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USDOL/OALJ Reporter
Coupar v. Federal Correctional Institution, 90-TSC-1 (ALJ Dec. 13, 1991)


U.S. Department of Labor
Office of Administrative Law Judges
800 K Street, N.W.
Washington, D.C. 20001-8002

DATE: DEC 13 1991

CASE NOS: 90-TSC-00001
    91-TSC-00003

In the Matter of

DOUGLAS A. COUPAR
    Complainant

    v.

FEDERAL CORRECTIONAL INSTITUTION
EL RENO, OK
    RESPONDENT

RECOMMENDED DECISION AND ORDER

    This proceeding arises under the Clean Air Act Amendments of 1977 (42 U.S.C. Section 7622, et seq.) hereinafter called CAA and the Toxic Substances Control Act (15 U.S.C. Section 2622, et seq.) hereinafter called TSCA. These statutes prohibit an employer from discharging or otherwise discriminating against an employee who has engaged in activity protected under the CAA or the TSCA. These statutes are implemented by regulations designed to protect so-called "whistleblower" employees from retaliatory or discriminatory action by their employers. (29 C.F.R. Part 24) An employee who believes that he or she has been discriminated against in violation of these acts may file a complaint within 30 days after the occurrence of the alleged violation.

RECOMMENDED FINDINGS OF FACT AND CONCLUSIONS OF LAW

Background

    The Complainant alleges that, while incarcerated at the federal penitentiary, he became aware of a number of serious environmental hazards in the course of performing his duties under the supervision of the Federal Prison Industries (FPI).


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Complainant alleges that after filing formal complaints concerning these hazards he was discriminated against in regard to promotions. He maintains that he should be accorded the "whistleblower" protection provisions set forth in 29 C.F.R. Part 24, which provides certain anti-discrimination provisions for employees who report such violations.

    On September 10, 1990, the Wage and Hour Division of the U.S. Department of Labor's Employment Standards Administration concluded that these allegations could not be substantiated. The Complainant appealed this finding to the Office of Administrative Law Judges.

    On October 25, 1990, the Office of Legal Counsel of the U.S. Department of Justice submitted a memorandum for the Acting Assistant, dated September 19, 1988. In that memorandum, Mr. Douglas W. Kmiec concluded that the TSCA whistleblower provision, the CAA whistleblower provision, and the OSHA definition of "employee" do not apply to federal prisoners.

    The Department of Labor's Office of the Solicitor submitted a Memorandum dated March 26, 1991, from John R. Fraser, Acting Administrator for the Employment Standards Administration Wage and Hour Division. Mr. Fraser stated that it is that department's position that federal prisoners are not covered by the employee whistleblower protection provisions of the TSCA and CAA.1 He further stated that for all current and future whistleblower complaints from federal prisoners, the complainants should be notified of the Wage and Hour position that they are not covered by the employee protection provisions of the statute in question.

    On April 4, 1991, an amended complaint was received in this office in which the Complainant alleges that an additional incident of discrimination took place on January 1, 1991.

    On May 15, 1991, I issued an order to show cause why this complaint should not be dismissed on the grounds that a federal prisoner is not an employee for the purpose of whistleblower protection under 29 C.F.R. Part 24. By letter dated July 18, 1991, the Regional Counsel of the South Central Regional Office for the Federal Bureau of Prisons for the U.S. Department of Justice stated that, because the Department of Labor and the


[Page 3]

Office of Legal Counsel for the Department of Justice have recently indicated that inmates are not federal employees within the meaning of the whistleblower provisions of 29 C.F.R. Part 24, his superiors in Washington, D.C. advised him that his office must decline to participate further in this case. On August 19, 1991, the Complainant submitted a brief on this issue.

DISCUSSION

    The threshold issue to be decided is whether the Complainant is an "employee" within the meaning of the TSCA or the CAA for the purpose of whistleblower protection provisions set forth in 29 C.F.R. Part 24.

    Two companion Recommended Decision and orders were recently issued by Administrative Law Judge Daniel J. Roketenetz which address this issue. In Nottingham, supra, and Teves v. Federal Prison Industries (UNICOR), 91-CAA-1 (April 25, 1991), a determination was made that a federal prisoner is not an employee within the meaning of either the CAA or the TSCA, and is therefore not entitled to the whistleblower protection provisions.2 In reaching this determination, the administrative law judge concluded that the traditional notion of an employer-employee relationship is one which is contractual in nature and one which exists at the will of the contracting parties. The administrative law judge stated:

[The Complainant]'s status arises out of incarceration at FPI and his relationship with FPI is not contractual in nature. Therefore, he is not entitled to the anti- discrimination provisions contained therein.

Teves, p. 8; Nottingham, p.8.

    While it is true that the recommended decisions and orders in Nottingham and Teves are not final orders of the Secretary of Labor at this time and cannot be relied upon until issued by the Secretary, I agree with the reasoning and legal analysis set forth in these recommended decisions. Because there are no cases which deal directly with this issue arising under the CAA or the TSCA, Judge Rokentenetz analyzed case law under other federal statutes which consistently found that a federal employee's work in Federal Prison Industries does not constitute an


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employee/employer relationship. Generally, these cases hold that a prisoner cannot sustain an employer/employee relationship unless that prisoner is employed by an outside employer and the "economic reality" of the situation establishes a bona fide employment relationship between the inmate and the employer. This test was set forth clearly in Bonnette v. California Health and Welfare Agency, 704 F.2d 1465, 1470 (9th Cir. 1983). The Court formulated a test as an inquiry into the autonomy of the Employer such as whether the employer had the power to hire and fire the employee, supervised and controlled the employee's work schedules and/or conditions of employment, determined the rate and method of payment, and maintained employment records. See Carter v. Dutchess Community College, 735 F.2d 814 (2nd Cir. 1984) (if prisoner employed by outside employer, he may be entitled to minimum wage under FLSA depending on how many typical employer prerogatives are exercised over the inmate by that outside employer and to what extent); Young v. Cutter Biological, 694 F. cupp. 651 (D. Ariz. 1988) (if outside employer does not retain the traditional employer rights, then inmate labor belongs to the institution and inmate laborers do not lose their primary status as inmates simply because they work); Baker v. McNeil Island Corrections Center, 859 F.2d 124 (9th Cir. 1988)(employment inside a prison may be analagous to work release for purposes of Title VII applicability if the "economic reality" test can be met); Williams v. Meese, 926 F.2d 994 (10th Cir. 1991)(prisoners were not employees under Title VII of the Civil Rights Act or the Age Discrimination in Employment Act because the prisoner's relationship with the Bureau of Prisons arose out of status as an inmate and not as an employee). Amos v. United States, 13 Ct.Cl. 442 (1987) (a civilian cook foreman was an employee under the Fair Labor Standards Act (FLSA) but the inmate workers he supervised were not).

    In his brief, Complainant cites Plumley v. Federal Bureau of Prisons, 86-CAA-6, for support of his position that a federal prisoner is an employee for purposes of protection for whistleblower activities. In Plumley, in response to a Motion for Summary Judgment and/or Motion to Dismiss, an administrative law judge concluded that federal prison inmate workers were employees for the purpose discussed herein. However, this case was settled before a trial on the merits took place and neither a recommended decision and order nor an opinion by the Secretary were ever issued. Thus, as noted in Nottingham and Teves, this finding never became a final order of the Secretary of Labor and


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therefore has no precedential value in the instant case. Moreover, none of the cases above were discussed in regard to the issue of whether a federal prisoner can be an employee for the purpose of federal statute applicability.

    Complainant argues that Federal Prison Industries is an entity distinct from the penal institution, that it was created to give inmates a marketable skill, and that the foreman who supervise the inmates are no different than foremen in any industry except for the added custodial element. The Complainant further cites Baker, supra, in support of his contention that he is an employee for the purpose of whistleblower protection. However, as indicated above, the Court in Baker limited its holding to employment relationships which were analagous to work release prisoners who were hired and paid by outside employers. He further cites Carter in which the Court stated:

We hold only that an inmate may be entitled under the law to receive the federal minimum wage from an outside employer, depending on how many typical employer prerogatives are exercised over the inmate by the outside employer, and to what extent.

    In Carter, the employer, a community college seeking tutors to work within the prison, made the initial proposal to "employ" workers; suggested a wage, developed eligibility criteria, recommended several inmates, was not required to take any inmate it did not want, decided how many sessions, and for how long, an inmate would be permitted to tutor, and sent the compensation directly the inmate's prison account.

    In conclusion, I find that the facts in this case do not warrant a finding that the Complainant is an employee for purposes of whistleblower protection. The Complainant is not employed in a situation analagous to a work release program and is not employed by an outside employer who meets the "economic reality" standard described above. Furthermore, FPI is a part of the Justice Department's Department of Corrections and has no independent power to conduct a commercial enterprise. Nor do inmates have a property interest in their federal prison industries job assignments; traditionally, inmates have had no entitlement to a specific job or even to any job. James v. Quinlan, 866 F.2d 627, cert. denied 110 S.Ct. 197, 107 L.Ed.2d


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151 (1988). I therefore find that the Complainant is not an employee for the purpose of whistleblower protections pursuant to 29 C.F.R. Part 24.

    While I must dismiss this claim because the Complainant is not entitled to the protections afforded employees who file the same complaints as filed herein, I would note that there are public policy considerations at issue herein which are substantially different from the issues involved in Title VII and minimum wage claims. The whistleblower protection provisions serve the primary function of encouraging free channels of information regarding environmental hazards in order to protect the community at large. If an employee were not protected from an employer's potential retribution, that employee would not be willing to jeopardize a job or any economic privileges which attach to the employment in regard to promotions, benefits, etc. In contrast, under Title VII and FLSA, a complainant is seeking to better his or her own employment status, and that employee's success does not directly benefit the larger community. However, if a prisoner is not protected from retaliation for reporting environmental hazards, fewer reports will be made and the larger community may suffer directly. Furthermore, handlers of hazardous materials may be encouraged to contract with a prison to prevent complaints which can be costly. While I find this to be an unfortunate result, I am constricted by the case law and the language of the statute limiting whistleblower protections to "employees." While the drafters of this legislation did not, in all liklihood, consider the possibility of prisoner protection, such an oversight must be corrected by the legislature.

    Accordingly, I find that the Complainant is not an employee within the meaning of either the Clean Air Act or the Toxic Substances Control Act. Thus, the whistleblower protection provisions set forth in 29 C.F.R. Part 24 cannot apply. I therefore enter the following:

RECOMMENDED ORDER

    IT is ORDERED that the Complaint of Douglas Coupar be, and it hereby is, DISMISSED.

    &bsp;   G. MARVIN BOBER
    &bsp;   Associate Chief Judge

GMB/kat

[ENDNOTES]

1 Prior to this determination, some regional offices of the Wage and Hour Division had concluded that federal prisoners were protected pursuant to these whistleblower protections. See, e.g., Recommended Decision and Order in Nottingham v. Federal Prison Industries (UNICOR), 91-CAA-2 (April 23, 1991).

2 The records in both of these cases are before the Secretary of Labor for the issuance of a final decision. The Office of Administrative Appeals has issued an order establishing a briefing schedule in both of these cases.



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