National Ass'n of Home Builders v. Occupational Safety & Health Administration

602 F.3d 464, 602 F. Supp. 3d 464, 390 U.S. App. D.C. 233, 2010 CCH OSHD 33,054, 23 OSHC (BNA) 1033, 2010 U.S. App. LEXIS 7861, 2010 WL 1508069
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 16, 2010
Docket09-1053
StatusPublished
Cited by3 cases

This text of 602 F.3d 464 (National Ass'n of Home Builders v. Occupational Safety & Health Administration) 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
National Ass'n of Home Builders v. Occupational Safety & Health Administration, 602 F.3d 464, 602 F. Supp. 3d 464, 390 U.S. App. D.C. 233, 2010 CCH OSHD 33,054, 23 OSHC (BNA) 1033, 2010 U.S. App. LEXIS 7861, 2010 WL 1508069 (D.C. Cir. 2010).

Opinion

Opinion for the Court filed by Senior Circuit Judge RANDOLPH.

RANDOLPH, Senior Circuit Judge:

A driver exceeding the speed limit runs a red light and swerves onto the opposite lane. Three violations of the law against reckless driving or one? Five punches to a victim’s face without provocation. One battery or five? Same result if the punches were hours apart? The financial officer of a corporation with 10,000 shareholders submits a false report to the Securities and Exchange Commission. One fraud or 10,000? These “unit-of-prosecution” questions have vexed state and federal courts. The questions are important. Prosecutors know that multiple charges encourage plea agreements and convictions. Defense attorneys know that it is easier to defend against one charge than many. Most people know that multiple offenses can result in multiple punishments.

Similar problems have dogged civil enforcement proceedings. See, e.g., Missouri, Kansas & Texas Ry. Co. v. United States, 231 U.S. 112, 34 S.Ct. 26, 58 L.Ed. 144 (1913) (Holmes, J.). In this case, the Secretary of Labor amended rules under the Occupational Safety and Health Act to clarify that an employer’s failure to provide respirators or workplace training constitutes not one violation of the applicable health and safety standards, but separate violations for each employee who did not receive the respirator or training. See, e.g., 29 C.F.R. § 1910.9(a), (b). Three trade associations whose members are subject to these amended rules claim the Secretary had no statutory authority to issue the amendments.

*466 The Secretary promulgates workplace “standards.” 29 U.S.C. § 655(b). A standard “requires conditions, or the adoption or use of one or more practices, means, methods, operations, or processes, reasonably necessary or appropriate to provide safe or healthful employment and places of employment.” Id. § 652(8). When the Secretary discovers that an employer has violated a standard, she may issue a citation and propose a financial penalty. Id. §§ 658(a), 659(a). Penalties vary with the severity of the violation: up to $7,000 for serious and other-than-serious violations, up to $70,000 for repeat violations, and between $5,000 and $70,000 for willful violations. Id. § 666(a)-(e).

The Occupational Safety and Health Review Commission, an independent tribunal, hears employer objections to the Secretary’s citations. See Martin v. Occupational Safety & Health Review Comm’n, 499 U.S. 144, 147-48, 111 S.Ct. 1171, 113 L.Ed.2d 117 (1991). The Commission “act[s] as a neutral arbiter and determined whether the Secretary’s citations should be enforced.” Cuyahoga Valley Ry. Co. v. Utd. Transp. Union, 474 U.S. 3, 7, 106 S.Ct. 286, 88 L.Ed.2d 2 (1985). The Commission accepts the Secretary’s reasonable interpretation of regulations. Martin, 499 U.S. at 154-55, 111 S.Ct. 1171. Within the range of fines listed above, the Commission determines the penalty amount de novo in light of the size of the employer’s business, the gravity of the violation, the employer’s good faith, and any history of repeated violations. 29 U.S.C. § 666(j).

The rulemaking here came in response to the Commission’s decision in Sec. of Labor v. Erik K. Ho, 2003 WL 22232014 (O.S.H.R.C.), aff'd, partly on other grounds, Chao v. Occupational Safety & Health Review Comm’n, 401 F.3d 355 (5th Cir.2005). Ho hired eleven workers to renovate a building containing asbestos. He failed to train them or to provide them with respirators. The Secretary cited Ho for eleven violations of the asbestos training standard and eleven violations of the respirator standard. The Commission rejected the Secretary’s employee-by-employee approach and held that the standards required the employer to institute a single training program and to provide respirators to employees as a group. Thus only two violations occurred. The Commission added: “The Secretary has it within her authority to draft standards ... [which] prescribe individual units of prosecution or penalty units, placing the regulated community on notice that violations can be cited on an individualized basis.... When a regulation fails [to provide sufficient notice], the Secretary should remedy the situation by promulgating a clearer regulation.... ” Ho, 2003 WL 22232014, at *17 (internal quotation marks omitted).

The Secretary’s new rules clarified that “each failure to provide [a respirator] to an employee” and “each failure to train an employee may be considered a separate violation.” 29 C.F.R. § 1926.20(f). The rulemaking amended thirty-three other standards to the same effect. See Clarification of Employer Duty to Provide Personal Protective Equipment and Train Each Employee, 73 Fed.Reg. 75,568, 75,-583-89 (Dec. 12, 2008) (codified at 29 C.F.R. parts 1910, 1915, 1917, 1918 and 1926). Although the new rules authorize employee-by-employee charges, the Secretary’s Field Operations Manual states that generally only a single citation will issue for each standard an employer violates. Only when the employer’s behavior is willful and egregious does the manual contemplate multiple citations. OSHA Instruction CPL 2.80, Handling of Cases To Be Proposed for Violation-By-Violation Penalties (October 21, 1990); see Kaspar Wire *467 Works, Inc. v. Sec’y of Labor, 268 F.3d 1123, 1131 (D.C.Cir.2001).

Petitioners have one basic argument, which they repeat in many different forms. The argument is that under the Act, the Secretary had no authority to specify units of prosecution because Congress assigned such determinations to the Commission. We think there is nothing to the argument.

The unit of prosecution is derived from the duty set forth in the Secretary’s standard. See, e.g., Chao, 401 F.3d at 372-73; Sec. of Labor v. E. Smalis Painting Co., 2009 WL 1067815, at *35 (O.S.H.R.C. April 10, 2009); Ho, 2003 WL 22232014, at *12; Sec. of Labor v. Arcadian Corp., 1995 WL 17049978, at *6 (O.S.H.R.C. Sept. 15, 1995). Petitioners themselves acknowledge as much. See Reply Br. for Petitioners at 17. They have no problem with a standard that can be interpreted to permit per-employee citations so long as the standard does not come right out and deal directly with the subject.

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602 F.3d 464, 602 F. Supp. 3d 464, 390 U.S. App. D.C. 233, 2010 CCH OSHD 33,054, 23 OSHC (BNA) 1033, 2010 U.S. App. LEXIS 7861, 2010 WL 1508069, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-assn-of-home-builders-v-occupational-safety-health-cadc-2010.