Nason v. Kennebec County Ceta

646 F.2d 10
CourtCourt of Appeals for the First Circuit
DecidedApril 23, 1981
DocketNos. 80-1433, 80-1454
StatusPublished
Cited by19 cases

This text of 646 F.2d 10 (Nason v. Kennebec County Ceta) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nason v. Kennebec County Ceta, 646 F.2d 10 (1st Cir. 1981).

Opinion

LEVIN H. CAMPBELL, Circuit Judge.

Toby Nason and Kennebec County CETA petition for review of a final action of the Secretary of Labor upholding Kennebec County CETA’s termination of Nason’s employment and ordering Kennebec County CETA to restore from non-CETA funds all costs incurred in paying Nason during his employment.1

I.

As a “prime sponsor” under the Comprehensive Employment and Training Act, as [12]*12amended, 29 U.S.C. §§ 801-999 (1978), Kennebec County CETA received federal grants which were in general to be used “to provide job training and employment opportunities for economically disadvantaged, unemployed, or underemployed persons.... ” 29 U.S.C. § 801 (1978). In the fall of 1978, Kennebec County CETA advertised an opening for a “job developer,” a staff member who would “writ[e] survey reports on the job training contracts, analyze progress reports and check reimbursement vouchers, establish a working relationship with the public and private sector hiring agencies for placement of CETA eligible clients.” On November 14,1978, Toby Nason applied for the position. His resume indicated that in 1976 and 1978 he had been a Democratic candidate for Sheriff of Kennebec County and that he was presently an elected member of the Waterville City Council, his term to expire in 1979. (Waterville, a city in Kennebec County, participated during this period in some programs administered by Kennebec County CETA. See infra.). These “elective positions,” Nason noted in the resume, “brought me into contact with many diverse groups in Kennebec County. ... I doubt if there are any groups in Kennebec County unfamiliar to me, and likewise, me to Kennebec County Groups.”

Nason’s application raised concern about the propriety of hiring an active city councilman as a CETA staff member. The Comprehensive Employment and Training Act states that,

“(a) The Secretary shall not provide financial assistance for any program under this chapter which involves political activities.
(b) Neither the program, the funds provided therefor, nor personnel employed in the administration thereof, shall be, in any way or to any extent, engaged in the conduct of political activities in contravention of chapter 15 of Title 5.”

29 U.S.C. § 833(a), (b) (1978)2. This language was largely repeated in then current regulations,

“(a) Political activities. (l)(i) No program under the Act may involve political activities, (ii) Neither, the program nor the funds provided therefor, nor the personnel employed in the administration of the program, shall be in any way or to any extent, engaged in the conduct of political activities in contravention of Chapter 15 of Title 5, United States Code (secs. 208(g) and 710).”

29 C.F.R. § 98.23(a)(1)(i), (ii).3 On November 15,1978, the day after Nason submitted [13]*13his application, the Executive Director of Kennebec County CETA, James Schoenthaler, called a federal CETA representative in the Boston Regional Office of the Department of Labor and discussed, in general and hypothetical terms, the problems that might attend the employment of a Waterville City Council member by Kennebec County CETA. The representative informed Sehoenthaler that she felt such a situation would be “inappropriate,” but offered to look into the matter further. Later that day, she called Sehoenthaler back to reaffirm her earlier opinion. She referred him to the Department of Labor regulation governing political activity, 29 C.F.R. § 98.23 (old regulations), quoted supra, and to a “field letter” of the Boston Regional Office which warned “that even the mere appearance of CETA involvement in political activities would violate the apolitical nature of the CETA program.” Sometime after these two conversations but before Nason was hired, Sehoenthaler called John Bailey, the Associate Regional Administrator for Area Operations, to seek his opinion in the matter. His response was the same as that given by the CETA representative.

Despite these warnings, Kennebec County CETA hired Nason on December 11, 1978. He had been rated first among some 20 applicants. The Department of Labor was not informed of the decision.

On the next day, December 12, Bailey sent Sehoenthaler a letter following up on their conversation of November 15, supra, about the propriety of hiring a Waterville City Councilman as a CETA staff member. Citing the pertinent regulations and Boston Regional Office field letters, the letter repeated the earlier warnings: “We would consider the employment of such an individual as you have described to be inappropriate, and subject to possible disallowance of costs.” Sehoenthaler responded by letter on December 21 and informed Bailey that Na-son had already been hired. He went on to say that the official duties and partisan activities of a Waterville City council member were very minimal. Further, he mentioned two safeguards against possible problems with Nason’s employment. First, he stated, Nason had agreed to resign from elected office if necessary to comply with the Act and regulations; in addition Nason had been asked, upon the advice of an outside attorney, to “abstain from participation in any CETA related matters which may come before the Waterville City Council.” The letter closed asking whether Nason’s hiring under these circumstances was a violation of CETA provisions and, if so, which ones.

The Boston Regional Office did not immediately reply to Schoenthaler’s letter. On January 25, 1979, the Regional Solicitor was asked for an opinion in the matter. He responded on February 1,

“Given the facts as presented we are unable to see how the individual could divorce his two (2) roles and not use the CETA position for his political advantage. The location of his CETA position and the nature of the work he is performing, plus his participation in the Council on CETA matters, and his obvious contact with people, his previous history and his background all could give the appearance of engaging in political activity at all times.”

The Regional Solicitor concluded that a legitimate basis existed “for finding that the employment of this individual is in violation of Section 98.23(a)(1)(i) of the regulations.” Quoted supra. Based on this opinion, Bailey formally notified the Kennebec County Commissioners on February 16, 1979 that Nason’s employment violated section 98.-23(a)(1)(i) of the CETA regulations, and that the costs of Nason’s salary and expenses were disallowed. The costs were ordered to be restored to the Kennebec County CETA grant from non-CETA funds. Despite his purported agreement to do so, Nason refused to resign from the Water-ville City Council. His employment with Kennebec County CETA was terminated on March 6, 1979.

[14]*14Nason appealed his termination and Kennebec County CETA appealed the disallowance of CETA funding for its expenditures on Nason’s employment.

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646 F.2d 10, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nason-v-kennebec-county-ceta-ca1-1981.