NDC Construction Company v. Secretary of Labor, United States Department of Labor

Court of Appeals for the Eleventh Circuit·Decided June 30, 2022·No. 20-14484·Unpublished

Opinion

[DO NOT PUBLISH]

In the

United States Court of Appeals For the Eleventh Circuit

No. 20-14484

NDC CONSTRUCTION COMPANY, Petitioner,

versus SECRETARY OF LABOR, UNITED STATES DEPARTMENT OF LABOR,

Respondent.

Petition for Review of a Decision of the Occupational Safety and Health Review Commission Agency No. 17-1689

2 Opinion of the Court 20-14484

Before LAGOA, BRASHER, and TJOFLAT, Circuit Judges. PER CURIAM:

NDC Construction Company (“NDC”) seeks review of an administrative law judge’s (“ALJ”) decision imposing a penalty for violations of 29 C.F.R. § 1926.501(b)(13), an Occupational Safety and Health Administration (“OSHA”) regulation concerning fall protection at construction worksites. Following a bench trial, the ALJ found that NDC failed to exercise reasonable diligence. The ALJ’s decision became a final order of the Occupational Safety and Health Review Commission (the “Commission”) when the Commission denied NDC’s petition for discretionary review. NDC now seeks review of the ALJ’s decision from this Court.

In its petition for review of the final order, NDC primarily asserts two arguments. First, NDC contends that it cannot be held liable for violating § 1926.501(b)(13) because NDC was held liable under OSHA’s multi-employer citation policy, which, according to NDC, is an unpromulgated agency rule or the product of impermissible agency policymaking, or both. Second, NDC asserts that the ALJ erred in finding that NDC did not exercise reasonable diligence .

After careful review, and with the benefit of oral argument, we conclude that, under 29 U.S.C. § 660(a), NDC is barred from raising its arguments concerning the validity of OSHA’s multi-employer citation policy and that the ALJ’s findings are supported by 20-14484 Opinion of the Court 3

substantial evidence. Accordingly, we deny NDC’s petition for review and affirm the ALJ’s decision.

I. FACTUAL BACKGROUND A. The Construction Worksite and NDC’s Role as General Contractor

NDC was the general contractor for a multiacre residential construction project in Bradenton, Florida. The construction project involved building fourteen structures, including multifamily residential housing units.

As the general contractor, NDC managed the construction worksite. While NDC had employees stationed at the worksite, its employees did not perform the construction work. Instead, NDC’s employees managed the construction process and oversaw various subcontractors who performed the construction work.

NDC oversaw between thirty and forty subcontractors at the height of construction. NDC neither trained subcontractors in connection with worksite safety nor conducted its own safety-specific inspections. But NDC’s onsite employees conducted daily worksite-walkthroughs and notified subcontractors, either by phone or in writing, of worksite safety violations they happened to observe.

Under the agreements NDC had with its subcontractors, the subcontractors were required to provide NDC with a copy of their safety manuals and to provide documentation of weekly safety meetings. NDC also had the contractual authority to require 4 Opinion of the Court 20-14484

subcontractors to abate safety violations within seventy-two hours and NDC could “make the necessary corrections” if a safety hazard was not abated by its subcontractors. And NDC could remove subcontractors and sub-subcontractors, as well as the subcontractors’ employees, from the worksite for safety violations.

B. OSHA Inspections

On April 5, 2017, two OSHA inspectors visited the worksite.

Upon entering the worksite, the OSHA inspectors observed four fall-protection-related safety violations—i.e., violations of 29 C.F.R. § 1926.501(b)(13). 1 The OSHA inspectors later learned that these safety violations involved workers that were employed by NDC’s subcontractors or sub-subcontractors.

The first safety violation involved a worker who was “doing sheeting work”—i.e., laying pieces of plywood—on the roof of a building without “any kind of protection against a fall.” The second safety violation involved a worker on a stepladder, on an opensided balcony without safety railings, who was not wearing a “personal fall arrest system.” The third safety violation involved two workers on a one-story building that were working without fall protection systems in place. And the fourth safety violation involved a worker, who was not wearing a harness and who was not

1 As relevant to this case, under 29 C.F.R. § 1926.501(b)(13), “[e]ach employee engaged in residential construction activities 6 feet (1.8 m) or more above lower levels shall be protected by guardrail systems, safety net system, or personal fall arrest system. . . .”

20-14484 Opinion of the Court 5

“tied off,” on a third-story balcony that did not have a safety railing or safety net.

The OSHA inspectors reported these observations to NDC’s on-site superintendent and manager, and an NDC employee informed NDC’s subcontractors that OSHA was on-site. The OSHA inspectors then walked around the worksite a second time and spoke to various employees. During their second walkthrough, the OSHA inspectors did not observe any additional safety hazards. While many workers were no longer working during OSHA’s subsequent walkthrough, the workers the OSHA inspectors did observe were either not working on elevated surfaces or were wearing personal fall protection equipment. But, in talking to workers at the worksite, the OSHA inspectors learned that workers “had been working all day without fall protection” and “at no time did they use fall protection.”

The OSHA inspectors returned to the worksite on April 7, 2017. They did not observe any safety violations during that inspection .

II. PROCEDURAL BACKGROUND After further investigation, OSHA issued a citation and notification of penalty to NDC for the four violations of 29 C.F.R. § 1926.501(b)(13) that the OSHA inspectors observed. The citation proposed a penalty of $8,873. Because NDC had failed to submit documents to demonstrate that the violations were abated, OSHA also requested proof of abatement. NDC contested the citation, 6 Opinion of the Court 20-14484

and the case proceeded to trial to determine whether NDC was liable for the four safety violations.

A. Trial

At trial, NDC stated that “[u]nlike many, many contractors that have come before this Commission . . . , [NDC is] not asking you to destroy the multi-employer work site doctrine.” Instead, NDC asserted that it acted in a reasonably diligent manner and abated the relevant safety violations.

NDC’s employees testified that they notified their subcontractors when they observed safety hazards at the worksite and held meetings with subcontractors to discuss “any safety issues that were brought up.” NDC’s employees further testified that all of the safety hazards that they observed were immediately abated by their subcontractors, including the safety violations OSHA identified . But NDC’s employees also testified that they did not always follow up with subcontractors to ensure that safety hazards were, in fact, abated. And NDC did not maintain records indicating that the [s]afety violations were abated.

Evidence admitted at trial suggested that the fall-protection-

related safety violations arose before, and persisted after, the OSHA inspections. For example, on several occasions leading up to the OSHA inspections, NDC notified its subcontractors that balconies did not have safety rails. And at a meeting held on April 11, 2017, approximately one week after the OSHA inspections, NDC 20-14484 Opinion of the Court 7

notified its subcontractors that “[s]afety rails continue[d] to be insufficient .”

B. The ALJ’s Decision

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NDC Construction Company v. Secretary of Labor, United States Department of Labor, (11th Cir. 2022).

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