Joy Technologies, Inc. v. Secretary of Labor

99 F.3d 991, 1996 U.S. App. LEXIS 28961, 1996 WL 636583
CourtCourt of Appeals for the Tenth Circuit
DecidedNovember 5, 1996
Docket95-9540
StatusPublished
Cited by24 cases

This text of 99 F.3d 991 (Joy Technologies, Inc. v. Secretary of Labor) 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
Joy Technologies, Inc. v. Secretary of Labor, 99 F.3d 991, 1996 U.S. App. LEXIS 28961, 1996 WL 636583 (10th Cir. 1996).

Opinion

TACHA, Circuit Judge.

In this petition for review, we must examine the regulatory jurisdiction of the Mine Safety and Health Administration (MSHA) under the Federal Mine Safety and Health Act of 1977 (Mine Act), codified as amended at 30 U.S.C. §§ 801-962. Joy Technologies, Inc., (Joy) manufactures- and sells mining equipment and sends service representatives onto mine property in connection with the sale of its products. In enforcing a safety regulation promulgated under the Mine Act, the. Federal Mine Safety and Health Review Commission (FMSHRC) upheld the assessment of a penalty by MSHA against Joy for its failure to provide required annual refresher training to its service representatives. On appeal, Joy contests MSHA’s jurisdiction to assess the penalty, arguing that (1) Joy is not an “independent contractor” because it did not have a contract for services and did not control any mining related operations and (2) Joy is not an “operator” because it was not sufficiently involved in the extraction process and was not continually present at the mine. We have jurisdiction over this petition for review pursuant to 30 U.S.C. § 816(a) and affirm.

BACKGROUND

I. Federal Mine Safety and Health Act

In 1969, Congress enacted the Federal Coal Mine Health and Safety Act (Coal Mine Act), Pub.L. No. 91-173, 83 Stat. 742, which subjected to regulation every coal mine affecting commerce and every operator of such coal mine. § 4, 83 Stat. at 744. Section 3(d) of the Coal Mine Act defined an “operator” as “any owner, lessee, or other person who operates, controls, or supervises a coal mine.” § 3(d), 83 Stat. at 744. Although section 3(d) did not specifically include indépendent contractors within the definition of “operator,” courts interpreted this provision to include independent contractors whenever the contractors, in performing services at a coal mine, controlled or supervised all or part of the mine. See Association of Bituminous Contractors, Inc. v. Andrus, 581 F.2d 853, 860-62 (D.C.Cir.1978) (“[A]n independent construction company, which operates, controls, or supervises excavation work ... is an ‘operator.of a coal mine’ within the meaning and purposes of [the Coal Mine Act].”); Bituminous Coal Operators’ Ass’n v. Secretary of Interior, 547 F.2d 240, 246 (4th Cir.1977) (“[W]hen a company exercises control and *994 supervision over a specific area of land while it is constructing one of the facilities mentioned in the act, it is functioning as an operator of a coal mine.”).

In 1977, in order to improve and promote safety and health in the nation’s mines, Congress amended the Coal Mine Act, renaming it the Federal Mine Safety and Health Act. See Pub.L. No. 96-164, §§ 101, 102(a), 91 Stat. 1290. Congress broadened section 3(d) of the Coal Mine Act to include in the definition of operator “any independent contractor performing services or construction at [a] mine.” 30 U.S.C. § 802(d). The Secretary of Labor, through MSHA, an agency within the Department of Labor, see 29 U.S.C. § 557a, issued a regulation defining an independent contractor as “any person ... [who] contracts to perform services or construction at a mine.” 30 C.F.R. § 45.2(c).

II. Procedural History

On April 6, 1992, Joy Technologies delivered a new continuous miner to the Sanborn Creek Mine, operated by Somerset Mining Company (Somerset) in Gunnison County, Colorado. On this occasion, as well as on at least four previous occasions during 1992, Dick McElhannon, a Joy service representative, visited the Sanborn Creek Mine and performed a variety of services, including assuring that Joy’s equipment was delivered in proper condition, advising and assisting in repairs, and procuring necessary replacement parts. McElhannon’s own reports show that he helped Somerset’s maintenance staff in “troubleshooting” problems with the equipment both above ground in the mine’s maintenance shop and below ground in the mine. McElhannon, however, did not personally unload, assemble, or service any machine. The parties do not dispute that Joy did not have a service contract with Somerset. The only contracts between the parties were for the sale of parts and new equipment.

On April 7, 1992, an MSHA inspector entered the maintenance shop while Somerset’s maintenance crew was assembling the continuous miner. The inspector observed McEl-hannon' using a remote control to move the main frame of the continuous miner to help a Somerset mechanic pin the machine together. The inspector believed that McElhannon was operating the remote control in a hazardous manner. When the inspector determined that McElhannon had not received eight hours of annual refresher training as required of all miners under 30 C.F.R. § 48.28(a), the inspector issued a citation against Joy.

Joy contested MSHA’s citation and civil penalty proposal, and a hearing was held before an administrative law judge on July 20, 1993. The ALJ issued a decision affirming the violation and assessing a civil penalty of $100 against Joy. Joy Technologies, Inc., 15 F.M.S.H.R.C. 2147, 2152 (1993). Thereafter, FMSHRC granted Joy’s petition for review, and on August 14, 1995, FMSHRC issued a final decision affirming the ALJ’s decision that Joy was both an independent contractor and an operator within the meaning of the Mine Act. Joy Technologies, Inc., 17 F.M.S.H.R.C. 1303 (1995). Relying on a previous decision, Bulk Transp. Servs., Inc., 13 F.M.S.H.R.C. 1354, 1358 n.2 (1991), FMSHRC concluded that Joy did not need a specific service contract with Somerset to qualify as an independent contractor. FMSHRC did not address Joy’s argument that control was required for independent contractor status. FMSHRC further concluded that Joy was an operator, applying the two-part test set forth in FMSHRC’s Otis Elevator Co. line of eases: Otis Elevator, Inc., 11 F.M.S.H.R.C. 1896 (1989) (Otis I), and Otis Elevator Inc., 11 F.M.S.H.R.C. 1918 (1989) (Otis II), aff'd on other grounds, 921 F.2d 1285 (D.C.Cir.1990). Under this test, FMSHRC examines (1) “the independent contractor’s proximity to the extraction process” and (2) “the extent of [the contractor’s] presence at the mine.” Otis I, 11 F.M.S.H.R.C. at 1902.

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99 F.3d 991, 1996 U.S. App. LEXIS 28961, 1996 WL 636583, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joy-technologies-inc-v-secretary-of-labor-ca10-1996.