Lead Opinion
Opinion for the Court filed by Circuit Judge LINN. Dissenting opinion filed by Circuit Judge SCHALL.
Lloyd L. Tunik (“Tunik”), Verrell Deth-loff et al. (“Dethloff’), and Joseph Schloss (“Schloss”) petition for review of the Merit Systems Protection Board’s (“Board”) dismissal of each of their appeals for lack of jurisdiction. Tunik v. Social Sec. Admin.,
I. BACKGROUND
Tunik was an Administrative Law Judge (“ALJ”) with the Social Security Administration (“Agency”). During the course of his employment, Tunik issued an opinion remanding a disability claim to a state agency due to asserted deficiencies in the state agency’s consideration of the claim. Subsequently, Tunik informed Acting Regional Chief Administrative Law Judge Mary Bisantz (“Bisantz”) of his disposition of the case and his similar disposition of other cases. The state agency refused to comply with the remand order and sent the case back to the Agency. Several months after being informed of Tunik’s actions, Bisantz reviewed Tunik’s decision and issued a memorandum to Acting Spokane Hearing Office Chief Administrative Law Judge Mary Reed (“Reed”) asserting that Tunik had improperly dismissed the case. The memorandum also instructed Reed to inform Tunik that his decision was invalid and to offer him the opportunity to rectify his alleged mistake by vacating the dismissal order and hearing the case on its merits. Bisantz also sent a memorandum to Tunik informing him that his decision in the case was without legal justification and could result in disciplinary action.
Tunik sent a memorandum to the Agency’s Chief Administrative Law Judge protesting Bisantz’s actions. Nevertheless, Tunik vacated his original order remanding the case to the state agency. In his consideration of the case on the merits, Tunik drafted a new decision holding that the claimant had been denied due process of law by the lack of a proper decision by the state agency. Reed reviewed the decision prior to its issuance and notified Bisantz of its contents. Bisantz instructed Reed to-prevent the decision from issuing and to transfer the case file to Bisantz. Bisantz ultimately allowed the decision to issue with a minor non-substantive change.
During the course of the above events, Tunik remanded a second case to the state agency on the same grounds as the first remand. Bisantz issued a second memorandum to Tunik informing him of the state agency’s protest of this second decision. Reed again informed Tunik that he should vacate his order, or the case would be reassigned. Tunik vacated his remand order in the second case and took the ease up on the merits.
A few weeks after vacating, his remand order in the second case, Tunik filed a complaint with the Board alleging that Bisantz’s and Reed’s actions had interfered with his decisional independence. Tunik filed a motion for summary judgment, which the ALJ granted on December 14, 2000. Both sides filed petitions for review before the Board. Before the Board rendered its decision, Tunik voluntarily retired effective May 31, 2003. Nevertheless, on June 27, 2003, the Board reversed the initial decision and dismissed the appeal for lack . of jurisdiction. Tunik v. Social Sec. Admin.,
Dethloff and numerous other ALJs with the Agency challenged various Agency
Schloss is also an ALJ with the Agency. Schloss was assigned to decide a claim for disability benefits. The claimant’s representative sent two letters to Schloss seeking a'favorable on-the-record decision on the claim. However, the letters were delayed in being transmitted to Schloss. After each letter was sent to Schloss, the claimant’s representative sent a letter to Hearing Office Chief Administrative Law Judge Riley Atkins (“Atkins”), Schloss’s supervisor. The two letters alleged that Schloss was imposing an improper legal standard related to a request for an on-the-record decision. Schloss ultimately denied the request for an on-the-record decision.
After reviewing Schloss’s decision, Atkins reassigned the case to another ALJ. Schloss filed a complaint with the Board. The'presiding judge held that the Agency had interfered with Schloss’s qualified de-cisional independence in reassigning the case. However, on July 28, 2003, the Board reversed the presiding judge’s Initial Decision and, citing Tunik, held that the Board had no jurisdiction over the case. Schloss v. Social Sec. Admin.,
We have jurisdiction pursuant to 28 U.S.C. § 1295(a)(9).
II. DISCUSSION
A. Standard of Review
This court must affirm the Board’s decision unless it is: “(1) arbitrary, capricious, 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.” 5 U.S.C. § 7703(c) (2000). Whether the Board has jurisdiction to hear an appeal is a question of law reviewed de novo. Diefenderfer v. Merit Sys. Prot. Bd.,
B. Analysis
1. Tunik’s Appeal
As a preliminary matter,- the Agency, as Intervenor, argues that Tunik’s appeal is moot because he voluntarily retired. Tunik responds that his claim
The fact that Tunik’s appeal is moot is not changed by 5 U.S.C. § 7701®. That statute states:
In determining the appealability under this section of any case involving a removal from the service (other than the removal of a reemployed annuitant), neither an individual’s status under any retirement system established by or under Federal statute nor any election made by such individual under any such system may be taken into account.
5 U.S.C. § 7701(3) (2000). In Mays v. Department of Transportation,
The fact that Tunik retired prior to the Board’s decision in this case raises an additional issue. Although the Board is a creature of statute and is not necessarily subject to the requirements of Article III of the Constitution, Congress has nonetheless provided that “[t]he Board shall not issue advisory opinions.” 5 U.S.C. § 1204(h) (2000). Given that Tunik’s appeal was moot when the Board issued its decision in this case, the Board’s opinion was advisory and must be vacated. Because the remaining appeals relied on and thus implicate the rationale of the Board’s decision in Tunik’s case, we will address that rationale to the extent it relates to the other appeals before us.
2. Constructive Removal
Because of the number of executive agencies within the Federal Government that both set policy and adjudicate private rights, and the need for the orderly administration of claims relating thereto, Congress enacted the Administrative Procedure Act (“APA”). See H.R.Rep. No. 79-1980, at 7-8 (1946); 28 Cong. Rec. 2149 (1946) (statement of Sen. McCarran). A substantial driving force behind the enactment of the APA was the need for greater independence of those adjudicating private rights:
Furthermore, the same men are obliged to serve both as prosecutors and as judges. This not only undermines judicial fairness; it weakens public confidence in that fairness. Commission decisions affecting private rights -and conduct lie under the suspicion of being rationalizations of the preliminary findings which the Commission, in the role of prosecutor, presented to itself.
S.Rep. No. 79-752, at 3 (1945) (quoting Administrative Management in the Government of the United States: Report of the President’s Committee 40 (1937)); see also Ramspeck v. Fed. Trial Exam’rs Conference,
To address this concern, the APA, as originally passed in 1946, provided that agency hearings subject to the APA had to be presided over by the agency, one or more members of the body comprising the agency, or one or more examiners as provided in the APA. Administrative Procedure Act, Pub.L. No. 79^404, § 7(a), 60 Stat. 237, 241 (1946) (current version at 5 U.S.C. § 556 (2000)). In an effort to maintain a level of independence for the examiners, the APA provided for employment of examiners by each agency subject to certain restrictions. Id. § 11,
The Civil Service Reform Act of 1978 created the Merit Systems Protection Board and placed it in the role of the Civil
(a) An action may bé taken against an administrative law judge appointed under section 3105 of this title by the agency in which the administrative law judge is employed only for good cause established and determined by the Merit Systems Protection Board on the record after opportunity for hearing before the Board.
(b) The actions covered by this sec: tion are—
(1) a removal;
(2) a suspension;
(3) a reduction in grade;
(4) a reduction in pay; and
(5) a furlough of 30 days or less
5 U.S.C. § 7521 (2000).
In In re Doyle,
The Board applied this standard in two subsequent cases that were appealed to this court. First, in Sannier v. Merit Systems Protection Board,
In Stephens v. Merit Systems Protection Board,
The petitioners argue that the Board erred in holding that it does not have jurisdiction to hear a claim for constructive removal under section 7521 by a person not actually separated from the position of ALJ because that holding is inconsistent with the decisions of this court in Sannier and Stephens. In particular, the petitioners assert that the Board is not free to reject or overrule this court’s interpretation of section 7521 applied in both Sannier and Stephens. The Board raises two arguments in response. First, the Board argues that because both Sannier and Stephens affirmed the Board’s holdings that it lacked jurisdiction, the Board’s later adoption of an additional requirement for jurisdiction — actual separation from employment as an ALJ — does not conflict with those decisions. Second, the Board argues that our review in both Sannier and Stephens was deferential in nature and was not a de novo interpretation of section 7521. According to the Board, this court was merely holding that the Board’s interpretation was a reasonable one, applying Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.,
We first address the Board’s argument that its adoption of an additional require
Watson does not support the Board’s argument. Watson involved a determination as to whether certain personnel met the statutory and regulatory criteria for early retirement coverage as law enforcement officers.
In examining the duties performed by these petitioners, the Bingaman court only addressed prongs (ii) and (iii) of 5 C.F.R. §§ 831.902, 842.802. The court did not need to consider prong (i) of the test — examining the. basic reasons for the existence of the position — because the court found that the petitioners had failed to meet their burden of proof regarding the second and third prongs of 5 C.F.R. §§ 831.902, 842.802.
Watson,
Moreover, the Board’s argument implies that the statement of the standard applied in the Sannier and Stephens cases is dictum and need not be followed. The Supreme Court, however, has rejected such a proposition. In Seminole Tribe of Florida v. Florida,
We adhere in this case, however, not to mere obiter dicta, but rather to the well-established rationale upon which the Court based the results of its earlier decisions. When an opinion issues for the Court, it is not only the result but also those portions of the opinion necessary to that result by which we are bound.
Id. at 66-67,
Our decisions in Sannier and Stephens adopted and applied the Board’s Doyle standard. In Sannier, we said that removal under section 7521 encompasses cumulative administrative action or active intervention that prevents the impartial exercise of judicial function and that has a pernicious effect on qualified judicial independence.
In its opinion in Tunik, the Board concluded that this court in Sunnier merely “recognized” the Doyle theory of jurisdiction. Tunik,
We next address the Board’s contention that it was free to reconsider its earlier decision in Doyle, notwithstanding our decisions in Sunnier and Stephens. This entails our consideration of the deference due the Board’s interpretation of section 7521 and the extent to which any such deference was employed in our decisions in Sunnier and Stephens. As to the former, the parties dispute whether the Board is entitled to any deference in its interpretation of section 7521. The Board, citing. 5 U.S.C. § 1305, argues that it is charged with administering section 7521 and that its interpretation is entitled to deference under Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.,
In Chevron, the Supreme Court established a two-part test for evaluating an agency interpretation of a statute. First, “[i]f the intent of Congress is clear, that is the end of the' matter; for the court, as well as the agency, must give effect to the unambiguously expressed intent of Congress-.” Chevron,
The analysis in Cannier continues by stating that “the Board recognizes the possibility that an ALJ may be constructively removed by ‘cumulative administrative actions or active intervention ... [which] prevent the impartial exercise of his judicial functions ... [and which have] a pernicious effect on the complaining judge’s qualified independence.’ ” Sannier,
We agree with the Board that “even if [it] were to assume that the ALJs have suffered, among other things, staffing shortages, transfer restrictions and reduced service areas due to management’s perception that the Lansing ALJs production rate was low, they have not alleged in any of the many papers submitted that these actions of management have interfered with their impartial decisionmaking ability.”
Id. (quoting In re Sannier,
Because the Board’s interpretation of section 7521 was reasonable, the Board’s interpretation as set forth in Doyle and reiterated in Cannier was properly the law. See Mead Corp.,
The cpnelusion that Sannier and Stephens reflect appropriate deference to the Board brings us to the question of whether the Board is free to reconsider its interpretation of section 7521, despite Sannier and Stephens. The Board relies on Bankers Trust New York Corp. v. United States,
We agree with Mesa Verde that where an earlier panel decision on statutory construction was based on deference to an agency interpretation, a later panel of this court is free to consider whether a new. agency interpretation is reasonable without en banc reconsideration of the earlier panel decision. In this circuit, like the Ninth Circuit, panels of the court are bound by prior panel decisions. Newell Cos. v. Kenney Mfg. Co.,
We also agree with the Board that Watson provides some support for this rule in that this court noted in Watson that its prior decision in Bingaman was deferential. However, as noted supra, the question was not squarely presented in Watson because the standard employed in Watson was entirely consistent with the rationale of Bingaman. Watson,
This leads us next to the question of whether the Board’s new interpretation of section 7521 is permissible. Chevron,
if constructive removal means what the Board interpreted it to mean in Doyle, then an agency would have to first seek the Board’s permission, with the opportunity for a full evidentiary hearing, every time it wants to take actions like the ones at issue here, which involve such things as case processing matters and training requirements.
... We cannot believe that this sort of micromanagement, and the likely slowdown in the agency’s work that it would cause, is what Congress intended when it used the word “removal” in 5 U.S.C. § 7521. Instead, the plain language of ■the statute shows that Congress intended to protect individuals from losing their positions as ALJs by requiring agencies to obtain the Board’s permission before separating persons from ALJ positions. This gives ALJs greater protection than employees covered under section 7512 because an appeal from a section 7512 action may be brought only after the action has been taken. The additional protection afforded by section 7521 sufficiently safeguards the qualified judicial independence of an ALJ.
Tunik,
We agree with the Board that the plain language of section 7521 reasonably can be read to apply only to cases of actual separation from employment as an ALJ. As noted supra, both Sannier and Stephens recognized that the constructive removal doctrine went beyond the plain language of the statute. If anything, the more natural reading of section 7521 would preclude the constructive removal doctrine entirely. The Board’s earlier contrary opinion in Doyle relied in part on the Court of Claims’ decision in Benton v. United States,
The ALJs argue that the APA was designed to secure decisional independence of administrative judges. Similarly, the ALJs argue that the legislative history of the APA indicates the importance of deci-sional independence to Congress. Although the ALJs are correct that the APA was concerned with effecting independence for ALJs, neither the APA itself nor the legislative history behind it indicates that Congress intended to extend section 7521 to cover anything less than actual separation from employment as an ALJ. There were some who expressed such views. However, the history of the APA does not show that those views reflected the intent of Congress in enacting the APA. See Ramspeck v. Fed. Trial Exam’rs Conference,
The ALJs additionally argue that in view of 5 U.S.G. § 3105, section 7521 must be construed broadly to include constructive removal. Section 3105 provides that “[ajdministrative law judges ... may not perform duties inconsistent with their duties and responsibilities as administrative law judges.” 5 U.S.C. § 3105 (2000). Based on section 3105, the ALJs argue that “removal” in section 7521 must include anything that causes ALJs to perform duties that are inconsistent with their duties and responsibilities as ALJs. In particular, the ALJs argue that interference with their decisional independence causes them to perform their duties in an unfair manner, which is inconsistent with their duties as ALJs; It is unclear, however, how an agency’s interference with an ALJ’s decisional independence causes an ALJ to perform a duty that is inconsistent with the ALJ’s duties and responsibilities as an ALJ. The ALJs are not arguing that they are being required to perform duties other than the adjudication of cases. Instead, they are complaining about the manner of performance of that duty. Section 3105 does not speak to this issue. Even if the ALJs were correct, there is no plausible
The remaining arguments of the ALJs have been considered but are not persuasive. We thus conclude that the Board’s new interpretation of section 7521 is reasonable and that our decisions in Sannier and Stephens do not preclude the Board from adopting such a new interpretation.
3. Overturning the Regulation
Our holding that the Board’s new interpretation of section 7521 is permissible does not end the inquiry. The Board has promulgated a regulation, 5 C.F.R. § 1201.142, codifying the holding of Doyle. The regulation states, “An administrative law judge who alleges that an agency has interfered with the judge’s qualified deci-sional independence so as to constitute an unauthorized action under 5 U.S.C. 7521 may file a complaint with the Board under this subpart.” 5 C.F.R. § 1201.142 (2004). The Board recognized the inconsistency between the extant regulation and its desire to overrule Doyle. ' In dealing with the regulation, the Board said:
The Board’s regulation at 5 C.F.R. § 1201.142 conforms to the Doyle theory of jurisdiction. That regulation states that an ALJ may file a complaint with the Board if he alleges that “an agency has interfered with [his] qualified deci-sional independence so as to constitute an unauthorized action under 5 U.S.C. § 7521.” The fact that a regulation is based on an erroneous interpretation of a statute does not prevent us from overruling the case law on which the regulation is based. Rather, the statute takes precedence over the regulation. We therefore will overrule Doyle and change our regulations later to conform to the statute and the new precedent.
Tunik v. Social Sec. Admin.,
. Wé conclude that the Board misunderstood its role as an administrative agency and failed to consider the question of whether and under what circumstances the Board, by adjudication, could overturn its regulation. If the Board’s regulation is subject to the requirements of 5 U.S.C. § 553, requiring notice and comment rule-making, the Board’s regulation is the governing law and may not be overturned by the Board outside the procedural requirements of section 553. United States v. Nixon,
Section 553(b) requires notice of proposed “rule making” to be published in the Federal Register. 5 U.S.C. § 553(b) (2000). Section 553(c) requires the agency attempting to promulgate the relevant rule to allow interested persons to participate in the process by providing comments on the proposed rules. Id. § 553(c). Section
Section 553 has numerous exceptions, however, two of which are relevant here. First, section 553(a)(2) excludes “a matter relating to agency management or personnel.” Second, section 553(b)(A) excludes “interpretive rules, general statements of policy, or rules of agency organization, procedure, or practice” from the requirements of section 553. If either of these exceptions applies, the Board’s rule is not subject to section 553, and the Board is free to repeal that rule without engaging in formal rulemaking as prescribed by section 553. On the other hand, if neither exception applies, then the Board’s rule-making was governed by section 553 and was subject to the requirements of notice and comment.
The first exception excludes matters relating to agency management or personnel. That provision was in the original APA in essentially the same terms as appear today. Administrative Procedure Act, Pub.L. No. 79-404, § 4, 60 Stat. 237, 238 (1946) (“Except to the extent that there is involved ... (2) any matter relating to agency management or personnel .... ”). Although the legislative history of this provision is sparse, the Attorney General provided a contemporaneous interpretation of the provision in the Attorney General’s Manual on the Administrative Procedure Act published in 1947. Because of the extensive involvement of the Attorney General in the drafting and enactment of the APA, the Attorney General’s contemporaneous interpretation of the provision is entitled to some-weight. Chrysler Corp. v. Brown,
If a matter is solely the concern of the agency proper, and therefore does not affect the members of the public to any extent, there is no requirement for publication under section 3. Thus, an agency’s internal personnel and budget procedures need not be published (e.g., rules as to leaves of absence, vacation, travel, etc.). However, in case of doubt as to whether a matter is or is not one of internal management, it is suggested that the matter be published in the Federal Register, assuming it does not require secrecy in the public interest.
Attorney General’s Manual 18. Although the provision in section 3 is worded differently from section 4, the Attorney General was of the opinion that the agency management or personnel exception was essentially of the same scope.' The Senate Report seemed to take a similar view stating, “The exception of matters of management or personnel would operate only so far. as
In Seaboard World Airlines, Inc. v. Gronouski,
The D.C. Circuit again considered the scope of the agency management or personnel exception in Stewart v. Smith,
This court has twice considered the applicability of the agency management or personnel exception to section 553. Favreau v. United States,
Although we need not decide whether the section 4 exception carries the same scope as the section 3 exception, we conclude' that the exception in section 4
Next, we must consider whether the exemption in section 553(b)(A) excluding “interpretive rules, general statements of policy, or rules of agency organization, procedure, or practice” from the requirements of section 553 applies to section 1201.142. In Chrysler Corp. v. Brown, the Supreme Court described a substantive, or legislative, rule — as opposed to an interpretive rule — as “one ‘affecting individual rights and obligations.’”
The Board, however, argues that it promulgated section 1201.142 under the authority of 5 U.S.C. § 1204(h), providing authority for the Board “to prescribe such regulations as may be necessary for the performance of its functions,” and that to the extent that the regulation describes the Board’s jurisdiction over constructive removals, it can be no more than an interpretive rule. The Board argues that it lacks delegated authority to promulgate legislative rules determining the scope of its jurisdiction. The Board’s position on this issue lacks any merit. When published for notice and comment, the notice of proposed rulemaking including section 1201.142 referred to 5 U.S.C. §§ 1204 and 7701 as authority for the regulation. 62 Fed.Reg. 48449, 48451 (Sept.- 16, 1997). The Board’s assertion that the notice only referred to section 1204(h) is clearly incorrect. We need not decide the extent of the Board’s authority to promulgate regulations governing its jurisdiction under section 7701, because 5 U.S.C. § 1305 states that “for the purpose of section 7521 of this title, the Merit Systems Protection Board may ... prescribe regulations ....” To the extent there is doubt that the Board has jurisdiction to prescribe regulations governing its jurisdiction under section 7701, section 1305 expressly provides the Board with authority to prescribe reg-ulatións governing the provisions of section 7521, which is precisely what section 1201.142 does. While section 1305 was not expressly listed in the statutory authority for the promulgation of section 1201.142, this lack of notice was not prejudicial. See Trans-Pacific Freight Conference of Japan/Korea v. Fed. Mar. Comm’n,
Because section 1201.142 is a substantive rule not subject to the exemption in section 553(b)(A) and because it is not subject to the agency management or personnel exception of section 553(a)(2), the Board could only repeal the rule through the- notice and comment procedures required by section 553(b). United States v. Nixon,
The Board and the Agency argue that an exception to the general rule that an Agency is bound by its own rules applies where the rule is inconsistent with a statute. See Am. Tel. & Tel. Co. v. Fed. Communications Comm’n,
Based on the- foregoing, we must conclude that the Board lacked authority to overrule section 1201.142 by adjudication. That conclusion does not foreclose the Board from repealing the rule in accordance with section 553(b). However, for purposes of the present case, the Board must adhere to its legislative rule.
III. CONCLUSION
Because Tunik’s appeal is moot and was moot before the Board, we vacate the Board’s opinion in his case and remand with instructions to dismiss the appeal. Because the Board violated the APA in attempting to overturn its regulation through adjudication in the remaining cases, we reverse the Board’s dismissals in those cases and remand for further proceedings consistent with this opinion.
REVERSED-IN-PART, VACATED-IN-PART, AND REMANDED
Notes
. In reaching its decision in Tunik, the Board viewed our decision in Butler v. Social Security Administration,
Dissenting Opinion
dissenting.
The court’s opinion represents a thorough analysis of the issues in this case. However, I am unable to agree with the majority that the Merit Systems Protection Board (“Board”) may not, by adjudication, overrule In re Doyle,
I.
In accordance with 5 U.S.C. § 7521, an agency may take certain “actions” against an administrative law judge (“ALJ”) “only for good cause established and determined by the [Board] on the record after opportunity for hearing before the Board.” 5 U.S.C. § 7521(a). The statute goes on to state:
The actions covered by this section are—
(1) a removal;
(2) a suspension;
(3) a reduction in grade;
(4) a reduction in pay; and
(5) a furlough of 30 days or less[.]
Id. § 7521(b). In short, under the statute, an employing agency may not remove an ALJ, suspend an ALJ, reduce an ALJ’s grade, reduce an ALJ’s pay, or put an ALJ on a furlough of 30 days or less, without first establishing before the Board good cause for the action.
In Doyle, the Board addressed, the- issue of whether it had jurisdiction over a claim of constructive removal under section 7521 even though the statute refers simply to
Consistent with the court’s position in Benton, the Board also recognizes the possibility of an agency’s constructively removing an administrative law judge by cumulative administrative actions or active intervention in a manner calculated to prevent the impartial exercise of his judicial functions.... Whether the Board takes jurisdiction over an action as a “constructive removal” within section 7521 depends on the sufficiency of the allegations in showing that the challenged action has a pernicious effect on the complaining judge’s qualified independence.
Doyle,
II.
Until its decision in Tunik v. Social Security Administration,
An [ALJ] who alleges that an agency has interfered with the judge’s qualified decisional independence ■ so as to constitute an unauthorized action under 5 U.S.C. [§ ] 7521 may file a complaint with the Board under this subpart.
5 C.F.R. § 1201.142 (2003).
In Tunik, the Board reconsidered the issue and concluded that its holding in Doyle was inconsistent with section 7521. In' particular, the Board concluded that section 7521 conferred jurisdiction over constructive removal claims only if the ALJ first showed actual separation from his ALJ position with the agency. Tunik,
The Board recognized that its decision required overturning Doyle and invalidating 5 C.F.R. § 1201.142, but it concluded that such action was justified because Doyle was not consistent with 5 U.S.C. § 7521. In reaching this conclusion, the
The Board also determined that Doyle’s reliance on Benton v. United States,
The Board also determined that Doyle was inconsistent with 5 C.F.R. § 930.202(f) (2003), a regulation of the Office of Personnel Management (“OPM”) implementing section 7521. The regulation defines “removal” as the “discharge of an [ALJ] from the position of [ALJ] or involuntary reassignment, demotion, or promotion to a position other than that of [ALJ].” 5 C.F.R. § 930.202(f). Therefore, the Board concluded, “[i]f we continue to adhere to the Doyle theory of constructive removal, we would effectively be invalidating the OPM regulations which implemented section 7521.” Id.
Finally, the Board concluded that our decision in Sannier v. Merit Systems Pro
III.
The majority holds that, under Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.,
The majority,- I think, acknowledges, and I agree, that there are situations in which an agency’s action invalidating a regulation . it determines is contrary to statute, without notice and comment, will be excused. See supra Part II.B.3, citing Am. Tel. & Tel. Co. v. Fed. Communications Comm’n,
IV.
I start from the premise that an agency may not promulgate a regulation that is contrary to statute. See United States v. Mead Corp.,
Turning first to the language of the statute, I think the ordinary meaning of “removal” entails “separation” from one’s current position of employment. Benton,
This subchapter applies to—
(1) a removal;
(2) a suspension for more than 14 days;
(3) a reduction in grade;
(4) a reduction in pay; and
(5) a furlough of 30 days or less[.]
Consequently, we have held that the similarity of the two statutes dictates that they be construed in the same manner. Butler,
I think the Board’s principal error in Doyle was its misplaced reliance on Benton. The Board initially cited Benton as support for the proposition that, although not expressly recognized in 5 U.S.C. § 7521, the Board has jurisdiction over constructive removal claims. Doyle,
That is because Benton involved a claim of constructive removal based on an allegation of involuntary retirement, i.e., the employee was no longer with the agency. Benton,
The legislative history of section 11 of the APA, on which the Benton court relied, shows that Congress intended to give hearing examiners (now known as ALJs) protections beyond those afforded other employees. That objective, however, was met by the good cause requirement. Nothing indicates that Congress intended “removal” to mean anything other than “separation.” Indeed, the legislative history states that the CSC “must afford any examiner an opportunity for a hearing before acceding to an agency request for removal ....” S. Doc. No. 248, 79th Cong., 2d Sess. 215 (1946) (emphasis added); see also Benton,
Prudential considerations also favor interpreting “removal” as requiring actual separation from the ALJ position. Otherwise, the employing agency may be hesitant to undertake many day-to-day managerial activities without first obtaining clearance from the Board through the •good-cause procedure set forth at 5 U.S.C. § 7521(a). For example, in this case Judge Tunik alleged constructive removal based on various memoranda circulated between Chief Administrative Law Judges at the SSA. Tunik,
In sum, I think Doyle gave an impermissible meaning to “removal” and to our predecessor court’s decision in Benton. The plain meaning of “removal” requires separation. I thus think the Board correctly determined in Tunik that it lacked jurisdiction in this case. Therefore, the Board’s failure to go through a notice-and-comment. process before invalidating 5 C.F.R. § 1201.142 does not require reversal of the Board’s decision. See Am. Tel. & Tel. Co.,
Sannier and Stephens do not change my conclusion. The majority reasons that Sannier and Stephens recognized the Doyle interpretation as reasonable and, therefore, preclude us from now finding it inconsistent with section 7521. I disagree. In my view, neither Sannier nor Stephens presented us with the question of whether the Doyle interpretation of 5 U.S.C. § 7521 was reasonable. Both cases merely asked us to review the Board’s conclusion that the petitioners had not sufficiently alleged that their' employing agencies had interfered with their qualified judicial independence. More importantly, in both cases we affirmed. Therefore, because the Board lacked jurisdiction in both cases even under the more lenient standard of Doyle, we were not asked to reach the issue of whether the Board had jurisdiction over a constructive removal claim where the ALJ was not actually separated from the agency. See Watson v. Dep’t of the Navy,
The majority, on the other hand, contends that “Sannier and Stephens adopted and applied the Board’s Doyle standard.” Supra, at 1335. Admittedly, in both cases we quoted relevant portions from the Doyle holding, but I do not think we ever decided whether the Doyle holding was correct. I would also agree that we applied Doyle to the extent we affirmed the Board’s findings of no jurisdiction based on the fact that the petitioners had not shown interference with their qualified judicial independence. However, because we affirmed a finding of no jurisdiction, the facts of those two eases did not present us with the issue of whether jurisdiction could be established without showing actual separation. In other words, in neither Sannier nor Stephens was it necessary to address the issue of separation given that the petitioners did .not even satisfy the more lenient standard of Doyle. See Seminole Tribe of Florida v. Florida,
For the foregoing reasons, I do not see reversible error in the Board’s decision overruling its erroneous interpretation in Doyle and invalidating 5 C.F.R. § 1201.142 without following the notice-and-comment process of the APA. I thus would affirm the decision of the Board. I therefore respectfully dissent.
. Section 7512 of title 5 lists the actions that an "employee” of an .agency may appeal to the Board. It states that the covered actions are:
(1) a removal;
(2) a suspension for more than 14 days;
(3) a-reduction in grade;
(4) a reduction in pay; and
(5) a furlough of 30 days or less[.]
5 U.S.C. §7512.
. Specifically, the legislative history cited in Benton states that section 11 of the APA was intended to make hearing examiners " ‘removable only for good cause determined by the Civil Service Commission [CSC], after opportunity for a hearing,’ and that the CSC must 'afford any examiner an opportunity for a hearing before acceding to an agency request for removal.’ ” Tunik,
. As indicated in Part IV below, it is my view that the language of section 7521 is clear.
. I say "suggesting" because, in Doyle, the Board ultimately concluded that the ALJ had not alleged a constructive removal claim.
