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Van Beck v. Daniel Construction Co., 86-ERA-26 (Sec'y Aug. 3, 1993)


DATE:  August 3, 1993
CASE NO. 86-ERA-26


IN THE MATTER OF 

MARVIN VAN BECK,

          COMPLAINANT,

     v.  

DANIEL CONSTRUCTION COMPANY,

          RESPONDENT.


BEFORE:  THE SECRETARY OF LABOR


                       DECISION AND ORDER OF REMAND

     Before me for review is the Recommended Decision and Order 
(R.D. and 0.) of the Administrative Law Judge (ALJ) issued on
September 17, 1986, in this case arising under the employee
protection provision of the Energy Reorganization Act of 1974, as
amended (ERA), 42 U.S.C. § 5851 (1982).  The ALJ concluded
that Complainant was discharged in retaliation for a protected
refusal to work in violation of the whistleblower protection
provision of the ERA, and recommended reinstatement with back
pay, attorney fees and costs.  The ALJ subsequently issued a
Decision Recommending Award of Attorney Fees, dated January 16,
1987.  Both parties filed briefs before the Secretary.
                             BACKGROUND
     This case arises from a timely complaint against Daniel
Construction Company (Respondent), filed on February 13, 1986,
with the Employment Standards Administration, Wage and Hour
Division, of the U.S. Department of Labor.  See  CX 1;
ALJ's R.D. and O. at 10.  Complainant alleged that he was
wrongfully discharged by Respondent because of a protected
refusal to work under the ERA.  Based on the testimony and
evidence proffered at 

[PAGE 2] the hearing, the ALJ concluded that Complainant's discharge was in violation of the ERA. Accordingly, the ALJ recommended that Complainant be reinstated to his former position with Respondent or to a comparable position. In addition, the ALJ found Complainant entitled to protection against "blacklisting," and ordered the deletion of any adverse references from his records, as well as the payment of back pay, attorney fees and costs incurred by Complainant. The ALJ's comprehensive factual findings are fully supported by the record and adopted herein. See ALJ's R.D.and O. at 2, 3-10. As the ALJ found, Complainant was employed by Respondent as an electrical raceways inspector (ERI) during the construction of the Shearon Harris Nuclear Power Plant in North Carolina. He was discharged from his ERA position on January 21, 1986, when he refused to accept a work assignment to perform inspections inside the Reactor Containment Building (RCB) during a testing phase, called Hot Functional Testing (HFT). It is undisputed that Complainant's refusal to work was based on his genuine concerns about the safety of working in the RCB during HFT, specifically the threat of pipe ruptures or leaks of super heated and pressurized steam. DISCUSSION Upon careful review of the record, including the submissions of the parties, the pertinent case law, and the legislative history of the ERA and other statutes with similar employee protection provisions, I find that the ALJ's R.D. and O. is reasonable and supported by law. Accordingly, I accept the ALJ's conclusions as supplemented and modified herein, and the ALJ's R.D. and O. is attached hereto. The Secretary has addressed the issue of whether an employee's refusal to work is protected under the ERA. See Sartain v. Bechtel Constructors Corporation, Case No. 87-ERA-37, Sec. Final Dec. and Order, Feb. 22, 1991, slip op. at 7-17; Wilson v. Bechtel Construction, Inc., Case No. 86-ERA-34, Sec. Dec., Feb. 9, 1988, slip op. at 9-11; Smith v. Catalytic, Inc., Case No. 86-ERA-13, Sec. Dec. and Remand Order, May 28, 1986, slip op. at 3; Pensyl v. Catalytic, Inc., Case No. 83-ERA-2, Sec. Dec., January 13, 1984, slip op. at 6-7. In these decisions, the Secretary held that a refusal to work is protected under the ERA when A worker . . . has a good faith, reasonable belief that working conditions are unsafe or unhealthful. Whether the belief is reasonable depends on the knowledge available to a reasonable man in the circumstances with the employee's training and experience . . . Refusal to work loses its protection after
[PAGE 3] the perceived hazard has been investigated by responsible management officials . . . and, if found safe, adequately explained to the employee. Pensyl, slip op. at 6-7. In the instant case, the record supports the ALJ's conclusions that: (1) Complainant's refusal to work in the RCB during HFT was reasonable in the surrounding circumstances; and (2) Respondent did not adequately explain the perceived hazard, so as to render Complainant's refusal to work unprotected. Contrary to Respondent's arguments, actual safety is not the relevant issue at this point. Rather, the pertinent issues are whether Complainant had a reasonable, good faith belief that conditions were unsafe, and whether Respondent provided sufficient information to dispel these concerns and adequately explained the safety issues raised. Sartain at 8-9. The ALJ's discussion on these issues thoroughly evaluates the relevant considerations in accordance with the Secretary's prior decisions on protected refusals to work, and I accept his conclusions. Additionally, I note that the evidence submitted by Respondent to support their claims as to the actual safety of the RCB during HFT, indicates that Respondent had sufficient information in their possession to adequately explain perceived safety concerns to their employees. In reaching this conclusion, I reject Respondent's argument that ERA jurisdiction does not extend to protect employee refusals to work in factual situations such as in the instant case, where the safety concern is not a nuclear hazard. Respondent contends that the Secretary should decline to extend ERA jurisdiction to the instant case, arguing that the Occupational Safety and Health Act (OSHA), 29 U.S.C. § 651 et seq. (1982), is the appropriate statute to cover Complainant's concerns about workplace safety, which are unrelated to violations of the ERA or the Atomic Energy Act of 1954. Addressing this issue, the ALJ concluded that in order for jurisdiction to attach under Section 5851, a nexus must be established between the alleged protected activity and the objective or purpose of the ERA: "A refusal which has not been shown realistically to involve safety--immediately, ultimately, or potentially--in the operation of a nuclear facility cannot meet the requirements of Section 5851." ALJ's R.D. and O. at 11-12. The ALJ found that such a nexus was established in this case, based on the evidence and testimony that Complainant and his co-workers expressed fears and anxiety over their ability to adequately perform inspections in the RCB under the conditions anticipated during HFT. Consequently, the ALJ concluded that ERA jurisdiction was appropriate here, because a sufficient link was established between Complainant's reasonable refusal to work due
[PAGE 4] to safety concerns and the goal of the ERA to ensure adequate inspections in the RCB. Although this issue has not been specifically addressed in the Secretary's prior decisions concerning protected refusals to work under the ERA, the reasonableness of a complainant's non- nuclear safety concern as the basis for a protected refusal to work was considered in another ERA case. See Sartain v. Bechtel Constructors Corporation, Case No. 87-ERA-37, Sec. Final Dec. and Order, Feb. 22, 1991. In most of the prior decisions of the Secretary concerning protected refusals to work under Section 5851, the complaints involved radiation risks associated with nuclear facilities. However, in Sartain, Complainant's refusal to work was based on concerns about radioactive contamination as well as the hazard of electrical shock. In that decision, each of Complainant's safety concerns was separately considered as potential protected refusals to work under the ERA, but both were determined not to have been reasonable concerns in the circumstances. The risk of electrical shock is a "non-nuclear hazard," similar to the safety concern raised in the instant case, but Complainant's refusal to work based on this safety concern would have been protected if the necessary conditions had been met. Although the instant complaint involves non-nuclear hazards present during the construction phase of a nuclear power plant, there is sufficient evidence of record demonstrating that employer's retaliatory discharge of Complainant had a potentially substantial affect on nuclear safety. The HFT performed in the RCB did not involve nuclear fuel, but this systems testing phase and the inspections to be performed by the ERIs inside the RCB are essential to the eventual safe operation of the plant. Consequently, because Respondent's retaliatory action may directly affect the radiological safety of nuclear plant construction and operation, I hold that ERA jurisdiction is appropriate. The Supreme Court has recognized that although the ERA regulates the field of nuclear safety, the paramount purpose of the whistleblower protection provision of the ERA is the protection of employees. See English v. General Electric Co., 496 U.S. 72, 110 S.Ct. 2270 (1990), at 9-10. Here, the evidence of record substantiates the ALJ's conclusions that Complainant and other ERIs assigned to work in the RCB during HFT were concerned about their ability to adequately perform their work due to anxiety over perceived safety concerns. As discussed previously, these concerns were found reasonable especially since the RCB had previously been designated off- limits during HFT. Additionally, Complainant's termination for refusal to accept
[PAGE 5] this assignment because of his unalleviated concerns, would serve as a disincentive to the other similarly situated ERIs to express their concerns about an inability to properly do the work, or any other safety concerns arising during the construction phase. Such a result would be inconsistent with the purposes of the ERA whistleblower protection provision, to protect the workers employed at nuclear facilities, and to protect the general public from radiological hazards due to the unsafe construction or operation of nuclear facilities. My conclusions that Complainant had a reasonable belief that conditions were unsafe, that Respondent did not sufficiently explain the situation to alleviate his fears, and that this was a protected refusal to work are consistent with the Secretary's prior decisions on protected refusals to work under the ERA, and it is necessary in these circumstances to ensure the effectiveness of the whistleblower protection provision. In accordance with prior decisions, if Respondent was in full compliance with the NRC regulations, and that fact as well as the reasons for the change in procedures were adequately explained to employees, the refusal to work would lose its protection under the ERA at that point. For all of the above reasons, I agree with the ALJ's finding that Complainant was discriminatorily discharged under the ERA and except as modified below, I agree with the ALJ's recommended remedies. Next, I must address the Respondent's alternative argument, that Section 2 of the ALJ's ordered relief must be modified. In his order the ALJ recommended Complainant's reinstatement to his former position, including that, "If ERI activity has been completed, Daniels will employ Complainant at Shearon Harris in another position within his capabilities and comparable in terms of pay, privileges and benefits." ALJ's R.D. and O. at 14. Respondent argues that this remedy exceeds the boundaries of Section 5851, and effectively provides Complainant with permanent employment, whereas his employment as a construction worker for a contractor hired during the construction of the nuclear plant would have ended with completion of plant construction. I agree with Respondent's position in this respect and find that reinstatement is not an appropriate remedy under the circumstances of this case. See generally Blackburn v. Metric Constructors, Inc., Case No. 86-ERA-4, Sec. Dec. and Ord. on Damages and Attorney Fees and Remand on Attorney Fees, Oct. 30, 1991, slip op. at 20. The Secretary has adopted for ERA cases the "long accepted rule of remedies in labor law that the period of an employer's liability ends when the employee's employment would have ended for reasons independent of the violation found." See Blackburn at 4; Francis v. Bogan, Case No. 86-ERA-8, Sec.
[PAGE 6] Final Dec., April 1, 1988, slip op. at 6. Accordingly, I modify the ALJ's order by deleting the requirement that Respondent reinstate or rehire Complainant for a comparable position at Shearon Harris. Additionally, I must modify the ALJ's order as to the computation of back pay and the method of calculating interest on the back pay award, once determined. I agree with the ALJ's finding that Complainant is entitled to back pay from the date of his termination, January 21, 1986. It is unclear on this record however, on what date Respondent's backpay liability ceases. It appears that in this case Complainant would be entitled to back pay only until the end of the construction project for which he was hired, or until all ERI positions were abolished. [1] See generally Blake v. Hatfield Electric Co., Case No. 87-ERA-4, Sec. Dec. and Remand Ord., Jan. 22, 1992, slip op. at 14-15; Blackburn at 4; Francis at 6. This record, however, does not contain evidence of the date when Complainant would otherwise have been terminated from this position. Accordingly, I remand this case for calculation of the appropriate back pay award with interest, including overtime, less interim earnings. Moreover, contrary to the ALJ's order, the interest should be calculated at the rate specified in Section 6621 of the Internal Revenue Code, 26 U.S.C. § 6621 (1988). In all other respects, I adopt the ALJ's order of remedies. On remand, the ALJ shall address the back pay issue identified here, and any additional issues affecting the calculation of back pay and the interest thereon, in light of the Secretary's prior decisions discussing damages in whistleblower cases. See e.g. Adams v. Coastal Production Operators, Inc., Case No. 89-ERA-3, Sec. Dec. and Ord. of Remand, Aug. 5, 1992; Blackburn at 11-14; Wells v. Kansas Gas & Electric Co., Case No. 85-ERA-22, Sec. Dec., March 21, 1991, slip op. at 17, appeal dismissed, No. 91-9526 (10th Cir. Aug. 23, 1991). Finally, with respect to the ALJ's findings in his January 16, 1987, Decision Recommending Award of Attorney Fees, the parties will be afforded an opportunity to submit briefs on the attorney fee issue in light of this decision on the merits. [2] Additionally, Complainant is entitled to request additional fees and costs relating to my review of this matter, see 42 U.S.C. § 5851(b)(2)(B). See generally Lederhaus v. Paschen and Midwest Inspection Service, Ltd., Case No. 91-ERA-13, Sec. Dec. and Ord., Oct. 26, 1992, slip op. at 15- 16. ORDER 1. This case is remanded to the ALJ for calculation of the back pay with interest thereon to be paid to Complainant. 2. Within 20 days of receipt of this order Complainant may submit a supplemental application for attorneys fees and costs
[PAGE 7] reasonably incurred in connection with my review of the ALJ's recommeded decision. A service sheet showing service on the Respondent must accompany the application. If no further fee application will be filed, Complainant shall provide notice to me to that effect and to Respondent within 20 days of receipt of this order. Within 20 days of receipt of such application or notice Respondent may file any responses to Complainant's original and supplemental applicaitons for fees and the ALJ's Decision Recommending Attorney Fee Award. SO ORDERED. ROBERT B. REICH Secretary of Labor Washington, D.C. [ENDNOTES] [1] The purpose of a back pay award is to make the employee whole, that is to restore the employee to the same position he would have been in if not discriminated against. See Blackburn at 11, and the cases cited therein. [2] I note that the parties have not submitted briefs in support of or in opposition to the ALJ's Decision Recommending Award of Attorney Fees, dated January 16, 1987. By letter dated January 27, 1987, Respondent's attorney requested that the Secretary not consider the attorney fee recommendation until a decision on the merits was reached.



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