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Federal Register/Vol. 76, No. 168/Tuesday, August 30, 2011/Rules and Regulations
54009
in a Wagner Act-era Senate hearing, as
cited by Americans for Limited
Government (ALG), in which it was
acknowledged that the language of
Section 6 indeed grants “broad powers”
to the Board.?7
And in January of this year, a
unanimous Supreme Court, in Mayo
Foundation for Medical Education and
Research v. United States, affirmed this
key principle that a broad grant of
statutory rulemaking authority conveys
authority to adopt legislative rules.28
Mayo concerned in part the question of
how much deference a Treasury
Department tax regulation should
receive. In Mayo, an amicus argued that
the Treasury Department’s
interpretation should receive less
deference because it was issued under a
general grant of rulemaking authority, as
opposed to an interpretation issued
under a specific grant of authority.?9
The Court responded by first explaining
its earlier holding in U.S. v. Mead, that
Chevron deference is appropriate “when
it appears that Congress delegated
authority to the agency generally to
make rules carrying the force of law,
and that the agency interpretation
claiming deference was promulgated in
the exercise of that authority.” 3° Then,
in significant part, the Court observed:
Our inquiry in that regard does not turn on
whether Congress’s delegation of authority
was general or specific.
* * * * *
The Department issued the full-time
employee rule pursuant to the explicit
authorization to “prescribe all needful rules
and regulations for the enforcement’’ of the
Internal Revenue Code. 26 U.S.C. 7805(a). We
have found such “express congressional
authorizations to engage in the process of
rulemaking” to be “a very good indicator of
delegation meriting Chevron treatment.” 34
And so, all nine members of the
Supreme Court agreed on the following
key principle: an express, albeit general,
grant of rulemaking authority is fully
sufficient for an agency to receive
Chevron deference for its rulemaking. It
follows that a broad grant of rulemaking
authority will suffice for the agency to
engage in legislative rulemaking in the
first place. Thus, the Supreme Court’s
27 Statement of Donald A. Callahan, U.S. Senate
Committee on Education and Labor, March 29,
1935, Legislative History of the National Labor
Relations Act, U.S. Government Printing Office,
1949, p. 2002.
28131 S. Ct. 704, 713-14 (2011).
29 Td, at 713.
30 Id. (quoting United States v. Mead, 533 U.S.
218, 226-27 (2001)); see also Chevron, 467 U.S. at
842-43 (announcing two-part framework for
determining whether courts should grant deference
to agency interpretations of enabling statutes).
31 Mayo, 131 S. Ct. at 713-14 (emphasis added
and citations omitted).
rulings continue to fully support a broad
construction of Section 6.
Disputing this conclusion, ALG
asserts that Section 6 was intended to be
used “primarily”’ for procedural
rulemaking, and cites a Senate report
from the Wagner Act’s legislative
history. That Senate report explains:
“TiJn no case do the rules have the force
of law in the sense that criminal
penalties or fines accrue for their
violation, and it seems sufficient that
the rules prescribed must be ‘necessary
to carry out the provisions’ of the
act.” 32 The Board disagrees. The cited
language merely proclaims the obvious,
that no criminal penalties or fines
accrue for violating the Board’s rules.
However, laws such as the NLRA that
do not impose criminal penalties or
fines for their violation can also have
the “force of law” (which is perhaps
why the Senate report used the limiting
phrase “‘in the sense of”). The Supreme
Court has previously recognized that
final Agency orders under Sections 10
(e) and (f) of the Act, despite their non-
self enforcing nature, have ‘‘the force
and effect of law.” 33 So too, do the
Board’s rules have the force and effect
of law, as held by the Supreme Court in
AHA.34
Several comments discuss whether
Board Rule 103.20, which mandates the
posting of an election notice in a
workplace three working days prior to a
representation election, should be
considered analogous to the proposed
rule. The United Food and Commercial
Workers International Union (UFCW)
comments that the election rule is, like
the proposed rule, only minimally
burdensome and further noted that it
has never been challenged.2 ALG
disagrees that the election rule should
be considered analogous here, because
although in the election context a notice
posting is the most feasible means to
inform employees about an upcoming
election that is occurring at a specific
32 See Comparison of S. 2926 (73d Congress) and
S. 1958 (74th Congress) 24 (Comm. Print 1935),
reprinted in 1 Legislative History of the National
Labor Relations Act, 1935, (1949) at 1349.
33 NLRB v. Sears, Roebuck & Co., 421 U.S. 132,
153-54 (1975) (ordering disclosure of such Agency
opinions under the FOIA, and quoting legislative
history of the FOIA to that effect, H.R. Rep. No.
1497, p. 7, U.S. Code Cong. & Admin. News, 1966,
p. 2424).
34.499 U.S. at 609-10. But even if one were to
construe the report in the way advocated by the
comment, such reports themselves do not have the
force and effect of law, see Lincoln v. Vigil, 508 U.S.
182, 192 (1993); AHA, 499 U.S. at 616, and thus at
best are only potential evidence of legislative intent.
35 However, it is incorrect that the rule has never
been challenged; it has been challenged and
upheld. See Pannier Corp. v. NLRB, 120 F.3d 603,
606-07 (6th Cir. 1997) (rejecting an as-applied
challenge to Rule 103.20).
place and time, that is not the case in
the NLRA rights context, in which
employees can just search the Internet
to find out more information. The Board
agrees with the UFCW that posting a
notice is a minimally burdensome way
to ensure that employees receive certain
information, although obviously, the
proposed notice will reach many more
employers over a much longer period of
time than do election notices. And
ALG’s acknowledgment that a notice
posting in the workplace is in fact
sometimes the most feasible means to
inform employees of important
information supports the Board’s belief,
explained below, that workplace notice
posting is a more efficient way of
informing employees of their NLRA
rights than relying on information
available on the Internet.
A few comments argue that the Board
is a law enforcement agency only, and
should not be engaging in rulemaking
for that reason. One comment asserts
that “Congress did not intend to
“empower the NLRB to be a rulemaking
body, but rather an investigatory/
enforcement agent of the NLRA.”’ 35 The
Board responds that by enacting Section
6, Congress plainly and explicitly
intended to, and did, “empower the
NLRB to be a rulemaking body.” And,
as shown above, AHA conclusively
found that the Board is empowered to
use its rulemaking powers, as the Court
had previously indicated in Wyman-
Gordon and Bell Aerospace.*”
A joint comment submitted by
Douglas Holtz-Eakin and Sam Batkins
argues against the Board’s assertion of
Section 6 authority here by asserting
that “the Supreme Court has
circumscribed NLRB rulemaking in the
past: ‘The deference owed to an expert
tribunal cannot be allowed to slip into
a judicial inertia which results in the
unauthorized assumption by an agency
of major policy decisions properly made
by Congress.’ ’’ However, that comment
neglects to provide the citation for that
quotation, American Ship Building Co.
v. NLRB,3® which was not a rulemaking
case but an adjudication. In any event,
the Board does not agree that this rule
presumes to make a major policy
decision properly made by Congress
alone. As explained in subsection B,
36 Comment of Manufacturers’ Association of
South Central Pennsylvania.
37In National Petroleum Refiners Ass’n v. FTC,
482 F.2d 672 (D.C. Cir. 1973), the court rejected the
argument that the FTC’s prosecutorial functions
rendered it unsuitable for issuing rules. By way of
example, it noted that the NLRB is similar to the
FTC in its methods of adjudication and
enforcement, but the Supreme Court had repeatedly
encouraged the Board to utilize its rulemaking
powers. Id. at 684.
38 380 U.S. 300, 318 (1965).
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