692 F.3d 65
2d Cir.2012Background
- OSHA cited Loretto-Oswego for safety violations; repeated status hinged on single-employer status with LMC and two affiliates.
- ALJ found a single-employer relationship; Commission reversed, holding no single-employer status.
- Affiliates share president/CEO and CFO; LMC bylaws authorize broad control and oversight over affiliates.
- Evidence showed interrelation: corporate safety policy efforts, budgeting, training, and inspection involvement by LMC staff.
- LMC and affiliates operated in different locations; OSHA inspection occurred at Loretto-Oswego in Oswego, NY.
- Secretary seeks review of the Commission’s test and its factual weighing; penalties would differ if repeated.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| OSHA single-employer test standard | Secretary argues for four-factor NLRA-style test including centralized labor relations control. | Loretto-Oswego argues Commission's three-factor OSH Act test should apply; no four-factor adoption. | Secretary forfeited; court declines four-factor adoption. |
| Weighing of evidence on single-employer status | Secretary contends Commission overemphasized day-to-day control and underemphasized centralized control. | Loretto-Oswego contends Commission properly weighed evidence and reached a permissible result. | Commission's weighing supported by substantial evidence. |
| Credit given to ALJ's factual findings | Secretary argues Commission reversed ALJ without adequate explanation, failing to credit findings of interrelation. | Commission weighed evidence, did not disturb underlying factual findings, and provided justification for its view. | No reversible error; Commission properly weighed the evidence without crediting every finding. |
Key Cases Cited
- Murray v. Miner, 74 F.3d 402 (2d Cir. 1996) (single-employer fairness considerations in NLRA context)
- NLRB v. Starbucks Corp., 679 F.3d 70 (2d Cir. 2012) (substantial evidence standard for OSH Act/related review)
- Brock v. L.E. Myers Co., High Voltage Div., 818 F.2d 1270 (6th Cir. 1987) (requires articulation when Commission reverses ALJ credibility findings)
- ITT Cont’l Baking Co. v. FTC, 532 F.2d 207 (2d Cir. 1976) (example of explaining weight of evidence in agency decisions)
- Chao v. Russell P. Le Frois Builder, Inc., 291 F.3d 219 (2d Cir. 2002) (deference to agency interpretations under Chevron-like framework)