G.H. Daniels III & Associates, Inc. v. Perez

626 F. App'x 205
CourtCourt of Appeals for the Tenth Circuit
DecidedNovember 5, 2015
Docket13-1479
StatusUnpublished
Cited by8 cases

This text of 626 F. App'x 205 (G.H. Daniels III & Associates, Inc. v. Perez) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
G.H. Daniels III & Associates, Inc. v. Perez, 626 F. App'x 205 (10th Cir. 2015).

Opinion

ORDER AND JUDGMENT **

TERRENCE L. O’BRIEN, Circuit Judge.

The H-2B visa program allows the Department of Homeland Security *207 (DHS) to admit foreign workers into the United States to perform temporary nonagricultural services and labor. 1 Congress authorized (and charged) DHS with the decision-making, but as it stands the Department of Labor (DOL) also has a role. Until December 2008, its role was merely advisory — if an employer satisfied certain conditions DOL would issue a temporary labor certification (certification). Obtaining the “advice” of DOL (in the form of the grant or denial of a certification) was a precondition to DHS’s decision on the matter, but DOL’s denial of a certification was neither final nor necessarily preclu-sive. Regardless of DOL’s action, an employer was permitted to make its case to DHS, which decided the matter de novo, even when doing so involved evidence not considered by, or even presented to, DOL. DHS always made the final decision about admitting temporary workers irrespective of DOL’s “advice.” All this was quite consistent with the relevant statute. But things changed.

In December 2008 DOL and DHS each promulgated regulations governing the H-2B program. 2 Under those regulations, if DOL finally denies an employer’s request for a certification, the matter is ended— absent a DOL certification an employer cannot petition DHS for the admission of H-2B workers. The tortured regulatory history has complicated things, but it ultimately comes down to this: by regulatory decree DOL has supplanted DHS as final decision-maker to the extent that it has exclusive veto power over certain applications.

The issue we confront is whether an agency' may, without Congressional authorization, delegate its decision-making responsibility to an entirely different agency. Courts are quite tolerant of the administrative practices of agencies, but passing the buck on a non-delegable duty exceeds elastic limits. This case is remanded to the district court to enter judgment consistent with this order and judgment.

I. Plaintiffs

G.H. Daniels, III & Associates (Daniels) and Handy Andy Snow Removal are small landscaping and snow removal companies, respectively, with their principal places of business in Gypsum, Colorado. Every year they rely on H-2B workers to perform seasonal work. They claim the 2008 regulations have improperly thwarted their ability to obtain H-2B workers. One of their arguments challenges DHS’s regulations as an impermissible subdelegation of its H-2B decision-making authority and responsibilities to DOL. Also, according to them, DOL’s actions on their applications for certifications for the 2010, 2011, and *208 2012 seasons were unlawful under the Administrative Procedure Act (APA).

II. Subdelegation

A Statutory Background, and District Court Decision

The H-2B visa program, named for the statutory section creating it, 3 allows employers to petition for the admission of foreign workers into the United States to perform temporary nonagricultural work (1) if “unemployed persons capable of performing such service or labor cannot be found in this country,” 8 U.S.C. § 1101(a)(15)(H)(ii)(b), and (2) when doing so will not “adversely affect the wages and working conditions of similarly employed United States workers” (the “if’ and “when”). 4 8 C.F.R. § 214.2(h)(6)(in)(A). Congress charged DHS 5 with implementation of the statute “after consultation with appropriate agencies of the Government.” 8 U.S.C. § 1184(c)(1). DHS chose to consult with DOL by requiring employers seeking to hire H-2B workers to obtain a certification from DOL prior to petitioning DHS for the temporary admission. 8 C.F.R. § 214.2(h)(6)(iii)(C), (iv)(A). The certification constitutes DOL’s “advice” as to the “if’ and “when” of the statute. 8 C.F.R. § 214.2(h)(6)(iii)(A).

Historically, DHS would temporarily admit the workers notwithstanding DOL’s denial of a certification. See 8 C.F.R. § 214.2(h)(6)(iv)(D), (E) (2008). The landscape changed in December 2008 with companion rulemaking by DHS and DOL. 73 Fed. Reg. 78,020 (Dec. 19, 2008) (DOL); 73 Fed. Reg. 78,104 (Dec. 19, 2008) (DHS). Collectively, these regulations sometimes put the cart before the horse; DHS’s plenary review and final decision were supplanted in some eases by an administrative review process before DOL. Under DOL’s 2008 regulations, if the certifying officer decides the employer’s application for a certification fails to satisfy one or more criteria for certification, the officer must issue a “Request for Further Information” to the employer. 73 Fed. Reg. at 78,060 (to be codified at 20 C.F.R. § 655.23(c)(1)). The employer has seven days in which to respond to the request. Id. (to be codified at 20 C.F.R. § 655.23(c)(2)(h)). If an employer fails to timely comply with the request, the certification may be denied on that basis. Id. (to be codified at 20 C.F.R. § 655.23(d)). And if, after review of all of the information the employer provides, the certifying officer denies a certification, the employer may appeal to the DOL’s Board of Alien Labor Certification Appeals (BALCA). Id. at 78,063 (to be codified 20 C.F.R. § 655.33(a)). But, unlike prior “appeals” to DHS, appeals to BALCA are limited to the evidence before the certifying officer; the employer is not permitted to present *209 new evidence. Id. (to be eodified at 20 C.F.R. § 655.33(a)(5)). Moreover and most important, BALCA’s decision is sometimes final; if DOL’s administrative review process results in a denial of a certification, the employer has no further recourse. 73 Fed. Reg. at 78,127, 78,129 (codified at 8 C.F.R. § 214.2(h)(6)(iii)(C), (iv)(A)).

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Bluebook (online)
626 F. App'x 205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gh-daniels-iii-associates-inc-v-perez-ca10-2015.