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USCA Case #14-1196 Document #1590155 Filed: 12/22/2015 Page 1 of 35 ORAL ARGUMENT NOT YET SCHEDULED Case Nos. 14-1196, 15-1066 and 15-1166 IN THE UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT FEDEX HOME DELIVERY, A SEPARATE OPERATING DIVISION OF FEDEX GROUND PACKAGE SYSTEM, INC., Petitioner/Cross-Respondent, v. NATIONAL LABOR RELATIONS BOARD, Respondent. On Petition for Review of Orders of the National Labor Relations Board 361 NLRB No. 55 (September 30, 2014); 362 NLRB No. 29 (March 16, 2015) FINAL BRIEF OF AMICI CURIAE CHAMBER OF COMMERCE OF THE UNITED STATES OF AMERICA, AMERICAN TRUCKING ASSOCIATIONS & NATIONAL ASSOCIATION OF MANUFACTURERS Steven P. Lehotsky Michael J. Gray Warren Postman JONES DAY U.S. CHAMBER LITIGATION 77 West Wacker CENTER, INC. Chicago, IL 60601 1615 H Street NW (312) 782-3939 Washington, D.C. 20062 [email protected] (202) 463-5337 E. Michael Rossman Richard Pianka JONES DAY ATA LITIGATION CENTER 325 John H. McConnell Blvd. 950 N. Glebe Road Columbus, OH 43215 Arlington, VA 22203 (614) 469-3939 (703) 838-1700 [email protected] Counsel for Amici Curiae Linda E. Kelly Patrick Forrest MANUFACTURERS’ CENTER FOR LEGAL ACTION 733 10th Street, NW, Suite 700 Washington, DC 20001 (202) 637-3000 USCA Case #14-1196 Document #1590155 Filed: 12/22/2015 Page 2 of 35 CERTIFICATE OF PARTIES, RULINGS AND RELATED CASES A. Parties and Amici Except for amici curiae The Chamber of Commerce of the United States of America, American Trucking Associations, National Association of Manufacturers, and American Federation of Labor and Congress of Industrial Organizations, all parties, intervenors, and amici appearing before the National Labor Relations Board and in this Court are listed in the Brief for Petitioner. Pursuant to Federal Rule of Appellate Procedure 26.1 and Circuit Rule 26.1, amici curiae state that: Amicus curiae Chamber of Commerce of the United States of America (“the Chamber”) is a non-profit, tax-exempt organization incorporated in the District of Columbia. The Chamber is the world’s largest business federation. The Chamber has no parent corporation, and no publicly held company owns 10% or more of its stock. Amicus curiae the American Trucking Associations, Inc. (“ATA”), is a District of Columbia non-profit corporation, and is the national trade association of the trucking industry. ATA is a united federation of motor carriers, state trucking associations, and national trucking conferences created to promote and protect the interests of the trucking industry. Its direct membership includes approximately 2,000 trucking companies and industry suppliers of equipment and -i- USCA Case #14-1196 Document #1590155 Filed: 12/22/2015 Page 3 of 35 services, and in conjunction with its affiliated organizations, ATA represents over 30,000 companies and every size, type, and class of motor carrier operation. ATA has no parent corporation, and no publicly held company owns 10% or more of its stock. Amicus curiae National Association of Manufacturers (“ NAM”) is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs over 12 million men and women, contributes roughly $2.1 trillion to the U.S. economy annually, has the largest economic impact of any major sector and accounts for two-thirds of private-sector research and development. NAM’s mission is to enhance the competitiveness of manufacturers and improve American living standards by shaping a legislative and regulatory environment conducive to U.S. economic growth. NAM has no parent corporation, and no publicly held company owns 10% or more of its stock. B. Ruling Under Review References to the rulings at issue appear in the Brief for Petitioner. C. Related Cases This Court’s decision in FedEx Home Delivery v. NLRB, 563 F.3d 492 (D.C. Cir. 2009) (hereafter “FedEx I”) is part of the record of this case. Also related to the present appeal is a petition for review filed by the Petitioner from the National -ii- USCA Case #14-1196 Document #1590155 Filed: 12/22/2015 Page 4 of 35 Labor Relations Board’s previous decision in Cases Nos. 34-CA-012735 and 34- RC-002205. FedEx Ground Packaging System, Inc. v. NLRB, C.A. No. 10-1354 (petition for review docketed Nov. 1, 2010). /s/ E. Michael Rossman E. Michael Rossman -iii- USCA Case #14-1196 Document #1590155 Filed: 12/22/2015 Page 5 of 35 TABLE OF CONTENTS Page CERTIFICATE AS TO PARTIES, RULINGS, AND RELATED CASES ............. i TABLE OF AUTHORITIES .................................................................................... v GLOSSARY .............................................................................................................ix INTEREST OF THE AMICI CURIAE ..................................................................... 1 SUMMARY OF ARGUMENT ................................................................................ 3 ARGUMENT ............................................................................................................ 6 I. The D.C. Circuit Effectively Decided This Matter Six Years Ago, And Its Prior Decision May Not Be Disregarded ........................................... 6 II. The Board’s Decision Ignores Congressional Intent And The Mutually Beneficial Nature Of Independent Contractor Arrangements ........................ 7 A. Congress Made A Deliberate Choice To Exclude Independent Contractors From The Act’s Coverage ................................................ 8 B. The Mutually Beneficial Nature Of Independent Contractor Relationships In The Trucking Industry ............................................ 11 III. The Board’s Arguments To The Contrary Are Unavailing .......................... 15 A. The Board’s “Restated and Refined” Approach Is Little More Than Opportunistic Gloss On Positions This Court Has Rejected .............................................................................................. 15 B. The Board’s “Refined” Standard Is No Standard At All ................... 19 C. The Board’s Efforts To Ignore Evidence In This Case Were Even More Egregious Here Than In FedEx I ..................................... 20 CONCLUSION ....................................................................................................... 22 CERTIFICATE OF COMPLIANCE WITH RULE 32(a) ..................................... 24 CERTIFICATE OF SERVICE ............................................................................... 25 -iv- USCA Case #14-1196 Document #1590155 Filed: 12/22/2015 Page 6 of 35 TABLE OF AUTHORITIES Page CASES Allentown Mack Sales and Serv., Inc. v. NLRB, 522 U.S. 359 (1998) ............................................................................................ 21 American Trucking Ass’ns v. United States, 344 U.S. 298 (1953) ............................................................................................ 14 C.C. Eastern, Inc. v. NLRB, 60 F.3d 855 (D.C. Cir. 1995) ........................................................................ 20-21 Carroll Coll. Inc. v. NLRB, 558 F.3d 568 (D.C. Cir. 2009) ............................................................................ 17 Children’s Habilitation Ctr., Inc. v. NLRB, 887 F.2d 130 (7th Cir. 1989) .......................................................................... 6, 16 D.R. Horton v. NLRB, 737 F.3d 344 (5th Cir. 2013) .............................................................................. 17 *FedEx Home Delivery, 361 NLRB No. 55 (2014) ................................................................... 3, 15, 18-22 *FedEx Home Delivery v. NLRB, 563 F.3d 492 (D.C. Cir. 2009) .................................................... 3, 5, 7, 10, 18-21 Ithaca College v. NLRB, 623 F.2d 224 (2d Cir. 1980) ................................................................................. 6 Mosey Mfg. Co. v. NLRB, 701 F.2d 610 (7th Cir. 1983) (en banc) .............................................................. 19 * Authorities on which amici chiefly rely are marked by an asterisk. -v- USCA Case #14-1196 Document #1590155 Filed: 12/22/2015 Page 7 of 35 TABLE OF AUTHORITIES (continued) Page Murphy Oil USA, Inc., 361 NLRB No. 72 (Oct. 28, 2014) ..................................................................... 17 NLRB v. Attleboro Assocs., 176 F.3d 154 (3d Cir. 1999) ................................................................................. 6 NLRB v. Hearst Publ’ns, 322 U.S. 111 (1944) .......................................................................................... 8-9 NLRB v. Seawin, Inc., 248 F.3d 551 (6th Cir. 2001) .............................................................................. 21 NLRB v. St. Mary’s Home, Inc., 690 F.2d 1062 (4th Cir. 1982) ............................................................................ 17 NLRB v. United Ins. Co., 390 U.S. 255 (1968) ........................................................................................ 9, 20 NLRB v. Winnebago Television Corp., 75 F.3d 1208 (7th Cir. 1996) .............................................................................. 16 Noel Canning v. NLRB, 705 F.3d 490 (D.C. Cir. 2013) ............................................................................ 17 North Am. Van Lines, Inc. v. NLRB, 869 F.2d 596 (D.C. Cir. 1989) .............................................................................. 7 Schnuck Markets, Inc. v. NLRB, 961 F.2d 700 (8th Cir. 1992) .............................................................................. 16 Spentonbush/Red Star Cos. v. NLRB, 106 F.3d 484 (2d Cir. 1997) ............................................................................... 16 Transamerican Freight Lines, Inc. v. Brada Miller Freight Sys., 425 U.S. 28 (1975) .............................................................................................. 13 -vi- USCA Case #14-1196 Document #1590155 Filed: 12/22/2015 Page 8 of 35 TABLE OF AUTHORITIES (continued) Page United States v. Silk, 331 U.S. 704 (1947) .............................................................................................. 9 Yellow Taxi Co. v. NLRB, 721 F.2d 366 (D.C. Cir. 1983) .............................................................................. 6 STATUTES 29 U.S.C. § 152(3) ............................................................................................... 8, 16 29 U.S.C. § 152(11) ................................................................................................. 16 29 U.S.C. § 157 .......................................................................................................... 8 OTHER AUTHORITIES Statement by Chairman Pearce on Recess Appointment Ruling (NLRB Office of Public Affairs Jan. 25, 2013), available at https://www.nlrb.gov/news-outreach/news-story/statement- chairman-pearce-recess-appointment-ruling ...................................................... 18 Sean Kilcarr, New Solutions Being Aimed at Driver Shortage, Fleet Owner (Aug. 4, 2014), available at http://www.fleetowner.com/fleet-management/new-solutions- being-aimed-driver-shortage ............................................................................... 15 H.R. No. 80-245 (1947) ......................................................................................... 8, 9 Bureau of Labor Statistics, Contingent and Alternative Employment Arrangements (Feb. 2005), available at http://www.bls.gov/news.release/pdf/conemp.pdf ............................................. 12 Lynn Adler, Companies Pile on Perks to Keep Drivers Truckin’, Reuters (Aug. 10, 2012), available at http://www.reuters.com/article/2012/08/10/uk-usa-truckers- shortage-idUSLNE87900X20120810 ................................................................. 15 -vii- USCA Case #14-1196 Document #1590155 Filed: 12/22/2015 Page 9 of 35 TABLE OF AUTHORITIES (continued) Page Matthias Benz & Bruno S. Frey, Being Independent Raises Happiness at Work, available at http://brunofrey.com/articles/409_04.pdf ........................ 12 Michael Calia, Con-Way Beefs Up Driver Pay Packages for Freight Carrier, Wall Street Journal (Sept. 30, 2014), available at http://online.wsj.com/articles/con-way-beefs-up-driver-pay- packages-for-freight-carrier-1412087980........................................................... 15 Steven Cohen and William B. Eimicke, Independent Contracting Policy and Management Analysis, available at http://www.columbia.edu/~sc32/documents/IC_Study_ Published.pdf ..........................................................................................1 1, 12, 17 Steven L. Johnson, Relative Advantages and Disadvantages of Independent Contractor Status: A Survey of Owner-Operators’ Opinions and Rationale (Jan. 2012), available at http://ntl.bts.gov/lib/ 47000/47800/ 47878/MBTC_20DOT_203026.pdf ................................................................... 15 U.S. Census Bureau, 2002 Vehicle Inventory and Use Survey (Dec. 2004), available at http://www.census.gov/prod/ec02/ec02tv- us.pdf ................................................................................................................... 14 -viii- USCA Case #14-1196 Document #1590155 Filed: 12/22/2015 Page 10 of 35 GLOSSARY ATA American Trucking Associations, Inc. Chamber Chamber of Commerce of the United States of America DA Deferred Appendix FedEx FedEx Home Delivery, A Separate Operating Division of FedEx Ground Package System, Inc. NAM National Association of Manufacturers NLRA National Labor Relations Act NLRB or Board National Labor Relations Board -ix-

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