Beverly Enterprises, Inc. v. HermanBeverly Enterprises, Inc. v. Herman
OPINION
Before the Court are the parties’ cross-motions for summary judgment and their respective oppositions and replies thereto. Upon consideration of the parties’ pleadings and the entire record, the Court grants plaintiffs’ motion and denies defendants’ motion. Although findings of fact and conclusions of law are unnecessary on decisions of motions under Rule 12 or 56,
see
BACKGROUND
Plaintiffs Beverly Enterprises, Inc., and Beverly Health and Rehabilitation Services, Inc., own and operate a number of health care facilities that provide long-term nursing care and rehabilitation services. Defendants are the Secretary of
Congress enacted the INRA to alleviate a national shortage of registered nurses.
See
H.R.Rep. No. 101-288, at 1 (1989),
reprinted in
1989 U.S.C.C.A.N. 1894. To that end, it established a program (the “H-1A program”) allowing qualified registered nurses from foreign countries to come to the United States to work as non-immigrant aliens for a period of up to five years.
1
.
See
(i) There would be a substantial disruption through no fault of the facility in the delivery of health care services of the facility without the services of such an alien or aliens.
(ii) The employment of the alien will not adversely affect the wages and working conditions of registered nurses similarly employed. (in) The alien employed by the facility will be paid the wage rate for registered nurses similarly employed by the facility-
(iv) Either (I) the facility has taken and is taking timely and significant steps designed to recruit and retain sufficient registered nurses who are United States citizens or immigrants who are authorized to perform nursing services, in order to remove as quickly as reasonably possible the dependence of the facility on nonimmigrant registered nurses, or (II) the facility is subject to an approved State plan for the recruitment and retention of nurses (described in paragraph (3)).
(v) There is not a strike or lockout in the course of a labor dispute, and the employment of such an alien is not intended or designed to influence an election for a bargaining representative for registered nurses of the facility.
(vi) At the time of the filing of the petition for registered nurses undersection 1101(a)(15)(H)(i)(a) of this title, notice of the filing has been provided by the facility to the bargaining representative of the registered nurses at the facility or, where there is no such bargaining representative, notice of the filing has been provided to registered nurses employed at the facility through posting in conspicuous locations....
Id. § 1182(m)(2)(A). Congress imposed these attestation requirements to ensure that facilities employing alien nurses under the H-1A program took steps to recruit and retain United States (“U.S.”) nurses. See H.R.Rep. No. 101-288, at 5, 1989 U.S.C.C.A.N. at 1898.
(e) The second attestation element: ... (1) Wages. To meet the requirement of no adverse effect on wages, the facility shall attest that it shall pay each nurse of the facility at least the prevailing wage for the occupation in the geographic area. The facility shall pay the higher of the wage required pursuant to this paragraph (e) or the wage required pursuant to paragraph (f) of this section (i.e., the third attestation element: facility wage). ...
(f) The third attestation element: facility/employer wage. The facility employing or seeking to employ the alien shall attest that “the alien employed by the facility will be paid the wage rate for registered nurses similarly employed by the facility.” ... The facility shall pay the higher of the wage required pursuant to this paragraph (f) or the wage required pursuant to paragraph (e) of this section (i.e., the second attestation element: no adverse effect).
Plaintiffs’ amended complaint challenges the DoL’s regulations implementing the INRA’s second and third attestation elements under the Administrative Procedure Act (“APA”), which authorizes a reviewing court to “hold unlawful and set aside agency action, findings, and conclusions found to be ... in excess of statutory jurisdiction, authority, or limitations, or short of statutory right.”
STANDARD OF REVIEW
Summary judgment may be granted only if the pleadings and evidence “show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.”
The Court’s inquiry into the proper interpretation of the INRA proceeds under the Supreme Court’s well-known framework in
Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc.,
DISCUSSION
Plaintiffs argue that the DoL’s regulations are invalid because the plain language of the INRA requires facilities to pay only the facility wage rate to alien nurses under the H-1A program.
4
The DoL counters that the INRA’s language is not so clear, and that the DoL’s regulations are entitled to deference under step two of
Chevron
because, although Congress enacted the specific attestation elements in the INRA, “it left to the DoL the tasks of defining key statutory terms” by providing it with “broad legislative rule-making authority.” Defs.’ Mot. at 11-12. The DoL contends that
A. Statutory Language and Legislative History
At the outset, the Court rejects the DoL’s attempt to justify its prevailing wage rate regulation on the grounds that the plain language of the INRA does not preclude its construction of the second element, and that because the INRA does not define what constitutes an “adverse effect” on wages and working conditions, its regulation is entitled to deference under step
The plain language of the INRA persuades the Court that Congress directly addressed the wage rate that facilities are required to pay under the H-1A program. The INRA’s third attestation element required a facility to attest that “[t]he alien employed by the facility will be paid the wage rate for registered nurses similarly employed by the facility.”
The INRA’s legislative history supports the Court’s interpretation of the statute as requiring payment of only the facility wage rate.
See City of Cleveland v. Nuclear Regulatory Comm’n,
The DoL attempts to explain the Senate amendment to the House bill on the grounds that it would have been redundant for the third element to require a prevailing wage rate because the second element already provides for it, and that the Senate was merely clarifying an ambiguity in the House bill caused by the third element’s confusing reference to both a prevailing wage rate and a facility wage rate. The INRA’s legislative history, however, does not supply any evidence of Congress’ alleged belief that the second attestation element already provides for payment of the prevailing wage rate, and, as discussed below, the language of the second element is simply not amenable to such a construction in the context of this statute. 9 While the Court agrees with the DoL that the House version of the third element was ambiguous, the Court finds the clarification effected by the Senate amendment telling; faced with references to both a facility and a prevailing wage rate, Congress eliminated any reference to a prevailing wage rate.
Nevertheless, relying on two canons of statutory construction, the DoL contends that the INRA actually called for a construction requiring payment of at least the prevailing wage rate to all registered nurses.
10
First, the DoL argues that interpreting the language of the second attestation element to require a prevailing wage rate is consistent with the definition historically accorded to language in other alien labor statutes barring any adverse effect on wages and working conditions. For example, the permanent alien labor certification program permits employers to hire aliens to work at permanent jobs where the DoL has certified that,
inter alia,
“the employment of such alien[s] will not adversely affect the wages and working conditions of workers in the United States similarly employed.”
The Court disagrees. The rule that statutes
in pari materia
should be construed together “is but a logical extension of the principle that individual sections of a single statute should be construed together, for it necessarily assumes that whenever Congress passes a new statute, it acts aware of all previous statutes on the same subject.”
FAIC Securities, Inc. v. United States,
In sum, the DoL’s arguments in support óf its construction requiring payment of at least the prevailing wage rate are unpersuasive and, under step one of
Chevron,
do not render ambiguous Congress’ clear intent, as expressed in the INRA’s statutory language and legislative history, to require payment of only the facility wage rate. The Court briefly addresses the DoL’s arguments that this understanding of con
B. Statutory Structure and Purpose
The DoL contends that requiring payment of only the facility wage rate defeats the purpose of the first and fourth attestation elements. The first element required a facility to attest that it faced “a substantial disruption through no fault of the facility in the delivery of health care services without the services of’ an alien nurse.
See
Nor does the facility wage rate requirement defeat the purpose of the fourth attestation element, which required a facility to attest that it was “taking timely and significant steps designed to recruit and retain sufficient registered nurses who are United States citizens or immigrants ..., in order to remove as quickly as reasonably possible the dependence of the facility on nonimmigrant registered nurses.”
Finally, the Court’s interpretation of the INRA is consonant with the overriding purpose of the statute — to alleviate a national shortage of qualified nurses which “forced some hospitals, both urban and rural, to close beds and occasionally entire wings.” H.R.Rep. No. 101-288, at 1-2, 1989 U.S.C.C.A.N. at 1894-95. That purpose is ill-served under the DoL’s regula
Nevertheless, the DoL argues that requiring employers to pay a facility wage rate without also setting the prevailing wage rate as a floor will actually depress local wages by allowing facilities that employ U.S. workers at less than the prevailing wage rate “to supplement their ranks with a steady supply of foreign workers who would accept low wages, creating a lower wage scale for as long as the alien workers remain in the country.” Defs.’ Mot. at 15. The DoL’s argument is misplaced. First, if a facility was originally paying its nurses less than the prevailing wage rate, it was not the hiring of H-lA nurses that caused the lower wage level. Second, such a facility would not be able to keep the wage level depressed by hiring a steady stream of foreign nurses because the fourth attestation element requires facilities to take timely and significant steps to recruit and retain domestic nurses. Finally, even if supplementing the INRA’s facility wage rate requirement with a prevailing wage rate floor would better effectuate Congress’ intent of alleviating the national shortage of registered nurses while simultaneously protecting wage levels, it is not the province of this Court to authorize substitution of a potentially more effective method where Congress has clearly provided for one in the statute.
See MCI Telecommunications Corp. v. American Telephone & Telegraph Co.,
At bottom, this is a very simple case. Congress enacted the INRA to alleviate a national shortage of registered nurses by allowing health care facilities to hire alien nurses. To guard against any erosion in the wage rates of domestic nurses as a result of this program, Congress required each facility hiring alien nurses to pay the aliens the same wage rate paid to its similarly employed domestic nurses (ie., the facility wage rate). Nevertheless, drawing on the INRA’s general prohibition that the hiring of alien nurses not adversely affect the wages and working conditions of domestic nurses, the DoL promulgated regulations requiring facilities availing themselves of the H-1A program to pay all nurses the greater of the facility or prevailing wage rate. Where the facility wage rate is less than the prevailing wage rate, these regulations effectively supplant the specific method chosen by Congress to protect domestic wage rates with the method preferred by the DoL. Because the plain language and legislative history of the INRA, as buttressed by its structure and purpose, will not sustain this form of regulatory bootstrapping, the Court concludes that
Notes
. The deadline for filing admission petitions under the INRA expired on September 1, 1995.
See
Pub.L. No. 101-238, § 3(d), 103 Stat.2099, 2103 (1989). Nevertheless, an attesting facility’s obligations under the INRA and its implementing regulations remain in effect until the expiration of any H-1A visas issued pursuant to petitions filed before September 1, 1995.
See
. Although these regulations refer to "wages” as opposed to "wage rates,” the terms appear to be used interchangeably.
See
Defs.’ Mot. at 8 (citing
. As explained in the Court's earlier Opinion, the motivation for plaintiffs' lawsuit was the DoL’s investigation into plaintiffs' compliance with the INRA.
See Beverly Enterprises, Inc.,
. Plaintiffs also argue that the regulations are unreasonable under step two of Chevron. See Pis.’ Reply at 2 n. 1.
. This logic applies the familiar maxim
expres-sio unius est exclusio alteráis
—the “[m]ention of one thing implies exclusion of another.”
Martini v. Federal Nat'l Mortgage Ass’n,
. The DoL explains the discrepancy in the specificity of the language employed by Congress in the H-1A and H-1B statutes on the grounds that the INRA was Congress' first attempt at using an attestation process and that, when it drafted the H-1B statute, it had the benefit of the DoL's proposed regulations under the H-1A programs and modeled the H-1B statute after those regulations.
See
. Another dictionary defines "wage” as "|j>]ayment for services to a worker, especially] remuneration on an hourly, daily, or weekly basis or by the piece.” American Heritage Dictionary 1359 (2d College Ed.1982); see also Black’s Law Dictionary 1573 (7th ed.1999) (defining "wage” as "[p]ayment for labor or services, usu[ally] based on time worked or quantity produced.”). Although this definition emphasizes the wage rate component, its reference to "payment for services” is broad enough to include benefits and bonuses paid to workers.
. This broader understanding of "wages” comports with cases construing a provision of the predecessor to the permanent alien labor certification statute,
. The Court notes that the House interpreted the third attestation element in its draft to require payment of the prevailing wage rate. See H.R.Rep. No. 101-288, at 5, 1989 U.S.C.C.A.N. at 1898. If, as the DoL alleges, the INRA’s second attestation element already requires payment of the prevailing wage rate, it is unclear why the House would have inserted a prevailing wage rate requirement in the third element of its initial draft.
. For the most part, the DoL raises these arguments to show that its regulations are a permissible construction of the INRA under step two of Chevron. See Defs.’ Mot. at 13-23. Finding Congress’ intent to require payment of only the facility wage rate otherwise clear, the Court considers whether the DoL's arguments render this intent ambiguous under step one of Chevron.
.
To be sure, the DoL notes that the Seventh Circuit upheld its authority to issue a prevailing wage regulation under the permanent alien labor certification statute in
Industrial Holographies, Inc.,
With respect to the H-2A statute, the DoL notes that, under the predecessor statute,
. The Court also notes that the DoL’s argument appears to undermine the need for 20 C.F.R
. While perhaps extreme, the following hypothetical scenario posited by plaintiffs illustrates the tension between the DoL’s regulations and the INRA’s overriding purpose: under
. The DoL also argues that requiring payment of only the facility wage rate would give