, No. 96-3831 (6th Cir. 1998)(per curiam)(unpublished) (table case at 134 F.3d
372; unpublished decision available at 1998 WL 25003)(ALJ Case Nos. 92-ERA-19 and
34)
JAN 12 1998
LEONARD GREEN, Clerk
NOT RECOMMENDED FOR FULL-TEXT PUBLICATION
Sixth Circuit Rule 24 limits citation to specific situations. Please see rule 24 before citing in a
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reproduced.
NOT FOR PUBLICATION
No. 96-3831
UNITED STATES COURT OF APPEALS
FOR THE SIXTH CIRCUIT.
TENNESSEE VALLEY AUTHORITY,
Petitioner,
v.
RANDOLPH FRADY,
UNITED STATES DEPARTMENT OF LABOR,
Respondents.
ON PETITION FOR REVIEW OF THE DECISIONS AND ORDERS OF
THE UNITED STATES DEPARTMENT OF LABOR
BEFORE: RYAN, SUHRHEINRICH, and COLE, Circuit Judges.
PER CURIAM. This appeal arises from claims by Randolph Frady
under the whistleblower protection provision of the Energy Reorganization Act of 1974(ERA), as
amended, 42 U.S.C. § 5851 (1988), which prohibits licensees of the Nuclear Regulatory
Commission (NRC) from discriminating against employees who engage in protected activity, such
as identifying nuclear safety concerns or making complaints under the ERA. Pursuant to the ERA,
Plaintiff Frady filed complaints with the U.S. Department of Labor (DOL), alleging that his
non-selection for fourteen different positions was the result of unlawful retaliation for his protected
activities while working as a nuclear inspector for Defendant Tennessee Valley Authority (TVA).
The case ultimately reached the Secretary of Labor (hereinafter Secretary), who found for Plaintiff
with regard to three of the fourteen allegations.
Petitioner TVA appeals the Secretary's decision for Plaintiff on those three
allegations. The issues raised by Petitioner on appeal ask whether "the Secretary was arbitrary
and
[slip op. at 2]
capricious in disregarding the ALJ's credibility determinations," and whether his
"decision was supported by substantial evidence." We find that the Secretary's decision
with regard to the three contested allegations is not supported by substantial evidence. We,
therefore, REVERSE that decision.
I. Facts
Plaintiff Frady was employed by TVA from 1978 until 1992. From 1983 on,
he worked as a nuclear inspector at the Sequoyah and Watts Bar nuclear plants. While working as
an inspector, he raised safety concerns with the NRC and TVA management on several occasions.
In December 1990, Frady received notice that he would be terminated due to a reduction in force.
In response, Frady filed a complaint under the ERA. The complaint resulted in a settlement
agreement which extended Frady's employment with TVA until January 1992. As part of that
agreement, Frady was placed in the Employee Transition Program from June 1991 until his
termination. The program allowed him to seek a new position within TVA, which he did. However,
Frady was not selected for any of the positions he applied for, and he filed ERA complaints
challenging these non-selections.
After an investigation by the DOL's Wage and Hour Division found no merit
to Frady's complaints, he filed a request for a hearing. An administrative law judge (hereinafter AU),
charged with making recommendations to the Secretary, conducted the hearing and thereafter
dismissed eight of the fourteen allegations upon TVA's motion for summary judgment. The AU
issued a written opinion discussing the remaining six allegations and recommended that they all be
decided in TVA's favor. The Secretary adopted the ALJ's recommendations concerning the eight
dismissed allegations and three of the six allegations decided on the merits, but found for Frady on
the remaining three allegations, which are the only ones contested here. While on remand to the ALJ
for determination of Plaintiffs remedy, the parties reached agreement on the
[slip op. at 3]
appropriate remedy, contingent upon this appeal. The resulting "Joint Stipulation" was
recommended for approval by the ALJ, and the Administrative Review Board of the DOL issued an
order approving it.
Two of the three contested allegations concern Frady's application for
machinist trainee positions at both the Watts Bar and Sequoyah nuclear plants, as well as for a
steamfitter trainee position at Sequoyah. Applicants for each of these three positions were
considered by a different three-person committee, consisting of a TVA representative, a member of
the applicable union, and Kevin Green, a human resources manager for TVA. The TVA and union
representatives were charged with ranking the applicants and making the hiring decisions, while
Green was assigned to be a facilitator. Each of the committees ranked Frady below the applicants
who were ultimately selected. The third contested allegation concerns Frady's application for a
quality control inspector position at the Sequoyah facility. Shortly after the vacancy for this position
was announced, a staffing study conducted by an outside consultant recommended that staffing
levels at the facility be reduced. Roy Lumpkin, Frady's former supervisor and the supervisor for the
open position, ultimately decided to cancel the vacancy without hiring anyone for it.
II. Applicable Law
We review the Secretary's decision to ensure that it is not "arbitrary,
capricious, an abuse of discretion, or otherwise not in accordance with law." Ohio v.
Ruckelshaus, 776 F.2d 1333, 1339 (6th Cir.1985) (quoting 5 U.S.C. §
706(2)(A)(Administrative Procedure Act)). As part of our review, "we must determine
whether [the decision] is supported by substantial evidence, which is 'such relevant evidence as a
reasonable mind might accept as adequate to support a conclusion.' " Moon v. Transport
Drivers, Inc., 836 F.2d 226, 229 (6th Cir.1987) (quoting Richardson v. Perales, 402
U.S. 389. 401 (1971)). The substantial evidence standard requires
[slip op. at 4]
us to consider evidence in the record that is contrary to the Secretary's findings and conclusions.
Tel Data Corp. v. National Labor Relations Bd., 90 F.3d 1195, 1198 (6th Cir.1996).
Although the ALJ only recommends a decision, the evidentiary support for
the Secretary's conclusions "may be diminished, however, when the administrative law judge
has drawn different conclusions." National Labor Relations Bd. v. Brown-Graves Lumber
Co., 949 F.2d 194, 196-97 (6th Cir.1991). In particular, this court "will not normally
disturb the credibility assessments of ... an administrative law judge, who has observed the demeanor
of the witnesses." Litton Microwave Cooking Prods. Div., Litton Sys., Inc., 868
F.2d 854, 857 (6th Cir.1989) (reversing National Labor Relations Board, which declined to follow
ALJ's recommendation to dismiss complaint) (internal quotes omitted); accordCurran
v. Dept. of the Treasury, 714 F.2d 913, 915 (9th Cir.1983) ("Special deference is to be
given the AL's credibility judgments"). Given the conflicts in this case between the
conclusions of the ALJ and the Secretary, we must examine the record with particular scrutiny.
Tel Data, 90 F.3d at 1198.
The law governing Frady's proof of his claims was carefully laid out by the
Secretary:
a complainant ... must first make a prima facie case of retaliatory action by the
[defendant], by establishing that he engaged in protected activity, that he was subject to adverse
action, and that the [defendant] was aware of the protected activity when it took the adverse action.
Additionally, a complainant must present evidence sufficient to raise the inference that the protected
activity was the likely reason for the adverse action. If a complainant succeeds in establishing the
foregoing, the [defendant] must produce evidence of a legitimate, nondiscriminatory reason for the
adverse action. The complainant bears the ultimate burden of persuading that the [defendant's]
proffered reasons ... are a pretext for discrimination. At all times, the complainant bears the burden
of establishing by a preponderance of the evidence that the adverse action was in retaliation for
protected activity.
Frady v. Tennessee Valley Authority, Nos. 92-ERA-19 & 92-ERA-34, slip op. at 5-6
(Secretary of Labor Oct. 23, 1995) (citations omitted) (hereinafter Secretary's Opinion);
accordMoon, 836 F.2d at 229. The Secretary went on to state that, as part of
the establishment of a prima facie case, "Frady must establish that he was qualified for such
position; that, despite his qualifications, he was rejected; and that TVA continued to seek and/or
select similarly qualified
[slip op. at 5]
applicants." Secretary's Opinion at 18 (adopted from McDonnell Douglas Corp. v.
Green, 411 U.S. 792, 802 (1973)). The Secretary concluded that, for each of the three contested
allegations, Frady established all the elements of a prima facie case discussed above and met his
ultimate burden of proving that TVA's proffered reasons for its personnel decisions were a pretext
for retaliation.
III. Trainee Positions
Two of the three contested allegations involve the machinist and steamfitter
trainee positions. The record contains little to support the Secretary's finding that Plaintiff
established a prima facie case of retaliation with regard to these positions. As to the knowledge
element of a prima facie case, we agree with the ALJ's finding that there is no evidence that members
of the selection committees knew about Plaintiff's protected activity, including his earlier ERA
complaint. (J.A. at 73). As to the inference element of a prima facie case, the Secretary found that
Plaintiff "established an inference of retaliatory motive based on temporal proximity."
Secretary's Opinion at 24. Where adverse employment action follows rapidly after protected activity,
common sense and case law allows an inference of a causal connection. SeeMoon
v. Transport Drivers, Inc., 836 F.2d 226, 229 (6th Cir.1987) (stating, in a case where the
plaintiff was fired less than two weeks after making a complaint, that "the proximity in time
between protected activity and adverse employment action may give rise to an inference of a causal
connection"). However, because seven or eight months elapsed between Frady's most recent
protected activity, namely the filing of the earlier ERA complaint, and the decisions by the selections
committees, the Secretary's inference is a weak one.1[slip op. at 6]
1The Secretary chose to determine
temporal proximity based on Frady reaching a settlement agreement with TVA in June 1991, two
or three months before his non-selection by the committees. We believe that the date of the
complaint, January 1991, is the more appropriate date to use, because 1) unlike a settlement
agreement, a complaint is clearly a protected activity under the ERA, and 2) common sense dictates
that employees are much more likely to be retaliated against for filing a complaint against their
employer than for resolving the dispute with their employer by reaching a settlement agreement.
2Plaintiff's earlier settlement
agreement guaranteed only that he would be placed in the Employee Transition Program.