Gulf Oil Corporation v. William Brock, United States Secretary of Labor

778 F.2d 834, 250 U.S. App. D.C. 213, 1985 U.S. App. LEXIS 24905, 39 Empl. Prac. Dec. (CCH) 35,838, 39 Fair Empl. Prac. Cas. (BNA) 892
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 13, 1985
Docket80-1127
StatusPublished
Cited by43 cases

This text of 778 F.2d 834 (Gulf Oil Corporation v. William Brock, United States 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
Gulf Oil Corporation v. William Brock, United States Secretary of Labor, 778 F.2d 834, 250 U.S. App. D.C. 213, 1985 U.S. App. LEXIS 24905, 39 Empl. Prac. Dec. (CCH) 35,838, 39 Fair Empl. Prac. Cas. (BNA) 892 (D.C. Cir. 1985).

Opinion

Opinion for the Court filed by Circuit Judge HARRY T. EDWARDS.

Circuit Judge STARR concurs in Parts L, II.B. and II.C. of the opinion for the court, and in the judgment reversing the District Court.

HARRY T. EDWARDS, Circuit Judge.

This case is a reverse Freedom of Information Act (“FOIA”) action brought by Gulf Oil Corporation (“Gulf”) to enjoin the Department of Labor (“DOL”) from disclosing the 1973 affirmative action plan for Gulf’s Houston Headquarters, which had been requested by the Houston Chapter of the National Organization for Women (“NOW”). Although the NOW FOIA request related only to Gulf’s 1973 affirmative action plan, and Gulf's complaint did not challenge the legality of the DOL regulations governing the disclosure of affirmative action plans, the District Court nevertheless enjoined disclosure of the 1973 plan and, in addition, all “substantially similar” documents. The Government appealed. In 1984, after waiting more than eleven years due to litigation delays, NOW withdrew its request for the 1973 Headquarters plan. This court then dismissed as moot the portion of the appeal pertaining to the order that enjoined public disclosure of Gulf’s 1973 Houston Headquarters affirmative action plan. We now dismiss the rest of the appeal concerning “substantially similar” documents and remand with instructions to the District Court to vacate the injunction against DOL.

I. Background

A. The Regulatory Framework

Gulf is a government contractor subject to Executive Order 11246, 1 which requires it to comply with government regulations designed to ensure that its workforce is free from discrimination based on race, sex, religion or national origin. The DOL’s *836 Office of Federal Contract Compliance Programs (“OFCCP”) bears the responsibility for administering this program. 2 Under OFCCP rules, nonexempt government contractors must file annual EEO-1 Reports detailing the number of women and minority group members employed in specified job categories. 3 They must also prepare affirmative action plans that compare their employment of women and minorities with workforce availability and set goals and timetables to correct deficiencies. 4 Contractors are required to file an affirmative action plan whenever OFCCP conducts a periodic compliance review. 5

Plans submitted by contractors become “agency records” within the meaning of FOIA, which establishes a statutory presumption that such records will be disclosed, on request, unless they fall into one of nine categories of exemptions from mandatory disclosure. 6 If an agency falls within an exemption, disclosure of the information is left to the agency’s discretion. 7

DOL regulations that govern the availability of records submitted under Executive Order 11246 tend to favor disclosure. 8 The OFCCP is instructed to release such information, on request, notwithstanding the applicability of a FOIA exemption, if disclosure will further the public interest and will not impede the agency’s functions, unless such disclosure is prohibited by law. 9 However, if the preconditions for release are not met, OFCCP is instructed to withhold portions of affirmative action plans, such as goals and timetables, that are found to be confidential commercial or financial information “because they indicate, and only to the extent that they indicate, that a contractor plans major shifts or changes in his personnel requirements and he has not made this information available to the public.” 10 In addition, OFCCP is instructed to withhold information from the plans on staffing patterns and pay scales, if release would “injure the business or financial position of the contractor, would constitute a release of confidential financial information of an employee or would constitute an unwarranted invasion of the privacy of an employee.” 11

While FOIA and the DOL regulations generally militate in favor of disclosures, the Trade Secrets Act 12 prohibits certain disclosures by officers or employees of the government. However, the prohibitions of the Trade Secrets Act are limited to disclosures “not authorized by law.” Initially, DOL took the position that its regulations authorized disclosures “by law” and, therefore, assumed that none of its disclosures were prohibited by the Trade Secrets Act. In 1979, the Supreme Court rejected this position. In Chrysler Corp. v. Brown, 13 the Court held that DOL does not have *837 authority to limit the scope of the Trade Secrets Act and, in addition, that the regulations were not promulgated pursuant to the procedures required for the enactment of substantive rules. Thus, the Court held that the regulations do not carry the “force and effect of law.” 14 As a result of the Chrysler decision, DOL must now determine whether a contemplated disclosure falls within the protective cover of the Trade Secrets Act. 15 Information that was formerly disclosable under department regulations must now be withheld if subject to the prohibitions of the Trade Secrets Act.

B. Procedural History

In 1973, Gulf submitted an affirmative action plan for its Houston Headquarters in connection with a compliance review of its affirmative action program. In April, 1973, NOW filed a FOIA request for this plan. Under its normal procedures, DOL notified Gulf of this request on May 30, 1973. Gulf lodged a formal protest, arguing that the plan contained confidential business information and should be exempt from public disclosure. On December 26, 1973, DOL notified Gulf that it intended to disclose the requested document. Gulf filed a reverse-FOIA action in federal district court for the District of Colorado. Although Gulf sought to enjoin DOL from disclosing any affirmative action plans, EEO-1 Reports or other documents submitted by Gulf in the past or the future, the complaint did not challenge the legality of department regulations governing the availability of records submitted under Executive Order 11246.

The adjudication was repeatedly postponed. It was first delayed pending the decision in Sears Roebuck & Co. v. General Services Administration, 16 and then, in August, 1975, the Colorado court transferred the case to the United States District Court for the District of Columbia.

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778 F.2d 834, 250 U.S. App. D.C. 213, 1985 U.S. App. LEXIS 24905, 39 Empl. Prac. Dec. (CCH) 35,838, 39 Fair Empl. Prac. Cas. (BNA) 892, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-oil-corporation-v-william-brock-united-states-secretary-of-labor-cadc-1985.