Today we interpret the meaning of the General Duty Clause of the Occupational Safety and Health Act of 1970 (OSH Act) (29 U.S.C. §§ 651-678). This case presents the question of whether the Secretary of Labor (Secretary) was correct when he decided to *1194 fine Arcadian Corporation (Arcadian) on a per-employee basis for violating the Clause. The Occupational Safety and Health Review Commission (Commission) reversed the Secretary’s decisiоn, holding that the unit of prosecution under the Clause is the condition that poses a hazard to employees, and not the affected employee(s). The Secretary filed this petition for review. We deny the petition and hold that the General Duty Clause unambiguously provides that the vio-lative condition, not the employee, is the unit of prosecution.
BACKGROUND
Arcadian Corporation (Arcadian) manufactures fertilizer at a plant in Lake Charles, Louisiana. A terriblе accident occurred on July 28, 1992. That day, a urea reactor at the plant exploded, scattering the reactor and its contents over a 600-acre area. The reactor’s 19,000 pound steel head was blown 500 feet, and ammonia and carbon dioxide, heated to 370 °F, were released into the atmosphere. According to the Secretary, Arcadian had detected leaks in the liner of the reactor’s pressure vessel priоr to the explosion and failed to take steps to eliminate the hazard, such as shutting down the reactor, implementing a program to monitor the vessel’s leak detection system, and assuring that critical welds were performed according to industry standards and design specifications. Eighty-seven Arcadian employees were exposed to the danger of being struck by flying debris, suffering heat and chemical burns, and asphyxiation by toxic gases.
PROCEDURAL HISTORY
In January 1993, the Ocсupational Safety and Health Administration (OSHA) cited Arcadian for violations of the OSH Act. The Secretary of Labor argued that Arcadian willfully violated the OSH Act’s General Duty Clause, which requires employers to provide a place of employment free from hazards that cause or are likely to cause death or serious physical harm to employees. 29 U.S.C. § 654(a)(1). Citation 2, Item 1 alleged that Arcadian had failed to provide Mary Poullard Smith with safe employment because the catastrophic explosion in the pressure vessel constituted a violation of the General Duty Clause. OSHA alleged that the violation was willful and proposed a penalty of $50,000 and several other corrective measures. 1 Items 2 through 87 of Citation 2 were identical to Item 1 except for the identity of the employee exposed to the hazard. When all was said and done, Arcadian was assessed a penalty of $4,350,000.
Pursuant to the OSH Act, Arcadian contested the citations before an administrative law judge (ALJ) on the ground that the unit of prosecution for violating the General Duty Clause is the violative condition, not the employee or employees exposed to that condition. After some discovery, Arcadian moved for partial summary judgment and requested that Items 2 through 87 be vacated and their allegations consolidated with Item 1. The Secretary оf Labor filed a cross-motion for summary judgment. At the time the motions were filed, the record consisted essentially of the citations and a deposition transcript of Raymond Donnelly, Director of OSHA’s Office of General Industry Compliance Assistance. Donnelly provided uneon-tradicted evidence that the number 87 was a “multiplier” which represented the number of employees exposed to a single hazardous condition. He admitted that Arcadian was оnly required to correct the condition once, not 87 times.
The ALJ sided with Arcadian, holding that Arcadian’s failure to properly inspect and maintain the reactor was a single course of conduct that could support only one violation of the General Duty Clause. The Occupational Safety and Health Review Commission (Commission) affirmed the ALJ. In a 2-1 decision, the majority concluded that the General Duty Clause unambiguously provided that employers shоuld be fined on a per- *1195 violation, rather than a per-employee, basis. Four reasons justified the Commission’s conclusion. First, the majority argued that issuing identical abatement orders for each employee exposed to the same hazard would increase administrative and legal costs and. would be inconsistent with congressional intent. Second, according to the majority, the General Duty Clause referred to employees as a group, rather than as individuals; the phrase “each of his employees” in § 654(a) merely refers to all employees as opposed to some. Third, the majority viewed the Secretary’s interpretation of the General Duty Clause as a departure from previous practices, which had allowed separate citations for each individual hazard but not for each exposed employee. This approach was unreasonable, cоncluded the Commission, because the Secretary had not explained the reason for his departure from earlier practice. Finally, the Commission concluded that it did not owe deference to the Secretary’s interpretation of the General Duty Clause because the Commission viewed itself as the final adjudicator of the OSH Act and because the statutory authority to assess penalties rested squarely with the Commission.
The Chairman of the Cоmmission dissented. He argued that the Commission had upheld violation-by-violation citations in other cases, including per-employee citations, under various OSH Act standards. In his opinion, the permissibility of such citations depends on the language of the cited provision. He concluded that the Secretary’s interpretation was compatible with the Act and did not conflict with the plain language of the General Duty Clause. The Chairman also stated that although thе Secretary’s interpretations of the OSH Act are not generally entitled to deference from the ■ Commission, deference was due here because “whether and how to cite under [the General Duty Clause] relates directly to the Secretary’s prosecutorial discretion and goes to the heart of his enforcement authority.”
The Commission ultimately remanded the case to the ALJ to provide the Secretary an opportunity to amеnd the citations. The Secretary, however, declined to do so. The ALJ thereafter reentered an order vacating Items 2-87 and severing them from the rest of the case. The order became the final order of the Commission, and the Secretary filed this petition for review.
DISCUSSION
I. Standard of Review
We begin with the now-familiar two-step process for reviewing an administrative agency’s interpretation of a statute. Our guide is the Supreme Court’s decision in
Chevron, U.S.A, Inc. v. Natural Resourсes Defense Council, Inc.,
II. Is the General Duty Clause Ambiguous?
A Principles of Statutory Construction
Step one of
Chevron
requires us to apply “traditional principles of statutory construction” to determine whether Congress expressed a clear intent with regard to the meaning of the General Duty Clause. “In a statutory construction case, the beginning point must be the language of the statute, and when a statute speaks with clarity to an issue[,] judicial inquiry into the statute’s meaning, in all but the most extraordinary circumstances, is finished.”
Estate of Cowart v. Nicklos Drilling Co.,
B. The General Duty Clause
Section 654(a) of the OSH Aсt, known as the General Duty Clause, states simply:
(a) Each employer—
(1) shall furnish to each of his employees employment and a place of employment which are free from recognized hazards that are causing or likely to cause death or serious physical harm to his employees;
(2) shall comply with occupational safety and health standards promulgated under this Act.
29 U.S.C. § 654(a)(1), (2) (emphasis added). Before addressing the arguments of the parties, we find it helpful to place the Clause in proper context. It is well-settled that the Secretary has essentially two weapons in its arsenal of enforcement. First, the Secretary may issue a citation for violations of specific standаrds promulgated (through rulemaking) by the Secretary. Alternatively, where the Secretary has not promulgated standards, he may rely on the General Duty Clause as a “catchall provision.”
Pratt & Whitney Aircraft, Div. of United Technologies Corp. v. Secretary of Labor,
In this ease, it is undisputed that the Secretary did not promulgate standards which would have governed the accident at the Arcadian plant, and so the case was brought under the General Duty Clause. We must decide how far the Secretary may go in enforcing the Clause, for it is clear that a per-employee unit of prosecution carries far heavier penalties than a per-violative-condition unit of prosecution. 2 After carefully considering the arguments of the parties, we proceed no further than step one of the Chevron analysis and conclude that the Clause is not ambiguous because it provides that a violative condition, not an employee, is the proper unit of prosecution for a General Duty Clause violation. Three justifiсations support our conclusion.
1. The Plain Meaning of the General Duty Clause
First, a plain reading of the Clause reveals that its focus is on an employer’s duty to prevent hazardous conditions from developing in the employment itself or the physical workplace. Indeed, the central thrust of § 654(a)(1) concerns “recognized hazards” that cause or may cause “death or serious physical harm to ... employees.” Subsection (a)(2) — the enforcement provision of the Clause — is cоnsistent with this interpretation. It suggests that employers must “comply with occupational safety and health *1197 standards promulgated” by the Secretary. Section 652(8) defines an “occupational safety and health standard” as “a standard which requires conditions, or the adoption or use of one or more practices, means, methods, operations, or processes, reasonably necessary or appropriate to provide safe or healthful employment and places of employment.” (Emphasis added). Thus, taken together, subsections (a)(1) and (a)(2) of the General Duty Clause are exclusively focused on an еmployer’s duty to prevent hazardous conditions from developing, either in employment or the place of employment.
Our conclusion is reinforced by examining the elements the Secretary must prove in a General Duty Clause prosecution. Seizing on the plain terms of the Clause, courts (including our own) have held that the Secretary must prove three elements: “(1) that the employer failed to render its workplace ‘free’ of a hazard which was (2) ‘recognized’ and .(3) ‘causing or likely to cause death or serious physical harm.’ ”
National Realty & Constr. Co. v. OSHRC,
The Secretary argues that if Congress intended to create a single duty run
*1198
ning to employees in the aggregate, then Congress “could have omitted the words ‘each of in the general duty clause, for those words serve no purpose unless they mean that the employer’s duty runs to each individual employee rather than to employees as a group.” We simply cannot accept this construction of the Clause. First, we have not read “each of’ out of the General Duty Clause. In the context of the Clause as a whole, with its principal (if not exclusive) focus on hazardous conditions, “each of’ simply means that an employer’s duty extends to all employees, regardless of their individual susceptibilities (i.e., age or pregnancy). Second, if we were to accept the Secretary’s view that an employee is the proper unit of prosecution for a General Duty Clause violation, we would be compelled to conclude that, despite Arcadian’s alleged egregious violation of the Clause, if a particular employee had not
in fact
been exposed to the hazardous condition at the Arcadian plant, Arcadian would not have violated the General Duty Clause. Such a result is flatly inconsistent with the OSH Act’s central purpose of protecting workers from hazardous conditions in employment and the workplаce, regardless of whether a particular employee has in fact been injured or exposed to a hazard.
See, e.g., Whirlpool Corp.,
The Secretary also argues that if the General Duty Clause does not run to each employee, we would be undermining the deterrence function of the OSH Act generally and the General Duty Clause in particular. “The congressional intent that civil penalties serve as a meaningful deterrent will not be fulfilled,” argues the Secretary, “if a single $70,000 penalty is the most that can be assessed against a large employer who willfully exposes numerous employees to a known hazard in violation of the general duty clause.” Because we have concluded that an employer’s duty under the Clause is to avoid hazardous conditions, the Secretary’s argument is best áddressed to Congress rather than this court. As we said in our en bane decision in
Mississippi Poultry Ass’n, Inc. v. Madigan,
2. The General Duty Clause in Context
Second, our construction of the General Duty Clause is consistent with other provisions of the OSH Act. Section 666(a) provides that an employer “may be assessed a civil penalty of not more than $70,000 for each violation.” (Emphasis added). Because violations of the Clause are considered “serious,” 6 we look to § 666(k), which (like § 652(8)) speaks of “condition[sj,” “practices,” “means,” “methods,” “opеrations,” and “processes.” Here again, Congress focused on the presence of hazardous conditions as a “violation” for purposes of assessing the maximum $70,000 penalty. Therefore, it must logically follow that a violation of the General Duty Clause must carry per-violative-condition penalties, and not per-employee penalties.
By contrast, the Secretary’s position that the employee is the unit of prosecution fоr General Duty Clause enforcement actions runs counter to § 652(8) of the OSH Act. Section 652(8) permits the Secretary to promulgate standards governing “conditions” and “practices” of employment and within the workplace.
See International Union, UAW v. Occupational Safety & Health Admin.,
S. The General Duty Clause and Penalty Assessment
Finally, our interpretation of the Clause properly recognizes the respective roles played by the Secretary and the Commission in penalty assessment. It is well-settled that the Commission has the exclusive authority to assess penalties once a penalty proposed by the Secretary is contested.
8
It is also well-established that in assessing a penalty, the Commission is guided by the four criteria provided in § 666(j). In particular, the Commission must “giv[e] due consideration to the appropriateness of the penalty with respect to [1] the size of the business of the employer being charged, [2] the gravity of the violation, [3] the good faith of the employer, and [4] the history of previous violations.” 29 U.S.C. § 666(j). When appropriate, the Commission includes the number of employees exposed to a hazardous сondition in its analysis of prong two of the § 666(j) inquiry.
9
See J.A Jones Constr. Co.,
CONCLUSION-
Finding that the General Duty Clause of the OSH Act unambiguously provides that a hazardous condition is the proper unit of prosecution, we DENY the Secretary’s petition for review and AFFIRM the decision of the Commission.
Notes
. 29 U.S.C. § 666(a) provides that "[a]ny employer who willfully or repeatedly violates the requirements of section 5 of this Act [i.e., the General Duty Clause] ... may he assessed a civil . penalty of not more than $70,000 for each violation, but not less than $5,000 for each willful violation.” In 1990, Congress increased the fine from $10,000 to $70,000 and added the $5,000 minimum penally for willful violations.
. If Arcadian had been fined on a per-violative-condition basis, a $70,000 fine could have been the maximum penalty assessed against Arcadian. 29 U.S.C. § 666(a). By contrast, because the Secretary applied a per-employee formula, Arcadian was fined $4,500,000.
.
Accord Kelly Springfield Tire Co., Inc. v. Donovan,
.
See, e.g., Champlin Petroleum Co.,
.Courts have held that a hazardous condition is "likely to cause death or serious physical harm to ... employees” if the Secretary presents evidence "that a practice could eventuate in serious physical harm upon other than a freakish or utterly implausible concurrence of circumstances. ...”
National Realty,
.
See Pratt & Whitney,
.
See, e.g., Reich v. Montana Sulphur & Chemical Co.,
. 29 U.S.C. § 666(j) ("The Commission shall have authority to assess
all
civil penalties provided in this section ____" (emphasis added)); § 659(a) (stating that the Secretary’s penalty is merely a ”propos[al]”); § 659(c) ("If an employer notifies” the Secretary that he intends to contest a citation ... [t]he Commission shall thereafter issue an order ... affirming, modifying, or vacating the Secretary’s citation or
proposed penalty
____” (emphasis added));
see Donovan v. Oil, Chem., & Atomic Workers Int’l Union & Its Local 4-23,
.The Secretary conceded this point at oral argument.
