National Black Media Coalition v. Federal Communications Commission, Walt-West Enterprises, Inc., Intervenor

775 F.2d 342, 249 U.S. App. D.C. 292, 59 Rad. Reg. 2d (P & F) 263, 1985 U.S. App. LEXIS 23619, 39 Fair Empl. Prac. Cas. (BNA) 83
Court of Appeals for the D.C. Circuit·Decided October 22, 1985·No. 84-1467·Published·Cited by 29 cases

Opinions

WALD, Circuit Judge:

Petitioner, National Black Media Coalition, Inc. (NBMC), has brought this action to challenge the Federal Communications Commission’s (FCC or Commission) order granting Walt-West Enterprises, Inc. a seven year license to operate WYEN (FM), Des Plaines, Illinois. This case requires us to look at the extent to which the Commission may consider post-term improvements in a licensee’s compliance with the Commission’s Equal Employment Opportunity (EEO) program, and the extent to which the Commission must provide reasons when it strays from previously adopted policy. We hold that the Commission’s consideration of the station’s post-term improvements was not consistent with the dictates of its own policy as set forth in Rust Communications Group, Inc., 73 F.C.C.2d 39 (1979), aff'd sub nom. Metro-Act of Rochester, Inc. v. FCC, 670 F.2d 202 (D.C.Cir.1981), and that the Commission did not provide sufficient explanation to justify this departure from policy. Moreover, the Commission failed to explain why it accorded dispositive weight to evidence which it has in the past proclaimed to be of minimal probative value. We remand the case to the Commission, therefore, for it to take action consistent with Rust or to justify its departure therefrom, and to issue a decision that explains its treatment of the evidence before it.

I. Background

A. Development of FCC’s EEO Policy

As part of its mandate to develop a radio communication service for “all the people of the United States,” 47 U.S.C. § 151, the FCC has developed rules and policies to ensure that broadcast licensees strive to satisfy, and are sensitive to, the needs of their communities. Basic among these rules is that a licensee who discriminates in employment or fails to engage in an effec[345]*345tive EEO program cannot be said to be operating in the “public interest.” See Bilingual Bicultural Coalition on Mass Media, Inc. v. FCC, 595 F.2d 621, 628 (D.C.Cir.1978) (en banc).

The FCC’s monitoring of licensees’ employment of minorities began in 1968 when the Commission concluded that “if the broadcast media is to fully meet [its] obligation to communicate in the highest sense of that abused term ... there must be greater use of the Negro in journalism.” In the Matter of Petition for Rulemaking to Require Broadcast Licensees to Show Nondiscrimination in Their Employment Practices, 13 F.C.C.2d 766, 774 (1968) (citing Report of the National Advisory Commission on Civil Disorders (“Civil Disorders Report”) 211-12 (1968)). The Commission stressed that compliance with the then recently enacted Title VII was not sufficient to accomplish this goal: “simply to comply with the requirements of the national policy — to say, ‘We can’t find qualified Negroes’ — is not enough.” Id. at 774-75. Rather, an exerted effort needed to be undertaken, “to employ enough Negroes in positions of significant responsibility to establish an effective link to Negro actions and ideas and to meet legitimate employment expectations.” Id. at 774 (quoting Civil Disorders Report at 211).1

The Commission, therefore, promulgated regulations requiring every station to “establish, maintain, and carry out, a positive continuing program of specific practices designed to assure equal opportunity in every aspect of station employment policy and practice.” In the matter of Petition for Rulemaking to Require Broadcast Licensees to Show Nondiscrimination in Their Employment Practices, 18 F.C.C.2d 240, 245 (1969). One year later, in order to monitor licensees’ compliance with the new rules, the Commission adopted regulations requiring stations with 5 or more employees to submit an annual report categorizing its employees and to submit their EEO programs indicating the specific practices they follow in ensuring equal employment opportunities for minorities. In re Petition for Rulemaking to Require Broadcast Licensees to Show Nondiscrimination in Their Employment Practices, 23 F.C.C.2d 430 (1970). In so doing it acknowledged that raw figures alone could never be dispositive of whether a station discriminated in hiring or had adopted a meaningful EEO policy. Nonetheless, it considered the data useful “to show industry employment patterns and to raise appropriate questions as to the cause of such patterns.” Id. at 431. The role of the report was to trigger a closer look at a station’s policies if its record of employing minorities was poor.

Until 1972, the FCC reviewed the statistics on a case-by-ease basis, generally concluding that low minority employment was not in itself enough to require an evidentiary hearing. See, e.g., Time-Life Broadcast, Inc., 33 F.C.C.2d 1050, 1058-59 (1972); Universal Communications Corp., 27 F.C.C.2d 1022, 1028 (1971). In 1972, however, the Commission issued processing guidelines indicating when it would conduct an in-depth review of a station’s EEO compliance. The 1972 guidelines applied to stations with ten or more full-time employees and called for review,only if there were either no women or minority employees or if there was a reduction in the number of women or minority employees from the previous year. See Equal Employment Opportunity Processing Guideline Modifications for Broadcast Renewal Applicants (“EEO Processing Guidelines”), 79 F.C.C.2d 922, 929 (1980) (discussing 1972 guidelines).

[346]*346This court’s decision in Stone v. FCC, 466 F.2d 316 (D.C.Cir.1972), introduced a new element into the evolving scheme of processing employment statistics. In Stone, the court dismissed a challenge to an FCC decision to renew a station’s license. The plaintiffs had alleged that the station’s employment practices were discriminatory against blacks, and argued that the statistics evidenced a prima facie case of such discrimination. In rejecting this claim the court explained that it was not holding “that statistical evidence of an extremely low rate of minority employment will never constitute a prima facie showing of discrimination, or ‘pattern of substantial failure to accord equal employment opportunities.’ ” Id. at 332. Rather, the court held that the station’s “employment of 7% blacks out of this total metropolitan area is within the zone of reasonableness.” Id. (emphasis added). After Stone it was no longer sufficient to examine raw numbers alone. Those numbers now had to be compared with the labor workforce figures for the geographic area. Although in Stone the court found the station’s employment figures to be reasonable as compared to the local labor force, the court explicitly left open the possibility that some other stations’ might not be.2

The Commission quickly adopted the “zone of reasonableness” concept in its own adjudications. See Inquiry Into the Employment Policies and Practices of Certain Broadcast Stations Located in Florida, 44 F.C.C.2d 735, aff'd, 48 F.C.C.2d 666 (1974). In the Florida

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National Black Media Coalition v. Federal Communications Commission, Walt-West Enterprises, Inc., Intervenor, 775 F.2d 342, 249 U.S. App. D.C. 292, 59 Rad. Reg. 2d (P & F) 263, 1985 U.S. App. LEXIS 23619, 39 Fair Empl. Prac. Cas. (BNA) 83 (D.C. Cir. 1985).

775 F.2d 342 (National Black Media Coalition v. Federal Communications Commission, Walt-West Enterprises, Inc., Intervenor) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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