEOC and the OFCCP are to share these reports and supporting documents with each other.4 In addition, paragraph 10 of the Memorandum provides that complaints filed with the OFCCP shall be deemed to be charges filed with the EEOC.

The appellants challenge the Memorandum on the grounds that (1) it is a substantive regulation that is beyond the authority of the agencies involved; (2) it impermissi-bly circumvents the relevancy requirement imposed on the EEOC by Title VII of the Civil Rights Act of 1964; (3) it violates the Federal Reports Act; (4) it abridges the appellants’ privilege against disclosure of self-evaluative reports; and (5) it violates the Trade Secrets Act. The District Court rejected these arguments5 and granted the agencies’ motion for summary judgment. 465 F.Supp. 22 (E.D.Mo.1978).

[902] II.

The overriding issue is whether the EEOC and the OFCCP had authority to enter into the Memorandum of Understanding. The OFCCP, as the delegate of the Secretary of Labor, claims broad authority under Section 201 of Executive Order 11246, 3 C.F.R. §§ 339, 340 (1964-1965 Compilation). That section provides: “The Secretary of Labor shall be responsible for the administration of Parts II and III of this Order and shall adopt such rules and regulations and issue such orders as he deems necessary and appropriate to achieve the purposes thereof.” The EEOC derives its rulemaking authority from Section 713(a) of Title VII, Civil Rights Act of 1964, 42 U.S.C. § 2000e-12(a), which provides in part: “The [EEOC] shall have authority from time to time to issue, amend, or rescind suitable procedural regulations to carry out the provisions of this subchapter.”

Section 713(a) of Title. VII has been interpreted to preclude the EEOC from issuing substantive regulations. See General Electric Co. v. Gilbert, 429 U.S. 125,141, 97 S.Ct. 401, 50 L.Ed.2d 343 (1976); EEOC v. Raymond Metal Products Co., 530 F.2d 590 (4th Cir. 1976). Thus, whether the agencies had authority to enter into the Memorandum will depend on whether it is characterized as substantive or procedural in nature. This characterization is also significant in another respect: if the Memorandum is considered to be procedural, there is no requirement that it be promulgated in accordance with the notice and comment provisions of the Administrative Procedure Act, 5 U.S.C. § 553(a)(2), (b)(A).

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Emerson Electric Co. v. Schlesinger, 609 F.2d 898, 21 Fair Empl. Prac. Cas. (BNA) 475, 1979 U.S. App. LEXIS 10270, 21 Empl. Prac. Dec. (CCH) 30,390 (8th Cir. 1979).

609 F.2d 898 (Emerson Electric Co. v. Schlesinger) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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