*2 Before DUNCAN, MICHAEL and Judges, Circuit PAYNE, and Robert E. United State District Judge for the Eastern District of Virginia, sitting by *3 designation.
Opinion reinstated published opinion. Judge MICHAEL wrote the majority opinion, in which Judge joined. PAYNE April Dawson, ARGUED: Gordon Daw- Judge wrote a dissenting DUNCAN son, Dawson, P.A., Dawson & Graham, opinion. Carolina, North Appellant. for Zebulon Anderson, Dyer Smith, Anderson, Blount, OPINION Dorsett, L.L.P., & Jernigan, Mitchell Ra- MICHAEL, Circuit Judge: Carolina, leigh, North for Appellee. How- The central issue in appeal, now ard Radzely, Marc United Depart- States before us on rehearing, is meaning Labor, ment of Solicitor, Office of the 825.220(d) (section § 29 C.F.R. 220(d)), a DC, Washington, Chao, for Elaine Secre- regulation implementing Family and Labor, tary of Amicus Supporting Appel- (FMLA Medical Leave Act of Act), lee. ON BRIEF: Elliot, M. Robert J. 29 U.S.C. 2601 et seq. regulation Elliot, Griffin Morgan, Pishko, Morgan, “Employees waive, reads: cannot nor P.A., Winston-Salem, Carolina, North for employers induce employees waive, National Employment Lawyers Associa- their rights under FMLA.” our vacated tion and North Carolina Academy of Trial opinion we held prohib- Lawyers, Supporting Amici Appellant; its both the prospective and retrospective Tirona, Marissa M. waiver of any Employ- right National unless the waiver has prior ment Lawyers approval (NELA), Association of the De- San partment of Labor or a Taylor court. Francisco, California, for National Em- Progress Energy, I), Inc. (Taylor 415 F.3d ployment Lawyers Association, Amicus (4th Cir.2005), vacated, 04- No. Supporting Appellant. Bokat, Stephen A. 1525, 2006 U.S.App. (4th LEXIS 15744 Conrad, Robin S. Robert J. Costagliola, 14, 2006). Cir. (the June The losing party National Litigation Center, Inc., Chamber defendant) in Taylor I petition filed a for Washington, DC, for The Chamber of rehearing banc, en and the Secretary of Commerce of the United States of Amer- (the DOL) Labor filed an amicus brief in ica; Reesman, Ann Elizabeth McGuiness, support of petition. The DOL disa- Williams, L.L.P., Norris & Washington, greed with interpretation our of section DC, Equal for Employment Advisory 220(d), and granted we panel rehearing to Council Society for Human Resource consider the DOL’s contrary interpreta- Management, Amici Supporting Appellee. tion. The reargued, case was this time Mandel, Steven J. Solicitor, Associate Paul with agency participating. The DOL Frieden, L. Counsel for Appellate Litiga- contends that section only bars tion, Lynn McIntosh, S. United States De- prospective waiver of FMLA rights. After partment Labor, Solicitor, Office of the we remain reconsideration convinced that DC, Washington, Chao, for Elaine Secre- plain language pre- tary Labor, Amicus Supporting Appel- cludes both prospective and retrospec- lee. tive waiver all FMLA rights, including (or claim) employee’s right include an to take past of action right unpaid the Act. therefore reinstate a certain leave violation of amount medical I. opinion year our each to reinstatement following such leave. 29 U.S.C.
I.
2612(a)(1)(D), 2614(a)(1).
§§
Proscriptive
agency’s interpretation of its
An
employee’s
not to
include
“controlling
plain
unless
own
against
be discriminated or retaliated
regu
with the
ly
or inconsistent
erroneous
exercising substantive FMLA
Robbins,
Auer v.
U.S.
lation.”
2615(a)(2).
em-
The remedial
is an
117 S.Ct.
137 L.Ed.2d
action,”
ployee’s “[r]ight
“right
(internal
quotation marks
citation
claim,
bring an action” or
recover []
“to
*4
omitted).
demonstrate,
the
As we will
damages
from
equitable
or
relief’
[obtain]
220(d)
interpretation of section
is
DOL’s
employer
an
that violates the Act. Id.
regulation.
with the
inconsistent
(a)(4).
2617(a)(2),
§§
regulation,
The
FMLA,”
“rights under
there-
specifying
A.
rights
fore refers to all
under the
regulation
“Employ-
the
states:
Again,
to
or
including
right
bring
the
an action
waive,
employers in-
nor
ees cannot
claim for a violation of the Act.
waive,
rights
to
their
un-
employees
duce
reading
regula-
This
is confirmed
825.220(d).
§
der
29 C.F.R.
The
FMLA.”
2615(a)(1)
§
relationship
tion’s
to
of the
I
that in
we erred
DOL contends
2615(a)(1)
it “un-
statute. Section
makes
220(d) by
to
failing
section
interpreting
with,
any employer
lawful
to interfere
In its amicus
“rights.”
focus on the word
restrain,
deny
the exercise of or
argued
the DOL
that the word
brief to us
exercise,
attempt
any right provided
to
Later,
claims.
does not include
“rights”
added).
(emphasis
under
[the FMLA].”
argu-
this
substantially
undercut
DOL
others)
regulation implements (among
in an amicus
filed in the East-
ment
brief
that
statutory provision, making
this
clear
Pennsylvania.
Dougher-
ern
District
employer
an
cannot “induce
Trac.,
ty
No. 05-
v. TEVA Pharms. USA
rights under FMLA” be-
waive[]
their
2336, 2007 WL
2007 U.S. Dist.
employ-
cause
that would interfere with
(E.D.Pa.
9, 2007),
Apr.
LEXIS
exercise,
of,
attempt
ee’s exercise
sue,”
that
“right
DOL conceded
825.220(d).
§
29 C.F.R.
rights. is,
claim, is a
“right
to assert a
2615(a)(1) prohibits employer
Because
FMLA”
cannot be
under the
waived
un-
“any right provided
with
interference
regulation.
under the
Brief
prospectively
2617(a)(2)’s
FMLA],”
including
der [the
Secretary
Amicus Curiae at
Labor as
action,
phrase,
regulation’s
Dougherty,
n.
2007 WL
FMLA,”
to the
“rights
also refers
under
(Dougherty
LEXIS 27200
Ami-
U.S. Dist.
Br.).
action or
statutory right
claim.
We will consider
DOL’s
cus
momentarily,
shifting arguments
but first
220(d)’s
“rights”
use of the word
Section
220(d)
explain why the section
we will
refer
of action or claim is
to a
phrase
plainly in-
“rights under FMLA”
usage.
common
consistent with
the FMLA.
ex-
cludes claims under
O’Neil,
Brooklyn
Bank v.
Sav.
planation
simple.
is
697, 705,
The reasons for
prohibition
implementing
regulation,
pri-
on
like
section
220(d),
vate settlement of
that prohibits
FLSA
apply
claims
the waiver of all
equal
with
rights
force to FMLA
under the
claims. Con-
statute.3 Furthermore,
gress explains in the
legislative
FMLA’s
Title VII and the ADEA are not labor
history that the Act
squarely
“fits
within
standards laws
Rather,
like the FMLA.
the tradition of the labor standards laws Title VII and the ADEA were enacted to
it,”
that
... preceded
such as the FLSA outlaw discrimination against
specific
and
Occupational
Safety and Health
classes
provide
and
redress
103-3,
Act. S.Rep.
(1993),
No.
at 5
reprint-
injuries
for
caused
discrimination. See
3. Such a
possible
would not be
spect to that statute. See General Elec. Co. v.
Gilbert,
under either Title
125,
VII or the
Equal
141,
ADEA. The
401,
97 S.Ct.
50
Employment
Commission,
Opportunity
(1976);
2000e-12(a).
L.Ed.2d 343
42 U.S.C.
agency charged
ADEA,
with the administration and
part,
for its
specifically authorizes
VII,
enforcement of Title
authority
lacks
“knowing
voluntary”
and
retrospective
binding
issue
regulations
substantive
with re-
626(f)(1).
waiver of claims.
See 29 U.S.C.
Prods.,
implementing regulations,
FMLA
U.S.
er
Film
v.
Landgraf
USI
1483,
concerns ex-
acknowledged
L.Ed.2d 229
254,
DOL
114 S.Ct.
these
of Com-
(1994).
further
the U.S. Chamber
pressed
settlements
Private
discrimina-
corporations regarding
a cost on
by imposing
merce and several
purposes
compliance.
encourages
rights’ provisions”
that
“the ‘no waiver of
tion
respect
to the
220(d).
be said with
to the Final
same cannot
Preamble
section
cheap-
that are
FMLA,
settlements
Family
where
and
Implementing the
Regulations
non-
encourage
would
compliance
Fed.Reg.
er than
Act of
Medical Leave
Act’s
undermining the
thereby
1995).
compliance,
(Jan.
repre-
These
minimum standards
imposing
purpose
ex-
of business “recommended
sentatives
short,
leave.
In
family and medical
and releases
of waivers
plicit allowance
provide
ADEA do not
and the
Title VII
of FMLA
settlement
[the]
with
connection
the FMLA.
model for
best settlement
package
of a severance
part
claims
as
and
by analo-
as much
has indicated
Congress
(as
and ADEA
under Title VII
allowed
FLSA, under
to the
the FMLA
gizing
claims,
response
example).”
is
of claims
settlement
private
which the
“given
it
careful
that
had
explained
DOL
2617(b);
§§
29 U.S.C.
prohibited.
this sec-
to the comments on
consideration
(1993),
103-3, at
re-
Rep.
also S.
see
220(d)
...
conclud-
[section
]
(stating
in 1993
printed
U.S.C.C.A.N.
against employees
prohibitions
ed
scheme
“enforcement
that the FMLA’s
induc-
employers
waiving their
of the
scheme
on the enforcement
modeled
consti-
their
ing employees to waive
II,
FLSA”).
Indeed,
in part
as we discuss
public policy under
tute sound
to the
the FMLA
the DOL itself likened
stan-
labor
the case
other
as is also
promulgated
when it
FLSA
By
FLSA.” Id.
such as the
dards statutes
all
waiver of
prohibited
suggestion
rejecting business’s
waivers
permit
regulation be modified
with the settle-
connection
and releases
II.
claims,
made
ment of
interpretation
present
The DOL’s
220(d) to
it intended for section
clear that
with
inconsistent
is also
of section
waiver of
retrospective
prohibit
regula
it intended
what the DOL said
claims.
it was promul
at the time
tion to mean
actually made
says
now
it
The DOL
in
agency’s
to an
do
defer
gated. com-
claims
response to the
no
reading is
if “an alternative
terpretation
representatives.
the business
ment from
Secre
by ...
indications
compelled
DOL,
decision
According to the
our
regula
at the time
tary’s intent
the De-
“incorrectly interpreted
Taylor I
Thomas
promulgation.”
tion’s
Jefferson
retrospective
as to the
silence
partment’s
Shalala,
504, 512, 114
U.S.
Univ.
*8
pream-
in
FMLA claims
the
(cita
L.Ed.2d 405
an indication
as
regulations
final
ble to the
omitted).
Tay
out in
pointed
As we
prohibited
settlements
that such
being final
I,
regulation was
when the
lor
220(d).”
Br. at 9.
Amicus
DOL
section
and
ized,
considered
DOL specifically
the
it calls
to take what
asks us
The DOL
would
amendments that
rejected proposed
it did not
an indication that
silence “as
ad
interpretation now
permitted the
have
fall-
as
[retrospective] settlements
perceive
F.3d
370-
DOL. See 415
at
vanced
regulation.”
scope of
ing within
Major
“Summary of
Com
In the
71.
It did re-
was not silent.
Id. The DOL
to
preamble
in the
published
ments”
into
take
response must
220(d)
spond and
oth-
and
final version
section
the comment. The
account
comment could ceived medical treatment a week after he
been clearer:
represen-
have
business
was fired was not eligible for FMLA
an
tatives asked for
amendment
to the
leave).
response
does not imply that
proposed regulation that
explicitly
would
accepts
early
who
retire-
allow “waivers and releases in connection
may
ment
waive her right of action for
claims,”
is,
with settlement of FMLA
that
past
violations,
for that
would
past
claims for
Fed.Reg.
violations. 60
at
beyond
extend
the end of employment.
response
The DOL’s
was likewise
For these reasons we adhere to our
agency
clear. The
it
carefully
said
had
Taylor I assessment of the DOL’s intent
comment,
considered the
indicating that it
220(d)’s
at
the time of section
promul-
fully understood what
pro-
the comment
gation: “By rejecting
sugges-
business’s
posed.
Id. The
rejected
DOL then
tion that waivers and releases should be
proposal with its conclusion
prohibi-
“that
in
allowed
connection with
post-dispute
against employees
tions
waiving their
claims,
settlement of FMLA
rights
employers
inducing
825.220(d)
made clear that
was never
to
waive their
pub-
constitute sound
under,
only
intended to have
policy
prospective applica-
lic
isas
also the
result,
case under other
tion.” 415
labor standards
F.3d at 371.
statutes
As
we do
such as
clarity
the FLSA.” Id. The
not defer
the completely
to
inter-
different
rejection
firmness of the DOL’s
pretation
DOL
comment is underscored
agency’s
advances in this case. See Thomas Jeffer-
adopting
statement
that it was
the same
Univ.,
son
463 v. appeal. Taylor responsibil- argument in that this not believe and we do I), Progress Energy, (Taylor Inc. 415 F.3d an undue burden.4 ity will create (4th vacated, 364, Cir.2005), 04- 369 No. IV. (4th U.SApp. LEXIS 15744 that, reaffirm our conclusion We 2006). reached our deci- Cir. June approval, or court prior DOL without guided by established rules of statuto- sion 825.220(d) prospective the § bars C.F.R. for the ry appropriate proce- construction waiver or release retrospective as it then posture dural case existed. including the rights under majority clearly thought- See id. The for a action or claim bring fully analysis here. recounts reinstate the Act. We therefore violation of unexpect- of this was appeal The course Taylor Progress in v. opinion prior our diverted, however, when the DOL edly Cir.2005). (4th Inc., Energy, 415 F.3d I in analysis Taylor rejected the IT SO ORDERED. IS supporting Progress brief belated amicus en Energy’s rehearing banc. petition DUNCAN, Judge, dissenting: Circuit Secretary at 4 Amicus Br. for of Labor (the Act Leave Family and Medical The prohibit not to (interpreting “FMLA”) aggrieved provides action). After such the waiver of causes action,” 29 U.S.C. “[r]ight of with a in question the case was interposition, 2617(a)(2), bring an “right ... § Robbins, v. necessarily recast. See Auer 2617(a)(4), action,” against an em- id. 452, 461, 117 prohib- any of the acts ployer commits who (1997) (recharacterizing the L.Ed.2d Department by the statute. ited case, after the issue in the Secre- central (the “DOL”), im- regulations in its Labor brief, an amicus as tary of filed Labor FMLA, has declared: plementing Secretary’s interpretation of whether the waive, nor em- “Employees cannot “plainly erroneous own regulations his waive, then- employees to induce ployers (inter- regulation” with the or inconsistent FMLA.” 29 C.F.R. under omitted)). Therefore, quotations nal 825.220(d). majority’s The crux longer us is no whether issue before regulation, reasoning is that “[t]he I Taylor adopted that we interpretation FMLA,’ ... refers ‘rights under specifying it is reasonable, rather whether but was FMLA,” Majority all regula- language of the compelled including particular Op. tion. bring an “right “Might of action” (4) (em- 2617(a)(2), §in
action” described it is to conclude that I feel constrained added). phasis legal in the few words not. There freighted than ubiquitous and lexicon more is, standing majority’s position “right.” See United States the term Indeed, we alone, eminently reasonable. (C.C.M.D.Tenn. Patrick, 338, 348 F. hearing oral after first defensibly so held I interpretation appears have sec- We note that argued agency for a differ- and notes connection under consideration in post-decision interpretation in its amicus ent rulemaking responsibilities under the with its request— information brief. The notice's Shortly argument the DOL after oral FMLA. telegraphs the language that request for couched that includes a a notice issued input interpretation 220(d). Request DOL's current public on section comment —"seeks placed on be a limitation should Family on whether Medical on the for Information past ability employees to settle their Fed.Reg. 69509- Act of Leave (Dec. 1, 2006). our FMLAclaims.” The notice forth sets *10 1893) (“The ‘rights’ ‘privilege’ tempt words codify its new interpretation have, course, variety a meanings, any surprise makes such unlikely here— according to the connection or in context change in interpretation presents alone they used.”); Wesley which Newcomb separate ground no disregarding Hohfeld, Legal Some Fundamental Con- (in- Department’s present interpretation.” ceptions Applied as in Judicial Reason- omitted)); ternal citations Majority cf. (1913) (“[T]he 16, ing, 23 Yale L.J. 30-31 Op. at n. 4 (noting that the DOL has ‘rights’ term tends to be used indiscrimi- issued notice that it is considering modify- nately given to cover what a case ing regulation codify unambiguously privilege, be a power, immunity, present interpretation). sense; rather than a the strictest Nevertheless, fully I agree that the his- language this looseness of is occasion- tory regulation of the at provides issue ally recognized by the authorities.... model of how proceed not to during the recogniz[e] very must ... [W]e rulemaking process. Majority Op. broad and indiscriminate use of the term ” (internal Furthermore, altered)). timely 461-63. ‘right.’ intervention punctuation The mere fact that the statute creates a before we issued I action,” “[r]ight 2617(a)(2), 29 U.S.C. would have necessity obviated the of an regulation “rights and the refers to under hearing additional appeal, with its FMLA,” 825.220(d), may sug- C.F.R. expenditure judicial attendant and party gest, but does not compel, interpreta- resources. tion that the two uses of the word are addenda, With cautionary these I re- light elasticity coextensive. of the spectfully dissent. “right,”
the term it is not clear to me that “rights under FMLA” on its face sub-
sumes accrued causes of action.
Given the existence of at least some ambiguity
measure of in the regulation’s then, “rights,”
use of the term I cannot but
conclude deference to the in- DOL’s
terpretation Auer, appropriate 461,
interpretive changes create no unfair sur-
prise Department’s recourse to —and
notice-and-comment rulemaking in an at-
