Frederick County Fruit Growers Association, Inc. v. Lynn Martin, Secretary of Labor

968 F.2d 1265, 296 U.S. App. D.C. 394, 1992 U.S. App. LEXIS 15254, 1992 WL 151925
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 7, 1992
Docket91-5069
StatusPublished
Cited by32 cases

This text of 968 F.2d 1265 (Frederick County Fruit Growers Association, Inc. v. Lynn Martin, Secretary of Labor) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frederick County Fruit Growers Association, Inc. v. Lynn Martin, Secretary of Labor, 968 F.2d 1265, 296 U.S. App. D.C. 394, 1992 U.S. App. LEXIS 15254, 1992 WL 151925 (D.C. Cir. 1992).

Opinion

Opinion for the Court filed by Circuit Judge D.H. GINSBURG.

D.H. GINSBURG, Circuit Judge:

Associations representing fruit growers in several eastern states filed suit, on behalf of themselves and their members, challenging the Secretary of Labor’s interpretation of the regulation establishing the minimum wage for foreign agricultural (H-2) workers. A class of such workers intervened and counter-claimed for unpaid wages for the 1983 through 1985 harvests. Relying upon an earlier court decision interpreting the minimum wage regulation (in a case to which the growers were not parties), the district court precluded the growers from relitigating the meaning of the regulation. The district court also granted the workers’ claim for unpaid wages for the 1983 and 1985 harvests and denied the workers’ claim for the 1984 harvest. Although we follow a line of reasoning different in some respects from that of the district court, we uphold its judgment in all respects.

I. BackgRound

The H-2 program enables a U.S. employer to hire foreign agricultural workers for seasonal work. 8 U.S.C. § 1101(a)(15)(H)(ii) (1982) (amended and renamed “H-2A” after the events at issue here, see 8 U.S.C. § 1101(a)(15)(H)(ii)(a)). In order to hire H-2 workers, an employer must submit to the Secretary of Labor a “job clearance order” in which the employer promises to pay its H-2 workers at least the hourly “adverse effect wage rate” (AEWR) — an amount set by the Secretary in order to ensure that the H-2 program does not adversely affect “the wages of similarly employed U.S. workers,” 20 C.F.R. § 655.200(b) (1983) (current version at 20 C.F.R. § 655.200(c)). An employer that pays its workers by the piece rather than by the hour must establish a piece rate that allows a worker of average productivity to earn the AEWR. See id. § 655.202(b)(9)(ii) (amended 1987).

When the Secretary increases the AEWR, an employer that pays by the piece has two options: either increase the piece rate or increase the productivity of its average worker. In response to claims that *1267 employers were demanding greater output per worker hour, see 43 Fed.Reg. 10306, 10309 (1978), which would have a correspondingly “adverse effect” upon domestic agricultural workers, in 1978 the Secretary promulgated the following regulation:

In any year in which the applicable [AEWR] is increased, employers shall adjust their piece rates upward to avoid requiring a worker to increase his or her productivity over the previous year in order to earn an amount equal to what the worker would earn if the worker were paid at the [AEWR].

Id. at 10317 (codified at 20 C.F.R. § 655.-207(c); repealed 1987). In 1981, the Secretary interpreted the 1978 regulation to mean that when the Secretary increases the AEWR, an employer is required to increase its piece rate only if, based upon the previous year’s productivity and piece rate, the employer’s average worker would not otherwise earn the new AEWR.

When workers challenged this interpretation, Judge Richey held that the “average worker interpretation” was improper and ordered the Secretary to adopt a “proportional increase interpretation” of the 1978 regulation. Under that interpretation, whenever the Secretary increases the AEWR all employers must increase their piece rates by the same proportion. NAACP v. Donovan, 558 F.Supp. 218 (D.D.C.1982) (NAACP I); NAACP v. Donovan, 566 F.Supp. 1202 (D.D.C.1983) (NAACP II).

The Secretary did not appeal NAACP II, opting instead to pursue the average worker policy by adopting a new rule to that effect. See 48 Fed.Reg. 33684, 33687 (1983) (notice of proposed rule). Until the Secretary issued a valid new rule, however, he was bound by NAACP II to require that growers pay their H-2 workers the piece rate calculated according to the proportional increase interpretation of the 1978 regulation. The growers, fearing that the Secretary would not promulgate a new rule before the start of the approaching 1983 harvest, sought and obtained a court order compelling him to issue a new rule by September 1 of that year. Kent Barley, Inc. v. Donovan, No. 83-0079 (W.D.Va. Aug. 18, 1983).

On September 2, the Secretary issued a new rule that codified the average worker interpretation of the 1978 regulation. 48 Fed.Reg. 40168, 40175. Representatives of the workers immediately filed suit to challenge the new regulation, and on September 8 Judge Richey preliminarily enjoined its enforcement. NAACP v. Donovan, No. 82-2315 (D.D.C.1983). Thus, throughout the 1983 harvest (except for the week of September 2-8) the Secretary was under court order to require the growers to pay their H-2 workers the piece rate calculated according to the 1978 regulation. The growers nonetheless paid only the lower piece rate calculated according to the 1983 regulation.

On appeal we vacated Judge Richey’s preliminary injunction prior to the 1984 harvest, but we did not reach the merits of the workers’ challenge to the 1983 regulation. NAACP v. Donovan, 737 F.2d 67 (D.C.Cir.1984) (NAACP III). During the 1984 harvest, therefore, the Secretary applied the 1983 regulation, and the growers again paid their H-2 workers the piece rate calculated upon that basis.

On July 9, 1985 we did reach the merits of the workers’ challenge, and we set aside the 1983 regulation because the Secretary had not adequately explained his reason for adopting it. NAACP v. Donovan, 765 F.2d 1178, 1185 (D.C.Cir.1985) (NAACP IV). That decision in effect reinstated the 1978 regulation. Accordingly, the Secretary required the growers to include in their job clearance orders for the 1985 harvest a promise to pay their workers the higher piece rate. In addition, he refused to accept job orders in which the growers purported to reserve their right to challenge his calculation of the piece rate. The growers complied but also filed separate letters of protest with the Secretary. In violation of their job clearance orders, moreover, the growers again paid their H-2 workers only the lower piece rate calculated according to the 1983 regulation.

In September 1985 the growers filed the present action challenging the Secretary’s *1268 court-ordered (i.e. proportional increase) interpretation of the 1978 regulation. The workers counterclaimed for the difference between what they were paid (under the invalid 1983 regulation) and what they claim they are entitled to (under the 1978 regulation) for the harvests from 1983 through 1985.

The district court noted that the meaning of the 1978 regulation had been fully litigated in NAACP II

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968 F.2d 1265, 296 U.S. App. D.C. 394, 1992 U.S. App. LEXIS 15254, 1992 WL 151925, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frederick-county-fruit-growers-association-inc-v-lynn-martin-secretary-cadc-1992.