to the Secretary on April 14,
1987. The ALJ's order
stated that the parties had agreed to a settlement of the claim.
Because no settlement agreement was in the record, on October 28,
1987, the Secretary issued an order to Submit Settlement
Agreement. Respondent filed a motion for reconsideration of the
[Page 2]
order to submit settlement agreement which was denied by my order
of September 29, 1989. By letter dated October 31, 1989 counsel
for Respondent submitted a copy of the settlement agreement
signed by both parties and a copy of the general release signed
by Complainant. Counsel for Complainant also submitted a copy of
the settlement on November 1, 1989. The Settlement has been
carefully reviewed and, with the exceptions discussed below, I
find it fair, adequate and reasonable.
Paragraph 8 of the Settlement requires Complainant not to
"participate in, aid, encourage, support or assist in any other
claims which may be brought against [Respondent]." Paragraph 12
of the Settlement requires Complainant not to "disclose except
as required by law, any complaints or claims ever made about his
employment at [Respondent]."
Paragraphs 8 and 12 of the Settlement here would restrict
Complainant from providing information to the Nuclear Regulatory
Commission (NRC) or any other agency. Such information could be
relevant and material to law enforcement investigations by the
NRC or other agencies, including investigations by the Department
of Labor under the ERA or other laws. Paragraphs 8 and 12 also
would prohibit Complainant from voluntarily testifying taking
part in, or assisting in any law enforcement proceeding involving
an alleged violation by Respondent of the ERA.
I previously considered a similar provision in an ERA case.
See Polizzi v. Gibbs & Hill, Inc ., Case No. 87-ERA-32 Sec. Order
July 18, 1989. As I held in that case, these provisions would
have the effect of drying up channels of information for the
Department of Labor in ERA cases and under other laws, as well as
for other agencies in carrying out their responsibilities. For
the same reasons as set forth in Polizzi v. Gibbs & Hill, Inc .
slip op. at 5-7, which I adopt and incorporate here (copy
appended), I find paragraphs 8 and 12 of the Settlement void as
against public policy, to the extent that they would prohibit
Complainant from communicating to federal or state enforcement
authorities as identified above.
The remainder of the Settlement may be enforceable if
"performance as to which the agreement is unenforceable is not an
essential part of the agreed exchange." EEOC v. Cosmair, Inc .,
821 F.2d 1085, 1091 (5th Cir. 1987) (quoting the Restatement
(Second) of Contracts, & 194(l) (1981)). See also Nichols v.
Anderson , 837 F.2d 1372, 1375 (5th Cir. 1988) ("[I]f less than
[Page 3]
all of a contract violates public policy, the rest of the
contract may be enforced unless the unenforceable term is an
essential part of the contract.") Thus, in McCall v. United
States Postal Service , 839 F.2d 664 (Fed. Cir. 1988), an employee
had settled an action challenging his removal by agreeing that,
upon reinstatement for a one year probationary period, he would
not appeal any disciplinary action taken against him and also
waived his right to file a charge with EEOC. The court held that
"even if [the employee's] attempted waiver of his right to file
EEOC charges is void, that would not affect the validity of other
portions of the agreement." 839 F.2d 664, 666 at *.
Unlike the record before me in Polizzi , there is
insufficient information in this record from which I can
determine whether the parties intended to agree to the remainder
of the Settlement if the provisions I have found void, as
discussed above, are severed.2 Therefore,
the parties will be
given an opportunity to show cause why the remainder of the
agreement should not be approved and the case dismissed.
In addition, the Settlement appears to encompass the
settlement of matters arising under various laws, only one of
which is the ERA. As stated in Poulos v. Ambassador Fuel Oil
Co., Inc ., Case No. 86-CAA-1, Secretary's Order, issued
November 2, 1987, slip op. at 2:
[The Secretary's] authority over settlement
agreements is limited to such statutes as are
within (the Secretary's) jurisdiction and is
defined by the applicable statutes. See
Aurich v. Consolidated Edison Company of New
York, Inc ., Case No. [86-]CAA-2, Secretary's
Order Approving Settlement, issued July 29,
1987, Chase v. Buncombe County, N.C. , Case
No. 85-SWD-4, Secretary's Decision and Order
on Remand, issued November 3, 1986.
I have, therefore, limited my review of the Settlement to
determining whether the terms thereof are a fair, adequate and
reasonable settlement of Complainant's allegation that Respondent
violated the ERA.
Accordingly, except as limited above, I find the Settlement
to be fair, adequate and reasonable. The parties may show cause
within 30 days of receipt of this order why the provisions of
[Page 4]
paragraphs 8 and 12 of the Settlement which I have found void
should not be severed to the extent that they would prohibit
Complainant from communicating to federal or state enforcement
authorities as discussed above, and the remainder of the
Settlement approved and this case dismissed, with prejudice. See
order of Dismissal with Prejudice. If no cause is shown by the
parties within 30 days as indicated, a final order will be issued
approving the Settlement, as severed and interpreted in this
order, and this case will be dismissed with prejudice.3
SO ORDERED.
ELIZABETH DOLE
Secretary of Labor
Washington, D.C.
[ENDNOTES]
1 The ALJ's decision is entitled
"Recommended Decision."
However, under the regulations implementing the ERA, 29 C.F.R.
Part 24 (1989), except in limited circumstances, see 29 C.F.R.
§ 24.5(e)(4), an ALJ's decision is only a recommended decision.
Final orders are issued by the Secretary. 29 C.F.R. § 24.6.
2 Counsel for Respondent
submitted a letter he had sent to
Complainant stating that
Mr. Thompson is free to go to the Nuclear
Regulatory Commission at any time with any
safety concern, and is free to go to the
United States Department of Labor at any time
upon any matter upon which that agency has
jurisdiction, without any fear of any form of
retribution from Detroit Edison, and without
such being regarded by Detroit Edison as a
breach of the terms of the settlement
agreement.
However, it is not clear from this letter whether all of the
restrictions on Complainant's cooperation with government
agencies in law enforcement investigations and proceedings have
been waived by Respondent.
3 Counsel for Respondent
requested that the copy of the settlement he submitted be returned to him after the Secretary
had reviewed it. However, the copy of the settlement must be
made part of the record in the case. 5 U.S.C. § 556(e) (1982).