Katherine ARCHULETA, Director, Office of Personnel Management, Petitioner, v. Tony D. HOPPER, Respondent, and Merit Systems Protection Board, Respondent.
No. 2013-3177.
United States Court of Appeals, Federal Circuit.
Dec. 8, 2014.
1289
Because the majority opinion upends a once-clear analytical framework and will breed confusion in future cases, the concerns raised are “of exceptional importance” and “en banc consideration is necessary to secure or maintain uniformity of the court‘s decisions.” See
Andres M. Grajales, Deputy General Counsel, AFGE, Office of the General Counsel, of Washington, DC, argued for respondent Tony D. Hopper.
Jeffrey A. Gauger, Attorney, Office of the General Counsel, Merit Systems Protection Board, of Washington, DC, argued for respondent Merit Systems Protection Board. With him on the brief was Bryan G. Polisuk, General Counsel.
Gregory O‘Duden, General Counsel, National Treasury Employees Union, of Washington, DC, for amicus curiae National Treasury Employees Union. With him on the brief were Larry J. Adkins, Deputy General Counsel, and Paras N. Shah, Assistant Counsel.
Before LOURIE, O‘MALLEY, and REYNA, Circuit Judges.
O‘MALLEY, Circuit Judge.
Katherine Archuleta, Director of the Office of Personnel Management (“OPM“), petitions for review of a final order of the Merit Systems Protection Board (“the Board“) holding that an individual who meets the definition of an “employee” un
BACKGROUND
In April 2008, Tony Hopper (“Hopper“) was appointed to the position of Contract Representative with the Social Security Administration (“the SSA“) in Florence, Kentucky. The SSA subsequently requested that OPM conduct a background investigation.
Roughly 15 months after his appointment, OPM informed Hopper that it found “a serious question” regarding his suitability for federal employment due to false statements he made in connection with his application and appointment. When asked on his application whether, during the past five years, he had been fired from any job or had quit after being told he would be fired, Hopper responded “no.” To the contrary, OPM alleged that Hoрper had been fired from a forklift driver position in October 2007, and from a truck driver position with a different company in December 2006. Initial Decision, 2012 MSPB LEXIS 1353, at *4. OPM further charged that, in response to a question requesting a list of all employment activities for the past five years, Hopper failed to report his employment in the truck driver position from which he was terminated.
OPM notified Hopper that it would instruct the SSA to remove him based on the charge of “Material, intentional false statement, or deception or fraud in examination or appointment.” Hopper responded in writing and submitted supporting documents. He claimed that: (1) he was not fired from either position; and (2) if he failed to report his emрloyment as a truck driver, “it was an honest mistake.” Joint Appendix (“J.A.“) 145.
In a letter dated July 14, 2009, OPM informed Hopper that it directed the SSA to remove him, to cancel his eligibility for reinstatement, and to debar him from federal employment for three years, or until July 14, 2012. OPM explained that these actions were based on Hopper‘s failure to report his two prior employment terminations. OPM rejected Hopper‘s asser
Hopper timely appealed OPM‘s July 14, 2009 negative suitability decision to the Board. While Hopper‘s appeal was pending, the Board issued a pair of decisions—Aguzie v. Office of Personnel Management, 112 M.S.P.R. 276 (2009) and Barnes v. Office of Personnel Management, 112 M.S.P.R. 273 (2009)—which questioned whether an individual who meets the definition of an “employee” under
In January 2011, the Board issued its decision in Aguzie, holding that, when OPM directs an agency to remove a tenured employee, the removal action is subject to the requirements of chapter 75, including the right to appeal to the Board guaranteed in
Post-Aguzie, the administrative judge automatically refiled Hopper‘s appeal, and conducted a hearing via videoconference on October 26, 2011. During the hearing, representatives for OPM gave an opening statement criticizing the Aguzie decision but otherwise refused to participate. Specifically, OPM‘s representative stated that: (1) “OPM is simply incapable of adjudicating suitability actions under chapter 75;” and (2) OPM considered suitability factors in connection with this case, but did not consider mitigating or aggravating factors which are relevant under chapter 75. J.A. 461-62. Hopper presented testimony from his second-line supervisor at the SSA: Assistant District Manager Sidney Egleston. In relevant part, Egleston “expressed continued confidence in [Hopper] and testified that he would have issued a lesser penalty, such as a letter of reprimand, rather than impose the penаlty of removal.” Hopper, 118 M.S.P.R. at 610.
In an Initial Decision dated March 8, 2012, the administrative judge explained that, although this case originated as a suitability action, because Hopper qualifies as an employee, he is entitled to appeal his removal as an “adverse action” under chapter 75 pursuant to the Board‘s decision in Aguzie. The administrative judge sustained OPM‘s charge that Hopper provided false statements during his Federal appointment process. The judge then found that OPM did not engage in harmful procedural error in failing to consider the Douglas factors in its suitability action because Aguzie changed the applicable standard. See Douglas v. Veterans Admin., 5 MSPB 313, 5 M.S.P.R. 280, 305 (1981). Even if OPM had considered those factors, however, the administrative judge found that OPM would have made the same deci
Pursuant to the Board‘s decision in Aguzie, the administrative judge conducted an independent review of the relevant Douglas factors. Specifically, the judge noted that Hopper had served 15 months with the SSA, had no prior discipline, and had received a successful rating on his performance review. Id. at *10. Given Egleston‘s unchallenged testimony expressing confidence in Hopper‘s performance and a preference for a lesser penalty, the administrative judge mitigated OPM‘s action from removal to a letter of reprimand.
OPM petitioned the full Board for review, and the Director of OPM intervened. The parties did not dispute any of the administrative judge‘s factual findings or his conclusion that Hopper failed to demonstrate a harmful procedural error. Importantly, it was undisputed that Hopper was an “employee” under
The Director of OPM petitioned this court to review the Board‘s final decision pursuant to
DISCUSSION
On appeal, OPM argues that this court should reverse the Board‘s decision “upending the long standing and well-established separation between suitability actions by OPM and adverse actions by employing agencies.” Petitioner Br. 15. OPM maintains that: (1) Hopper‘s appeal should have been adjudicated as a suitability action under
The Board responds that the CSRA defines who qualifies as an “employee” for purposes of Board review under chapter 75, and it is undisputed that Hopper meets that definition. And, although the CSRA specifies the types of removals that are excepted from Board review, it does not include an exception for removals based on suitability determinations. Accordingly, the Board maintains that Hopper‘s removal is an appealable adverse action under chapter 75. Because the statutory text is clear, the Board submits that we need not address OPM‘s deference arguments. Finally, the Board argues that OPM intentionally failed to meet its burden of showing that the penalty imposed on Hopper was reasonable.
Hopper similarly argues that: (1) the Board‘s decision is consistent with the
The scope of our review in an appeal from the Board is limited by statute. We must affirm the Board‘s decision unless it was: “(1) arbitrary, сapricious, an abuse of discretion, or otherwise not in accordance with law; (2) obtained without procedures required by law, rule, or regulation having been followed; or (3) unsupported by substantial evidence.”
As explained below, we agree with the Board that Hopper‘s removal is an appealable adverse action under chapter 75, which by its terms provides a tenured employee with the right to appeal a removal without any exception for removals based on a negative suitability determination. Becаuse we find the statutory text unambiguous, we do not decide which agency‘s interpretation of that text is due deference or whether their respective interpretations would be worthy of deference. We further find that the Board applied the appropriate analysis in assessing the penalty and mitigating Hopper‘s removal to a letter of remand.
A. The CSRA Grants the Board Jurisdiction Over Removal Appeals Involving Employees
Resolution of this appeal involves the interpretation of and interplay between several provisions of the CSRA on the one hand, and OPM‘s suitability regulations on the other. It also involves the relationship between OPM and the Board, including their respeсtive roles in the civil service system. It is well established that “statutory construction begins with the language of the statute itself.” Van Wersch v. Dep‘t of Health & Human Servs., 197 F.3d 1144, 1148 (Fed.Cir.1999). “If the statutory language is plain and unambiguous, then it controls, and we may not look to the agency regulation for further guidance.” Info. Tech. & Applica- tions Corp. v. United States, 316 F.3d 1312, 1320 (Fed.Cir.2003) (citing Chevron, 467 U.S. at 842-43).
Turning to the statutory text, the CSRA grants the Board the power to adjudicate matters falling within its jurisdiction.
Section 7512 then lists the following actions as falling outside the coverage of the statute:
(A) a suspension or removal under section 7532 of this title,
(B) a reduction-in-force action under seсtion 3502 of this title,
(C) the reduction in grade of a supervisor or manager who has not completed the probationary period under section 3321(a)(2) of this title if such reduction is to the grade held immediately before becoming a supervisor or manager,
(D) a reduction in grade or removal under section 4303 of this title, or
(E) an action initiated under section 1215 or 7521 of this title.
Section 7513(d) of the CSRA provides that an employee who is subject to an action listed in § 7512 is “entitled to appeal to the Merit Systems Protection Board under section 7701.”
Taken together, these statutory provisions make clear that tenured employees—those individuals who meet the definition of an “employee” set forth in § 7511—can seek Board review of adverse actions as defined in § 7512, including removals. Nothing in the text of the CSRA excludes suitability-based removals from the coverage of chapter 75. In fact, when Congress delineated the types of actions that are outside the scope of § 7512, it did not include an exemption for suitability removals. Applying the canon of expressio unius est exclusio alterius, no exceptions should be rеad into § 7512 beyond the five that Congress specifically created. See United States v. Smith, 499 U.S. 160, 167, 111 S.Ct. 1180, 113 L.Ed.2d 134 (1991) (“‘Where Congress explicitly enumerates certain exceptions to a general prohibition, additional exceptions are not to be implied, in the absence of evidence of a contrary legislative intent.‘“) (quoting Andrus v. Glover Constr. Co., 446 U.S. 608, 616-17, 100 S.Ct. 1905, 64 L.Ed.2d 548 (1980)); see also Ventas, Inc. v. United States, 381 F.3d 1156, 1161 (Fed.Cir.2004) (“Where Congress includes certain exceptions in a statute, the maxim expressio unius est exclusio alterius presumes that those are the only exceptions Congress intended.“). Accordingly, we can infer that suitability-based removals are included within the scope of § 7512.
Here, it is undisputed that Hopper qualifies as an “employee” because he is a preference eligiblе veteran in the excepted service who has completed 1 year of current continuous service in the same or similar position. See
OPM maintains that the CSRA preserved OPM‘s pre-CSRA control over suitability matters. Specifically, OPM cites
First, Section 1101 provides that OPM “is an independent establishment in the executive branch.”
While these authorities stand for the proposition that OPM can promulgate suitability regulations, they do not alter the Board‘s statutory jurisdiction to adjudicate removal appeals. Indeed, § 7514 grants OPM authority to prescribe regulations “except as it concerns any matter with respect to which the Merit Systems Protection Board may prescribe regulations.”
Despite the unambiguous statutory text, OPM argues that its regulations at
tions which would undermine the authority of the Board directly or indirectly to regulate the procedures under which it reviews matters appealed to it, or the authority of the Board to decide matters in accordance with its interpretation of applicable law.“).
OPM submits that its regulations are valid under the savings provision of the CSRA, § 902(a). Specifically, OPM maintains that § 902(a) preserved a “distinction between suitability actions and adverse actions by employing agencies.” Petitioner Br. 22. OPM‘s reliance on the savings provision is misplaced. That provision states, in part, that, “[e]xcept as otherwise provided in this Act, all executive orders, rules, and regulations affecting the Federal service shall continue in effect, according to their terms, until modified, terminated, superseded, or repealed” by the President or OPM. CSRA § 902(a), 92 Stat. at 1223.
As an initial matter, because OPM modified its regulations after the CSRA was enacted, it can no longer rely on the savings provision which specifically states that preexisting rules shall continue in effect “until modified.” More importantly, however, § 902(a) demonstrates that, although certain rules may have been preserved, no rules that conflict with the CSRA survive under the Act. Accordingly, to the extent OPM alleges that its suitability action appeal rules were part of the pre-CSRA scheme, they were not preserved under the savings provision because they are inconsistent with § 7512.
OPM argues that § 7512 is ambiguous because, “by its plain terms,” it “does not cover all removals.” Petitioner Br. 28. But the statute provides that it applies to “a removal” and then lists specific exceptions. That there is no exception for suitability-based removals does not render the statute ambiguous. Instead, it supports the inference that Congress did not intend to create such an exception. This is espe-
OPM also cites Horner v. Andrzjewski, 811 F.2d 571 (Fed. Cir.1987), for the broad proposition that § 7512 is ambiguous. At issue in Horner was an OPM regulation which exempted emergency furloughs from the statutory thirty day notice requirement for adverse actions. The Board found the regulation invalid on grounds that: (1) § 7512 defines a furlough of thirty days or less as an adverse action; and (2) § 7513(b) requires thirty days advance written notice for any adverse action. Id. at 574. On appeal, this court concluded that there was an ambiguity in the statute and that OPM‘s regulation “merely resolve[d] that ambiguity.” Id. at 576. We explained that, “[i]f an emergency furlough action is tаken because an agency has no choice, rather than for the ‘efficiency of the service’ it can reasonably be said that the agency did not ‘take an action’ covered by chapter 75. Thus, the notice provision of section 7513(b) would be inapplicable.” Id. at 576. Unlike the emergency furlough at issue in Horner, however, a removal is an adverse action under § 7512, and it is undisputed that the SSA removed Hopper. Accordingly, Horner is readily distinguishable.
The Board concedes that “OPM can direct a suitability-based removal action after an employee has been on the job for 10, 15, or even 30 years.” Respondent MSPB Br. 24. That said, a tenured employee has a statutory right to Board review of that removal under chapter 75. OPM cites Folio v. Department of Homeland Security, 402 F.3d 1350, 1355 (Fed. Cir.2005), as еvidence that this court “has held that OPM‘s regulations properly pre-
According to OPM, its suitability regulations do not treat tenured employees differently because “mere completion of 12 months of service cannot shield a person from the consequences of, for example, making material, intentional false statements in order to obtain a position with the Federal Government.” Petitioner Br. 32 (citing 73 Fed.Reg. 20149, 20151 (Apr. 15, 2008)). OPM maintains that the Board‘s decision creates an inconsistency wherein the Board cannot review or mitigate OPM‘s selected suitability action in casеs involving individuals without chapter 75 appeal rights, but where the individual qualifies as an “employee,” the Board can substitute its judgment for that of OPM.
While OPM strongly urges that its authority should not be circumscribed, it is not irrational to think Congress intended to do just that; giving broad authority to OPM unless and until an individual attains “employee” status. To the extent OPM believes that § 7512 should include an exception for actions taken against tenured employees based on suitability determinations, it must make its case to Congress rather than this court. If Congress determines that an individual in Hopper‘s position should not have the right to appeal a negative suitability decision as an adverse action under chapter 75, it can amend the CSRA to include suitаbility actions in the list of those matters not subject to appeal. See Reid v. Dep‘t of Commerce, 793 F.2d 277, 284 (Fed.Cir.1986) (“‘The remedy for any dissatisfaction with the results in particular cases lies with Congress’ and not this court. ‘Congress may amend the statute; we may not.‘“) (quoting Griffin v. Oceanic Contractors, Inc., 458 U.S. 564, 576, 102 S.Ct. 3245, 73 L.Ed.2d 973 (1982)). Until it does so, however, we must apply the statute as written. See Van Wersch, 197 F.3d at 1152 (“[W]hen a statute expresses its purpose in short, clear terms, the duty of the court is to apply the statute as written.“).5
B. Mitigation of the Penalty
Because Hopper is a tenured employee, he has a statutory right to appeal his removal to the Board under
OPM objects to the Board‘s application of chapter 75 to Hopper‘s case, and argues that the Douglas factors do not apply in suitability appeals. According to OPM, pursuant to
While it is certainly true that “obtaining an appointment through material misrep-
resentation is a very serious offense” that may form the basis for removal, we have said that it “involves a quantum leap of logic” to conclude that review of the penalty is somehow barred. Devine v. Sutermeister, 724 F.2d 1558, 1564 (Fed.Cir. 1983). Instead, Hopper is entitled to “the same procedural safeguards and review as any other employee subject to an adverse action under the CSRA, including review of the appropriateness of the penalty imposed by the agency.” See id.
“‘Determination of an appropriate penalty is a matter committed primarily to the sound discretion of the employing agency.‘” Brook v. Corrado, 999 F.2d 523, 528 (Fed.Cir.1993) (quoting Beard v. Gen. Servs. Admin., 801 F.2d 1318, 1322 (Fed. Cir.1986)). This court defers to the agency‘s choice of penalty “unless the penalty exceeds the range of permissible punishment specified by statute or regulation, or unless the penalty is so harsh and unconscionably disproportionate to the offense that it amounts to an abuse of discretion.” Id. (citation and quotation marks omitted). We have explained that this principle of deference “reflects the important policy consideration that the employing (and not the reviewing) agency is in the best position to judge the impact of the employee misconduct upon the operations of the agency....” Beard, 801 F.2d at 1321.
Consistent with that rationale, the Board in Aguzie found that deference is not warranted “when OPM, rather than the employing agency, makes the penalty determination.” 116 M.S.P.R. at 80 (noting that the “factors pertinent to determining the appropriateness of the penalty under the efficiency of the service standard of
As previously noted, the administrative judge sustained OPM‘s falsification charge against Hopper, but mitigated the penalty after applying the relevant Douglas factors. In doing so, the administrative judge noted that OPM was present at the hearing, but refused to participate beyond challenging the decision in Aguzie. Accordingly, OPM did not provide any testimony or other evidence in support of its removal decision.
Independently applying the relevant Douglas factors, the administrative judge found that Hopper served 15 months with the SSA, had no prior discipline, and had received a successful performance review. Given that Hopper‘s second-line supervisor expressed continued confidence in him and a preference for a lesser penalty, the administrative judge found that mitigation was appropriate. The Board found that the administrative judge applied the appropriate analysis in mitigating Hopper‘s removal and affirmed the administrative judge‘s findings.
We discern no error in the Board‘s analysis. Because Hopper was a tenured employee, he was entitled to appeal to the Board under
CONCLUSION
For the foregoing reasons, we conclude that: (1) under the CSRA, a tenured employee is entitled to appeal a suitability-based removal as an adverse action under chapter 75; and (2) the Board was entitled to conduct an independent review of the penalty imposed in light of the relevant Douglas factors. Accordingly, we affirm the Board‘s decision mitigating Hopper‘s suitability-based removal to a letter of reprimand.
AFFIRMED.
JAPANESE FOUNDATION FOR CANCER RESEARCH, Plaintiff-Cross-Appellant, v. Michelle K. LEE, Deputy Director, U.S. Patent and Trademark Office, in her official capacity as Deputy Under Secretary of Commerce for Intellectual Property and United States Patent and Trademark Office, Defendants-Appellants.
Nos. 2013-1678, 2014-1014.
United States Court of Appeals, Federal Circuit.
Dec. 9, 2014.