John H. Quinlan v. Secretary, U.S. Department of Labor

812 F.3d 832, 2016 CCH OSHD 33,497, 25 OSHC (BNA) 1831, 2016 U.S. App. LEXIS 207, 2016 WL 97602
CourtCourt of Appeals for the Eleventh Circuit
DecidedJanuary 8, 2016
Docket14-12347
StatusPublished
Cited by9 cases

This text of 812 F.3d 832 (John H. Quinlan v. Secretary, U.S. Department of Labor) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John H. Quinlan v. Secretary, U.S. Department of Labor, 812 F.3d 832, 2016 CCH OSHD 33,497, 25 OSHC (BNA) 1831, 2016 U.S. App. LEXIS 207, 2016 WL 97602 (11th Cir. 2016).

Opinion

ANDERSON, Circuit Judge:

Quinlan Enterprises (“Quinlan”), a sole proprietorship that engages in steel erection work, petitions for review of a final decision of the Occupational Safety and Health Review Commission (“Commission”). The Commission held that Quinlan violated standards under the Occupational Safety and Health Act (“OSHA” or the “Act”), 29 U.S.C. §§ 651, et seq., when two of its employees, a foreman and a subordinate employee, were caught working on a concrete block wall and roof platform without fall protection and using a stepladder in an unsafe manner. This appeal presents an issue of first impression in our circuit 1 left open by our decision in Com- *835 Tran Group, Inc. v. United States Department of Labor, 722 F.3d 1304 (11th Cir.2013): Is it appropriate to impute a supervisor’s knowledge of a subordinate employee’s violative conduct to his employer under the Act when the supervisor himself is simultaneously involved in violative conduct? Upon close review of the record, briefs, and the relevant case law, and with the benefit of oral argument, we answer the question presented in the affirmative. Therefore, we deny the petition and affirm the Commission’s decision.

I. BACKGROUND

A. The Underlying Incident and Citations

In February 2012, Quinlan was engaged as the steel erection subcontractor at a construction worksite at the Dougherty High School in Albany, Georgia. Kinney Construction (“Kinney”) was the general contractor at the worksite. Kinney subcontracted with Gerdau AmeriSteel, a company engaged in structural steel fabrication, which then subcontracted to Quin-lan. Quinlan has approximately thirty employees, two of whom — Miguel Pacheco and Humberto Vargas — were working at the Dougherty High School worksite on February 9, 2012.

On February 9, Pacheco and Vargas were assigned to anchor clips inside the building. This work involved installing plates or clips on a concrete block wall, welding clips underneath beams on the roof, and putting in epoxy bolts. The same day, an OSHA Compliance Safety and Health Officer initiated a scheduled on-site inspection. The inspector observed and photographed Pacheco and Vargas working on the edge of a 15-foot high concrete block wall without fall protection. Additionally, the inspector observed a ladder that was not secured from slipping when in the closed position. As a result of the inspection, the Secretary issued Quinlan a three-item Citation and Notification of Penalty on August 7, 2012. The first item alleged a serious violation of 29 C.F.R. § 1926.501(b)(1). 2 The third item alleged a serious violation of 29 C.F.R. § 1926.1053(b)(4). 3 The second item was later vacated and is not relevant to this petition for review. The total amount of the proposed penalties for the three alleged violations was $11,400.00.

B. The ALJ and OSHRC Proceedings

After a hearing, the taking of trial depositions, and the submission of post-hearing briefs, Administrative Law Judge Sharon D. Calhoun issued a Decision and Order on July 22, 2013. Sec’y of Labor v. Quinlan Enters., OSHRC Docket No. 12-1698, 2013 WL 5505283, at *3-16 (Occupational Safety Health Review Comm’n July 22, 2013). The ALJ Order affirmed Item 1 and 3 of the Citation and assessed a total penalty of $7,200.00. Quinlan filed a petition for discretionary review with the Commission on August 12, 2013, arguing that it was not liable for any violation because Pacheco and Vargas were not Quinlan’s employees at the time of exposure. After the ALJ Order was issued, this Court decided Com-Tran, in which we held that “the Secretary does not carry her burden and establish a prima facie case with respect to employer knowledge merely by demonstrating that a *836 supervisor engaged in misconduct.” 722 F.3d at 1316. The ALJ Decision and Order was then directed for review before the Commission and the Commission issued a Remand Order to the ALJ to consider Quinlan’s arguments in his petition for discretionary review as well as the applicability of this Court’s intervening decision in ComTran to the two violations. Quinlan Enters., 24 BNA OSHC 1154 (No. 12-1698, 2013) (remand order).

On remand from the Commission, Judge Calhoun made extensive findings and concluded that Pacheco and Vargas were workers employed by Quinlan at the time of the violations. Quinlan Enters., 24 BNA OSHC 2185, 2186-91 (No. 121698, 2014) (decision and order on remand) (ALJ). The ALJ also distinguished Com-Tran, stating that ComTran “only applies to scenarios where the supervisor is acting alone” and not to situations where the supervisor has knowledge of misconduct by his subordinates. Id. at 2192. Accordingly, the ALJ concluded that ComTran did not alter the dispositions of the affirmed violations. Id. at 2193. Quinlan again sought discretionary review from the Commission but was denied. Thus, Judge Calhoun’s decision became a final order of the Commission on March 31, 2014. This petition for review followed.

II. DISCUSSION

This Court outlined the statutory and regulatory scheme underlying violations of OSHA standards in ComTran, 722 F.3d at 1306-08. As we described:

Under the law of our circuit, the Secretary will make out a prima facie case for the violation of an OSHA standard by showing (1) that the regulation applied; (2) that it was violated; (3) that an employee was exposed to the hazard that was created; and importantly, (4) that the employer “knowingly disregarded” the Act’s requirements.

Id. at 1307. This appeal concerns only the third and fourth elements of the prima facie case.

To satisfy the third element, the Secretary bears the burden of showing that the cited respondent is the employer of the exposed workers at the site. The Act defines employee as follows: “Employee means an employee Of an employer who is employed in a business of his employer which affects commerce.” 29 U.S.C. § 652(6). In ' determining whether the Secretary has satisfied its burden, the Commission applies the control-based test set forth in Nationwide Mutual Insurance Co. v. Darden, 503 U.S. 318, 112 S.Ct. 1344, 117 L.Ed.2d 581 (1992):

To decide whether the party in question was an employer under common law, the Darden

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812 F.3d 832, 2016 CCH OSHD 33,497, 25 OSHC (BNA) 1831, 2016 U.S. App. LEXIS 207, 2016 WL 97602, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-h-quinlan-v-secretary-us-department-of-labor-ca11-2016.