DAVID C. NORTON, District Judge.
This matter comes before the court on cross motions for summary judgment. The Chamber of Commerce of the United States and the South Carolina Chamber of Commerce (collectively, "plaintiffs") seek review of a final rule promulgated by the National Labor Relations Board ("NLRB" or "the Board"). For over seventy-five years, the NLRB has been nearly unique among federal labor agencies in not requiring employers to post a general notice of employee rights in the workplace. On December 22, 2010, the Board changed course and issued a proposed rule: all employers subject to the National Labor Relations Act ("NLRA" or "the Act") must post notices informing employees of their rights under the NLRA. After completing a notice-and-comment process, the Board published a final rule on August 30, 2011. The rule is presently set to take effect on April 30, 2012. As explained below, the Board, in promulgating the final rule, exceeded its authority in violation of the Administrative Procedure Act; therefore, the court grants summary judgment in favor of plaintiffs.
On September 19, 2011, plaintiffs filed a complaint for injunctive relief against the NLRB, Chairman Mark Pearce, Member Craig Becker, Member Brian Hayes, and General Counsel Lafe Solomon.
The NLRA, 29 U.S.C. §§ 151-169, governs labor relations between private sector employers, labor unions, and employees. It "creates a system for the organization of labor with emphasis on collective bargaining by employees with employers in regard to labor relations which affect commerce." Republic Aviation Corp. v. NLRB, 324 U.S. 793, 799, 65 S.Ct. 982, 89 L.Ed. 1372 (1945). Enacted in 1935, the NLRA was originally known as the Wagner Act after its sponsor, Senator Robert F. Wagner of New York, and was signed into law by President Franklin Delano Roosevelt. Congress amended the Act in 1947, 1959, and 1974. See Labor Management Relations Act ("Taft-Hartley Act"), Pub.L. No. 80-101, 61 Stat. 136 (1947); Labor Management Reporting and Disclosure Act ("Landrum-Griffin Act"), Pub.L. No. 86-257, 73 Stat. 519 (1959); Health Care Amendments, Pub.L. No. 93-360, 88 Stat. 395 (1974). Congress also established the NLRB in 1935. The NLRB is an executive branch agency that administers and enforces the NLRA, and consists of a Chairman, four Members, and a General Counsel, all appointed by the President with the advice and consent of the Senate. The Board oversees various Regional Offices.
The first five sections of the Act are primarily structural. Section 1 sets forth Congress's aspirations: to address the "inequality of bargaining power between employees ... and employers"; to "encourag[e] the practice and procedure of collective bargaining"; and to "protect[] the exercise by workers of full freedom of association, self-organization, and designation of representatives of their own choosing." 29 U.S.C. § 151. Section 2 defines certain terms in the Act. Sections 3, 4, and 5 establish and lay out the composition of the Board, along with some of its authority and obligations.
Section 6 confers rulemaking authority on the Board: "The Board shall have authority from time to time to make, amend, and rescind, in the manner prescribed by the Administrative Procedure Act,
Section 7 lists the core labor rights of employees. These include employees' rights "to self-organization"; "to form, join, or assist labor organizations"; "to bargain collectively through representatives of their own choosing"; "to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection"; and "to refrain from any or all such activities." Id. § 157.
Sections 8 through 12 establish the Board's authority over unfair labor practice disputes and representation elections. Sections 8 and 10 authorize the Board to investigate, prevent, and remedy "unfair labor practices," or "ULPs," that violate employees' Section 7 rights. Congress prohibited five specific ULPs by employers, each of which is listed in Section 8. ULP charges are subject to a six-month statute of limitations, which may only be tolled if the person filing a charge was
Through this framework, Congress intended the NLRB to be a quasi-judicial body that "has two main functions: to conduct representation elections and certify the results, and to prevent employers and unions from engaging in unfair labor practices." NLRB, Basic Guide to the National Labor Relations Act 33 (1997), http://www.nlrb.gov/sites/default/files/documents/224/basicguide.pdf. "In both kinds of cases the processes of the NLRB are begun only when requested." Id. The Board readily acknowledges that it lacks "roving investigatory powers" and instead traditionally functions as a reactive agency. 76 Fed. Reg. 54,006, 54,010 (Aug. 30, 2011). In its most recent Performance and Accountability Report, the Board stated, "The NLRB acts only on those cases brought before it, and does not initiate cases. All proceedings originate with the filing of charges or petitions by labor unions, private employers, and other private parties." NLRB, 2011 FY Performance and Accountability Report 12 (emphasis added). The Acting General Counsel, Lafe Solomon, has explained that the "NLRB's processes can be invoked only by the filing of an unfair labor practice charge or a representation petition by a member of the public. The agency has no authority to initiate proceedings on its own." NLRB GC Mem. 11-03, 2 (Jan. 10, 2011) (emphasis added).
On December 22, 2010, the NLRB published a Notice of Proposed Rulemaking in the Federal Register. See 75 Fed.Reg. 80,410 (Dec. 22, 2010). The Board proposed a rule requiring employers subject to the NLRA to put up posters in the workplace, which inform employees of their Section 7 rights under the Act. The Board reasoned that a notice-posting rule was necessary because the NLRA was "almost unique" among major federal labor laws in not requiring employers to post workplace notices informing employees of their statutory rights and that most employees are unaware of those rights. Id. at 80,410-11.
The Board bypassed an Initial Regulatory Flexibility Analysis and Final Regulatory Flexibility Analysis under the Regulatory Flexibility Act ("RFA") by certifying that the rule will not have a significant economic impact on a substantial number of small entities. Id. at 80,415; see 5 U.S.C. § 605(b).
Member Brian Hayes dissented from the Board's Notice of Proposed Rulemaking. See id. ("[T]he Board lacks the statutory authority to promulgate or enforce [this] type of rule."). Hayes also encouraged commentary on the Board's authority to promulgate the rule.
A public comment period followed, during which the Board received over 7000 submissions. 76 Fed.Reg. at 54,007. On August 30, 2011, following an analysis of the public comments and partial modification of the proposed rule, the Board promulgated the final rule. See id. The effective date of the final rule was originally set for November 14, 2011, then extended to January 31, 2012, and extended again to April 30, 2012. See 76 Fed.Reg. 63,188 (Oct. 12, 2011); 76 Fed.Reg. 82,133 (Dec. 30, 2011).
The final rule is divided into three subparts. First, Subpart A requires "[a]ll employers subject to the NLRA [to] post notices to employees, in conspicuous places, informing them of their NLRA rights, together with board contact information and information concerning basic enforcement procedures." 29 C.F.R. § 104.202(a). Employers who customarily communicate with employees electronically on an intranet or internet site must also post the notice through those mediums. Id. § 104.202(f).
The poster that employers must post pursuant to Subpart A notifies employees of their Section 7 rights: to form, join, or assist a union; to negotiate with an employer through a union; to bargain collectively through representatives of employees' own choosing; to discuss wages, benefits, and other terms and conditions of employment with co-workers or a union; to take action to improve working conditions; to strike and picket; or to choose not to do any of these activities, including joining or remaining a member of a union. The poster also gives examples of illegal union conduct, notifies employees of a general six-month statute of limitations for filing a ULP charge, and provides contact information for the NLRB.
The rule does not end with the posting requirement. Subpart B states that an employer's failure to post the notice "may be found to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed by NLRA Section 7, 29 U.S.C. [§ ]157, in violation of NLRA Section 8(a)(1), 29 U.S.C. § 158(a)(1)." 29 C.F.R. § 104.210. If the Board determines an employer is not in compliance, the employer "will be ordered to cease and desist from the unlawful conduct and post the required employee notice, as well as a remedial notice." Id. § 104.213(1). The Board is also given discretion to suspend the Section 10(b) six-month statute of limitations for filing a ULP charge, "unless the employee has received actual or constructive notice that the conduct complained of is unlawful." Id. § 104.214(a). Finally, the rule allows the Board to consider an employer's "knowing and willful refusal to comply with the requirement to post the employee notice as evidence of unlawful motive in a case in which motive is an issue." Id. § 104.214(b). Subpart C contains ancillary provisions.
In its final rule, the Board explained that this rulemaking effort diverges from
Member Hayes again dissented, arguing the Board lacks authority to promulgate the rule. Hayes reasoned that because Congress included notice-posting provisions in several other federal labor statutes but not the NLRA, Congress must have intended for the Board to lack the authority to issue this rule: "Strangely, the majority does not merely contend that this pattern [of including notice-posting provisions] in comparable labor legislation fails to prove that Congress did not intend that the Board should have the rulemaking authority under Section 6 to mandate the notice posting at issue here. They conversely contend that it proves Congress must have intended to confer such authority on the Board!" Id. at 54,038.
At the outset, it is important to note that the NLRA does not require employers to post general notices of employee rights under the Act.
Act Year Posting Requirement Railway Labor Act 1934 45 U.S.C. § 152, EighthWagner Act 1935 None Taft-Hartley Act 1947 None Landrum-Griffin Act 1959 Non Title VII of the Civil Rights Act 1964 42 U.S.C. § 2000e-10 Age Discrimination in Employment Act 1967 29 U.S.C. § 627 Occupational Health and Safety Act 1970 29 U.S.C. § 657(c)Health Care Amendments 1974 None Migrant and Seasonal Agricultural Workers Protection Act 1983 29 U.S.C. § 1821(b) Employee Polygraph Protection Act 1988 29 U.S.C. § 2003 Americans with Disabilities Act 1990 42 U.S.C. § 12115 Family and Medical Leave Act 1993 29 U.S.C. § 2619(a) Uniformed Services Employment and Reemployment 2004 38 U.S.C. § 4334(a) Rights Act
On November 9, 2011, the parties filed cross motions for summary judgment. Plaintiffs argue the final rule violates the Administrative Procedure Act ("APA") because the Board lacks authority to issue the rule under either Section 6 or the "gap" left by the absence of a notice-posting provision in the NLRA. Plaintiffs also claim the Board exceeded its authority by creating a "new" ULP for failure to post the notice and by authorizing tolling
Defendants assert that the rule satisfies the APA because the Board has broad authority to promulgate the rule under Section 6 and to fill a statutory "gap" as to notice posting in the NLRA that Congress left for the Board to fill. Defendants contend that the Board reasonably interpreted its authority under the NLRA and that such interpretation should be afforded substantial deference. Defendants further argue that the rule's enforcement mechanisms — filing of a ULP charge for failure to post and equitable tolling of the Section 10(b) statute of limitations — are within the Board's authority. Lastly, defendants argue the rule complies with the First Amendment and RFA.
The court received amicus briefs from thirty-six members of the United States House of Representatives, the Motor and Equipment Manufacturers Association, and Charles J. Morris, Esq.
Federal courts are courts of limited jurisdiction and must have subject matter jurisdiction over the litigation. The APA allows for claims to be brought against a federal agency, such as the NLRB, in federal district court. This suit also arises under and involves questions of the NLRA, First Amendment, and RFA; therefore, this court has federal question jurisdiction.
Summary judgment is appropriate 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). When cross motions for summary judgment are filed, the court "must review each motion separately on its own merits to determine whether either of the parties deserves judgment as a matter of law." Rossignol v. Voorhaar, 316 F.3d 516, 523 (4th Cir. 2003) (internal quotation marks omitted). The court finds that there are no genuine issues of material fact and that the case may be decided as a matter of law.
The APA subjects final agency action to judicial review to determine whether it is both supported by the administrative record and consistent with the APA. 5 U.S.C. § 704. A reviewing court must "decide all relevant questions of law, interpret constitutional and statutory provisions, and determine the meaning or applicability of the terms of an agency action." Id. § 706. The court shall "hold unlawful and set aside agency action, findings, and conclusions found to be ... arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law," id. § 706(2)(A); "contrary to constitutional right, power, privilege, or immunity," id. § 706(2)(B); "in excess of statutory jurisdiction, authority, or limitations, or short of statutory right," id. § 706(2)(C); "without observance of procedure required by law," id. § 706(2)(D); or "unsupported by substantial evidence," id. § 706(2)(E).
"Regardless of how serious the problem an administrative agency seeks to address, ... it may not exercise its authority `in a manner that is inconsistent with the administrative structure that Congress enacted into law.'" FDA v. Brown & Williamson Tobacco Corp., 529 U.S. 120, 125, 120 S.Ct. 1291, 146 L.Ed.2d 121 (2000) (quoting ETSI Pipeline Project v. Missouri, 484 U.S. 495, 517, 108 S.Ct. 805, 98 L.Ed.2d 898 (1988)). Agency action "is always subject to check by the terms of the legislation that authorized it; and if
NLRB v. Brown, 380 U.S. 278, 291, 85 S.Ct. 980, 13 L.Ed.2d 839 (1965).
Defendants argue that the rule is a proper exercise of the Board's rulemaking authority under Section 6 of the Act. Alternatively, defendants argue that the rule is a reasonable exercise of the Board's authority to fill a statutory "gap" in the Act left by Congress. The parties agree that the court must review the legal sufficiency of the Board's rule under the APA by applying the two-step analysis set forth in Chevron U.S.A., Inc. v. NRDC, Inc., 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984).
"Chevron deference is a tool of statutory construction whereby courts are instructed to defer to the reasonable interpretations of expert agencies charged by Congress to fill any gap left, implicitly or explicitly, in the statutes they administer." Nat'l Elec. Mfrs. Ass'n v. U.S. Dep't of Energy, 654 F.3d 496, 504 (4th Cir.2011) (internal quotation marks omitted). Chevron applies when courts are asked to review notice-and-comment rulemaking efforts by agencies. See United States v. Mead, 533 U.S. 218, 230-31, 121 S.Ct. 2164, 150 L.Ed.2d 292 (2001). This court is therefore "confronted with two questions," i.e., Chevron "step one" and "step two." "First, always, is the question whether Congress has directly spoken to the precise question at issue," and "[i]f the intent of Congress is clear, that is the end of the matter; for the court, as well as the agency, must give effect to the unambiguously expressed intent of Congress." Chevron, 467 U.S. at 842-43, 104 S.Ct. 2778. If, however, Congress "has not directly addressed the precise question," the question under step two is "whether the agency's answer is based on a permissible construction of the statute." Id. at 843-44, 104 S.Ct. 2778.
The question presented under Chevron step one is whether Congress delegated authority to the Board to regulate employers in this manner.
To ascertain congressional intent, courts rely on the "traditional tools of statutory construction." Brown & Williamson, 153 F.3d at 161. Statutory construction begins with the language of the statute, as "the plain language of the statute in question is deemed the most reliable indicator of Congressional intent." Soliman v. Gonzales, 419 F.3d 276, 281-82 (4th Cir.2005). The court must "look to the statutory language as a whole, construing each section in harmony with every other part or section." Id. at 282. Context also plays a "crucial role" in statutory construction; "[t]hus, the traditional rules of statutory construction to be used in ascertaining congressional intent include: the overall statutory scheme, legislative history, the history of evolving congressional regulation in the area, and a consideration of other relevant statutes." Brown & Williamson, 153 F.3d at 162 (citations and internal quotation marks omitted).
Defendants first assert that the Board reasonably relied on its broad rulemaking grant in Section 6 to issue a rule that is "necessary to carry out" other provisions of the NLRA. Section 6 provides, "The Board shall have authority from time to time to make, amend, and rescind, in the manner prescribed by the Administrative Procedure Act, such rules and regulations as may be necessary to carry out the provisions of this Act." 29 U.S.C. § 156.
Interpretation of Section 6 is terra incognita. Courts have rarely explored the parameters of Section 6, the reason being that the Board has rarely exercised its rulemaking authority.
The district court enjoined the rule. On appeal to the Seventh Circuit, Judge Posner, writing for the panel, reversed, holding that the Board's rulemaking power was "explicit and broad" enough to encompass the health care units rule. Am. Hosp. Ass'n v. NLRB, 899 F.2d 651, 655 (7th Cir.1990). Because Congress granted the Board explicit rulemaking power in Section 6 at the same time it enacted Section 9(b), Judge Posner found, "it is probable (no stronger statement is possible) that Congress would have made an explicit exception for unit determination if it had wanted to place that determination outside the scope of the Board's rulemaking power." Id. at 656. "The broad discretion that the statute grants the Board in the matter of unit determination is an invitation to the Board to bring order out of chaos through rules...." Id. (emphasis added).
The Supreme Court unanimously affirmed. Am. Hosp. Ass'n v. NLRB, 499 U.S. 606, 111 S.Ct. 1539, 113 L.Ed.2d 675 (1991) ("AHA"). First, the Court touched upon the Board's rulemaking authority under Section 6, stating, "This grant was unquestionably sufficient to authorize the rule at issue in this case unless limited by some other provision in the Act." Id. (emphasis added). Second, the Court found that the Board could carry out its duty to make bargaining unit determinations "in each case," either through rulemaking or adjudication. "[E]ven if a statutory scheme requires individualized determinations," the Court wrote, "the decisionmaker has the authority to rely on rulemaking to resolve certain issues of general applicability unless Congress clearly expresses an intent to withhold that authority." Id. at 612, 111 S.Ct. 1539. Third, the Court looked to the structure and policy of the NLRA: "As a matter of statutory drafting, if Congress had intended to curtail in
AHA was decided under Chevron step one, in that the Court found Section 9(b) unambiguously did not limit the Board's authority under Section 6, but instead delegated the authority (and obligation) to the Board to make bargaining unit determinations either through rulemaking or adjudication. As noted by Judge Posner, Congress gave the Board wide discretion in the area of bargaining unit determinations. 899 F.2d at 656. Coupled with the Board's similarly-broad authority under Section 6, the Court found that the Board had unambiguous authority to promulgate a rule "necessary to carry out" Section 9(b).
Here, defendants maintain that the Board's Section 6 authority is broad enough to encompass the notice-posting rule. The court disagrees. The plain language and structure of the Act compel a finding that the Board lacks authority under Section 6 to promulgate the rule.
First, the plain language of Section 6 requires that rules promulgated by the Board be "necessary to carry out" other provisions of the Act. Defendants argue that the rule is "necessary to carry out" Sections 1 and 7 of the Act, but confuse a "necessary" rule with one that is simply useful. It can be said that the notice-posting rule "aids" or "furthers" the aspirational goals of Section 1 by notifying employees of their rights under Section 7, but defendants have not shown that the rule is "necessary" to carry out any other provision of the Act. Unlike the rule in AHA wherein Congress specifically listed the types of bargaining units and required the Board to decide the appropriate unit in each case, the Act places no affirmative obligation on employers to post notices of employee rights or inform employees of those rights, so the rule cannot be "necessary" to carry out such a nonexistent provision.
Defendants urge the court to adopt a lenient interpretation of "necessary to carry out" and rely on a pre-Chevron line of cases, including Mourning v. Family Publications Service, Inc., 411 U.S. 356, 359, 93 S.Ct. 1652, 36 L.Ed.2d 318 (1973), which held that where an agency is empowered to "`make ... such rules and regulations as may be necessary to carry out the provisions of [an] Act,' ... a regulation promulgated thereunder will be sustained so long as it is reasonably related to the purposes of the enabling legislation." At first blush, Mourning appears to support defendants' contention that the notice-posting rule is permissible because it "reasonably relates" to the purposes the Act found in Sections 1 and 7. However, courts have declined to follow this approach when doing so would give the agency "limitless power to write new law, without any regard for the language or legislative history of the governing statute, so long as it arguably fits within the purposes of the statutory scheme." Colo. River Indian Tribes v. Nat'l Indian Gaming Comm'n, 383 F.Supp.2d 123, 143-44 (D.D.C.2005),
As discussed below, the structure of the Act places the Board in a reactive role in relation to employers covered by the Act. Finding that the challenged rule is "necessary" to carry out other provisions of the Act would require the court to ignore "the statutory language as a whole," Soliman, 419 F.3d at 281-82, and allow the Board to create rules in any area in which Congress did not specifically withhold the Board's power. Contra Ry. Labor Execs.' Ass'n v. Nat'l Mediation Bd., 29 F.3d 655, 659 (D.C.Cir.1994) (en banc). The court must be guided by the plain meaning of the word "necessary" and the statutory framework that channels the Board's powers away from proactive regulation of employers to a mechanism whereby the Board's functions are triggered by an outside party. See 29 U.S.C. §§ 158-160; Local 357, Int'l Bhd. of Teamsters v. NLRB, 365 U.S. 667, 676-77, 81 S.Ct. 835, 6 L.Ed.2d 11 (1961) ("[W]here Congress has adopted a selective system for dealing with evils, the Board is confined to that system ... [and] cannot go farther and establish a broader, more pervasive regulatory scheme."); Pub. Serv. Comm'n of State of N.Y. v. FERC, 866 F.2d 487, 491-92 (D.C.Cir.1989) (finding agency's expansive reading of its authority to "perform any and all acts" and make rules "necessary or appropriate to carry out the provisions of this chapter" was contrary to balance achieved by other substantive sections of the Act). The notice-posting rule contradicts both the plain meaning of Section 6 and the balance achieved by the statutory framework.
Neither Section 6 nor any other section of the NLRA even mentions the issue of notice posting.
In addition to the plain language of the Act, the court must consider "the specific context in which the language is used," along with "the broader context of the statute as a whole." Robinson v. Shell Oil Co., 519 U.S. 337, 341, 117 S.Ct. 843, 136 L.Ed.2d 808 (1997).
It is in this context that the Board's Section 6 authority is elucidated. The notice-posting rule proactively dictates employer conduct prior to the filing of any petition or charge, and such a rule is inconsistent with the Board's reactive role under the Act. Defendants read AHA as standing for the proposition that any rule made under Section 6 is lawful so long as some other provision of the Act does not specifically limit the Board's rulemaking authority. This reading is mistaken. In AHA, the Board determined that the bargaining units rule was "necessary to carry out" Section 9(b), which required the Board to make bargaining unit determinations "in each case." Moreover, the bargaining units rule defined how the Board would handle issues after the Board's adjudicative authority was triggered. Here, the notice-posting rule does not serve to "carry out" any existing duties under the Act, but instead places an affirmative obligation on employers prior to a charge or petition first being filed. Congress did not impose a notice-posting requirement on employers in the Act or commit this area of regulation to the Board. "Where Congress has in the statute given the Board a question to answer, the courts will give respect to that answer; but they must be sure the question has been asked." NLRB v. Ins. Agents' Int'l Union, 361 U.S. 477, 499, 80 S.Ct. 419, 4 L.Ed.2d 454 (1960).
Defendants have not shown that Congress delegated authority to the Board through Section 6 to regulate employers in this manner. "It is axiomatic that an administrative agency's power to promulgate legislative regulations is limited to the authority delegated by Congress." Bowen v. Georgetown Univ. Hosp., 488 U.S. 204, 208, 109 S.Ct. 468, 102 L.Ed.2d 493 (1988). Defendants view the Act, as well as the Supreme Court's holding in AHA, as providing the Board with unbridled rulemaking discretion so long as Congress did not say "no." Courts have repeatedly rejected such a presumption of authority. See, e.g., Am. Petroleum Inst. v. EPA, 52 F.3d 1113, 1120 (D.C.Cir.1995) ("[W]e will not presume a delegation of power based solely on the fact that there is not an express withholding of such power."); Ry. Labor Execs.' Ass'n, 29 F.3d at 659 (same). The Board cannot simply hang its hat on Congress's silence, especially when the authority asserted here conflicts with the Board's historic "quasi-judicial" role in relation to employers under the Act. As stated by the Supreme Court in an adjudicative context, "[T]he role assumed by the Board in this area is fundamentally inconsistent with the structure of the Act and the function of the sections relied upon." Am. Ship Bldg. Co. v. NLRB, 380 U.S. 300, 318, 85 S.Ct. 955, 13 L.Ed.2d 855 (1965). Where Congress has prescribed the form in which the Board may exercise its authority — in this case, in reaction to a charge or petition — this court "cannot elevate the goals of an agency's action, however reasonable, over
The court does not discredit the Board's factual finding of a need for the notice-posting rule. It may or may not be true that an increased need exists today for employees to learn of their NLRA rights; the court respects the Board's decision on that issue, as expert agencies like the Board are granted leeway to make factual determinations.
Based on the plain language and structure of the Act, the court finds that the Board lacks authority under Section 6 to promulgate the notice-posting rule.
Defendants next argue that in promulgating the rule, the Board reasonably exercised its authority to fill a statutory "gap" left by Congress in the NLRA. The Board concedes that the NLRA "does not directly address an employer's obligation to post a notice of its employees' rights arising under the Act or the consequences an employer may face for failing to do so." 76 Fed.Reg. at 54,010. Because the statute is "silent" as to notice posting, the court must look beyond the plain language of the statute to determine whether Congress intended to delegate authority to the Board to fill this legislative silence, by considering "the overall statutory scheme, legislative history, the history of evolving congressional regulation in the area, and ... other relevant statutes." Brown & Williamson, 153 F.3d at 162 (citations and internal quotation marks omitted). The court takes these considerations in turn.
First, as discussed above, the NLRA, when considered as a whole, shows that Congress intended for the Board to be a reactive, quasi-judicial body with two primary functions: preventing and resolving ULP charges and conducting representation elections. Upon signing the final bill into law, President Roosevelt described the Board's authority as such: "[the Act] establishes a National Labor Relations Board to hear and determine cases in which it is charged [that the] legal right [to self-organization] is abridged or denied, and to hold fair elections to ascertain who are the chosen representatives of employees." Presidential Statement on Signing the National Labor Relations Act of 1935, reprinted in 2 NLRB, Legislative History of the National Labor Relations Act, 1935, at 3269 (1935) (hereinafter "Leg. Hist.").
As in many statutes of its kind, Congress further authorized the Board to create rules and regulations necessary to carry out these essential functions, as the Board did in AHA. Unlike the rule in AHA, the challenged rule is not necessary to carry out the Board's essential functions, as discussed above. The Board may not promulgate rules that enlarge its authority beyond the scope intended by Congress. Gen. Eng'g, Inc. v. NLRB, 341 F.2d 367, 374 (9th Cir.1965). By promulgating a rule that proactively imposes an obligation on employers prior to the filing of a ULP charge or representation petition, in the absence of express statutory authority, the Board has contravened the statutory scheme established by Congress. See Civil Serv. Emps. Ass'n v. NLRB, 569 F.3d 88, 91 (2d Cir.2009) (quoting NLRB v. Local Union No. 103, 434 U.S. 335, 350, 98 S.Ct. 651, 54 L.Ed.2d 586 (1978)) ("[D]eference is not owed when the NLRB moves `into a new area of regulation which Congress [has] not committed to it.'").
Next, the legislative history of the Act supports a finding that Congress did not intend to impose an universal notice-posting requirement on employers, nor did it authorize the Board to do so. Senate Reports on early versions of the Act state that the
S.Rep. No. 73-1184 (1934), reprinted in 1 Leg. Hist. at 1100. A similar Report found, "Neither the National Labor Relations Board nor the courts are given any blanket 24 authority to prohibit whatever labor practices that in their judgment are deemed to be unfair." S.Rep. No. 74-573 (1935), reprinted in 2 Leg. Hist. at 2307-08; see also H.R.Rep. No. 74-969, reprinted in 2 Leg. Hist. at 2919 (describing Section 11 of the Act, which gives investigatory powers to the Board, as "grant[ing] no roving commission," but instead limiting the Board "to the exercise of powers and functions embodied in sections 9 and 10"). Such statements reveal Congress's intent to place the Board in a primarily adjudicative role in relation to employers. See NLRB v. Jones & Laughlin Steel Corp., 301 U.S. 1, 31-32, 57 S.Ct. 615, 81 L.Ed. 893 (1937) (emphasis added) (holding that Congress's grant of authority to the Board "purports to reach only what may be deemed to burden or obstruct commerce," which is "to be determined as individual cases arise").
Furthermore, the history of congressional regulation in the labor field and a review of other relevant statutes reveal Congress's intent to preclude the imposition of a general notice-posting requirement on employers subject to the NLRA. In 1934, at the same time it was drafting the Wagner Act, Congress amended the Railway Labor Act ("RLA") to include an express notice-posting requirement. See 45 U.S.C. § 152, Eighth (1934). This notice provision provides in part,
Id. Paragraphs 3, 4, and 5 of Section 152 of the RLA list various rights of employees, including: the right to designation of representatives without interference, influence, or coercion; the right of employees to organize and bargain collectively through representatives of their own choosing; and the right of persons seeking employment to abstain from an agreement to join or not to join a labor organization. In this case, the Board similarly seeks to require employers to notify employees via printed notices of their statutory rights; however, Congress did not impose such an obligation in the NLRA, despite doing so in the RLA. "[W]hen Congress legislates in one area with explicit reference in a statute on an area of concern, but fails to reference that same subject matter in another statute, its silence is evidence that Congress did not intend for there to be applicability in the latter statute." N.Y. State Bar Ass'n v. FTC, 276 F.Supp.2d 110, 135 (D.D.C.2003).
Congress has inserted at least eight additional notice requirements in federal labor laws since 1934, while the NLRA remained silent. See Title VII of the Civil Rights Act, 42 U.S.C. § 2000e-10 (1964); Age Discrimination in Employment Act, 29 U.S.C. § 627 (1967); Occupational Safety and Health Act, 29 U.S.C. § 657(c) (1970); Migrant and Seasonal Agricultural Workers Protection Act, 29 U.S.C. § 1821(b) (1983); Employee Polygraph Protection Act, 29 U.S.C. § 2003 (1988); Americans with Disabilities Act, 42 U.S.C. § 12115 (1990); Family and Medical Leave Act, 29 U.S.C. § 2619(a) (1993); Uniformed Service Employment and Reemployment Rights Act, 38 U.S.C. § 4334(a) (2004). Congress clearly knows how to include a notice-posting requirement in a federal labor statute when it so desires. "Where Congress has consistently made express its delegation of a particular power, its silence is strong evidence that it did not intend to grant the power." Alcoa S.S. Co. v. Fed. Mar. Comm'n, 348 F.2d 756, 758 (D.C.Cir.1965). Less than eight years ago, Congress amended the Uniformed Services Employment and Reemployment Rights Act of 1994 ("USERRA") to impose
Despite its explicit inclusion of notice-posting obligations in these numerous federal statutes during the twentieth and twenty-first centuries, Congress made extensive revisions to the NLRA in 1947, 1959, and 1974, yet never found the need to include a notice-posting provision. The Board also went seventy-five years without promulgating a notice-posting rule, but it has now decided to flex its newly-discovered rulemaking muscles.
Bell Aerospace, 416 U.S. at 274-75, 94 S.Ct. 1757 (footnotes omitted).
Based on the statutory scheme, legislative history, history of evolving congressional regulation in the area, and a consideration of other federal labor statutes, the court finds that Congress did not intend to impose a notice-posting obligation on employers, nor did it explicitly or implicitly delegate authority to the Board to regulate employers in this manner.
Finally, the court reiterates that the Board's discovery of a "gap" in the statute does not automatically entitle it to deference under Chevron step two. In Chevron, the Court found that Congress had implicitly delegated authority to the Environmental Protection Agency ("EPA") to interpret a two-word term, "stationary source," found in the Clean Air Act Amendments of 1977. 467 U.S. at 840, 104 S.Ct. 2778. The Court reasoned that the meaning of "stationary source" was ambiguous in the statute and legislative history, and that Congress intended to enlarge the agency's power to regulate in the particular area in question. Since Chevron was decided, courts have found that Chevron "deference is warranted only when Congress has left a gap for the agency to fill
Ry. Labor Execs.' Ass'n, 29 F.3d at 671; see also Sea-Land Serv., Inc. v. Dep't of Transp., 137 F.3d 640, 645 (D.C.Cir.1998).
Unlike Chevron, where specific words in the statute were ambiguous, the NLRA is completely silent as to a notice-posting requirement. Only in this sense is the NLRA "ambiguous." But "[m]ere ambiguity in a statute is not evidence of congressional authority." Michigan v. EPA, 268 F.3d 1075, 1082 (D.C.Cir.2001); see Stephen Breyer, Judicial Review of Questions of Law and Policy, 38 Admin. L.Rev. 363, 373 (1986) ("To read Chevron as laying down a blanket rule, applicable to all agency interpretations of law, such as `always defer to the agency when the statute is silent,' would be seriously overbroad, counterproductive and sometimes senseless.").
Defendants stretch the basic meaning of a "gap" in a statute. In the ordinary case, a specific term in the statute is ambiguous and Congress was silent as to its meaning. See Emergency Servs. Billing Corp. v. Allstate Ins. Co., 668 F.3d 459, 465 (7th Cir. 2012) (emphasis added) ("[D]eference must be given to an agency's interpretation of its own statute if that statute has a gap — that is, if a key term is ambiguous and Congress was silent as to its meaning."). But here, there is no statutory language in the NLRA that requires employers to inform employees of their Section 7 rights. Only then, if some related language was ambiguous or lacking, could there be a gap for the Board to fill. Yet there is not a single trace of statutory text that indicates Congress intended for the Board to proactively regulate employers in this manner. See Nat'l Elec. Mfrs. Ass'n, 654 F.3d at 520 (Shedd, J., dissenting) ("What DOE proposes is not gap-filling; it is misreading congressional intent to justify an agency claiming more authority. No Supreme Court or Fourth Circuit case requires us to take such a drastic step with this statute...."). Courts "must be guided to a degree by common sense as to the manner in which Congress is likely to delegate a policy decision of such economic and political magnitude to an administrative agency." Brown & Williamson, 529 U.S. at 133, 120 S.Ct. 1291; Breyer, supra, at 370 ("A court may also ask whether the legal question is an important one. Congress is more likely to have focused upon, and answered, major questions, while leaving interstitial matters to answer themselves in the course of the statute's daily administration.").
As the Supreme Court stated fifty-two years ago, "Where Congress has in the statute given the Board a question to answer,
After utilizing the tools of statutory interpretation, the court finds that the Board lacks the authority to promulgate the notice-posting rule. As such, the rule is unlawful under the APA, 5 U.S.C. § 706, and the court