WALLACH, Circuit Judge.
The Director of the Office of Personnel Management ("OPM") seeks review of the decision by the Merit Systems Protection Board ("Board") holding that the Supreme Court's decision in Department of the Navy v. Egan, 484 U.S. 518, 108 S.Ct. 818, 98 L.Ed.2d 918 (1988), limits Board review of an otherwise appealable adverse action only if that action is based upon eligibility for or a denial, revocation, or suspension of access to classified information. Egan, however, prohibits Board review of agency determinations concerning eligibility of an employee to occupy a "sensitive" position, regardless of whether the position requires access to classified information. Accordingly, we REVERSE and REMAND.
Rhonda K. Conyers ("Conyers") and Devon Haughton Northover ("Northover" and collectively, "Respondents")
In Egan, the Supreme Court held that the Board plays a limited role in adverse action cases involving national security concerns. The respondent in Egan lost his laborer's job at a naval facility when he was denied a required security clearance. 484 U.S. at 520, 108 S.Ct. 818. Reversing our decision in Egan v. Department of the Navy, 802 F.2d 1563 (Fed.Cir.1986), rev'd, 484 U.S. 518, 108 S.Ct. 818, 98 L.Ed.2d 918 (1988), the Court held that the Board does not have authority to review the substance of the security clearance determination, contrary to what is required generally in other adverse action appeals. 484 U.S. at 530-31, 108 S.Ct. 818. Rather, the Court held that the Board has authority to review only: (1) whether an Executive Branch employer determined the employee's position required a security clearance; (2) whether the clearance was denied or revoked; (3) whether the employee was provided with the procedural protections specified in 5 U.S.C. § 7513; and (4) whether transfer to a nonsensitive position was feasible. Id. at 530, 108 S.Ct. 818.
Ms. Conyers occupied a competitive service position of GS-525-05 Accounting Technician at the Defense Finance and Accounting Service. Conyers v. Dep't of Def., 115 M.S.P.R. 572, 574 (2010). Following an investigation, the Agency's Washington Headquarters Services ("WHS") Consolidated Adjudications Facility ("CAF") discovered information about Ms. Conyers that raised security concerns. J.A. 149-52. As a result, effective September 11, 2009, the Agency indefinitely suspended Ms. Conyers from her position because she was denied eligibility to occupy a sensitive position by WHS/CAF. Conyers, 115 M.S.P.R. at 574. The Agency reasoned that Ms. Conyers's noncritical sensitive "position required her to have access to sensitive information," and because WHS/CAF denied her such access, "she did not meet a qualification requirement of her position."
Ms. Conyers appealed her indefinite suspension to the Board. Id. In response, the Agency argued that Egan prohibited Board review of the merits of WHS/CAF's decision to deny Ms. Conyers eligibility for access "to sensitive or classified information and/or occupancy of a sensitive position." Id. On February 17, 2010, the administrative judge issued an order certifying the case for an interlocutory appeal and staying all proceedings pending resolution by the full Board. Id. at 575. In her ruling, the administrative judge declined to apply Egan and "informed the parties that [she] would decide the case under the broader standard applied in ... other [5 U.S.C.] Chapter 75 cases which do not involve security clearances." Id. (brackets in original).
Mr. Northover occupied a competitive service position of GS-1144-07 Commissary Management Specialist at the Defense Commissary Agency. Northover v.
Mr. Northover subsequently appealed the Agency's decision to the Board. Id. In response, the Agency argued it had designated the Commissary Management Specialist position a "moderate risk" national security position with a sensitivity level of "noncritical sensitive," and under Egan, the Board is barred from reviewing the merits of an agency's "security-clearance/eligibility determination." Id.
On April 2, 2010, contrary to the ruling in Conyers, the presiding chief administrative judge ruled that Egan applied and that the merits of the Agency's determination were unreviewable. Id. The chief administrative judge subsequently certified his ruling to the full Board. Id. All proceedings were stayed pending resolution of the certified issue. Id.
On December 22, 2010, the full Board affirmed the administrative judge's decision in Conyers and reversed the chief administrative judge's decision in Northover, concluding that Egan did not apply in cases where security clearance determinations are not at issue. Conyers, 115 M.S.P.R. at 590; Northover, 115 M.S.P.R. at 468. Specifically, the Board held that Egan limited the Board's review of an otherwise appealable adverse action only if that action is based upon eligibility for or a denial, revocation, or suspension of access to classified information.
OPM moved for reconsideration of the Board's decisions, which the Board denied. Berry v. Conyers, et al., 435 Fed.Appx. 943, 944 (Fed.Cir.2011) (order granting OPM's petition for review). OPM petitioned for review to this court, and the petition was granted on August 17, 2011. Id. We have jurisdiction to review the Board's final decision under 5 U.S.C. § 7703(d) and 28 U.S.C. § 1295(a)(9).
The statutes provide a two-track system for removal of employees based on national security concerns. Egan, 484 U.S. at 526, 108 S.Ct. 818. In particular, relevant provisions of the Civil Service Reform Act of 1978 ("CSRA" or the "Act"), Chapter 75 of Title 5 of the United States Code entitled, "Adverse Actions," provides two subchapters related to removals. The first, subchapter II (§§ 7511-7514), relates to removals for "cause." Under § 7512, an agency's indefinite suspension and a reduction in grade of an employee, as here, may qualify as "adverse actions." 5 U.S.C. § 7512(2)-(3). An employee subject to an adverse action is entitled to the protections of § 7513, which include written notice of the specific reasons for the proposed action, an opportunity to respond to the charges, the requirement that the agency's action is taken to promote the efficiency of the service, and the right to review by the Board of the action. An employee removed for "cause" has the right, under § 7513(d), to appeal to the Board. On review of the action by the Board under § 7701,
The second, subchapter IV (§§ 7531-7533), relates to removals based upon national security concerns. An employee suspended under § 7532(a) is not entitled to appeal to the Board. Nonetheless, the statute provides for a summary removal process that entitles the employee to specified pre-removal procedural rights, including a hearing by an agency authority. 5 U.S.C. § 7532(c).
The Board and Respondents urge this court to limit Egan's application to security clearance determinations, reasoning that national security concerns articulated in that case pertain to access to classified information only. Egan cannot be so confined. Its principles instead require that courts refrain from second-guessing Executive Branch agencies' national security determinations concerning eligibility of an individual to occupy a sensitive position, which may not necessarily involve access to classified information. For the following reasons, Egan must apply.
Egan, at its core, explained that it is essential for the Executive Branch and its agencies to have broad discretion in making determinations concerning national security. Affording such discretion to agencies, according to Egan, is based on the President's "authority to classify and control
Id. Hence, unless Congress specifically has provided otherwise, courts traditionally have shown "great deference" to what "the President — the Commander in Chief — has determined ... is essential to national security." Winter v. Natural Res. Def. Council, 555 U.S. 7, 24, 26, 129 S.Ct. 365, 172 L.Ed.2d 249 (2008) (citation omitted).
Despite the undisputed role of the Executive within this realm, Respondents argue applying Egan to these cases "may deprive either the Congress or the Judiciary of all freedom of action merely by invoking national security." Resp'ts' Br. 23. Certainly, under the Constitution, Congress has a substantial role in both foreign affairs and national security. Congress, therefore, has the power to guide and limit the Executive's application of its powers. Nevertheless, no controlling congressional act is present here.
As Egan recognized, the CSRA did not confer broad authority to the Board in the national security context.
The existence of § 7532 does not alter the agencies' broad discretion to exercise their powers in the national security context. The Board and Respondents argue that Congress has spoken directly on the issue of removal for national security concerns by enacting § 7532, and that applying Egan in this instance "would in essence allow the Executive to replace § 7532 with § 7513 ... rendering § 7532 a nullity." Resp'ts' Br. 24-25; see Board's Br. 42-43. This argument is similar, if not identical, to those rejected by the Egan Court. 484 U.S. at 533, 108 S.Ct. 818 ("The argument is that the availability of the § 7532 procedure is a `compelling' factor in favor of Board review of a security-clearance denial in a case under § 7513.").
In Egan, the Court observed the alternative availability of § 7513 and § 7532. Id. at 532, 108 S.Ct. 818. Specifically, the Court acknowledged that § 7532 does not preempt § 7513 and that the two statutes stand separately and provide alternative routes for administrative action. Id. In addition, the Court found that the two sections were not anomalous, but merely different. Id. at 533, 108 S.Ct. 818. The Court also found that one section did not necessarily provide greater procedural protections than the other. Id. at 533-34, 108 S.Ct. 818.
Moreover, Carlucci held that Congress enacted § 7532 to "supplement, not narrow, ordinary agency removal procedures." Id. at 102, 109 S.Ct. 407. The Court reasoned that because of its summary nature, "Congress intended § 7532 to be invoked only where there is `an immediate threat of harm to the national security' in the sense that the delay from invoking `normal dismissal procedures' could `cause serious damage to the national security.'" Id. (quoting Cole v. Young, 351 U.S. 536, 546, 76 S.Ct. 861, 100 L.Ed. 1396 (1956)). Consequently, should § 7532 be mandatory as the Board and Respondents effectively argue, it would become the exclusive procedure in this case and similar cases, and "no national security termination would be permissible without an initial suspension and adherence to the Cole v. Young standard." Id. Given Carlucci's teaching, we are unconvinced that Congress intended any such result when it enacted § 7532. Id. Accordingly, eligibility to occupy a sensitive position is a discretionary agency determination, principally within the purview of the Executive Branch, the merits of which are unreviewable by the Board.
The Board and Respondents conflate "classified information" with "national security information," but Egan does not imply those terms have the same meaning.
In addition, sensitive positions concerning national security do not necessarily entail access to "classified information" as the Board and Respondents contend. The Board cites Cole v. Young and references the Court's discussion of the legislative history of the Act of August 26, 1950
Cole held that a sensitive position is one that implicates national security, and in defining "national security" as used in the Act of August 26, 1950, the Court concluded that the term "was intended to comprehend only those activities of the Government that are directly concerned with the protection of the Nation from internal subversion or foreign aggression, and not those which contribute to the strength of the Nation only through their impact on the general welfare." 351 U.S. at 544, 76 S.Ct. 861 (emphasis added).
Indeed, "sensitive positions" that can affect national security and "access to classified information" are parallel concepts that are not necessarily the same. As the Court reasoned:
Cole, 351 U.S. at 546, 76 S.Ct. 861 (emphasis added).
The Board and Respondents' focus on one factor, eligibility of access to classified information, is misplaced.
For example, categorizing a sensitive position is undertaken without regard to access to classified information, but rather with regard to the effect the position may have on national security. See Exec Order No. 10,450 § 3. Similarly, predictive judgments
484 U.S. at 531, 108 S.Ct. 818. An agency's determination of an employee's ineligibility to hold a sensitive position must be "consistent with the interests of national security." See Exec. Order No. 10,450, § 3. Thus, such agency determinations cannot be reviewable by the Board because this would improperly place an inconsistent burden of proof upon the government. Accordingly, Egan prohibits review of Executive Branch agencies' national security determinations concerning eligibility of an individual to occupy a sensitive position, which may not necessarily involve access to classified information.
National security concerns render the Board and Respondents' positions untenable. It is naive to suppose that employees without direct access to already classified information cannot affect national security. The Board and Respondents' narrow focus on access to classified information ignores the impact employees without security clearances, but in sensitive positions, can have.
This area of National Security Law is largely about preventing human source intelligence gathering in a manner which does not, in an open society, unnecessarily limit the public's right to access information about its government's activities. Still, there clearly is a need for such prevention. Within the sphere of national security limitations on government employment, our society has determined that courts should tolerate and defer to the agencies' threat limiting expertise. See id.
While threats may change with time, Egan's analysis remains valid. The advent of electronic records management, computer analysis, and cyber-warfare have made potential espionage targets containing means to access national security information vastly more susceptible to harm by people without security clearances. The mechanics of planting within a computer system a means of intelligence gathering are beyond the ken of the judiciary; what matters is that there are today more sensitive areas of access than there were when Egan was authored. Its underlying analysis, nevertheless, is completely applicable — the President, as Commander-in-Chief, has the right and the obligation, within the law, to protect the government against potential threats. Egan, 484 U.S. at 527, 108 S.Ct. 818.
Some rights of government employees are certainly abrogated in national security cases. The Board and Respondents must recognize that those instances are the result of balancing competing interests
In our society, it has been accepted that genuine and legitimate doubt is to be resolved in favor of national security.
For the foregoing reasons, the Board cannot review the merits of Executive Branch agencies' national security determinations concerning eligibility of an employee to occupy a sensitive position that implicates national security. As OPM notes, "there is nothing talismanic about eligibility for access to classified information." OPM's Br. 27. The core question is whether an agency determination concerns eligibility of an employee to occupy a sensitive position that implicates national security. When the answer to that question is in the affirmative, Egan applies and the Board plays a limited role in its review of the determination. We REVERSE and REMAND for further proceedings consistent with this decision.
DYK, Circuit Judge, dissenting.
The majority, reversing the Merit Systems Protection Board ("Board"), holds that hundreds of thousands of federal employees — designated as holding national security positions — do not have the right to appeal the merits of adverse actions to the Board simply because the Department of Defense has decided that such appeals should not be allowed.
The majority reaches this conclusion even though the Civil Service Reform Act of 1978 ("CSRA"), 5 U.S.C. § 1101 et seq., unquestionably gives these employees the right to appeal the merits of adverse agency personnel actions to the Board, and Congress has acted specifically to deny Board jurisdiction under the CSRA with respect to certain national security agencies — the Central Intelligence Agency ("CIA"), the Federal Bureau of Investigation ("FBI"), and intelligence components of the Department of Defense — but has not exempted the non-intelligence components of the Department of Defense involved here. And the majority reaches this conclusion despite the fact that Congress in 2003 authorized the Department of Defense to create just such an exemption for its non-intelligence components and then repealed that authorization in 2009. The majority offers little explanation as to how its decision can be consistent with the CSRA other than to dismissively state that "no controlling congressional act is present here." Majority Op. at 1229.
The majority's sole ground for its reversal of the Board is the Supreme Court's decision in Department of the Navy v. Egan, 484 U.S. 518, 108 S.Ct. 818, 98 L.Ed.2d 918 (1988). What the Supreme Court itself characterized as the "narrow" decision in Egan does not remotely support the majority's position. See id. at 520, 108 S.Ct. 818. It simply holds that where access to classified information is a necessary qualification for a federal position, revocation of a security clearance pursuant to the predecessor of Executive Order No. 12,968, 60 Fed. Reg. 40,245 (Aug. 2, 1995), is a ground for removal, and that the merits of the security clearance revocation are outside the Board's jurisdiction. The employees' positions here required no such access, and the employees in question had no security clearances. Far from supporting elimination of Board jurisdiction in such circumstances, Egan explicitly recognized that national security employees could challenge their removal before the Board. 484 U.S. at 523 n. 4, 108 S.Ct. 818 (noting that where the agency fails to invoke the summary removal procedures of 5 U.S.C. § 7532, an employee's "removal ... presumably would be subject to Board review as provided in § 7513.").
The breadth of the majority's decision is exemplified by the low level positions involved in this very case. Ms. Conyers served as a GS-05 Accounting Technician (approximately $32,000 to $42,000 annual
At the outset, it is important to be clear about the exact nature of the majority's decision. Under the majority's expansive holding, where an employee's position is designated as a national security position, see 5 C.F.R. § 732.201(a),
The majority's holding allows agencies to take adverse actions against employees for illegitimate reasons, and have those
OPM's concession is grounded in existing law since the majority expands Egan to cover all "national security" positions, and Egan has been held to foreclose whistle-blower, discrimination, and other constitutional claims. Relying on Egan, we have held that the Board lacks jurisdiction where a petitioner alleges that his security clearance had been revoked in retaliation for whistleblowing. See Hesse v. Dep't of State, 217 F.3d 1372, 1377-80 (Fed.Cir. 2000), cert. denied, 531 U.S. 1154, 121 S.Ct. 1103, 148 L.Ed.2d 974 (2001). So too, the majority's decision renders unreviewable all claims of discrimination by employees in national security positions under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e-5. Several circuits have held that courts lack jurisdiction to adjudicate discrimination claims where the adverse action is based on a security clearance revocation because "a Title VII analysis necessarily requires the court to perform some review of the merits of the security clearance decision," which is prohibited by Egan. Brazil v. U.S. Dep't of the Navy, 66 F.3d 193, 196 (9th Cir.1995); see Bennett v. Chertoff, 425 F.3d 999, 1003 (D.C.Cir.2005) ("While [the plaintiff] claims that [the agency's] security clearance explanation is pretextual, ... a court cannot adjudicate the credibility of that claim.").
The majority completely fails to come to grips with the statute, the fact that it provides for review of the merits of the adverse agency action involved here, and that the majority's holding effectively nullifies the statute.
The primary purpose of the CSRA — providing review of agencies' adverse employment actions — was to ensure that "[e]mployees are ... protected against arbitrary action, personal favoritism, and from partisan political coercion." S.Rep. No. 95-969, at 19 (1978), reprinted in 1978 U.S.C.C.A.N. 2723, 2741. In order to ensure such protection, the CSRA created
Subchapter II of Chapter 75 of the CSRA explicitly gives every "employee" the right to seek Board review of adverse employment actions. 5 U.S.C. § 7513(d); see also id. § 7701. The term "employee" is defined to include all employees in the competitive or excepted services
In order to determine whether an adverse action constitutes arbitrary agency action, the Board necessarily examines the merits of the underlying agency decision.
The decision by Congress to afford such review to the great majority of federal employees is made clear from the history of the CSRA. Initially, review of adverse actions was extended only to preference eligibles.
In 1990, in response to Fausto, Congress expanded the CSRA to apply to all federal government employees in the competitive and excepted services with narrow exceptions (discussed below). See Civil Service Due Process Amendments, Pub. L. No. 101-376, 104 Stat. 461 (1990). In expanding the CSRA's reach to include employees in the excepted service, Congress recognized that "no matter how an employee is initially hired, that employee acquires certain expectations about continued employment with the Government.... [Excepted service employees] should have the same right to be free from arbitrary removal as do competitive service employees." H.R.Rep. No. 101-328, at 4 (1989), reprinted in 1990 U.S.C.C.A.N. 695, 698.
Both Ms. Conyers and Mr. Northover held permanent positions in the competitive service and both had completed more than one year of "current continuous service under other than a temporary appointment." Thus, both fall squarely within the definition of "employee" under the statute. Ms. Conyers was indefinitely suspended and Mr. Northover was reduced in grade, both adverse actions which entitle them to seek Board review. Thus, the Board had jurisdiction over both Ms. Conyers's and Mr. Northover's appeals.
That Congress clearly intended that Board review extend to these employees is made apparent by Congress's decision to craft specific exceptions to Board jurisdiction where national security was a concern, and not to extend such exceptions to the positions involved here. In expanding the CSRA's coverage to excepted service employees in 1990, Congress created exceptions for specified employees based on national security concerns. Congress excluded particular government agencies, such as the FBI and the National Security Agency ("NSA"), "because of their sensitive missions," and also recognized that other agencies, such as the CIA, had already been specifically excluded from the CSRA by separate statute. Id. at 5. In 1996, the exceptions were expanded to cover all "intelligence component[s] of the Department of Defense."
The majority contends that Congress's decision to exempt the FBI, CIA, and intelligence components of the Department of Defense based on national security concerns is "speculative because `national security' was not a factor providing for these exclusions." Majority Op. at 1229 n.8. The majority is clearly mistaken, as both the language and the legislative history of the exemptions created for these agencies demonstrate that these exemptions were specifically granted based on the potential impact that employees in these agencies could have on national security.
Adverse actions taken against CIA employees are governed by 50 U.S.C. § 403-4a, which was originally enacted pursuant to the National Security Act of 1947, Pub. L. No. 80-253, § 102(c), 61 Stat. 495, 498. In enacting the National Security Act of 1947, Congress acknowledged that one of the central purposes of the Act was to "establish[] a structure fully capable of
In 1964, Congress crafted a similar exemption for employees of the NSA, modeling it after that created for the CIA in 1947. See Act of Mar. 26, 1964, Pub. L. No. 88-290, § 303(a), 78 Stat. 168, 169. In providing this exemption, Congress explicitly recognized that "[t]he responsibilities assigned to the [NSA] are so great, and the consequences of error so devastating, that authority to deviate from a proposed uniform loyalty program for Federal employees should be granted to this Agency." S.Rep. No. 88-926, at 2 (1964), 1964 U.S.C.C.A.N. 2114, 2115. Congress also noted that the exemption "recognizes the principle that the responsibility for control of those persons who are to have access to highly classified information should be accompanied by commensurate authority to terminate their employment when their retention and continued access to extremely sensitive information is not clearly consistent with the national security." Id. (emphasis added).
When Congress expanded Chapter 75 to cover employees in the excepted service in 1990, it continued to exclude the FBI, CIA, and NSA, acknowledging that "[t]he National Security Act of 1946 [sic] provides the Director of the [CIA] with plenary authority to deal with personnel of the CIA," and explained that it had "preserved the status quo in relation to the FBI and NSA because of their sensitive missions." See H.R.Rep. No. 101-328, at 5 (emphasis added). In 1996, Congress passed the National Defense Authorization Act for Fiscal Year 1997, Pub. L. No. 104-201, 110 Stat. 2422 (1996), creating a new exemption for all "intelligence components of the Department of Defense," id. §§ 1632-33. This exemption is codified at 10 U.S.C. §§ 1609 and 1612, which explicitly provide the Secretary of Defense with authority to take adverse action against certain employees where "the procedures prescribed in other provisions of law [i.e. the provisions of Chapter 75] ... cannot be invoked in a manner consistent with the national security." 10 U.S.C. § 1609(a)(2) (emphasis added); see also id. § 1612 ("Notwithstanding any provision of chapter 75 of title 5, an appeal of an adverse action by an individual employee ... shall be determined within the Department of Defense."). Thus, that Congress intended to exclude these agencies from the protections of Chapter 75 for national security reasons is undeniable.
The majority also appears to argue that Congress's decision to craft other exemptions for employees of other government agencies is somehow inconsistent with the notion that Congress's exclusion of the FBI, CIA, and NSA was for national security reasons. However, Congress, in enacting the CSRA, excluded certain nonintelligence agencies, such as the General Accounting Office, the Veterans Health Sciences and Research Administration, the Postal Service, the Postal Rate Commission, and the Tennessee Valley Authority because the employees of these agencies were already provided with appeal rights through alternative mechanisms. See H.R.Rep. No. 101-328, at 5.
Finally, if Congress's legislative creation of certain exemptions based upon national security concerns were not enough to refute the majority's construction, there has also been an express decision by Congress to deny the national security exemptions
Pursuant to the statutory authorization, the Secretary promulgated regulations that in fact limited the Board's authority. See Department of Defense Human Resources Management and Labor Relations Systems, 70 Fed. Reg. 66,116 (Nov. 1, 2005). Under the regulations, "[w]here it is determined that the initial [Board] decision has a direct and substantial adverse impact on the Department's national security mission, ... a final [Department of Defense] decision will be issued modifying or reversing that initial [Board] decision." Id. at 66,210 (codified at 5 C.F.R. § 9901.807(g)(2)(ii)(B)). Thus, a Board decision reversing an agency's adverse action was subject to veto by the agency if it was determined to have "a direct and substantial adverse impact on the Department's national security mission" — a less draconian version of the agency authority asserted here. Also, under the regulations, if the Secretary determined "in his or her sole, exclusive, and unreviewable discretion [that an offense] has a direct and substantial adverse impact on the Department's national security mission," id. at 66,190 (codified at 5 C.F.R. § 9901.103) (emphasis added), the Board could not mitigate the penalty for such an offense, id. at 66,210 (codified at 5 C.F.R. § 9901.808(b)).
On January 28, 2008, Congress amended the NSPS statute to eliminate the Department of Defense's authority to create a separate appeals process and invalidate the existing regulations limiting Board authority established by the Secretary, see National Defense Authorization Act for Fiscal Year 2008, Pub. L. No. 110-181, § 1106(a), (b)(3), 122 Stat. 3, 349, 356-57, bringing the "NSPS under Governmentwide rules for disciplinary actions and employee appeals of adverse actions," National Security Personnel System, 73 Fed. Reg. 56,344, 56,346 (Sept. 26, 2008).
The majority's argument to the contrary is unconvincing. The majority is incorrect in suggesting that the repeal of these provisions was due to concerns about collective bargaining. See Majority Op. at 1229-30 n.8. In fact, the provisions of the NSPS limiting collective bargaining were addressed in a 2008 amendment to a separate provision in response to litigation brought by labor organizations on behalf of Department of Defense employees.
The majority suggests that cases such as Dames & Moore v. Regan, 453 U.S. 654, 101 S.Ct. 2972, 69 L.Ed.2d 918 (1981), and Youngstown Sheet & Tube Co. v. Sawyer, 343 U.S. 579, 72 S.Ct. 863, 96 L.Ed. 1153 (1952), recognizing the existence of Presidential authority to act even when Congress has not, support the agency action here. See Majority Op. at 1230. There are three serious flaws with this argument. First, as the majority itself recognizes, the President cannot act contrary to congressional legislation except perhaps in the most unusual circumstances — which are not claimed to exist here.
Second, this case does not involve a Presidential action. Dames and Youngstown both involved agency action taken pursuant to an Executive Order of the President. See Dames, 453 U.S. at 662-63, 101 S.Ct. 2972 (Executive Order authorized the Secretary of the Treasury to promulgate regulations to block the removal or transfer of all property held by the government of Iran); Youngstown, 343 U.S. at 582-83, 72 S.Ct. 863 (Executive Order directed the Secretary of Commerce to seize the nation's steel mills). The only Executive Orders that are potentially relevant here are Executive Order No. 12,968, 60 Fed. Reg. 40,245, and Executive Order No. 10,450, 18 Fed. Reg. 2489. Neither grants the agency the authority it now seeks.
Executive Order No. 12,968, prior versions of which formed the basis for Egan,
Executive Order No. 10,450 provides that the heads of government agencies and departments "shall be responsible for establishing and maintaining within [their] department or agency an effective program to insure that the employment and retention in employment of any civilian officer or employee within the department or agency is clearly consistent with the interests of the national security." Exec. Order No. 10,450, § 2, 18 Fed. Reg. at 2489. The order also delegates to agencies the authority to determine investigative requirements for positions "according to the degree of adverse effect the occupant of the position ... could bring about... on the national security." Id. § 3; see also 5 C.F.R. § 732.201 (setting forth the three levels of sensitivity). Nothing in the order in any way suggests that those falling into a sensitive category should be exempt from Board review. Rather, the order provides for the alternative removal mechanism provided in section 7532. Where an agency head determines that continued employment of an employee is not "clearly consistent with the interests of the national security," the agency head "shall immediately suspend the employment of the person involved if he deems such suspension necessary in the interests of the national security and, following such investigation and review as he deems necessary, the head of the department or agency concerned shall terminate the employment of such suspended officer or employee whenever he shall determine such termination necessary or advisable in the interests of the national security, in accordance with the said act of August 26, 1950."
Third, neither Dames nor Youngstown supports agency (as opposed to Presidential) action independent of congressional authorization. An agency cannot administratively create authority for agency action. "Agencies are created by and act pursuant to statutes." Elgin v. Dep't of the Treasury, ___ U.S. ___, 132 S.Ct. 2126, 2136 n. 5, 183 L.Ed.2d 1 (2012). An agency may not act "in excess of statutory jurisdiction, authority, or limitations, or short of statutory right." 5 U.S.C. § 706. Agencies "act[] as a delegate to the legislative power," and "[a]n agency may not finally decide the limits of its statutory power. That is a judicial function." Social Sec. Bd. v. Nierotko, 327 U.S. 358, 369, 66 S.Ct. 637, 90 L.Ed. 718 (1946). As the Supreme Court noted in Ernst & Ernst v. Hochfelder, even where an agency has been given the authority to fill gaps in the statute, "[t]he rulemaking power granted to an administrative agency charged with the administration of a federal statute is not the power to make law. Rather, it is the power to adopt regulations to carry into effect the will of Congress as expressed by the statute." 425 U.S. 185, 213-14, 96 S.Ct. 1375, 47 L.Ed.2d 668 (1976) (internal quotation marks omitted); see also Addison v. Holly Hill Fruit Prods., Inc., 322 U.S. 607, 616, 64 S.Ct. 1215, 88 L.Ed. 1488 (1944) ("The determination of the extent of authority given to a delegated agency by Congress is not left for the decision of him in whom authority is vested."). Where, as here, Congress has not authorized the agency to limit Board review of its decisions, and has indeed revoked such authorization, the agency acts in excess of its statutory authority.
The majority contends that the Supreme Court's decision in Department of the Navy v. Egan, 484 U.S. 518, 108 S.Ct. 818, supports the exemption of all national security positions from Board jurisdiction over the merits of adverse actions. Majority Op. at 1228-30. However, the Supreme Court itself made clear that Egan's holding is limited to addressing the "narrow question" of "whether the [Board] has authority by statute to review the substance of an underlying decision to deny or revoke a security clearance in the course of reviewing an adverse action." Egan, 484 U.S. at 520, 108 S.Ct. 818 (emphasis added). Indeed, every other circuit that has considered Egan has uniformly interpreted it as relating to security clearance determinations.
Where an employee fails to satisfy a qualification required for a position and the determination as to whether the employee is eligible for the qualification is committed to the discretion of a third party, it is unsurprising that the Board's inquiry is limited to whether the job was conditioned on a particular qualification and whether the employee's qualifying status had been revoked. See id. at 530, 108 S.Ct. 818. In this vein, the Board has held that it lacks authority to evaluate the merits of a decision to revoke an attorney's bar license, or an employee's reserve membership, where such license or membership is required for a particular government position. See, e.g., Buriani v. Dep't of the Air Force, 777 F.2d 674, 677 (Fed.Cir.1985) (holding that the Board should not examine the merits of the Air Force's decision to remove an employee from reserve membership); McGean v. NLRB, 15 M.S.P.R. 49, 53 (1983) (holding that "the Board is without authority to review the merits" of a decision to suspend an attorney's membership in the Bar).
Contrary to the majority, Egan turned solely on the President's constitutional "authority to classify and control access to information bearing on national security and to determine whether an individual is sufficiently trustworthy to occupy a position in the Executive Branch that will give that person access to such information." 484 U.S. at 527, 108 S.Ct. 818 (emphasis added). Just as the authority to revoke an attorney's bar license or a military member's reserve status lies with an expert third party (the highest court of a state or the military), the authority to protect classified information "falls on the President as head of the Executive Branch and as
The majority's reliance on Carlucci v. Doe, 488 U.S. 93, 109 S.Ct. 407, 102 L.Ed.2d 395 (1988), is also misplaced. Unlike the employees here, the NSA employee in Carlucci had been specifically exempted from the provisions of the CSRA providing for Board review of adverse actions. See id. at 96, 109 S.Ct. 407; see also 10 U.S.C. § 1612(3) (providing that appeals of such adverse actions must take place exclusively within the Department of Defense pursuant to procedures prescribed by the Secretary).
In summary, Congress's decision is clear — with the exception of designated agencies such as the CIA, FBI, and intelligence components of the Department of Defense, employees may challenge the merits of adverse actions before the Board. At the same time Congress has provided a safety valve in section 7532, allowing the agencies to summarily remove employees "when, after such investigation and review as [the agency head] considers necessary, he determines that removal is necessary or advisable in the interests of national security." 5 U.S.C. § 7532(b). It is not the business of the Department of Defense, the Office of Personnel Management, or this court to second-guess the congressional decision to provide Board review. I respectfully dissent.
The dissent construes the 1990 Amendments as extending by implication Board review of agency determinations concerning sensitive positions. Dissent Op. at 1241. Because certain agencies, such as the Federal Bureau of Investigation, Central Intelligence Agency, and National Security Agency were expressly exempted, the dissent posits that Board review must extend to all other positions that were not excluded. Id. at 1241-42. Certain employees of the General Accounting Office, the Veterans Health Sciences and Research Administration, the Postal Service, the Postal Rate Commission, and the Tennessee Valley Authority, however, were also excluded, because separate statutes excluded the employees of these agencies from the normal appeals process. H.R.Rep. No. 101-328 at 5 (1989), reprinted in 1990 U.S.C.C.A.N. 695. Thus, the dissent's view that Congress "crafted some exceptions for national security and not others" is speculative because "national security" was not a factor providing for these exclusions.
Similarly, the dissent refers to the Department of Defense's ("DOD") creation of the National Security Personnel System ("NSPS") in 2003 to further support the notion that Congress spoke on the issue before this court. Dissent Op. at 1239-40. The dissent's position is neither supported by statutory language nor legislative history. The statute creating the NSPS, the subsequent repeal of certain regulations concerning the DOD's appeals process, and the ultimate repeal of the statute creating the NSPS itself in 2009, do not show that Congress intended to preclude the DOD from insulating employment decisions concerning national security from Board review. NSPS was established to overhaul the then-existing personnel management system and polices of the DOD. See National Defense Authorization Act, Pub. L. 108-136, 117 Stat. 1392 (2003). In 2009, NSPS was repealed largely due in part to strong opposition from labor organizations regarding issues of collective bargaining. See Department of Defense Human Resources Management and Labor Relations Systems, 70 Fed. Reg. 66,123; see also S.Rep. No. 111-35 at 185 (2009) ("[T]he committee has received many complaints from DOD employees during the 5 years during which the [DOD] has sought to implement NSPS, to the detriment of needed human capital planning and workforce management initiatives."). There is nothing in these statutes that shows Congress intended Board review of agency determinations pertaining to employees in sensitive positions.
Carlucci, 488 U.S. at 104, 109 S.Ct. 407.
Horner is readily distinguishable from this case. In Horner, the result of the appeal would have had consequences for the employee, as "the disciplinary action against him [would] be a nullity if [the court] overturn[ed] the board's decision." 815 F.2d at 671. In this case, even if the Board is overturned, Ms. Conyers will not be affected because she has already received all relief to which she is entitled based on her suspension. See Cooper v. Dep't of the Navy, 108 F.3d 324, 326 (Fed. Cir.1997) ("If an appealable action is canceled or rescinded by an agency, any appeal from that action becomes moot.").
5 U.S.C. § 7511(a)(1).