RUDOLPH CONTRERAS, United States District Judge
Although registered nurses employed by the Department of Veterans Affairs generally enjoy collective bargaining rights, these rights are limited by the Secretary of Veterans Affairs' authority under 38 U.S.C. § 7422 to determine that certain demands are not subject to bargaining because they implicate "professional conduct or competence"-defined to encompass "direct patient care." In the instant case, after a VA hospital in Texas faced with staffing shortages decided to implement mandatory overtime for registered nurses, the nurses' union sought to bargain about certain procedures governing the overtime measures. The hospital refused to bargain, and the Secretary ultimately sided with the hospital, finding that the union's proposals concerned "direct patient care" within the meaning of § 7422. The union
In 1978, Congress extended collective bargaining rights to federal employees as part of the Civil Service Reform Act ("CSRA"). See CSRA of 1978, Pub.L. No. 95-454, title VII, § 701, 92 Stat. 1111, 1192 (1978), codified at 5 U.S.C. § 7102(2). In provisions now codified in chapter 71 of title 5 of the United States Code, the CSRA prohibits various "unfair labor practices" that interfere with those collective bargaining rights, 5 U.S.C. § 7116, and delegates enforcement to the Federal Labor Relations Authority ("FLRA"), see id. §§ 7104-05, 7118. The General Counsel of the FLRA, upon investigation of an alleged unfair labor practice, may issue a complaint against the relevant agency or labor organization. See id. § 7118(a)(1). Thereafter, the FLRA must conduct a hearing on the complaint, see id. § 7118(a)(6), and, if it finds that an unfair labor practice occurred, issue a written decision awarding appropriate relief, see id. § 7118(a)(7).
Congress subsequently decided to clarify and calibrate the collective bargaining rights of certain healthcare professionals employed by the Department of Veterans Affairs ("VA"), following the D.C. Circuit's determination that the existing statutory framework did not provide for such rights. See Am. Fed'n of Gov't Emps., AFL-CIO Local 2152 v. Principi, 464 F.3d 1049, 1051 (9th Cir.2006) (explaining Congress's concerns in the wake of Colorado Nurses Association v. FLRA, 851 F.2d 1486 (D.C.Cir.1988)). To this end, Congress enacted the Department of Veterans Affairs Labor Relations Improvement Act of 1991. See Pub.L. No. 102-40, title II, § 202, 105 Stat. 187, 200 (1991), codified at 38 U.S.C. §§ 7421 et seq. The Act authorizes the Secretary of Veterans Affairs to "prescribe by regulation the hours and conditions of employment and leaves of absences" of specific classes of VA employees, 38 U.S.C. § 7421(a), (b), but also provides that this general authority is "subject to" the collective bargaining rights of those employees, as provided in chapter 71 of title 5 of the United States Code, id. § 7422(a).
The Act goes on, however, to establish three limitations on the scope of VA healthcare professionals' collective bargaining rights. As codified at subsection (b) of § 7422, the Act provides that collective bargaining involving covered employees
Id. § 7422(b). Subsection (c) explains that "[f]or purposes of this section, the term `professional conduct or competence' means any of the following: (1) Direct patient care. (2) Clinical competence." Id. § 7422(c). Subsection (d) provides that the applicability of the subsection (b) limitations in any given case "shall be decided by the Secretary and is not itself subject to collective bargaining." Id. § 7422(d). These decisions are reviewable in the first
In September 2012, the Thomas E. Creek VA Medical Center in Amarillo, Texas ("Amarillo VAMC" or "Medical Center"), began experiencing staffing shortages in one of its units. See A12. Eventually, the number of registered nurses in the unit dropped 24 percent, from twenty-one to sixteen. Id.; see also A5. After various efforts to ameliorate the shortage proved unsuccessful, the Medical Center decided in late November 2012 to mandate overtime for all registered nurses covered by title 38. See A12-13. The mandatory overtime spanned three pay periods from December 2012 to January 2013; all nurses were required to work one additional twelve-hour shift during each pay period. See id. On November 29, 2012, the Nurse Executive met with the National Federation of Federal Employees ("the Union"), which represented the affected nurses, to explain the mandatory overtime requirement. See id.
In December 2012, the Union made several attempts to bargain with Amarillo VAMC. On December 3, the Union filed its initial demand to bargain with Amarillo VAMC regarding management's implementation of mandatory overtime. A16. On December 11, the Nurse Executive declined to bargain on the basis that the Union's demand "involve[d] direct patient care and competency matters" under 38 U.S.C. § 7422(b). A17. On December 13, the Union filed a second demand to bargain, which explained that the Union was "exercising its right to negotiate the procedures Management will use in implementing mandatory overtime for Nurses and to negotiate the appropriate arrangements for employees who will be adversely affected." A18. Attached to the demand was a list of eleven "proposals for negotiation." A19-20. The Union requested, among other things, that management provide compensation to nurses who report for overtime shifts but are no longer needed (proposal 3), consider "other options" prior to mandating overtime (proposal 4), allow for voluntary shift substitutions among nurses (proposal 5), balance the "personal needs" of staff with patient care demands (proposal 6), grant employees exemptions from mandatory overtime under certain conditions (proposal 7), maintain accurate records of all overtime worked (proposal 9), and provide at least two days' advance notice for scheduled mandatory overtime (proposal 10).
On December 20, the Medical Center management met with the Union to discuss its proposals. A13. Management orally agreed to all proposals except for one, but the parties did not memorialize their agreement in writing or decide when any changes would take effect. See id. Following the meeting, management continued to move forward with implementing mandatory overtime. See id.
In January 2013, the Union filed an unfair labor practice charge with the FLRA alleging that Amarillo VAMC's failure to engage in collective bargaining violated 5 U.S.C. § 7116(a).
Subsequently, Amarillo VAMC sent a memorandum to the Secretary of Veterans Affairs seeking a determination as to whether § 7422 excluded the Union's proposals from the VA's collective bargaining obligation. See A12-15. The Union filed a response asking the Secretary to deny Amarillo VAMC's request and to allow the FLRA to pursue the complaint. See A67-71.
In January 2014, the Secretary issued a decision finding that the Union's demands to bargain were excluded from collective bargaining under § 7422(b) ("§ 7422 Decision"). See A4-11. The § 7422 Decision based its analysis on a decision document approved in 2010 by VA officials ("2010 Decision Document"), which the Secretary read for the proposition that where a matter falls within a § 7422 exclusion, any demands to bargain about procedures related to that matter are also excluded. See A8-9; see also A74-77 (2010 Decision Document). Applying this rule, the Secretary then concluded that because the mandatory overtime requirement was excluded from collective bargaining under § 7422 as related to "direct patient care," and because the Union's proposals pertained to procedures related to the mandatory overtime, the Union's demands were necessarily excluded as well. See A9-10.
In June 2014, the Union brought this action against the Acting Secretary of Veterans Affairs under the Administrative Procedure Act ("APA"), 5 U.S.C. § 706. See Compl., ECF No. 1. The two-count complaint alleges that the § 7422 Decision exceeded the Secretary's statutory authority in violation of 5 U.S.C. § 706(2)(C), and that it was arbitrary and capricious under 5 U.S.C. § 706(2)(A). See id. ¶¶ 44-54 (Count I), ¶¶ 55-71 (Count II). By way of relief, the Union asks the Court to vacate the § 7422 Decision, to order the VA to engage in collective bargaining with the Union, and to order the FLRA to reinstate the Union's unfair labor practice charge. See id. ¶¶ 72-75.
The parties have filed cross-motions for summary judgment. See ECF Nos. 10, 12. Both motions are now fully briefed.
Typically, a court may grant summary judgment when "the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(a). But when assessing a summary judgment motion in an APA case, "the district judge sits as an appellate tribunal." Am. Bioscience, Inc. v. Thompson, 269 F.3d 1077, 1083 (D.C.Cir. 2001). "The entire case on review is a question of law, and only a question of law." Marshall Cnty. Health Care Auth. v. Shalala, 988 F.2d 1221, 1226 (D.C.Cir. 1993). "In such a case, summary judgment merely serves as the mechanism for deciding, as a matter of law, whether the agency action is supported by the administrative record and otherwise consistent
The Union alleges that the § 7422 Decision is arbitrary and capricious and exceeds the Secretary's statutory authority, in violation of the APA's requirements. See Compl. ¶¶ 44-71. Upon review of the administrative record and applicable authorities, the Court concludes that because the § 7422 Decision fails to reflect "reasoned decisionmaking," it is arbitrary and capricious and deserving of no deference. Accordingly, the Court grants the Union's motion for summary judgment, vacates the § 7422 Decision, and remands to the Acting Secretary for further consideration.
Judicial review of a § 7422 decision under the APA is governed by the two-step framework set forth in Chevron, U.S.A., Inc. v. Natural Resources Defense Council, 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). See AFGE Local 446, 475 F.3d at 344. At step one, a court must ask "whether Congress has directly spoken to the precise question at issue." Id. at 345 (quoting Chevron, 467 U.S. at 842, 104 S.Ct. 2778). That is, the court must determine "whether § 7422 is ambiguous as to the VA's authority to interpret the statute to exclude the [u]nion's grievance from the collective bargaining process." Id. If § 7422 is ambiguous in this respect, at step two, the court must "defer to the VA's interpretation ... if that interpretation is `based on a permissible construction of the statute,' that is, if the interpretation is reasonable." Id. at 346 (quoting Chevron, 467 U.S. at 843, 104 S.Ct. 2778).
"At step one, to determine whether Congress has directly spoken to the precise question at issue, [courts must] use `the traditional tools of statutory interpretation.'" Council for Urological Interests v. Burwell, 790 F.3d 212, 219 (D.C.Cir. 2015) (quoting Consumer Elecs. Ass'n v. FCC, 347 F.3d 291, 297 (D.C.Cir.2003) (internal quotation marks omitted)). Statutory interpretation proceeds from "the plain language of the statute in question." Id. (quoting Citizens Coal Council v. Norton, 330 F.3d 478, 482 (D.C.Cir.2003)). Even where the text is ambiguous, "a statute may foreclose an agency's preferred interpretation... if its structure, legislative history, or purpose makes clear what its text leaves opaque." Id. at 221 (quoting Catawba Cnty. N.C. v. EPA, 571 F.3d 20, 35 (D.C.Cir.2009)).
Both the Union and the VA incorrectly assert that the Court can end its analysis at step one. The VA argues that Congress has "directly spoken" to the issue at hand because § 7422(d) "plainly authorizes the VA Secretary to determine" whether an issue falls within an enumerated exclusion from collective bargaining. Def.'s Opp'n & Cross-Mot. Summ. J. 11. But the VA misunderstands Chevron: Step one asks "not whether the VA is authorized to decide disputes over the scope of a collective bargaining exclusion — it is — but whether § 7422 is ambiguous as to the VA's authority to interpret the statute to exclude the Union's grievance from the collective bargaining process." AFGE Local 446, 475 F.3d at 345 (emphasis added).
Because Congress has not "directly spoken" in § 7422 to the question of whether the VA had authority to exclude the Union's proposals regarding mandatory overtime procedures from the collective bargaining process, Chevron, 467 U.S. at 842, 104 S.Ct. 2778, the Court must "dance on" to step two, Northpoint Tech., Ltd. v. FCC, 412 F.3d 145, 151 (D.C.Cir.2005).
At step two, the court must defer to the agency so long as it has adopted an "interpretation [that] is `based on a permissible construction of the statute,' that is, if the interpretation is reasonable." AFGE Local 446, 475 F.3d at 355 (quoting Chevron, 467 U.S. at 843, 104 S.Ct. 2778); see also Northpoint Tech., 412 F.3d at 151 ("A `reasonable' explanation of how an agency's interpretation serves the statute's objectives is the stuff of which a `permissible' construction is made...." (quoting Chevron, 467 U.S. at 863, 104 S.Ct. 2778)). In a challenge to a VA § 7422 decision, the court's "inquiry under Chevron step two overlaps with [its] inquiry under the arbitrary and capricious standard." AFGE Local 446, 475 F.3d at 355. To satisfy this standard, the agency must engage in "reasoned decisionmaking." Williams Gas Processing-Gulf Coast Co., L.P. v. FERC, 475 F.3d 319, 326 (D.C.Cir.2006) (reviewing agency orders).
Reasoned decisionmaking requires not only that "an agency's decreed result be within the scope of its lawful authority," but also that "the process by which it reaches that result ... be logical and rational." Allentown Mack Sales & Serv., Inc. v. N.L.R.B., 522 U.S. 359, 374, 118 S.Ct. 818, 139 L.Ed.2d 797 (1998). "Reasoned decisionmaking, in which the rule announced is the rule applied, promotes sound results, and unreasoned decisionmaking the opposite." Id. at 375, 118 S.Ct. 818. In determining whether an agency's decisionmaking passes muster, courts can consider only "what the agency said" in explaining its conclusions, not "its lawyers' post-hoc rationalizations." Council for Urological Interests, 790 F.3d at 222 (reviewing rulemaking); see also Williams Gas Processing, 475 F.3d at 326 ("It is axiomatic that we may uphold agency orders based only on reasoning that is fairly stated by the agency in the order under review ...." (emphasis added) (citation omitted)).
On the other hand, the reviewing court need not find that the agency has adopted "the best possible reading" or "the only permissible interpretation" of a statute — only that the agency's reading is "reasonable." AFGE Local 446, 475 F.3d at 355. Nor must an agency's decision be "a model of analytic precision." Coburn v. McHugh, 679 F.3d 924, 934 (D.C.Cir.2012) (citations omitted). Rather, the court may "uphold a decision of less than ideal clarity if the agency's path may reasonably be discerned." Id. (citation omitted).
Here, the reasoning of the § 7422 Decision under review hinges on the Secretary's statement of the applicable decisional rule, which he claims to derive from the preamble to the 2010 Decision Document:
A8-9 (emphasis added) (internal citations omitted). In the Secretary's view, then, the 2010 Decision Document's preamble established an "unequivoca[l]," categorical rule: If an issue falls within a § 7422 exclusion, then any demands to bargain about procedures "that relate to and address" that issue must also be excluded. Id. After finding that the subject of mandatory overtime was excluded under § 7422 as related to direct patient care, the Secretary then concluded that "[t]herefore, as set forth in the preamble to the Secretary's [2010] Decision Document, [the Union]'s impact and implementation proposals concerning the mandatory overtime requirement similarly arise out of direct patient care under 38 U.S.C. § 7422(b)(1)." A9-10 (emphasis added).
Fatal to the § 7422 Decision's analysis, however, is the fact that the categorical rule it purports to draw from the 2010 Decision Document preamble is nowhere to be found in that document. The relevant paragraphs in the 2010 Decision Document preamble provide:
A74 (emphasis added).
Although the Secretary interpreted the sentence in the 2010 Decision Document preamble italicized above as limiting the VA's collective bargaining duty, that sentence does precisely the opposite — it emphasizes limits on the § 7422 exclusions from that duty. The Secretary's reading of the sentence fails before it even leaves the gate because it renders the modifier "appropriate" nonsensical: Why would section "7422" foreclose collective bargaining over wholly "appropriate" matters? Id. Context further undermines the Secretary's reading. In the sentences immediately before and after the sentence quoted by the Secretary, "7422" modifies the words "exemptions" or "exclusions." Id.
Indeed, rather than categorically excluding procedural matters, the 2010 Decision Document mandates a fact-specific, case-by-case approach: "[T]he particulars of a given proposal determine whether it falls inside a 7422 exemptions [sic]." A74. The § 7422 Decision at issue here, of course, does not examine the "particulars" of any of the Union's proposals.
The VA's attorneys attempt to save the § 7422 Decision by explaining that § 7422 authorizes the agency to refuse to engage in collective bargaining whenever an emergency situation implicating direct patient care arises. See Def.'s Opp'n & Cross-Mot. Summ. J. 2, 17, 21.
To be clear, the Court does not hold that the VA may not, as a matter of law, exclude the Union's proposals on overtime procedures from collective bargaining under § 7422. Nor does the Court express any opinion on whether the VA attorneys' emergency situation rule is a "permissible" application of the § 7422 exclusions. On remand, the Acting Secretary will be free to articulate his preferred decisional rule, drawing upon the text of § 7422, the 2010 Decision Document, relevant precedents, or applicable policy arguments, among other sources. See Village of Barrington, Ill. v. Surface Transp. Bd., 636 F.3d 650, 666 (D.C.Cir.2011) ("[W]hen an agency interprets ambiguities in its organic statute, it is entirely appropriate for that agency to consider ... policy arguments that are rationally related to the statute's goals." (alteration, citation, and internal quotation marks omitted)).
The Court also notes that the 2010 Decision Document is central to the Court's analysis today only because the VA opted to rely on it as the sole basis for the § 7422 Decision. The question presented in this case is, after all, whether the VA's
In closing, however, the Court expresses its reservations about overly broad constructions of "direct patient care." The purpose of the Department of Veterans Affairs Labor Relations Improvement Act of 1991 was to provide VA healthcare professionals with collective bargaining rights. See 137 Cong. Rec. S4,542-44 (Apr. 17, 1991) (statement of Sen. Cranston). Against the backdrop of this general rule, the Act created certain exceptions, including one for "direct patient care." But because almost everything a nurse does touches on "direct patient care," construing that phrase to encompass even matters that are peripheral to that issue (or procedural proposals) risks allowing the exception to swallow the rule, thereby undermining the purpose of the statute itself. If any proposals touching on how nurses do their job would be excluded from collective bargaining, then what would be left for unions and the VA to bargain over? The 2010 Decision Document appears to recognize this danger and suggests that a careful, fact-specific balancing of interests is necessary for the proper application of the § 7422 exclusions.
Because the § 7422 Decision fails to engage in the "reasoned decisionmaking" that is necessary to render its construction of the § 7422 exclusions "permissible" or "reasonable," the Court cannot defer to the § 7422 Decision and concludes that it constitutes arbitrary and capricious agency action. And because the Court's "inquiry under Chevron step two overlaps with [its] inquiry under the arbitrary and capricious standard," AFGE Local 446, 475 F.3d at 355, the Court also finds under the Chevron framework that the Secretary exceeded his statutory authority in applying the "direct patient care" exclusion to the Union's proposals. Accordingly, the Court grants summary judgment to the Union on both Counts I and II.
Having concluded that the § 7422 Decision cannot withstand the Union's challenges under the APA, the Court now determines the proper remedy. The Union urges the Court to vacate the § 7422 Decision, to order the VA to engage in collective bargaining with the Union, and to order the FLRA to reinstate the Union's unfair labor practice charge. See Compl. ¶¶ 72-75. Although the Court vacates the § 7422 Decision in light of the foregoing analysis, it declines at this juncture to order the Union's other requested relief. Instead, the Court remands this case to the Acting Secretary of Veterans Affairs for further consideration consistent with this Memorandum Opinion. See Fox v. Clinton, 684 F.3d 67, 80 (D.C.Cir.2012) ("pursu[ing] a course of prudence" in remanding to the district court with instructions to remand to the agency, rather than ordering full relief requested by the plaintiff); accord Innovator Enters., Inc. v. Jones, 28 F.Supp.3d 14, 30 (D.D.C.2014) (declining to enter declaratory judgment and remanding to agency for further consideration).
For the foregoing reasons, Plaintiff's motion for summary judgment (ECF No. 10) is
A19-20.