NATIONAL LABOR RELATIONS BOARD v. KENTUCKY RIVER COMMUNITY CARE, INC., ET AL.
No. 99-1815
Supreme Court of the United States
Argued February 21, 2001—Decided May 29, 2001
532 U.S. 706
Michael W. Hawkins argued the cause for respondent Kentucky River Community Care, Inc. With him on the brief were Louise S. Brock and Cheryl E. Bruner.*
Under the National Labor Relations Act, employees are deemed to be “supervisors” and thereby excluded from the protections of the Act if, inter alia, they exercise “independent judgment” in “responsibly . . . direct[ing]” other employees “in the interest of the employer.”
I
In Pippa Passes, Kentucky, respondent Kentucky River Community Care, Inc., operates a care facility for residents who suffer from mental retardation and mental illness. The facility, named the Caney Creek Developmental Complex (Caney Creek), employs approximately 110 professional and nonprofessional employees in addition to roughly a dozen concededly managerial or supervisory employees. In 1997, the Kentucky State District Council of Carpenters (a labor
At the ensuing representation hearing, respondent objected to the inclusion of Caney Creek‘s six registered nurses in the bargaining unit, arguing that they were “supervisors” under
Because direct judicial review of representation determinations is unavailable, AFL v. NLRB, 308 U. S. 401, 409-411 (1940), respondent sought indirect review by refusing to bargain with the union, thereby inducing the General Counsel of the Board to file an unfair labor practice complaint under
Respondent petitioned for review of the Board‘s decision in the United States Court of Appeals for the Sixth Circuit, and the Board cross-petitioned. The Sixth Circuit granted respondent‘s petition as it applied to the nurses and refused to enforce the bargaining order. It held that the Board had erred in placing the burden of proving supervisory status on respondent rather than on its General Counsel, and it rejected the Board‘s interpretation of “independent judgment,” explaining that the Board had erred by classifying “‘the practice of a nurse supervising a nurse‘s aide in administering patient care’ as ‘routine’ [simply] because the nurses have the ability to direct patient care by virtue of their training and expertise, not because of their connection with ‘management.‘” 193 F. 3d 444, 453 (1999). We granted the Board‘s petition for a writ of certiorari. 530 U. S. 1304 (2000).
II
The Act expressly defines the term “supervisor” in
“The term ‘supervisor’ means any individual having authority, in the interest of the employer, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibly to direct them, or to adjust their grievances, or effectively to recommend such action, if in connection with the foregoing the exercise of such authority is not of a merely routine or clerical nature, but requires the use of independent judgment.”
29 U. S. C. § 152(11) .
The Act does not, however, expressly allocate the burden of proving or disproving a challenged employee‘s supervisory status. The Board therefore has filled the statutory gap with the consistent rule that the burden is borne by
The Board argues that the Court of Appeals for the Sixth Circuit erred in not deferring to its resolution of the statutory ambiguity, and we agree. The Board‘s rule is supported by “the general rule of statutory construction that the burden of proving justification or exemption under a special exception to the prohibitions of a statute generally rests on one who claims its benefits.” FTC v. Morton Salt Co., 334 U. S. 37, 44-45 (1948). The Act‘s definition of “employee,”
Applying its rule to this case, the Board placed on respondent the duty to prove the supervisory status of its nurses both in the § 9(c) representation proceeding, where respondent sought to exclude the nurses from the bargaining unit prior to the election, and in the unfair labor practice hearing, where respondent defended against the § 8(a)(5) refusal-to-bargain charge. Respondent challenges the application of the rule to the latter proceeding where, it correctly observes and the Board does not dispute, “the General Counsel carries the burden of proving the elements of an unfair labor practice,” id., at 401, which means that it bears the burden of persuasion as well as of production, see
III
The text of § 2(11) of the Act that we quoted above,
Two aspects of the Board‘s interpretation are reasonable, and hence controlling on this Court, see NLRB v. Town & Country Elec., Inc., supra, at 89-90; Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U. S. 837, 842-844 (1984). First, it is certainly true that the statutory term “independent judgment” is ambiguous with respect to the degree of discretion required for supervisory status. See NLRB v. Health Care & Retirement Corp. of America, supra, at 579. Many nominally supervisory functions may be performed without the “exercis[e of] such a degree of . . . judgment or discretion . . . as would warrant a finding” of supervisory status under the Act. Weyerhaeuser Timber Co., 85 N. L. R. B. 1170, 1173 (1949). It falls clearly within the Board‘s discretion to determine, within reason, what scope of discretion qualifies. Second, as reflected in the Board‘s phrase “in accordance with employer-specified standards,” it is also undoubtedly true that the degree of judgment that might ordinarily be required to conduct a particular task may be reduced below the statutory threshold
The Board, however, argues further that the judgment even of employees who are permitted by their employer to exercise a sufficient degree of discretion is not “independent judgment” if it is a particular kind of judgment, namely, “ordinary professional or technical judgment in directing less-skilled employees to deliver services.” Brief for Petitioner 11. The first five words of this interpretation insert a startling categorical exclusion into statutory text that does not suggest its existence. The text, by focusing on the “clerical” or “routine” (as opposed to “independent“) nature of the judgment, introduces the question of degree of judgment that we have agreed falls within the reasonable discretion of the Board to resolve. But the Board‘s categorical exclusion turns on factors that have nothing to do with the degree of discretion an employee exercises. Cf. Whitman v. American Trucking Assns., Inc., 531 U. S. 457, 481 (2001) (“[T]he agency‘s interpretation goes beyond the limits of what is ambiguous and contradicts what in our view is quite clear“). Let the judgment be significant and only loosely constrained by the employer; if it is “professional or technical” it will nonetheless not be independent.1 The breadth
As it happens, though, only one class of supervisors would be eliminated in practice, because the Board limits its categorical exclusion with a qualifier: Only professional judgment that is applied “in directing less-skilled employees to deliver services” is excluded from the statutory category of “independent judgment.” Brief for Petitioner 11. This second rule is no less striking than the first, and is directly contrary to the text of the statute. Every supervisory function listed by the Act is accompanied by the statutory requirement that its exercise “requir[e] the use of independent judgment” before supervisory status will obtain,
The Board‘s refusal to apply its limiting interpretation of “independent judgment” to any supervisory function other than responsibly directing other employees is particularly troubling because just seven years ago we rejected the Board‘s interpretation of part three of the supervisory test that similarly was applied only to the same supervisory function. See NLRB v. Health Care & Retirement Corp. of America, 511 U. S. 571 (1994). In Health Care, the Board argued that nurses did not exercise their authority “in the interest of the employer,” as
The Board contends, however, that Congress incorporated the Board‘s categorical restrictions on “independent judgment” when it first added the term “supervisor” to the Act in 1947. We think history shows the opposite. The Act as originally passed by Congress in 1935 did not mention supervisors directly. It extended to “employees” the “right to self-organization, to form, join, or assist labor organizations,
Well before the Taft-Hartley Act added the term “supervisor” to the Act, however, the Board had already been defining it, because while the Board agreed that supervisors were protected by the 1935 Act, it also determined that they should not be placed in the same bargaining unit as the employees they oversaw. To distinguish the two groups, the Board defined “supervisors” as employees who “supervise or direct the work of [other] employees . . . , and who have authority to hire, promote, discharge, discipline, or otherwise effect changes in the status of such employees.” Douglas Aircraft Co., 50 N. L. R. B. 784, 787 (1943) (emphasis added). The “and” bears emphasis because it was a true conjunctive: The Board consistently held that employees whose only supervisory function was directing the work of other employees were not “supervisors” within its test. For example, in Bunting Brass & Bronze Co., 58 N. L. R. B. 618, 620 (1944), the Board wrote: “We are of the opinion that, while linemen do direct the work of [other] employees, they do not exercise substantial supervisory authority within the
When the Taft-Hartley Act added the term “supervisor” to the Act in 1947, it largely borrowed the Board‘s definition of the term, with one notable exception: Whereas the Board required a supervisor to direct the work of other employees and perform another listed function, the Act permitted direction alone to suffice. “The term ‘supervisor’ means any individual having authority . . . to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibly to direct them, or to adjust their grievances.”
It is upon that policy concern that the Board ultimately rests its defense of its interpretation of “independent judgment.” In arguments that parallel those expressed by the dissent in Health Care, see 511 U. S., at 588-590 (GINS-
What is at issue is the Board‘s contention that the policy of covering professional employees under the Act justifies the categorical exclusion of professional judgments from a term, “independent judgment,” that naturally includes them. And further, that it justifies limiting this categorical exclusion to the supervisory function of responsibly directing other employees. These contentions contradict both the text and structure of the statute, and they contradict as well the rule of Health Care that the test for supervisory status applies no differently to professionals than to other employees. 511 U. S., at 581. We therefore find the Board‘s interpretation unlawful. See Allentown Mack Sales & Service, Inc. v. NLRB, 522 U. S. 359, 364 (“Courts must defer to the requirements imposed by the Board if they are ‘rational and consistent with the Act,’ and if the Board‘s ‘explication is not inadequate, irrational or arbitrary‘” (citations omitted)).
* * *
We may not enforce the Board‘s order by applying a legal standard the Board did not adopt, NLRB v. Bell Aerospace Co., 416 U. S. 267, 289-290 (1974); SEC v. Chenery Corp., 318 U. S. 80, 87-88 (1943), and, as we noted above, supra, at 713, the Board has not asked us to do so. Hence, the Board‘s error in interpreting “independent judgment” precludes us from enforcing its order. Our decision in Health Care, where the Board similarly had not asserted that its decision was correct on grounds apart from the one we rejected, see 511 U. S., at 584, simply affirmed the judgment of the Court of Appeals denying enforcement. Since that same condition applies here, see Brief for Petitioner 14, 42, and since neither party has suggested that Health Care‘s method for determining the propriety of a remand should
It is so ordered.
JUSTICE STEVENS, with whom JUSTICE SOUTER, JUSTICE GINSBURG, and JUSTICE BREYER join, concurring in part and dissenting in part.
In my opinion, the National Labor Relations Board correctly found that respondent, Kentucky River Community Care, Inc., failed to prove that the six registered nurses employed at its facility in Pippa Passes, Kentucky, are “supervisors” within the meaning of the National Labor Relations Act. While we are unanimous in holding that the Court of Appeals set aside that finding based upon an incorrect allocation of the burden of proof, we disagree as to whether the Court of Appeals correctly concluded that the Board misinterpreted the provision of the NLRA excluding supervisors from the Act‘s coverage. Moreover, even if I agreed with the majority‘s view that the Board‘s interpretation was error, that error would not justify affirming the erroneous decision of the Court of Appeals.
I
In the proceedings before the Board, respondent relied heavily on the fact that two registered nurses (RNs) served as “building supervisors” on weekends, and on the second and third shifts. However, as the Regional Director who considered the evidence noted, the RNs received no extra compensation for serving as building supervisors and did not have keys to the facility. Instead, the only additional responsibility shouldered by the RNs when serving as building supervisors was that of contacting other employees if a shift was not fully staffed according to preestablished ratios not set by the RNs. However, the RNs had no authority to compel an employee to stay on duty or to come to work to fill a vacancy under threat of discipline.
With respect to the RNs’ regular duties, while they might “occasionally request other employees to perform routine tasks,” they had no “authority to take any action if the employee refuse[d] their directives.”1 App. to Pet. for Cert. 51a. In their routine work, they had no “authority to hire, fire, reward, promote or independently discipline employees or to effectively recommend such action. They did not evaluate employees or take any action which would affect their employment status.” Id., at 52a. Indeed, the RNs, even when serving as “building supervisors,” for the most part “work[ed] independently and by themselves without any subordinates.” Ibid.
Based on his evaluation of the evidence, the NLRB‘s Regional Director applied “the same test to registered nurses as is applicable to all other individuals in determining supervisory status.” Ibid. Under that test, he concluded that “only supervisory personnel vested with ‘genuine management prerogatives’ should be considered supervisors, and not ‘straw bosses, leadmen, set-up men and other minor
Over the dissent of Judge Jones, the Court of Appeals set aside the Board‘s order. The panel majority first criticized the Board for ignoring its “repeated admonition” that the NLRB “‘has the burden of proving that employees are not supervisors.‘” Id., at 15a. After acknowledging that “whether an employee is a supervisor is a highly fact-intensive inquiry,” that majority concluded that the RNs’ duties as building supervisors involved “independent judgment which is not limited to, or inherent in, the professional training of nurses.” Id., at 16a-19a. The panel majority also criticized the NLRB for interpreting the admittedly ambiguous statutory term “independent judgment” inconsistently with Sixth Circuit precedent.2
II
Although it is not necessary to do so to overturn the Court of Appeals’ decision, the NLRB has asked us to reject the Sixth Circuit‘s interpretation of the term “independent judgment.” In contrast to the Sixth Circuit, the NLRB interprets the term “independent judgment” as not including the exercise of ordinary professional or technical judgment in directing less-skilled employees to deliver services in accordance with employer-specified standards.3 Provi-
The question before us is whether the Board‘s interpretation is both “rational and consistent with the Act.”5 NLRB v. Curtin Matheson Scientific, Inc., 494 U. S. 775, 796 (1990); see Fall River Dyeing & Finishing Corp. v. NLRB, 482 U. S. 27, 42 (1987). To my mind, the Board‘s test is both fully rational and entirely consistent with the Act.
The term “independent judgment” is indisputably ambiguous, and it is settled law that the NLRB‘s interpretation
Moreover, since Congress has expressly provided that professional employees are entitled to the protection of the Act, there is good reason to resolve the ambiguities consistently with the Board‘s interpretation. At the same time that Congress acted to exclude supervisors from the NLRA‘s protection, it explicitly extended those same protections to professionals, who, by definition, engage in work that involves “the consistent exercise of discretion and judgment in its performance.”7
The Court acknowledges today that deference is appropriate when the Board determines both the degree of discretion required for supervisory status as well as the significance of limitations on the alleged supervisor‘s discretion imposed by the employer. Thus, in a case like this, a court should not second-guess the Board‘s evaluation of the authority of the nurses as building supervisors, or of the significance of the employer‘s definition of that authority.
However, in a tour de force supported by little more than ipse dixit, the Court concludes that no deference is due the Board‘s evaluation of the “kind of judgment” that professional employees exercise. Ante, at 714 (emphasis deleted). Thus, under the Court‘s view, it is impermissible for the Board to attach a different weight to a nurse‘s judgment that an employee should be reassigned or disciplined than to a nurse‘s judgment that the employee should take a patient‘s temperature, even if nurses routinely instruct others to take a patient‘s temperature but do not ordinarily reassign or discipline employees. The Court‘s approach finds no support in the text of the statute, and is inconsistent with our case law. See, e. g., Yeshiva, 444 U. S., at 690 (“Only if an employee‘s activities fall outside the scope of the duties routinely
The Court further argues that the Board errs by not applying its limiting interpretation of the term “independent judgment” to all 12 functions identified by the statute as supervisory in nature. Ante, at 715-716. But of those 12, it is only “responsibly to direct” that is ambiguous and thus capable of swallowing the whole if not narrowly construed. The authority to “promote” or to “discharge,” to use only two examples, is specific and readily identifiable. In contrast, the authority “responsibly to direct” is far more vague. Thus, it is only logical for the term “independent judgment” to take on different contours depending on the nature of the supervisory function at issue and its comparative ambiguity.
Simply put, these are quintessential examples of terms that the expert agency should be allowed to interpret in the light of the policies animating the statute. See, e. g., Curtin Matheson, 494 U. S., at 786; Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U. S. 837, 843 (1984). Because the Board‘s interpretation is fully consistent both with the statutory text and with the policy favoring collective bargaining by professional employees, this Court is obligated to uphold it.
III
Even if I shared the majority‘s view that the term “independent judgment” should be given the same meaning when applied to each of the 12 supervisory functions and when applied to professional and nonprofessional employees, I would not simply affirm the judgment of the Court of Appeals. Cf. NLRB v. Bell Aerospace Co., 416 U. S. 267, 289-290 (1974); SEC v. Chenery Corp., 318 U. S. 80, 87-88 (1943). The Court‘s rejection of the Board‘s interpretation of the
In any case, I do not agree with the majority‘s view. Given the Regional Director‘s findings that the RNs’ duties as building supervisors do not qualify them as “supervisors” within the meaning of
