# Petition for Writ of Certiorari — Long Island Care at Home, Ltd. v. Coke

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 2007
- **Citation:** 551 U.S. 158

## Text

Supreme .

O p en (Court U.S.
No. 06- 06-593 SEP 26 2006
F THE CLERK

IN THE

Supreme Court of the United States

LONG ISLAND CARE AT HOME, LTD. AND
MARYANN OSBORNE,
Petitioners.
Vv.

EVELYN COKE,
Respondent.

On Petition for a Writ of Certiorari to the
United States Court of Appeals
for the Second Circuit

PETITION FOR A WRIT OF CERTIORARI

DANIEL S. ALTER H. BARTOW FARR, Ill
ALTER & ALTER (Counsel of Record)
300 East 42nd Street RICHARD G. TARANTO
10th Floor FARR & TARANTO
New York, NY 10017 1220 19th Street, NW
(212) 867-7777 Suite 800

Washington, DC 20036
(202) 775-0184

WiLSON-EPES PRINTING CO., INC - (202) 789-0096 -— WASHINGTON, D C. 20001

wae

QUESTIONS PRESENTED

1. Whether the Second Circuit erred in refusing to give
deference under Chevron, U.S.A., Inc. v. Natural Res. Def.
Council, inc., 467 U.S. 837 (1984), to a thirty-year-old
Department of Labor regulation—a regulation that has twice
been upheld by the Tenth Circuit—on the ground that, even
though it was promulgated under express grants of legislative
authority and after full notice-and-comment rulemaking, the
regulation was contained in a subpart headed “Interpreta-
tions.”

2. Whether, in holding that a longstanding Department of
Labor regulation was not persuasive and thus undeserving of
any deference under Skidmore v. Swift & Co., 323 U.S. 134
(1944), the Second Circuit erred by failing to address the
governing provisions of the Fair Labor Standards Act and by
declining to give any weight to the Department’s interpreta-
tion of its own regulations.

(1)

il
RULE 29.6 STATEMENT
Petitioner Long Island Care at Home, Ltd. has no parent

company, and there are no publicly held companies that hold
any stock of Long Island Care at Home, Ltd.

TABLE OF CONTENTS

ee yg 8 1, | |.)
TAFE BOLD DEPLETE cesesecccsssovssevssosnscsscsososssesensens
OPENING BELOW .......00...rcceeoresversreesssosserssnsnenrecsesese
ET vivcintisindeitinsihindciniineniiomnnnenuananernsionnnens

STATUTORY AND REGULATORY PROVISIONS
RES RES a I ir rece Ea ene Oe ee NES

SE TIIIITTE ‘dchctuiopncicsindinmcdiniiseninniines A RANEES SS MOONE POD
A. The Statutory and Regulatory Framework ..........
She. nan ccinsthbdinadiabuiniiaspinnnesdinensenselisonipeiibieialtediiées

REASONS FOR GRANTING THE WRIT ..................

I. THE SECOND CIRCUIT DECISIONS, BY
INVALIDATING A REGULATION TWICE
UPHELD BY THE TENTH CIRCUIT, DIS-
RUPT LONGSTANDING PRACTICES AND
THREATEN A SERIOUS DISLOCATION

Il. THE DECISIONS BELOW WRONGLY
FAIL TO GIVE CHEVRON DEFERENCE
TO A REGULATION PROMULGATED
UNDER EXPRESS DELEGATIONS OF
LAWMAKING AUTHORITY AND AFTER
NOTICE-AND-COMMENT RULEMAKING.

Ill. THE DECISIONS BELOW, IN REFUSING
TO ACCORD EVEN SKIDMORE. DEF-
ERENCE, CONTRAVENE THE PROVI-
SIONS OF THE ACT AND IMPROPERLY
DISREGARD THE DEPARTMENT’S IN-
TERPRETATION OF ITS OWN REGULA-

A NY NY NHN

10

13

16

23

iV

TABLE OF CONTENTS—Continued

CONCLUSION ...

APPENDICES
APPENDIX A:

APPENDIX B:
APPENDIX C:
APPENDIX D:
APPENDIX E:

APPENDIX F:
APPENDIX G:

SEETHER EEE EEE HEE Oe

SORE REET EEE EEE ERE EHH ee

Second Circuit Opinion.................+.
District Court Opinion ..............006
Second Circuit Stay Order-..............
Wage and Hour Advisory Memo-

CRORE EEE EOE HETERO

Statutes and Regulations..................

Se

Page

V
TABLE OF AUTHORITIES

CASES Page

Alaska Dept. of Health and Social Services v.
Centers for Medicare and Medicaid Services,

424 F.3d 931 (9th Cir. 2005)........... guagenbuaceaies 19
American Airlines, Inc. v. Dept. of Transporta-
tion, 202 F.3d 788 (Sth Cir. 2000)...........00000... 22

American Mining Congress v. Mine Safety &
Health Admin., 995 F.2d 1106 (D.C. Cir.

ESSE eee eee 21
Arnold v. Ben Kanowsky, Inc., 361 U.S. 388
EL ce 6
Auer v. Robbins, 519 U.S. 452 (1997)........cccc000. 9,12, 18
Barnhart v. Walton, 535 U.S. 212 (2002) ............. 19, 23
Bowles v. Seminole Rock & Sand Co., 325 U.S.
acini cdaessennenstaate 13, 28
Chevron, U.S.A., Inc. v. Natural Res. Def.
Council, Inc., 467 U.S. 837 (1984)... passim
Christenser v. Harris County, 529 U.S. 576
SE cca eee 10, 17, 29
Chrysler Corp. v. Brown, 441 U.S. 281 (1979)..... 21
Columbia Broadcasting System v. United States,
act cctaisaneenemsnannnenns 22
Gonzales v. Oregon, 546 U.S. __, 126 S. Ct.
SEES ee 16, 17
Jay v. Boyd, 351 U.S. 345 (1956) .......cccccceereeees 29

Johnston v. Volunteers of America, Inc., 213 F.2d
559 (2000), cert. denied, 532 U.S. 1072

EEE re 8,11, 14
Koyo Seiko Co., Ltd. v. United States, 258 F.3d

i irsicecntrcencennnenien 19
Lincoln v. Vigil, 508 U.S. 182 (1993)..........ccce 17

Long Island Care at Home, Ltd. v. Coke, 126 S.
TT csc iniccitasesscsinbcippenctgnnnanseenanmcnceen 1]

vi

TABLE OF AUTHORITIES—Continued

Page
Martin v. Occupational Safety and Health
Review Comm'n, 499 U.S. 144 (1991) .............. 23, 29
Metropolitan Stevedore Co. v. Rambo, 521 U.S.
Ir AITTITTITTUTINdshroisicianhiteiataiceaaaiinibaniaseentaliainlaisilatandadatiaaes 23
Mitchell v. Lublin, McGaughy & Assocs., 358
ST TET IT ichnidinsennltibinbinsteintthincdenabamiameniatiias 6
Motion Picture Ass'n of America, Inc. v. FCC,
309 F.3d 796 (D.C. Cir. 2002)..............00cceessees 20
National League of Cities v. Usery, 426 U.S. 833
PITTED seaiinsiheanennibaeibinaiisdiamcadiabateldiniaiiiediicahiiaaiag 3, 25
National Cable & Telecomm. Ass'n v. Brand X_ |
Internet Services, 545 U.S. 967 (2005) ............. 12,19
Perez-Olivo v. Chavez, 394 F.3d 45 (lst Cir.
STs eieseniheiaabaeielmailmnahietiastatimeenad 19, 20
Robertson v. Methow Valley Citizens Council,
I I i sicicinlieiinitiintimerainiiantimetanis 28
Shotz v. City of Plantation, Fla., 344 F.3d 1161
IN, I icine aliaaitinttaiiieaa 12,19
Skidmore v. Swift & Co. 323 US. 134
Sa ciihishiniiniiesisisaiipaihdititiaintaeaaidnininniaeiaeamea 2, 8, 12, 23

Splane v. West, 216 F.3d 1058 (Fed. Cir. 2000).... 22
Stinson v. United States, 508 U.S. 36 (1993) ....13, 28, 29
Sutton v. United Air Lines, Inc., 527 U.S. 471

SETI UI inseticiniiaciiaiipintndehitridaeiinnseiaamuinantteinainaiitaliaaiates 28
Thomas Jefferson Univ. v. Shalala, 512 U.S. 504

EU all rsishsiciesnnieeshiieinesinicenihuaibiisininniaiegbiadsaiiieninmeniee 22, 28
Tony and Susan Alamo Foundation v. Secretary

of Labor, 471 U.S. 290 (1985).......cccccecceeeeees 3, 25
United States v. Cleveland Indians Baseball Co..,

ee ae SUT citinsiichiscnshiniiiubincinenmsatnesiemann 29
United States v. Mead Corp., 533 U.S. 218

ITT atiasnsnetnineienennvengesebiannepmnmepnismmimeneR passim

vil

TABLE OF AUTHORITIES—Continued

Page
Whitaker v. Thompson, 353 F.3d 947 (D.C. Cir.

Sianeli icitiniuititeieniadeeiiindaniintiienatianatininiiieapiiiaiadliniipmianines 12,19
White v. Scibana, 390 F.3d 997 (7th Cir. 2004)..... 12, 19
White v. Shalala, 7 F.3d 296 (2d Cir. 1993).......... 6
Yellow Transportation, Inc. v. Michigan, 537

Se IIIT ccusshsihissiistnicwcsiniiaiipulapatlenneiiilbdieiinatiiiia 18

OTHER MATERIALS
ae Oe SE iciisdccniiccinssesndsiisieniiinnniniaianiniien 20
Be Or ia iccaiccsiscstssinnsiiitinnesialcabiitnsindadiiididiatin 2
Is TPTIIITT sscstsiieittbaicseceiincibatiahuciaddeininiialainiaiasneiibeniin 2

See kisisicicisieeniecliciicdaeinietieniaeliddhiadlieiiiabitie 3, 25

Ii STITT iciinethishcientitbiapciinahitanieldeasiidandaieiinimaihsialeediealie 3

SUT teehee 3, 25, 26

| ERE ene er ns nee a Se 3

His Sent inieuiniescciinchselebhiihinigielilaiaai 3, 25, 26

2} SNES ean ce sen nnn rence RO passim
ie Oe TD sctosccinsitinieimnsinisniinates 3, 25
Ne a ccchicicesisiitiinniinnicineiihoniniigbicitioes 4
ee Se SNe ciansvadntninentsinnninapitniccnsiinisonsinnnsaie +
I See actianccitincncenanansenssisinnsaninindnttiaiiniiion 5
ES SE GPIIIT nctsisssisnsnsennsslecsichnibeiaieneliaidisetbaniniaabilia +
ee 5
ry I N echecncticncicninisceniiesisiieianiniininmmieiaticiinns 5
ee i Cee ecsicvvindinansnsncccnaisccninptcinncpuvennennges 5
ee ES citinictsncniccinstniseasictcataisaiaiseaaicatdueiiniaitn 5
RN I II hciisshscisesencttiiitsinitereninsehnsilviiiiiiteliainiiniiale 5
Se Ms ST tisinianssinicinsiseshininnticibtinstincionsininicniesigig 5
Se Pe Dl eicccnscccscescsccsnntsinsenianeinniensenniinen 6, 14
ens OF SU snicttntevciinevininiicaneicclasinniiatiannitiiio 4

Ss Ui stichaisniicssialisiiesitalneionianiiebshiahelsbidensiibiiaiiginiipin 2

i NTI iieiienlasthnsnepeiiidaieseanainastiaidiii 7

ie I dnisihininstibiniiesincienbhsnniiinentispnsienmpinnianibediicitineaiio’ passim

Se ET scccisacnnniniinaniiineitcniteinpaiicvmmiaiitinitiaiin passim

Vill
TABLE OF AUTHORITIES—Continued

Page

EE TEIN: Ree ae REE 4

_*_ SCESE ELENA Seana eens nO oN 5, 22

I I nica iataceii atlanta ldaiaa passim

ra UIITscasiushiieniieiieiitainiiaseiaiitiaiaiaaiagiiaiaiiininien 18
Department of Labor’s Wage and Hour Advisory
Memorandum No. 2005-1 (December 1,

2005).” 126 S. Ct. 1189 (2006)... eee 9
H.R. Rep. No. 93-913, 93rd Cong., 2d Sess. 2845

STITT cciscceaninsdeatoesidehideicitiahiabesiaiaimannsidhdiniatnaeiigaieaatiee 3, 26
Fair Labor Standards Act of 1974, Amendments
Pub. L. 93-259, 88 Stat. 55 § 29(b), 88 Stat.

Web seihiniediiaseniiiiibianielaiittaminstien sdiisedbibeishtlaiandeaasaditiunanida 4, 18,21

IN THE

Supreme Court of the Anited States

No. 06-__

LONG ISLAND CARE AT HOME, LTD. AND

MARYANN OSBORNE,
Petitioners,
Vv.
EVELYN COKE,
Respondent.

On Petition for a Writ of Certiorari to the
United States Court of Appeals
for the Second Circuit

PETITION FOR A WRIT OF CERTIORARI

Petitioners Long Island Care at Home, Ltd. and Maryann
Osborne respectfully request that this Court issue a writ of
certiorari to review the judgment of the United States Court
of Appeals for the Second Circuit in this case.

OPINIONS BELOW

The opinion of the court of appeals on remand (Pet. App.
la-6a) is reported at 462 F.3d 48. The initial opinion of the
court of appeals (Pet. App. 7a-32a) is reported at 376 F.3d
118. The opinion of the United States District Court for the
Eastern District of New York (Pet. App. 33a-48a) is reported
at 267 F. Supp. 2d 332.

2
JURISDICTION

The judgment of the court of appeals on remand was
entered on August 31, 2006. The jurisdiction of this Court is
invoked under 28 U.S.C. § 1254(1).

STATUTORY AND REGULATORY
PROVISIONS INVOLVED

The relevant provisions of the Fair Labor Standards Act, 29
U.S.C. § 201 ef seqg., and the relevant regulations of the
Department of Labor promulgated thereunder, 29 C.F.R.
§ 552.2 et seq., are set forth at Pet. App. 65a-83a.

STATEMENT

This case involves a challenge to the validity of 29 C.F.R.
§ 552.109(a)—a regulation promulgated by the Department
of Labor in 1975 after full notice-and-comment rulemaking—
which declares that workers providing companionship ser-
vices to the elderly and infirm are exempt from the minimum
wage and overtime provisions of the Fair Labor Standards
Act, see 29 U.S.C. § 213(a)(15) (providing exemption), even
if they are employed by third parties rather than by the home-
owner receiving care. Granting deference to the Department
under the principles of Chevron, U.S.A., Inc. v. Natural Res.
Def. Council, Inc., 467 U.S. 837 (1984), the district court
upheld the regulation. Pet. App. 33a-48a. The Second Cir-
cuit reversed, refusing to accord deference to the Department
under either Chevron or Skidmore v. Swift & Co., 323 US.
134 (1944). Pet. App. 7a-32a. After this Court vacated that
decision, and remanded the case for consideration of further
guidance provided by the Department, the Second Circuit
adhered to its prior ruling and again held Section 552.109(a)
to be unenforceable. Pet. App. la-6a.

A. The Statutory and Regulatory Framework

The issues in this case arise under certain provisions of the
1974 Amendments to the Fair Labor Standards Act (the

3

“Act”). See Pub. L. 93-259, 88 Stat. 55. Prior to the Amend-
ments, workers were typically entitled to receive a specified
minimum wage and enhanced pay for overtime only if they
were employed by an “enterprise engaged in commerce or
in the production of goods for commerce.” See 29 U.S.C.
§§ 206(a), 207(a). See generally National League of Cities v.
Usery, 426 U.S. 833, 837-38 (1976); Tony and Susan Alamo
Foundation v. Secretary of Labor, 471 U.S. 290, 295 n.8
(1985). At that time, the Act defined such an enterprise as
an enterprise that, among other things, had annual gross sales
of at least $250,000. See 29 U.S.C. § 203(s)(1) (1976). The
annual limit has since been doubled to $500,000. See 29
U.S.C. § 203(s)(1)(A)(ii).

In 1974 Congress broadened the Act to provide coverage
for a particular class of workers: “Employees in domestic
service.” Unlike earlier provisions of the Act, the new
Amendments defined the scope of coverage for domestic
service workers primaiily on the basis of the kind of work
that they performed. Thus, Section 206(f) required payment
of a minimum wage to “[a]jny employee—(1) who in any
workweek is employed in domestic service in a household [if
the employee’s compensation constituted wages under Title II
of the Social Security Act] or (2) who in any workweek—(A)
is employed in domestic service in one or more households,
and (B) is so employed for more than 8 hours in the aggregate

.. 29 U.S.C. § 206(f). Similarly, Section 207(/) man-
dated enhanced overtime pay for “any employee in domestic
service in one or more households [who is employed] for a
workweek longer than forty hours... .” 29 U.S.C. § 207()).
See also H.R. Rep. No. 93-913, 93rd Cong., 2d Sess. (1974),
reprinted in 1974 U.S.C.C.A.N. 2811, 2845 (“i]t is the intent
of the committee to include within the coverage of the Act all
employees whose vocation is domestic service’’).

Congress provided exemptions from coverage, however,
for domestic service workers performing two specified jobs:

4

casual babysitting and companionship for the elderly and
infirm. Section 213(a)(15) of the Act provides that the mini-
mum wage and overtime provisions will not apply to “any
employee employed on a casual basis in domestic service
employment to provide babysitting services or any employee
employed in domestic service employment to provide com-
panionship services for individuals who (because of age or
infirmity) are unable to care for themselves (as such terms are
defined and delimited by regulations of the Secretary).” 29
U.S.C. § 213(a)(15). The Act thus gave to the Department, in
express terms, the authority to promulgate legislative rules
to define and delimit the exemption provided by Section
213(a)(15). In addition, Congress conferred a general grant
of rulemaking authority in the 1974 Amendments, stating that
“the Secretary is authorized to prescribe necessary rules,
regulations, and orders with respect to the amendments made
by this Act.” 1974 Amendments, § 29(b), 88 Stat. 76.

Pursuant to both of these express delegations of authority,
see 40 Fed. Reg. 7405 (1975), the Department initiated a
notice-and-comment rulemaking, which resulted in regula-
tions subsequently published in the Code of Federal Regu-
lations. See 29 C.F.R. §§ 516.34, 552.1-552.7, 552.101-
552.110. The critical regulation for present purposes is
Section 552.109(a), contained in a subpart headed “Interpre-
tations,” which declares that “[e]mployees who are engaged
in providing companionship services, as defined in § 552.6,
and who are employed by an employer or agency other than
the family or household using their services, are exempt from
the Act’s minimum wage and overtime pay requirements by
virtue of section 13(a)(15).” 40 Fed. Reg. 7407. Although
the original proposed regulation had not exempted workers
providing companionship services “if the third party em-
ployer is a covered enterprise,” 39 Fed. Reg. 35,385 (1974)—
based on the premise that the Amendments did not intend to
exempt “previously covered domestic service employees” (id.
at 35,395)—the Department altered its course upon further

5

consideration. Explaining the change, the Department noted
that the language of the exemption in the Act did not exclude
third party employers but applied “to ‘any employee’ engaged
‘in’ the enumerated services.” 40 Fed. Reg. 7405. The De-
partment concluded that the final regulation was “more
consistent with the statutory language and prior practices
concerning similarly worded exemptions.” /d.

At the same time that the Department promulgated Section
552.109(a), it promulgated another regulation, 29 -C.F.R.
§ 552.3, which purported to define the term “domestic service
employment.” That regulation, contained in a subpart entitled
“General Regulations,” states that “[a]s used in section
13(a)(15) of the Act, the term ‘domestic service employment’
refers to services of a household nature performed by an
employee in or about a private home (permanent or tempo-
rary) of the person by whom he or she is employed.” The
regulation then goes on to provide an “illustrative and not
exhaustive” list of the kinds of work considered to be “do-
mestic service employment.” 40 Fed. Reg. 7405. As ex-
plained in the regulation, that work includes services by
employees such as “cooks, waiters, butlers, valets, maids,
housekeepers, governesses, nurses, janitors, laundresses, care-
takers, handymen, gardeners, footmen, grooms, and chauf-
feurs of automobiles for family use.” /d.

Section 552.109(a) has remained in force for more than 30
years. The Department has periodically proposed eliminating
the exemption for employees of third party employers, see 58
Fed. Reg. 69,310, 69,312 (1993); 60 Fed. Reg. 46,798 (1995);
66 Fed. Reg. 5485, 5488 (2001), but, following various peri-
ods of comment, has invariably chosen not to do so. The
most recent of these efforts took place five years ago when
the Department, positing “an internal inconsistency” between
Sections 552.109(a) and 552.3, sought to resolve it by limiting
the exemption to workers employed by the person receiving
care. See 66 Fed. Reg. 5485-86. The Department ultimately

6

withdrew the proposed change, however, after numerous
commentators stressed the severe economic impact that
would result. See 67 Fed. Reg. 16,668 (2002).

B. This Litigation

1. Respondent, a worker employed by petitioner Long
Island Care at Home, Ltd. to provide companionship services,
brought this “test case” (Pet. App. 9a) challenging the
application of Section 552.109(a) to workers employed by
persons or entities other than the homeowners receiving
care.’ Finding that the regulation was entitled to “strong
deference” under Chevron, 467 U.S. at 844, see Pet. App.
46a, and pointing to the “explicit grant of authority to the
[Department of Labor] to define and delimit Section
213(a)(15),” as well as “the fact that these regulations have
' been in effect for over twenty-eight years,” Pet. App. 46a, the
district court held that Section 552.109(a) was a legitimate
exercise of the Depart-ment’s authority. Pet. App. 46a.

The Second Circuit reversed. Proceeding on the basis that
“(b}jecause the [Fair Labor Standards Act] is a remedial act, its
exemptions are to be narrowly construed,” Pet. App. 10a
(citing Arnold v. Ben Kanowsky, Inc., 361 U.S. 388, 392
(1960); Mitchell v. Lublin, McGaughy & Assocs., 358 U.S.
207, 211 (1959)), the court refused to accord Chevron defer-
ence to Section 552.109(a), deeming it “an interpretive rather
than a legislative regulation.” Pet. App. 26a. Although the
court of appeals acknowledged that “the rule ‘grants rights,
imposes obligations, or produces other significant effects on
private interests,’ as legislative regulations do,” Pet. App. 26a
(quoting White v. Shalala, 7 F.3d 296, 303 (2d Cir. 1993)), it
held that the regulation did not merit Chevron deference under
the test set out in United States v. Mead Corp., 533 U.S. 218,

' Respondent also challenged the validity of 29 C.F.R. § 552.6, which
defines the term “companionship services.” The Second Circuit upheld
Section 552.6, see Pet. App. 1Sa-22a, and it is not at issue in this petition.

7

226-27 (2001), because the Department “did not intend to use
the legislative power delegated in [29 U.S.C.] § 213(a)(15)
when it promulgated § 552.109(a).” Pet. App. 26a.” It found
that iack of intention to be “most apparent from its inclusion of
the regulation under ‘Subpart B-Interpretations’ as opposed to
‘Subpart A-General Regulations.” Pet. App. 26a.° It thus
concluded that “§ 552.109(a) does not qualify for Chevron
deference because, by the DOL’s own account, it was self-
consciously not promulgated in exercise of Congress’s
delegated authority pursuant to § 213(a)(15).” Pet. App. 26a.

The Second Circuit then went on to reject the argument,
made by the Department of Labor in an amicus brief, that
Section 552.109(a) warranted deference as a legislative rule
under Chevron because it had been “promulgated after notice
and comment... .” Pet. App. 27a. Although the court recog-
nized that “Mead explicitly instructs us to consider whether a
rule was the product of notice and comment in assessing
whether.to accord it Chevron deference,” Pet. App. 27a (cit-
ing Mead, 533 U.S. at 230-31), it found no need to do so for a
regulation that it had already classified as an “interpretive
rule.” Based on that characterization of Section 552.109(a),
the Second Circuit dismissed the importance of the notice-
and-comment procedure by saying that “the agency under-
took a notice and comment procedure for an interpretive

* The Court in Mead held that “administrative implementation of a
particular statutory provision qualifies for Chevron deference when it ap-
pears that Congress delegated authority to the agency generally to make
rules carrying the force of law, and that the agency interpretation claiming
deference was promulgated in the exercise of that authority.” 533 U.S. at
226-27.

* The Second Circuit found additional support in the Secretary’s state-
ment that “[t}he definitions required by section 213(a){15) are contained
in §§ 552.3, $52.4, 552.5 and 552.6.” 29 C.F.R. § 552.2(c); see Pet. App.
26a.

8

regulation despite the fact that the procedure was not re-
quired.” Pet. App. 27a.*

The Second Circuit also declined to give deference to Sec-
tion 552.109(a) under Skidmore v. Swift & Co., 323 U.S. 134
(1944). Addressing “Congressional purpose,” the court, with-
out reviewing any statutory language, took the view that
“persons who were employed by a third party were outside the
category of ‘domestic service employees’ and were protected
by the [Act] before the 1974 amendments,” Pet. App. 29a
(citations omitted), and that “[i]t is implausible, to say the least,
that Congress, in wishing to expand FLSA coverage, would
have wanted the DOL to eliminate coverage for employees of
third party employers who had previously been covered.” Pet.
App. 30a. The court of appeals also placed considerable
weight on what it regarded as a “stark internal inconsistency”
between Section 552.3 (the regulation defining “domestic
service employment’) and Section 552.109(a), Pet. App. 30a,
finding that “[p]lainly, under § 552.3, employees employed by
third parties do not qualify for the exemption” that Section
552.109(a) grants to them. Pet. App. 30a. Finally, the court
pointed to the fact that the Department had proposed elim-
ination of the exemption for third party employees on several
occasions, deeming its position “hardly . . . a model of
consistency,” Pet. App. 30a, and questioning both the Depart-
ment’s reasoning and procedural regularity in adopting Section
$52.109(a) in the first place. See Pet. App. 30a-3 la.

2. Petitioners filed a petition for certiorari, raising, among
other issues, the failure of the Second Circuit to accord
Chevron deference to the regulation, and emphasizing the

* The Second Circuit recognized that the Tenth Circuit, affording
Chevron deference, had upheld the validity of Section 552.109(a). See
Pet. App. 25a (citing Johnston v. Volunteers of America, Inc., 213 F.2d
559, 562 (2000), cert. denied, 532 U.S. 1072 (2001)). Saying that Johnston
had been decided before Mead, the Second Circuit declined to follow it.
See Pet. App. 25a.

9

substantial harm likely to be caused by its invalidation. See
Petition for A Writ of Certiorari, No. 04-1315. Submitting a
brief by invitation, the United States stated that the decision
of the Second Circuit was contrary to several decisions of this
Court (including Mead and Auer v. Robbins, 519 U.S. 452
(1997)) and conflicted with decisions of the Tenth Circuit
(Johnston and Welding v. Bios Corp., 353 F.3d 1214 (10th
Cir. 2004)). U.S. Br. at 9, 15. The United States also argued
that the decision was “inconsistent with the plain terms of the
FLSA, which strongly support the construction adopted by
DOL in Section 552.109(a),” and, as evidenced by the amicus
briefs filed in support of the petition, “will have a significant
and disruptive impact on the provision of government-funded
home care to elderly and disabled individuals.” /d. It in-
formed the Court that “[flor those reasons, and because of the
important and recurring nature of the questions raised in the
case, it would be appropriate for this Court to grant the peti-
tion for a writ of certiorari to review the [deference ques-
tion].” /d. However, noting that the Department of Labor
had recently offered “authoritative agency guidance” making
clear that it intended “Section 552.109(a) to be an exercise of
its expressly delegated legislative authority,” id. (citing Wage
and Hour Advisory Memorandum No. 2005-1), the Solicitor
General recommended that the Court vacate the judgment and
remand the case to the Second Circuit for consideration of the
Department’s position. See U.S. Br. at 9-10.° The Court then
granted the petition, vacated the judgment, and remanded the
case “for further consideration in light of the Department of
Labor’s Wage and Hour Advisory Memorandum No. 2005-1
(December 1, 2005).” 1265S. Ct. 1189 (2006).

On remand, the Second Circuit adhered to its original rul-
ings. With respect to Chevron deference, it again concluded,

* The Advisory Memorandum, reprinted at Pet. App. 50a-64a, also set
forth guidance regarding the proper reading of Section 552.3. See Pet.
App. 54a-63a.

10

“for substantially the same reasons,” that “§ 552.109(a) was
not intended, at the time of its promulgation, to be a legisla-
tive rule; rather, it was meant to be an interpretive rule.” Pet.
App. 3a. Finding “arguments to the contrary presented in the
DOL Memo” to be “not persuasive,” Pet. App. 3a, it said that,
even if the Department regarded Section 552.109(a) as “le-
gally binding,” Pet. App. 3a, the regulation “could have been
simply intended to provide guidance to DOL employees as to
how the agency planned to interpret ‘domestic service em-
ployment’ in the third-party employer context.” Pet. App. 4a.
The court of appeals also declined, once again, to give
Skidmore deference to the regulation, relying in particular on
its view about the inconsistency between Section 552.109(a).
and Section 552.3. In doing so, the Second Circuit rejected
the Department’s explanation of why the two provisions
could be read harmoniously, saying that it “need not defer to
an agency’s interpretation of its own regulations when those
regulations, like § 552.109({a) and §552.3, are unambiguous.”
Pet. App. 5a (citing Christensen v. Harris County, 529 U.S.
576, 588 (2000)). It thus declared Section 552.109(a) unen-
forceable. Pet. App. 6a.°

REASONS FOR GRANTING THE WRIT

The Second Circuit has twice struck down a Department of
Labor regulation—promulgated more than 30 years ago after-
notice-and-comment rulemaking and adhered to ever since—
that exempts certain third party employees from cover-
age under the Fair Labor Standards Act, see 29 U.S.C.
§ 213(a)(15), holding that the regulation is merely a nonbind-
ing interpretation lacking the force of law and that it is
unpersuasive. See Pet. App. 23a-32a (invalidating 29 C.F.R.
§ 552.109(a)); id. at la-6a (same). Following the initial deci-
sion, petitioners sought review in this Court on the grounds,

* As it had done after its initial decision, the Second Circuit stayed the
mandate pending the filing of a Petition for a Wnt of Certiorari in this
Court. See Pet. App. 49a .

1]

among others, that the Second Circuit had failed to accord the
regulation proper deference under the principles of Chevron,
U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837
(1984); that the decision was in conflict with a decision of the
Tenth Circuit, Johnston v. Volunteers of America, Inc., 213
F.3d 559 (10th Cir. 2000); that the Second Circuit had mis-
read the statute and other relevant regulations; and that the
invalidation of Section 522.109(a) would cause extraordinary
and unjustified harm. The United States informed the Court
that “it would be appropriate for the Court to grant the
petition for certiorari,” U.S. Br. at 9, but, noting that the
Department of Labor had recently issued new “authoritative
agency guidance” (id.), urged the Court to vacate and remand
so that the Second Circuit could consider that guidance. The
Court followed that course. See Long Island Care at Home,
Lid. v. Coke, 126 S. Ct. 1189 (2006). On remand, however,
the Second Circuit again declared Section 552.109(a) to be
unenforceable.

The decisions below now merit full review by this Court.
To begin with, the result alone—overturning a thirty-year-old
regulation twice upheld by another Circuit (see Johnston and
Welding v. Bios Corp., 353 F.3d 1214 (10th Cir. 2004))—is
sufficient to justify this Court’s attention. Not only does the
Second Circuit’s disregard of agency authority disrupt long-
standing wage-and-hour practices, it threatens to do so at
potentially enormous cost. Only last Term numerous amici
curiae informed the Court that the increased expense result-
ing from invalidation of Section 552.109(a) would erode their
ability to provide appropriate care for the elderly and infirm,
a problem that the United States specifically noted in its brief
supporting review. See U.S. Br. at 9. Those concerns are no
less compelling today.

The Second Circuit decisions are troubling for other rea-
sons as well. The court of appeals’ principal rationale for
withholding Chevron deference—that Section 552.109(a) was
in a subpart entitled “Interpretations’—not only wrongly

12

assumes that an agency interpretation can never have the
force of law, see United States v. Mead Corp., 533 U.S. 218,
227 (2001), but is flatly inconsistent with this Court’s deci-
sion in Auer v. Robbins, 519 U.S. 452 (1997), giving Chevron
deference to a different Department of Labor regulation con-
tained in an identically labeled subsection. Moreover, by
refusing to give Chevron deference to a regulation that was
issued after notice-and-comment rulemaking and that bears
other significant indicia of deliberate lawmaking, the court of
appeals has seriously diminished the proper respect due to
“relatively formal” agency action. See Mead, 533 U.S. at
230. While this Court has not finally resolved whether resort
to notice-and-comment rulemaking is sufficient in and of
itself to earn Chevron deference—compare National Cable &
Telecomm. Ass'n v. Brand X Internet Services, 545 U.S. 967,
125 S. Ct. 2688, 2712-13 (2005) (Breyer, J., concurring) with
id. at 2717-18 (Scalia, J., dissenting)—the federal courts
of appeals, following the standard set forth in Mead, 530 U.S.
at 226-27, have repeatedly emphasized the importance of
notice-and-comment rulemaking in affording deference under
Chevron. See, e.g., Whitaker v. Thompson, 353 F.3d 947, 950
(D.C. Cir. 2004); White v. Scibana, 390 F.3d 997, 1000 (7th
Cir. 2004); Shotz v. City of Plantation, Fla., 344 F.3d 1161,
1179 (11th Cir. 2003). |

The Second Circuit also went astray in failing to accord
even the lesser deference warranted by the doctrine of
Skidmore v. Swift & Co., 323 U.S. 134 (1944). See Mead,
533 U.S. at 234-35. Although the court of appeals, relying
primarily on another regulation promulgated by the Depart-
ment, 29 C.F.R. § 552.3, ultimately found that domestic
workers employed by third parties are not “employees
employed in domestic service employment,” 29 U.S.C.
§ 213(a)(15), and thus cannot be exempted under that section,
a proper reading of the Act as a whole shows that reading to
be incorrect. In fact, Congress used the critical coverage term
“employee[s] in domestic service” to broadly encompass

13

workers performing domestic jobs regardless of the workers’
employer—assuring that the coverage provisions of the Act
would apply to domestic service employees across the board—
and the exemption for those particular domestic service em-
ployees providing “companionship services” also applies re-
gardless of the workers’ employer, just as the Department has
determined. Moreover, insofar as the Second Circuit sup-
ported its contrary view with a reading of Section 552.3 that
is at odds with the Department’s own reading of that regula-
tion, the court flouted the well-established principle that an
agency interpretation of its own regulation “must be given
‘controlling weight unless it is plainly erroneous or inconsist-
ent with the regulation.”” Stinson v. United States, 508 U.S.
36, 45 (1993) (quoting Bowles v. Seminole Rock & Sand Co.,
325 U.S. 410, 414 (1945)). Thus, at each possible step, the
court of appeals wrongly substituted its view for the judgment
of the agency charged with implementing the governing stat-
ute. That judicial usurpation should not be allowed to stand.

I. THE SECOND CIRCUIT DECISIONS, BY
INVALIDATING A REGULATION TWICE
UPHELD BY THE TENTH CIRCUIT, DIS-
RUPT LONGSTANDING PRACTICES AND
THREATEN A SERIOUS DISLOCATION OF
CARE

The Second Circuit, in declaring Section 552.109(a) to be
nothing more than an unenforceable “interpretation,” rather
than a rule of law, Pet. App. 26a, has ordered a dramatic
reversal in wage-and-hour practices that have been in effect,
without change, for more than 30 years. Ever since prom-
ulgation of the regulation in 1975, the governing rule has
been that, in kecping with the congressional intent to make
companionship services affordable for the elderly and infirm,
see Pet. App. 46a-47a, employers of workers providing those
services are not required to pay the minimum wage or time-
and-a-half wages for overtime. Importantly for present pur-

14

poses, that rule has applied regardless of whether the em-
ployee was hired directly by the person receiving care or was
employed by a third party such as a family member or an
independent agency. Indeed, the exemption for employees of
third parties has become so firmly established that, when the
Department recently proposed eliminating it, it was forced to
pull back because of concerns about the potential adverse
economic effects. See 67 Fed. Reg. 16,668 (2002). By judi-
cial fiat, however, the Second Circuit has done precisely what
the agency, only a few years before, ultimately found it
inadvisable to do.

Quite apart from its overriding of the Department of Labor,
the Second Circuit has also put itself into direct conflict with
the Tenth Circuit, see Johnston, 213 F.3d at 561-62; Welding,
353 F.3d at 1217 n.3, creating a checkered regulatory scheme
in which Section 552.109(a) is controlling in some states but
not others. in Johnston, decided just six years ago, the Tenth
Circuit expressly reyected the argument that Section 552.109(a)
was merely an “interpretation which does not have the effect
of law... .” 213 F.3d at 561. Applying Chevron, see 213
F.3d at 562, the court of appeals determined “that the secre-
tary’s interpretation is not arbitrary, capricious, or manifestly
contrary to § 213(a)(15).” 213 F.3d at 562. Unlike the
Second Circuit, therefore, the Tenth Circuit held that “the fact
that domestic service employees are not employed by the
individual receiving care, does not alone exclude them from
the exemption.” 213 F.3d at 562.

This disagreement between the Second and Tenth Circuits
shows no signs of abating. In its initial decision below, the
Second Circuit openly declined to follow Johnston, pointing
out that the Tenth Circuit had decided that case before this
Court’s decision in Mead. See Pet. App. 25a. However, the
Tent’: Circuit also handed down a decision after Mead, see
Welding, 353 F.3d 1214, specifically relying on Johnston and
reiterating that “(t]he domestic service employee need not be

15

employed directly by the person receiving the services or by
that person’s family for the exemption to apply.” 353 F.3d at
1217 n.3; see also id. (“[t}he exemption can apply even when
the domestic service employee is actually employed by a ser-
vice agency ....”). The views of the Tenth Circuit thus are
solidly behind the validity of Section 552.109(a). By con-
trast, given an opportunity to reconsider its views upon
remand from this Court, the Second Circuit firmly held to its
earlier position, again declaring that Section 552.109(a) was
unenforceable.

The practical consequences of. the Second Circuit’s deci-
sions are potentially enormous. At the petition stage last
Term, the City of New York told the Court that invalidation
of Section 552.109(a) would add nearly $300 million annu-
ally to its costs of providing home care to the elderly and
infirm. See City of New York, et al. Amici Br. at 2, 5-8.
Other home care providers declared that they would simply
be unable to bear the sharply increased costs resulting from
the decision below. See, e.g., Home Care Ass’n of New York
State, Inc. Amicus Br. at 2, 9-10. Faced with this new bur-
den, therefore, many providers may be forced to significantly
reduce their employees’ workweeks in order to avoid incur-
ring ruinous time-and-a-half overtime obligations. See Pet.
App. 85a (Declaration of Maryann Osborne).

These measures will almost certainly cause severe disrup-
tions for clients needing care. Most seriously, the clients will
face a sharp drop in the continuity and stability of their care,
with more caregivers being required in order to provide
clients with the same or even fewer services. Given the
highly personal nature of companionship services, “clients
often are very unwilling to enter into such a relationship with
more thar: one or two such individuals.” Pet. App. 100a
(Declaration of Susan Choi-Hausman). Moreover, a shifting
array of personal caregivers “assaults the dignity of patients,
undermines the quality of care that they receive, and is there-

16

fore detrimental to their well being.” Pet. App. 86a (Declara-
tion of Maryann Osborne). This problem will only get worse
as the number of elderly needing care continues to grow.
Yet, it is precisely those people likely to be harmed by the
new judicially imposed regime—“individuals who (because
of age or infirmity) are unable to care for themselves” (29
U.S.C. § 213(a)(15))—that Congress specifically meant to
help by exempting personal companions from the coverage
provisions of the Act. See id.

This upheaval is as unnecessary as it is problematic. The
Secretary correctly determined thirty years ago that the
minimum wage and overtime provisions should not apply to
caregivers employed by third parties. The Second Circuit’s
decisions to the contrary warrant review.

Il. THE DECISIONS BELOW WRONGLY FAIL TO
GIVE CHEVRON DEFERENCE TO A REGULA-
TION PROMULGATED UNDER EXPRESS
DELEGATIONS OF LAWMAKING AUTHOR-
ITY AND AFTER NOTICE-AND-COMMENT
RULEMAKING

The reasoning used by the Second Circuit to invalidate
Section 552.109(a) also raises serious concerns. While the
court was wrong not to give even Skidmore deference to the
regulation, see pages 23-30 infra, it committed its first, and
most striking, error by holding that Section 552.109(a)—a
regulation promulgated by the Department of Labor under
express grants of lawmaking authority and after full notice-
and-comment rulemaking—did not have the “force of law”
required for deference under Chevron. See Mead, 533 U.S. at
226-27 (agency implementation “qualifies for Chevron defer-
ence when it appears that Congress delegated authority to the
agency generally to make rules carrying the force of law, and
that the agency interpretation claiming deference was promul-
gated in the exercise of that authority”); Gonzales v. Oregon,
546US. __, 1268S. Ct. 904, 914-15 (2006) (same). Accord-

17

ing to the Second Circuit, the regulation did not merit Chevron
deference because the Department had put the regulation
“under ‘Subpart B-Interpretations’ as opposed to ‘Subpart A-
General Regulations,’” Pet. App. 26a, and had stated that
“*the definitions required by § 213(a)(15) [of Title 29] are
contained in [29 C.F.R.] §§ 552.3, 552.4, 552.5 and 552.6 [of
Subpart A].’” Pet. App. 26a. It thus concluded that the De-
partment had failed to satisfy the second part of the Mead
standard “because, by the DOL’s own account, [the regula-
tion] was self-consciously not promulgated in exercise of
Congress’s delegated authority pursuant to § 213(a)(15).”
Pet. App. 26a .

There are several notable flaws in this analysis. First of all,
the Second Circuit is simply mistaken in supposing that a rule
labeled an “interpretation” is not, and never can be, a rule
with the force of law. On the contrary, numerous regulations

“with the force of law effectively “interpret” the governing
statute in the sense that they supply additional legal content to
Statutory provisions that require further detail. See generally
Chevron, 467 U.S. at 843 (discussing agency authority “to
elucidate a specific provision of the statute by regulation”).
Indeed, the Court in Mead acknowledged that interpretations
can have the force of law, expressly declaring that Chevron
deference is warranted when “the agency interpretation
claiming deference was promulgated in the exercise of
{delegated lawmaking] authority.” Mead, 533 U.S. at 227
(emphasis added); see also Gonzales, 126 S. Ct. at 914 (“[A]n
interpretation of an ambiguous statute may also receive sub-
stantial deference”) (citing Chevron); Christensen v. Harris
County, 529 U.S. 576, 587 (2000). The proper question, then,
is not whether an agency regulation “interprets” a statute, but
whether the regulation does so only as a matter of agency
guidance or whether it is meant to declare enforceable legal
rights and responsibilities. Although the task of distinuishing
between the two is not always easy, see Lincoln v. Vigil,
508 U.S. 182, 196 (1993), the labeling of a regulation as

18

an “interpretation” does not, by itself, consign it to the former
category.

The Second Circuit’s decision to the contrary, in fact, is
directly at odds with this Court’s decision in Auer v. Robbins,
519 U.S. 542 (1997). In Auer, the Court upheld a Department
of Labor regulation interpreting the term “bona fide executive,
administrative, or professional capacity” for purposes of
implementing a different exemption under the Fair Labor
Standards Act. See 29 U.S.C. § 213(a)(1). At that time, the
regulation at issue in Aver, like Section 552.109(a) here, was
set forth in a Subpart B headed “Interpretations” instead of in
Subpart A. See 29 C.F.R. 541.118(a) (1996). This Court held
that it was entitled to full deference under Chevron. See 519
U.S. at 455-56.

Rather than focusing almost exclusively on the label at-
tached to the regulation, the Second Circuit should have paid
more attention to affirmative evidence that the Department
was exercising its lawmaking authority, in-particular the fact
that the agency engaged in notice-and-comment rulemaking.
This Court has indicated that congressional authorization of
notice-and-comment rulemaking typically satisfies the first
part of the Mead formulation, saying that “[i]t is fair to as-
sume generally that Congress contemplates administrative
action with the effect of law when it provides for a relatively
formal administrative procedure tending to foster the fairness
and deliberation that should underlie a pronouncement of
such force.” 533 U.S. at 230; see also id. at 229 (authoriza-
tion of rulemaking is “a very good indicator of delegation
meriting Chevron treatment”); Yellow Transportation, Inc. v.
Michigan, 537 U.S. 36, 45 (2002). Given that assumption,
it is reasonable also to assume that an agency regulation
actually resulting from that “process of rulemaking” will
satisfy the second part of the Mead formulation, demonstrat-
ing that the agency was indeed making law. To date, this
Court has not directly addressed whether agency resort to

19

notice-and-comment rulemaking is itself sufficient, or at least
presumptively sufficient, to establish that a regulation has the
force of law, although individual Justices have expressed
preliminary views on this question. See National Cable &
Telecomm. Ass'n, 125 S. Ct. at 2712-13 (Breyer, J., concur-
ring) (formal proceeding not always “a sufficient condition
[for use of Chevron]”); id. at 2717-18 (Scalia, J., dissenting)
(under Mead “some unspecified degree of formal process was
required—or was at least the only safe harbor”).’

For their part, however, numerous federal courts of appeals
have emphasized that use of notice-and-comment rulemaking
is a strong, even dispositive, indication that an agency is
exercising its delegated lawmaking power. See Whitaker, 353
F.3d at 950; White, 390 F.3d at .000; Shotz, 344 F.3d at
1179; Perez-Olivo v. Chavez, 394 F.3d 45, 53 n.6 (ist Cir.
2005); Koyo Seiko Co., Ltd. v. United States, 258 F.3d 1340,
1347 (Fed. Cir. 2001); Alaska Dept. of Health and Social
Services v. Centers for Medicare and Medicaid Services, 424
F.3d 931, 939 (9th Cir. 2005). In Whitaker, for example, the
D.C. Circuit stated that “[b]ecause we are reviewing an
agency’s interpretation of the statute it is entrusted to admin-
ister, and the agency reached its interpretation after a rela-
tively formal process with public notice and comment... ,
we review under the familiar framework established by
[Chevron}.” 353 F.3d at 950. Similarly, the Federal Circuit,
reviewing an agency rule, noted that the methodology set
forth in the rule “was adopted after notice-and-comment
rulemaking, and thus is entitled to maximum deference.”
Koyo Seiko, 258 F.3d at 1347. And, the First Circuit rejected
an argument that a Bureau of Prisons rule was entitled to
nothing more than Skidmore deference, remarking that, be-
cause the interpretation was embodied in a regulation “which

’ The Court has made clear that notice-and-comment rulemaking is not

necessary for a regulation to receive Chevron deference. See Barnhart v.
Walton, 535 U.S. 212, 221-22 (2002); Mead, 533 U.S. at 231.

20

was adopted pursuant to the notice-and-comment proce-
dure of the Administrative Procedure Act,” Perez-Olivo, 394
F.3d at 53 n.6, it was “[t]hus . . . entitled to full deference
under Chevron.” Id.; see 5 U.S.C. § 553(b)(A) (notice-and-
comment rulemaking not required for “interpretive rules,
general statements of policy, or rules of agency organization,
procedure, or practice”).

The court df-appeals below dismissed the fact that the
Department had promulgated the regulation after relatively
formal rulemaking, saying that “the agency undertook a
notice and comment procedure for an interpretive regulation
despite the fact that the procedure was not required.” Pet.
App. 27a; see also Pet. App. 27a (“following the notice and
comment procedure, at most, buttresses a claim that the
agency gave consideration to what it did; it does not alter the
fact that the agency did not act pursuant to legislative
authority”). But that approach gets things backwards. Rather
than looking to the notice-and-comment procedure as a com-
pelling indication that the Department had invoked its law-
making authority, as other Circuits have done, the Second
Circuit simply ignored it in deciding the critical issue—
whether the regulation had the force of law or was merely
interpretive—and then, once it finally turned to it, gave the
procedure short shrift by treating it as unnecessary for what
the Court had already deemed an interpretive rule. This cart-
before-the-horse analysis necessarily undervalues the force of
a promulgated regulation because, contrary to what the Sec-
ond Circuit apparently believed, use of the notice-and-com-
ment procedure does demonstrate that an agency meant to
“act pursuant to legislative authority.” Pet. App. 27a. It thus
can be an integral part of the inquiry into whether a rule has
the force of law, not just an afterthought once the essential
analysis has been completed. *

* A rule promulgated following notice and comment may still be inva-
lid, of course, if it fails the first part of the Mead test. See, e.g., Motion

21

To compound its error, the court then mostly ignored other
strong indications that Section 552.109(a) is a legislative rule.
Thus, it gave no weight to the fact that the Department, in
promulgating the 1975 regulations, expressly relied on both the
delegation of authority in 29 U.S.C. § 213(a)(15) to “define
and delimit” the. terms of that provision and the general
rulemaking authority conferred by Section 29(b) of the 1974
Amendments, granting the Department the power “to prescribe
necessary rules, regulations, and orders with regard to the
amendments made by this Act.” 1974 Amendments, § 29(b),
88 Stat. 76. Yet, the explicit reliance on those grants of
authority, coupled with publication of the regulation in the
Code of Federal Regulations, is itself telling evidence that the
Department intended Section 552.109(a) to have the force of
law. See American Mining Congress v. Mine Safety & Health
Admin., 995 F.2d 1106, 1112 (D.C. Cir. 1993).? And the very
nature of the rule supports that view: by dictating who is
required to pay, and who is entitled to receive, minimum wage
and overtime pay, Section 552.109(a) directly “affects indi-
vidual rights and obligations,” Chrysler Corp. v. Brown, 441
U.S. 281, 302 (1979), as legislative rules do. See id.

Finally, the court of appeals erred by refusing to credit the
Department’s own representation that, in promulgating Sec-

Picture Ass'n of America, Inc. v. FCC, 309 F.3d 796 (D.C. Cir. 2002). An
agency cannot claim authority that Congress did not delegate just by en-
gaging in notice-and-comment rulemaking. In this case, however, the Act
unmistakably grants the Department the authority to promulgate legisla-
tive rules. See 29 U.S.C. § 213(a)(15); 1974 Amendments, § 29(b), 88
Stat. 76.

* This evidence is not undercut by the statement that “(t]he definitions
required by Section 213(a)(15) are contained in §§ 552.3, 552.4, 552.5,
and $52.6.” 29 C.F.R. § 552.2(c). Even leaving aside that the Depart-
ment was exercising its general Section 29(b) rulemaking authority as
well as the more specific Section 213(a)(15) authority, the statement in
Section 552.2(c) simply reflects that the regulations, as a whole, embody
not just “definitions,” but additional substantive provisions specifying
how the Act, including the “definitions,” is to operate.

22

tion 552.109(a), it had intended to, and did, exercise its
lawmaking power. See Pet. App. 3a-4a. The December 2005
Advisory Memorandum, directly contradicting the Second
Circuit, stated in plain terms that “the Department considers
the third party -employment regulations at 29 C.F.R. §
552.109 to be authoritative and legally binding.” Pet. App.
63a. The Department pointed to specific language in the final
1975 notice to demonstrate that “at the time the final rule was
promulgated, the Department believed that the availability of
the companionship exemption to third party employers turned
decisively on its pronouncement in the regulations—some-
thing that could be true only of a legislative rule.” Pet. App.
63a-64a. It thus reiterated that “the Department has always
treated the third party employment regulations as legally
binding legislative rules... .” Pet. App. 64a.

The Second Circuit should have paid more heed to these
views. Although an agency’s characterization of its own
actions is not dispositive, see, e.g., Columbia Broadcasting
System, Inc. v. United States, 316 U.S. 407, 416 (1942), several
federal courts of appeals have held that the agency char-
acterization carries at least some force, even when the agency
is arguing that its rule was merely a matter of internal policy
and thus not subject to formal rulemaking. See, e.g., American
Airlines, Inc. v. Dept. of Transportation, 202 F.3d 788, 797
(Sth Cir. 2000) (“significant deference to an agency’s char-
acterization of its own action”’); Splane v. West, 216 F.3d 1058,
1063 (Fed. Cir. 2000) (“a factor [to] consider’) (internal
quotation marks omitted). The case for deference is stronger
still when, as here, the agency has actually gone through the
process of notice-and-comment rulemaking and seeks only to
have its rule treated as law. See generally Thomas Jefferson
Univ. v. Shalala, 512 U.S. 504, 517 (1994) (“Secretary was
well within her discretion to interpret this language as
imposing a substantive limitation ... .”) Here, the agency
characterization is consistent with other historical evidence,
and it accords with the agency’s application of the regulation

23

over a long period of time. See generally Barnhart, 535 U.S.
at 220 (“this Court will normally accord particular deference to
an agency interpretation of ‘longstanding’ duration”). There
was no good reason for the Second Circuit to disregard it.

Ill. THE DECISIONS BELOW, IN REFUSING TO
ACCORD EVEN SKIDMORE DEFERENCE,
CONTRAVENE THE PROVISIONS OF THE
ACT AND IMPROPERLY DISREGARD THE
DEPARTMENT’S INTERPRETATION OF ITS
OWN REGULATIONS

Having found Chevron inapplicable, the Second Circuit
went on to hold that the Department’s interpretation did not
merit any deference at all, even under Skidmore. See Pet.
App. 29a-32a; 4a-6a. But this Court has observed that “an
agency’s interpretation may merit some deference whatever
its form, given the ‘specialized experience and broader inves-

tigations and information’ available to the agency .. . , and
given the value of uniformity in its administrative and judicial
understandings of what a national law requires... .” 533

U.S. at 234 (quoting Skidmore, 323 U.S. at 139) (internal
citations omitted). Although it is not entirely clear what the
limits of that deference might be, the Court in Mead sug-
gested that reasonable agency views are entitled to ““‘at least
some added persuasive force,’” 533 U.S. at 235 (quoting
Metropolitan Stevedore Co. v. Rambo, 521 U.S. 121, 136
(1997)), or “some weight,” 533 U.S. at 235 (quoting Martin
v. Occupational Safety and Health Review Comm'n, 499 US.
144, 157 (1991)), or a “respect proportional to [their] ‘power
to persuade,” 533 U.S. at 235 (quoting Skidmore, 323 U.S.
at 140). Thus, unless Skidmore deference is reduced to an
empty circularity—that is, an agency interpretation warrants
deference only to the extent that the court would adopt the
same interpretation without giving deference—the views of
an expert agency charged with administering a governing
statute should at least tilt the balance with respect to unsettled

24

questions about the scope of proper implementation. Had
the Second Circuit extended that deference here, it would
have been required to uphold Section 552.109(a) as a well-
grounded application of the 1974 Amendments.

The Second Circuit declined to-do so, however, largely
because it regarded Section 552.109(a) as inconsistent with
another regulation promulgated by the Department to imple-
ment the 1974 Amendments: Section 552.3. As the court of
appeals saw it, Section 552.3 had defined the term “domestic
service employment” in a way that excluded domestic service
performed by third party employees. See Pet. App. 30a; 29
C.F.R. § 552.3 (referring to “services of a household nature
performed by an employee in or about a private home .. . of
the person by whom he or she is employed”). Using this as a
starting point, the Second Circuit reasoned that, because the
statutory exemption for “companionship services” applied, by
its terms, only to those services provided by “employee[s]}
employed in domestic service employment,” 29 U.S.C.
§ 213(a)(15), the Department was barred by its own regu-
lation from exempting workers employed by third parties.
See Pet. App. 30a.

The most obvious shortcoming in this analysis is its lack of
attention to the Act itself. Although any serious consideration
of an interpretation’s “persuasiveness” must look to the lan-
guage of the governing statute—it is, after all, the statute that
the agency is interpreting—the Second Circuit’s discussion of
the Act is both cursory and inaccurate. See Pet. App. 29a-
30a; 4a-Sa. Insofar as the Act is concerned, the court of
appeals relies almost exclusively on the premise that domestic
workers employed by third parties were already covered by
the Act before 1974 and the idea that it is “implausible” to
think that Congress would have intended to eliminate cover-
age for previously covered employees. See Pet. App. 29a-
30a. But this off-hand treatment reflects a basic misunder-
standing both of the Act’s history and of the changes brought
about by the 1974 Amendments.

25 .

Before the 1974 Amendments, workers in domestic service
were subject to the minimum wage and overtime provisions
of the Act only if they were employed by an “enterprise
engaged in commerce or in the production of goods for com-
merce.” See 29 U.S.C. §§ 206(a)(1); 207(); see generally
National League of Cities, 426 U.S. at 837-38; Tony and
Susan Alamo Foundation, 471 U.S. at 295 n.8. As the law
then stood, an employer did not fall within that definition
unless it had annual gross sales of at least $250,000 (since
raised to $500,000). 29 U.S.C. § 203(s)(1) (1976). Thus,
contrary to the Second Circuit’s understanding, domestic ser-
vice workers employed by third parties were nof routinely
covered by the Act before 1974: they were covered if, but
only if, they worked for an employer of a certain minimum
size. And, of course, domestic service workers were not
covered at all if they were employed by individual home-
owners or by their families.

The 1974 Amendments significantly altered the Act with
respect to domestic service workers, bringing them as a class
within the scope of the minimum wage and overtime provi-
sions. See 29 U.S.C. §§ 206(f); 207(/). Nothing in the lan-
guage of the Amendments indicates that Congress meant the
relevant provisions to apply only to workers employed by
individual homeowners, rather than to all workers providing
domestic services including those employed by third parties.
Section 206(f), headed “Employees in domestic service,”
directs that the minimum wage be paid to “[a]ny employee—
(1) who in any workweek is employed in domestic service in
a household [if the employee’s cash compensation constituted
wages under Title II of the Social Security Act] or (2) who in
any workweek—(A) is employed in domestic service in one
or more households; and (B) is so employed for more than 8
hours in the aggregate.” That language is broad and inclu-
sive, and the explicit mention of employees “employed .. . in
one or more households,” see 29 U.S.C. § 206(f) (emphasis
added), naturally tends to bring within the category of

26

“fe]Jmployees in domestic service” those domestic service
workers most likely to be employed by third parties such as
employment agencies. That reading is reinforced by the lan-
guage of the new overtime subsection, 29 U.S.C. § 207(),
which declares that “[njo employer shall employ any
employee in domestic service in one or more households,” id.
(emphasis added), without paying the required compensation.
That terminology, too, strongly suggests that the provision
extends to third party employers, which would commonly be
the employer for domestic workers employed in more than
one household.

This reading of Sections 206(f) and 207(/) not only fits
with the text of those provisions, it eliminates inexplicable
gaps in coverage that would result from an interpretation that
treats “[e]mployees in domestic service” as excluding third
party employees. As we have explained, the Act before 1974
did not cover domestic service workers—an open-ended
category of workers that includes not just companions but
cooks, chauffeurs, maids, nurses, housekeepers, and so forth
—unless the worker was employed by a covered “enterprise.”
If the only workers regarded as “[e}mployees in domestic
service” under the Amendments were workers employed by
the individual homeowners receiving services, it would leave
entirely outside the Act any worker employed by agencies too
small to qualify as an “enterprise” and, seemingly, any
worker employed by other third parties such as relatives of
the homeowner. That would be a startling omission for a
series of provisions that, subject to the prescribed exemptions,
were meant “to include within the coverage of the Act all
employees whose vocation is domestic service.” H.R. Rep.
No. 93-913, 1974 U.S.C.C.A.N. 2845.

If the coverage provisions of the Act apply to all domestic
service workers including third party employees, it makes
sense to think that the statutory exemption for domestic ser-
vice workers providing “companionship services,” 29 U.S.C.
§ 213(a)(15), applies to them as well. Again, there is nothing

27

in the language of the Act to show that Congress intended the
availability of the exemption to tum on who employed the
worker. The focus of the provision is not on the nature of the
employer, but on the type of work that the employees per-
form: the exemption extends to “any employee employed in
domestic service employment to provide companionship ser-
vices for individuals who (because of age or infirmity) are
unable to care for themselves (as such terms are defined
and delimited by regulations of the Secretary).” 29 U.S.C.
§ 213(a)(15). That language (“any employee employed in
domestic service employment”) is once again broad and
inclusive.

This straightforward reading of the exemption also fits with
its self-evident purpose. As the district court below pointed
out, Congress included the exemption “to allow those in need
of [companionship] services to be able to find such assistance
at a price they can afford.” Pet. App. 46a. See also Welding,
353 F.3d at 1217 (“Congress created the ‘companionship
services’ exemption to enable guardians of the elderly and
disabled to financially afford to have their wards cared for in
their own private homes as opposed to institutionalizing
them”). This concern about affordable companionship ser-
vices does not fluctuate depending upon whether the workers
are employed directly by the homeowner or by a third party
employer, or upon whether the workers were or were not
previously covered by the Act. See Pet. App. 46a-47a.
Indeed, the need to restrain costs in the case of third party
employees has only become more acute as agencies provide
an increasing amount of the needed care.'”

'° The Second Circuit relied on the principle that exemptions to the Act
“are to be narrowly construed.” Pet. App. 10a. But that principle is
largely inapposite here. While a narrow definition of “employee in do-
mestic service” would have the effect of limiting the Section 213(a)(15)
exemption for workers providing companionship, it would have the much
greater threshold effect of limiting the coverage of Sections 206(f) and
207(/), which apply to the full range of domestic service workers. That

28

Having paid little heed to the Act, the Second Circuit rested
much of its decision to invalidate the exemption for third party
workers on its belief that the exemption was incompatible with
the Department’s regulatory definition of “domestic service
employment” in Section 552.3. See Pet. App. 30a. The De-
partment, however, has explained why this is not so. See Pet.
App. 54a-63a. In its December 2005 Advisory Memorandum,
the Department said that neither Section 552.3 nor Section
552.101(a)—a second regulation containing similar language
—was intended to address the question of who employed the
employee. See Pet. App. 55a-57a, 62a-63a. Rather, the
purpose of those sections was only to specify what kind of
work was required and where the work was to be performed:.
that is, domestic services in a private home (as opposed to, say,
a boarding house). See Pet. App. 58a. The Department also
carefully reviewed the origin of the “person by whom he or she
is employed” language, Pet. App. 57a-59a, stressing that its use
was not meant to exclude third party employees from the
category of workers covered by the domestic service provi-
sions of the Act. See Pet. App. 63a.

The Second Circuit, however, declined to give deference to
the Department’s reading of its regulations, see Pet. App. Sa,
again committing a critical error. This Court has long
recognized that an agency’s interpretation of its own regula-
tions “must be given ‘controlling weight unless it is plainly
erroneous or inconsistent with the regulation.’” Stinson, 508
U.S. at 45 (quoting Bowles, 325 U.S. at 414). See also
Robertson v. Methow Valley Citizens Council, 490 U.S. 332,
359 (1989). As the Court has stated, the role of the judiciary
is “not to decide which among several Competing interpre-
tations best serves the regulatory purpose.” Thomas Jefferson
Univ., 512 U.S. at 512. Rather, a court must abide by any

narrow reading, in turn, would offend the basic principle that a remedial
act should be construed broadly. See Sutton v. United Air Lines, Inc., 527
U.S. 471, 504 (1999).

29

reasonable agency reading. See id.; United States v. Cleve-
land Indians Baseball Co., 532 U.S. 200, 219 (2001).

To justify its lack of deference, the Second Circuit invoked
the principle that a court “need not defer to an agency’s
interpretation of its own regulations when those regulations,
like § 552.109(a) and § 552.3, are unambiguous ... .” Pet.
App. Sa (citing Christensen, 529 U.S. at 588). But, while the
principle is sound—it prevents an agency, “under the guise of
interpreting a regulation, [from] creat[ing] de facto a new
regulation” (Christensen, 529 U.S. at 588)— its use here is not.
The problem is that the Second Circuit made no effort to read
the Department’s regulations as a whole. See Jay v. Boyd, 351
U.S. 345, 360 (1956) (“[w]e must read the body of regulations
. . . 80 as to give effect, if possible, to all of its provisions”’).
Instead, the tourt of appeals first read Section 552.3 in
isolation and then, having ascertained its “unambiguous”
meaning, decided that it prohibited the exemption granted by
Section 552.109(a). As a result, the Second Circuit wound up
attributing to the Department the extraordinarily improbable
intention of, on the one hand, effectively declaring third party
employees ineligible for the “companionship services” exemp-
tion in Section 552.3 (by excluding them from “domestic
service employment”) and then, em the other hand, simul-
taneously proclaiming in Section 552.109(a) that it was going
to exempt them anyway. It is hard to imagine that the Depart-
ment actually meant to do that, and any reading that leads to
such an absurd outcome is itself proof that the regulations
contain an ambiguity and demand a more coherent cunstruc-
tion. The Department has provided a reasonable one and,
under traditional principles of deference, that is enough. See
Stinson, 508 U.S. at 45; Martin, 499 U.S. at 150-51."

'' Judicial deference does not disappear merely because the Depart-
ment has explored the possibility of other interpretations over time. See
Pet. App. 30a-31a; Sa. Agencies are regularly faced with a choice among
competing interpretations of a statute that they are charged with admin-

30

In the end, therefore, the Second Circuit should have
granted Skidmore deference to Section 552.109(a), even if the
regulation were deemed merely “interpretive.” The decision
to apply the Section 213(a)(15) companionship services
exemption to third party employees, as well as homeowner-
employed employees, is not just a reasonable, but in fact the
better, interpretation of the critical statutory provisions. ~The
Second Circuit should have given it more respect.

CONCLUSION
The petition for a writ of certiorari should be granted.

Respectfully submitted,
DANIEL S. ALTER H. BARTOW FARR, III
ALTER & ALTER (Counsel of Record)
300 East 42nd Street RICHARD G. TARANTO
10th Floor FARR & TARANTO
New York, NY 10017 1220 19th Street, NW
(212).867-7777 Suite 800

Washington, DC 20036
(202) 775-0184

istering. See Chevron, 467 U.S. at 844. It would introduce intolerable
rigidity into this process if the choice made by an agency were regarded as
undeserving of deference simply because the agency had expressed a
tentative contrary view and sought public comment on the various possi-
ble interpretations.

APPENDIX

oH. ino ae ia heels (poppe! wer

la
APPENDIX A

UNITED STATES COURT OF APPEALS
SECOND CIRCUIT

Docket No. 03-7666-CV

EVELYN COKE,
Plaintiff-Appellant,
V.

LONG ISLAND CARE AT HOME, LTD.,
and MARYANN OSBORNE,
Defendants-Appellees.

Argued: March 4, 2004
Decided: July 22, 2004
Remanded: Jan. 23, 2006
Decided: Aug. 31, 2006

Before WALKER, Chief Judge, KATZMANN, Circuit
Judge, and GLEESON, District Judge.

Remand from the United States Supreme Court for recon-

- sideration of a March 4, 2004, decision by this court (John M.

Walker, Jr., Chief Judge) affirming in part and vacating in

part a judgment of the United States District Court for the

Eastern District of New York. Upon further consideration we
adere to the disposition of our original decision.

AFFIRMED in part, VACATED in part, and REMANDED.

* The Honorable John Gleeson, of the United States District Court for
the Eastern District of New York, sitting by designation.

2a
PER CURIAM.

A detailed discussion of the facts of this case and the regu-
latory scheme at issue is set forth in Coke v. Long Island Care
at Home, Ltd., 376 F.3d 118, 121-25 (2d Cir.2004) (“Coke
I’). The procedural history is this: Plaintiff-Appellant Evelyn
Coke appealed from a final judgment entered in the United
States District Court for the Eastern District of New York
(Thomas C. Platt, Judge) granting Defendants-Appellees
Long Island Care at Home and Maryann Osborne judgment
on the pleadings pursuant to Federal Rule of Civil Procedure
12(c). See Coke v. Long Island Care at Home, Ltd., 267
F.Supp.2d 332 (E.D.N.Y.2003). On appeal, this court af-
firmed in part and vacated in part the district court’s judg-
ment, holding that 29 C.F.R. § 552.6 is enforceable on its face
but that 29 C.F.R. § 552.109(a) (“§ 552.109(a)”) is unen-
forceable. See Coke J, 376 F.3d at 135. By an order dated
January 23, 2006, the United States Supreme Court granted
Defendants-Appellees’ petition for a writ of certiorari, va-
cated this court’s 2004 judgment, and remanded the case to
“the Second Circuit for further consideration in light of the
Department of Labor’s Wage and Hour Advisory Memoran-
dum No.2005-1 (December 1, 2005).” Long Island Care at
Home, Ltd. v. Coke, --- U.S. ----, 126 S.Ct. 1189 (2006). For
the reasons that follow, upon reconsideration in light of the
Department of Labor’s Wage and Hour Advisory Memoran-
dum (“DOL Memo”), we adhere to our original position.

An administrative agency’s rule implementing a statutory
provision is entitled to the deference described in Chevron
U.S.A., Inc. v. Natural Resources Defense Council, 467 U.S.
837 (1984), “when it appears that Congress delegated author-
ity to the agency generally to make rules carrying the force of
law, and that the agency imterpretation claiming deference
was promulgated in the exercise of that authority.” United
States v. Mead Corp., 533 U.S. 218, 226-27 (2001). There
is no dispute that Congress delegated to the Department of

3a

Labor (“DOL” or “the Department”) the authority to promul-
gate legislative rules, which carry the force of law. But for
substantially the same reasons set forth in our 2004 decision,
we conclude that § 552.109(a) was not intended, at the time
of its promulgation, to be a legislative rule; rather, it was
meant to be an interpretive rule. While the original notice of
proposed rulemaking indicates that the entirety of Part 552 of
the Code of Federal Regulations was adopted pursuant to the
authority delegated by 29 U.S.C. § 213(a)(15), it also indi-
cates that the DOL proposes to add Part 552

defining and delimiting, in Subpart A, the terms “domes-
tic service employee,” [and other terms undefined in the
Statute] and setting forth, in Subpart B, a statement of
general policy and interpretation concerning the applica-
tion of the Fair Labor Standards Act to domestic service
employees.

Employment of Domestic Services Employees, Recordkeep-
ing, Definitions and General Interpretations, 39 Fed.Reg.
35,382, 35, 382 (Oct. 1, 1974). This statement acknowledges
that Part 552 is divided into two subparts, each of which has a
different purpose. That statement, in combination with the
facts that Subpart B is labeled “Interpretations” and that 29
C.F.R. § 552.2(c) indicates that “[t}he definitions required by
section 13(a)(15) [of the FLSA] are contained in §§ 552.3,
552.4, 552.5, and 552.6,” convinces us that our original con-
clusion that § 552.109(a) is an interpretive rule was correct.
As such, it is entitled only to the level of déference described
in Skidmore v. Swift & Co., 323 U.S. 134 (1944) (courts should
defer to non-legislative agency rules according to their power
to persuade). See also Christensen v. Harris County, 529
U.S. 576, 587 (2000).

The arguments to the contrary presented in the DOL Memo
are not persuasive. The memo indicates that the DOL con-
siders § 552.109(a) legally binding, and points out that, when

it promulgated the final rule,yt explained that the original

4a

version would not have “allowed” the exemption for employ-
ees of third parties and that the DOL concluded that the
exemptions “can be available” to such employees. The memo
asserts that the quoted language indicates that DOL must
have believed, at the time the rule was promulgated, that the
availability of the exception to employees of third parties
turned definitively on its pronouncement in § 552.109(a).
But even if all other regulatory provisions were silent on the
issue of third-party employees, § 552.109(a) could have been
simply intended to provide guidance to DOL employees as
to how the agency planned to interpret “domestic service
employment” in the third-party employer context. This is,
after all, the function that interpretive rules, opinion letters, ©
agency manuals, enforcement guidelines, and other non-legis-
- lative agency rules that have been denied Chevron deference
perform. See Christensen, 529 U.S. at 587. So even if the
agency’s determination of whether employees of third parties
qualify for the companionship services exemption has always
been dependent on § 552.109(a), that does not mean that
regulation was promulgated as a legislative regulation in-
tended to have the force of law outside of the agency.

Applying Skidmore deference to § 552.109(a), we see noth-
ing in the DOL Memo to persuade us that our original con-
clusion was in error. We rested that conclusion on our: deter-
minations that the regulation is (1) inconsistent with Con-
gress’s likely purpose in enacting the 1974 amendments;
(2) inconsistent with other regulations; (3) inconsistent with
other DOL positions over time; and (4) insufficiently ex-
plained by DOL, evidencing a lack of thorough consideration.
Coke 1, 376 F.3d at 133.

_ After consideration of the DOL Memo, we acknowledge
that, like most complex statutes, the FLSA has multiple
purposes, some of which are in tension with one another.
Among these purposes are a desire to expand the coverage of
the FLSA to domestics, S.Rep. No. 93-690, 93d Cong., 2d

Sa

Sess., at 16, 18-20 (1974), to exempt companionship services
from that coverage, id. at 20, to ensure that companionship
and babysitting services remain affordable for working fami-
lies, 18 Cong. Rec. 24,715 (1972), and to ensure minimum
wage and overtime compensation for domestic workers who
were regular bread-winners, responsible for supporting their
families, S.Rep. No. 93-690, at 20. The third-party employer
~ regulation as currently written would be consistent with some
of these purposes and inconsistent with others. Consideration
of congressional intent therefore does not lead to any defini-
tive conclusion regarding the enforceability of § 552.109(a).

Our previously expressed concerns about the regulation
remain valid. To the extent that the DOL Memo invites us to
reconcile § 552.109(a) and 29 C.F.R. § 552.3 (“§ 552.3”) with
one another by ignoring the “extraneous vestige of the lan-
guage’s origin” included in the text of § 552.3, we decline to
accept the invitation. While we agree that we must make
every effort to interpret regulations in such a way as to give
each of them meaning and effect, an effort that requires us to
ignore the plain language of a regulation with the force of law
places more weight on that rule of construction than it can
bear. Moreover, we need not defer to an agency’s interpreta-
tions of its own regulations when those regulations, like
§ 552.109(a) and § 552.3, are unambiguous. Christensen,
529 U.S. at 588, 120 S.Ct. 1655.

With respect to the agency’s inconsistent positions regard-
ing § 552.109(a), we acknowledge DOL’s statement in the
DOL Memo withdrawing and repudiating all previous state-
ments questioning the validity of that regulation. But a cur-
rent repudiation of those past positions does not mean that
they were never advanced. As firm as DOL’s conviction is
now that the current form of § 552.109(a) is the appropriate
one, it cannot change tke fact that, at multiple times in the
past, the Department’s position has been otherwise.

6a

Finally, in our original opinion, we were specifically con-
cerned with DOL’s failure to explain both the inconsistency
between § 552.109(a) and § 552.3 and the Department’s deci-
sion in 1975 to promulgate a rule that was contrary to the one
originally proposed. Coke J, 376 F.3d at 134. We acknowl-
edge that the DOL Memo is evidence that the agency has
spent some time considering its position with respect to
§ 552.109(a). We also recognize that the agency has con-
sidered and decided against amending the regulation on sev-
eral occasions. But these facts do not address our concerns
regarding the thoroughness of the original consideration and
reasoning that went into the promulgation of § 552.109(a).
To be sure, the DOL Memo attempts to explain the inconsis-
tency between § 552.109(a) and § 552.3, but, as noted above,
we find this explanation unpersuasive. And with respect to
the “about-face,” Coke /, 376 F.3d at 134, which the Depart-
ment performed between the initial notice of proposed rule-
making and the adoption of the regulation in its current form,
the DOL Memo is silent. As we pointed out in our March
2004 opinion, the explanation proffered in the Federal Regis-
ter, see 40 Fed.Reg. 7404, 7405 (Feb. 20, 1975), ignored the
plain language of the statute. Coke /, 376 F.3d at 134. The
DOL Memo not only fails to acknowledge this faulty reason-
ing, it actually advances it once more as an argument that the
current form of § 552.109(a) is consistent with the statutory
text of 29 U.S.C. § 213(a)(15).

After reconsidering our 2004 decision in light of the DOL
Memo, we find no reason to abandon the reasoning or the
results reached in that decision. For the reasons set forth
above and in our 2004 opinion, we AFFIRM the district
court’s ruling that 29 C.F.R. § 552.6 is enforceable on its
face; VACATE the district court’s ruling that 29 C.F.R.
§ 552.109(a) is enforceable; and REMAND the case for
further proceedings.

Ta
APPENDIX B

UNITED STATES COURT OF APPEALS
SECOND CIRCUIT

Docket No. 03-7666

EVELYN COKE,
Plaintiff-Appellant,
Vv.

LONG ISLAND CARE AT HOME, LTD.,
and MARYANN OSBORNE,
Defendants-Appellees.

Argued March 4, 2004
Decided July 22, 2004

Before: WALKER, Chief Judge, KATZMANN, Circuit
Judge, and GLEESON, District Judge. '

JOHN M. WALKER, JR., Chief Judge:

At issue in this appeal is the enforceability of two reg-
ulations promulgated by the Department of Labor (“DOL”)
that define and interpret the “companionship services” ex-
emption in the Fair Labor Standards Act (“FLSA” or “the
Act”), 29 U.S.C. § 213(a){15). The Act generally requires
minimum wage and overtime compensation; the “companion-
ship services” exemption relieves employers from paying
such compensation to those employees who work in domestic
service as babysitters and companions to the elderly and

' The Honorable John Gleeson, of the United States District Court for
the Eastern District of New York, sitting by designation.

8a

infirm. The regulations at issue implement the exemption
with respect to companions.

The first regulation we consider is a regulation that defines
the exemption. It includes within the exemption (1) those
who perform household work related to the care of the elderly
or infirm and (2) those who also perform housework inci-
dental to their “companionship services” as long as the
housework accounts for less than twenty percent of the
weekly hours worked. See 29 C.F.R. § 552.6. The second
regulation we consider applies the exemption to “[e]mployees
who are engaged in providing companionship services, as
defined in § 552.6, and who are employed by an employer or
agency other than the family or household using their ser-
vices.” See 29 C.F.R. § 552.109(a). The district court found
both of these regulations to be entitled to the highest form of
deference available to agency regulations and, accordingly,
found them legally enforceable. See Coke v. Long Island
Care at Home, Ltd., 267 F.Supp.2d 332 (E.D.N.Y. 2003).

We affirm the enforceability of the first regulation, § 552.6,
according it the highest level of deference available to agen-
cies pursuant to Chevron, U.S.A., Inc. v. Natural Resources
Defense Council, Inc., 467 U.S. 837 (1984). But we conclude
that the second regulation, § 552.109(a), is neither entitled to
Chevron deference nor enforceable; we find it to be entitled
only to the more limited level of deference announced in
Skidmore v. Swift & Co., 323 U.S. 134 (1944), and reaffirmed
in United States v. Mead Corp., 533-U.S. 218 (2001). Be-
cause the second regulation is unpersuasive in the context of
the entire statutory and regulatory scheme, it fails Skidmore’s
test and cannot be enforced. Accordingly, we AFFIRM in
part, VACATE in part, and REMAND for further proceed-
ings.

FACTUAL BACKGROUND

Plaintiff-appellant Evelyn Coke appeals from the judgment
on the pleadings, entered pursuant to Federal Rule of Civil

9a °

Procedure 12(c), in favor of defendants-appeliees Long Island
Care at Home, Ltd. and owner Maryann Osborne, by the
United States District Court for the Eastern District of New
York (Thomas C. Platt, District Judge). See Coke, 267
F.Supp.2d at 332-41. The Secretary of Labor submitted an
amicus brief arguing on behalf of defendants-appellees that
the district court’s ruling should be affirmed.

Unlike most, if not all, of the other courts that have consid-
ered the issues in this appeal,” we review Coke’s case before
the summary judgment stage and, thus, without any factual
development. All we know is that Coke filed this action
under the FLSA, alleging that she was employed as a “home
healthcare attendant” by defendants, who did not pay her
minimum wage or overtime compensation. While such com-
pensation is generally required under the FLSA, Coke ac-
knowledges that the “companionship services” exemption to
the FLSA, as defined and interpreted by the DOL regulations,
applies to her employment and that if the regulations at issue
are enforceable, she cannot prevail. Her arguments are purely
legal.

Coke contends that the two regulations defining and inter-
preting “companionship services” are unreasonable and imper-
missible in light of the statute’s clear language and statutory
purpose. Coke candidly calls her action a test case, “chal-
lenging the regulation{s] on [their] face.” She does not allege

? We collect the full citations to such cases here in chronological order
for ease of reference: McCune v. Or. Senior Servs. Div., 894 F.2d 1107
(9th Cir.1990); Cox v. Acme Health Servs., Inc., 5S F.3d 1304 (7th Cir.
1995); Salyer v. Ohio Bureau of Workers’ Comp., 83 F.3d 784 (6th Cir.
1996); Terwilliger v. Home of Hope, Inc., 21 F Supp.2d 1294 (N.D.Okla.
1998); Johnston v. Volunteers of Am., Inc., 213 F.3d 559 (10th Cir.2000);
Madison v. Res. for Human Dev., Inc., 233 F.3d 175 (3d Cir.2000); Harris
v. Dorothy L. Sims Registry, No. 00 C 3028, 2001 WL 78448, 2001 U.S.
Dist. LEXIS 23263 (N.D.III. Jan.29, 2001); Welding v. Bios Corp., 353
F.3d 1214 (10th Cir.2004).

10a

that the regulations are being improperly applied to a subclass
of employees but, rather, that they contravene legislative will
and are therefore unenforceable. After the district court ac-
corded the two regulations Chevron deference and found
them to be permissible under the statute, it granted defen-
dants’ motion for judgment on the pleadings. This appeal
followed.

DISCUSSION
1. Standards of Review

We review the decision of the district court de novo both
because the judgment below was entered on the pleadings on
a matter of statutory construction, Levy v. Southbrook Int'l
Invs., Ltd., 263 F.3d 10, 14 (2d Cir.2001); Davidson v. Flynn,
32 F.3d 27, 29 (2d Cir.1994), and, more specifically, because
the decision as to whether an FLSA exemption may be
applied to a class of claimants is a question of law, Freeman
v. NBC, 80 F.3d 78, 82 (2d Cir.1996). Moreover, the ques-
~ tion of the appropriate level of deference to accord agency
regulations is one purely of law, subject to de novo review.
See Ossen v. Dep't of Soc. Servs. (In re Charter Oak Assocs.),
361 F.3d 760, 764 (2d Cir.2004) (pure questions of law are
reviewed de novo). See generally 5 U.S.C. § 706 (“[T]he re-
viewing court shall decide all relevant questions of law. . . .”).
At this stage of the litigation, it is conceded by both parties
that there are no disputed issues of material fact.

Our review in the FLSA context is guided by a few special-
ized principles. Because the FLSA is a remedial act, its ex-
emptions are to be narrowly construed. See Arnold v. Ben
Kanowsky, Inc., 361 U.S. 388, 392 (1960); Mitchell v. Lublin,
McGaughy & Assocs., 358 U.S. 207, 211 (1959). And an em-
ployer bears the burden of proving that its employees fall
within an exemption in the FLSA. See Corning Glass Works
v. Brennan, 417 U.S. 188, 196-97 (1974); Arnold, 361 U.S. at
392; Donovan v. Carls Drug Co., 703 F.2d 650, 652 (2d
Cir.1983). In sum, “[t]o extend an exemption to other than

a

'

lla

those plainly and unmistakably within its terms and spit 't is to
abuse the interpretative process and to frustrate the an-
nounced will of the people.” A.H. Phillips, Inc. v. Walling,
324 U.S. 490, 493 (1945). Bearing these guiding principles
in mind, we undertake our de novo review of the district
court’s decision upholding the two regulations at issue here.

II. Statutory Scheme

The FLSA, enacted by Congress in 1938, requires that
most workers receive minimum wage and overtime com-
pensation for hours worked in excess of forty per week. See
generally 29 U.S.C. § 201 et seq. In 1974, Congress amended
the FLSA to broaden its coverage to a new set of workers,
previously unprotected by the Act: employees performing
“domestic services.” While the statute itself did not define
“domestic service employment,” the Senate Committee Re-
port confirms the commonly understood meaning of the term
to include those employed within the home as cooks, butlers,
valets, maids, housekeepers, governesses, jaiiitors, laundresses,
caretakers, handymen, gardeners, footmen, grooms, chauf-
feurs, and the like. See S.Rep. No. 93-690, at 20 (1974); see
also H.R.Rep. No. 93-913, at 35-36 (1974), U.S.Code Cong.
& Admin.News at 2811, 2845. However, while extending
FLSA protections to employees in domestic service, Congress —
carved out an exemption for employees engaged in “baby-
sitting services” and “companionship services.” The exemp-
tion withholds FLSA benefits from:

any employee employed on a casual basis in domestic
service employment to provide babysitting services or
any employee employed in domestic service employ-
ment to provide companionship services for individuals
who (because of age or infirmity) are unable to care for
themselves (as such terms are defined and delimited by
regulations of the Secretary [of Labor])....

29 U.S.C. § 213{a)(15). In order to more clearly delineate
those who are subject to the exemption, the Secretary of

12a

Labor, soon after the adoption of the 1974 amendments,
promulgated a series of regulations, including the two that
Coke challenges here.

Ill. Regulatory Scheme

The first regulation Coke challenges was promulgated in
exercise of the authority delegat@&#by ¥ 21 3(a)(15) to define
“companionship services.” It defines “companionship ser-
vices” as

those services which provide fellowship, care, and
protection for a person who, because of advanced age or
physical or mental infirmity, cannot care for his or her
own needs. Such services may include household work
related to the care of the aged or infirm person such as
meal preparation, bed making, washing of clothes, and
other similar services. They may also include the
performance of general household work: Provided,
however, [t}hat such work is incidental, i.e., does not
exceed 20 percent of the total weekly hours worked.

29 C.F.R. § 552.6.

A related regulation (not challenged here), also prom-
ulgated in clear exercise of the authority delegated by
§ 213(a)(15), adopts the House Committee Report’s defini-
tion of “domestic service employment.” That regulation.
states that domestic service “refers to services of a household
nature performed by an employee in or about a private home
.... Of the person by whom he or she is-employed.” 29 C.F.R.
§ 552.3 (emphasis added); cf H.R.Rep. No. 93-913, at 35,
U.S.Code Cong. & Admin.News at 2845 (defining “domestic
service employment” to be “services of a household nature
performed by an employee in or about a private home of the
person by whom he or she is employed”); see also S.Rep.
No. 93-690, at 20 (stating that the House’s construction
of “domestic service employment” to exclude third party
employment is “generally accepted”).

13a

The second regulation Coke challenges, 29 C.F.R.
§ 552.109(a), also promulgated soon after the 1974 amend-
ments, expressly extends the exemption by including employ-
ees “who are employed by an employer or agency other
than the family or household using their services.” Section
552.109(a) appears under the “Subpart B” heading, “Inter-
pretations,” as opposed to the “Subpart A” heading, “General
Regulations,” under which §§ 552.3 and 552.6 are listea.
This regulation exempted employees who the DOL concedes
were not exempt prior to the 1974 amendments. See Employ-
ment of Domestic Service Employees, 39 Fed.Reg. 35, 382,
35, 385 (proposed Oct. 1, 1974) (finding that “[e]mployees
who are engaged in providing . . . companionship services
and who are employed by an employer other than the families
or households using such services” were “subject to the
[FLSA] prior to the 1974 Amendments”). Prior to the
promulgation of § 552.109(a), the DOL put out a different
proposed rule for notice and comment: one that specifically
declined to apply the “companionship services” exemption to
employees of third party employers. See id. Following
notice and comment on that proposed regulation, the agency
reversed its position and offered the following explanation:
“On further consideration, [the Secretary of Labor] ha[s] con-
cluded that these exemptions can be available to such third
party employers since they apply to ‘any employee’ engaged
‘in’ the enumerated services.” Application of the Fair Labor
Siandards Act to Domestic Service, 40 Fed.Reg. 7404, 7405
(Feb. 20, 1975) (codified at 29 C.F.R. pts. 516, 552). The
statement accompanying the regulation did not explain how
bringing these previously sovered employees of third party
employers within the exemption furthered the congressional
purpose of expanding, and not narrowing, FLSA coverage
from what it had been prior to 1974. The DOL did not extend
the exemption to apply to those employees employed by third
parties that provide “babysitting services.” See 29 C.F.R.
§ 552.109(b).

l4a

The DOL has enforced the two regulations at issue since
their promulgation in 1974 and Congress has not disturbed
the details of the scheme recounted here in the nearly thirty
years they have been in force. In early 2001, however, the
agency proposed amendments to the regulations pertaining to
the “companionship services” exemption, which were subse-
quently abandoned. In proposing the amendments, the DOL
Stated:

Due to significant changes in the home care industry
over the last 25 years, workers who today provide in-
home care to individuals needing assistance with activi-
ties of daily living are performing types of duties and
working in situations that were not envisioned when the
companionship services regulations were promulgated.
The number of workers providing these services has also
greatly increased, and most of these workers are being
excluded from the FLSA under the companionship ser-
vices exemption. The Department has reevaluated the
regulations and determined that—as currently written—
they exempt types of employees far beyond those whom
Congress intended to exempt when it enacted section
[2]13(a)(15). Therefore, the Department proposes to
amend the regulations to revise the definition of “com-
panionship services,” which sets out the duties that a
companion must be employed to perform in order to
qualify for the exemption, to more closely mirror Con-
gressional intent.

See Application of Fair Labor Standards Act to Domestic
Service, 66 Fed.Reg. 5481, 5482 (proposed Jan. 19, 2001).
The DOL further explained what it undérstood to have been
the congressional intent in 1974:

[I]t clearly was Congress’ intent under the 1974 FLSA
Amendments to cover all workers who performed do-
mestic services as a vocation, excluding casual baby-
sitters and providers of companionship services who

lSa

were not regular bread winners or responsible for their
[own] families’ support, . . . Personal and home care
aides perform a variety of tasks in the home, including
household work and assistance with nutrition and cleanli-
ness. Employers have generally treated workers em-
ployed as home health aides and personal and home care
aides as exempt companions, based upon the Depart-
ment’s current regulations. . . . As a result, the Depart-
ment believes it is necessary to amend the regulations to
focus them on fellowship and protection duties that Con-
gress originally intended the companion exemption to
cover.

Id. at 5483. The 2001 proposed amendments to the regu-
lations would have extended FLSA protection to employees
who are hired by “someone other than a member of the
family in whose home he or she works.” /d. at 5482. The
DOL expressly acknowledged that there exists an internal
inconsistency between § 552.109(a) and § 552.3 and that
§ 552.3 is more consistent with the congressional purpose as
it existed in 1974. /d. at 5485. Nonetheless, without further
addressing the inconsistency, the DOL withdrew the proposed
amendments in April 2002 because “numerous comments]
on the proposed rule, including [comments offered by] multi-
ple government agencies . . . seriously called into question the
Department’s conclusion that there would be little economic
impact.” Application of the Fair Labor Standards Act to
Domestic Service, 67 Fed.Reg. 16,668 (Apr. 8, 2002). Upon
withdrawing the proposed amendments, the DOL did not
question or otherwise comment upon its 2001 conclusion
about what congressional intent had been in 1974.

IV. The Enforceability of 29 C.F.R. § 552.6
A. Degree of deference to accord to the DOL

The district court accorded Chevron deference to § 552.6’s
definition of “companionship services.” Neither party in

l6a

this case objects to this because the statute directed the DOL
to promulgate legislative regulations to define the term “com-
panionship services” as it appears in 29 U.S.C. § 213(a)(15),
and the regulations are plainly an exercise of that authority.
See Mead, 533 U.S. at 226-27, 121 S.Ct. 2164 (clarifying that
' Chevron deference is appropriate when a statute clearly dele-
gates authority to an agency and the agency acts purporting
to exercise that authority); Chao v. Russell P. Le Frois
Builder, Inc., 291 F.3d 219, 226 (2d Cir.2002); 29 C.F.R.
§ $52.2(c) (expressly stating that “[t]he definitions required
by § [2]13(a)(15) are contained in §§ 552.3, 552.4, 552.5 and
552.6”). Accordingly, § 552.6 is binding on the courts unless
procedurally defective, “arbitrary, capricious, or manifestly
contrary to the statute.” Chevron, 467 U.S. at 844. Here,
Coke argues that § 552.6 is unenforceable as being manifestly
contrary to the statute.

In applying Chevron deference, we follow a two-step
analysis: “If the intent of Congress is clear, that is the end of
the matter; for the court, as well as the agency, must give
effect to the unambiguously expressed intent of Congress.”
Id. at 842-43. When the terms of a statute are unambiguous,
the judicial inquiry is complete. However, if there is ambigu-
ity in the statute, we proceed to step two and inquire whether
the agency’s legislative regulation is a reasonable and per-
missible construction of the statute. /d. at 843-44. “If the
agency’s reading fills a gap or defines a term in a reasonable
way in light of the Legislature’s design, we give that reading
controlling weight, even if it is not the answer the court
would have reached if the question initially had arisen in a
judicial proceeding.” Regions Hosp. v. Shalala, 522 U.S.
448, 457 (1998) (internal quotation marks omitted) (citing
Chevron, 467 U.S. at 843 n. 11). We are also mindful that “‘a
long-standing, contemporaneous construction of a statute by
the administering agenc[y] is entitled to great weight.” Leary
v. United States, 395 U.S. 6, 25 (1969) (internal quotation
marks and citations omitted).

YY

17a
B. Application of Chevron

Coke argues that we needn’t arrive at step two of the
Chevron inquiry and that we should find that the statute
plainly and on its face prohibits the agency’s definition of
“companionship services.” In particular, she contends that
the regulation’s inclusion within the definition of both house-
work related to the care of the elderly or infirm and house-
work incidental to that care are violative of the statute’s
command to fashion an exemption only for “companionship
services.” Coke suggests that the large amount of incidental
housework permitted by the current regulation (twenty per-
cent of the work) is an abuse of the delegation under the
statute. Indeed, she argues, under a particular reading of the
regulation’s second sentence (the one that allows work “re-
lated to” the care of the elderly or infirm), “household work”
would be exempt even if no companionship were provided at
all: “Under the regulation, an elderly person unable to care
for him or herself could hire a full-time companion and a full-
time cook, pay the cook less than the minimum wage, and
successfully assert that cooking is a companionship service
.... Appellant’s Br. at 16. Thus, because Congress clearly
indicated that “companionship services” were meant to be a
subset of domestic services, and the regulation can be read to
exempt pure domestic service without companionship, Coke
argues that the regulation was drawn too broadly on its face.
Since Congress wanted to make sure domestic service em-
ployees got FLSA protection, she argues that § 552.6’s exten-
sion of the exemption to “meal preparation, bed making,
[and] washing of clothes” places too many domestic service
employees within the exemption, a result that Congress could
not have intended. The district court properly rejected these
arguments.

~The statute plainly gives the DOL authority to define
“companionship services,” a vague term with no obvious
plain meaning; and the DOL did so very soon after the

18a

passage of the amendments to the FLSA. On the face of the
statute, we discern no unambiguous congressional intent to
keep all “incidental” services and domestic services “related
to” the care of the elderly and infirm outside the exemption,
especially when such services would naturally follow from or
be part of a reasonable job description of a companion to the
elderly or infirm.

Although the Supreme Court has issued mixed messages as
to whether a court may consider legislative history at this
stage of the analysis (step one of Chevron),’ that history
plainly presupposes that some incidental or other related
housework would accompany “companionship.” For exam-
ple, Senator Quentin Burdick wanted to extend FLSA cov-
erage for “professional domestic[s]” but was concerned about
the potential burden on household employers where “people
who might have an aged father, an aged mother, an infirm
father, an infirm mother, and a neighbor comes in and sits
with them. This, of course, entails some work, such as
perhaps making lunch . . . . This would be incidental to the
main purpose of the employment.” 119 Cong. Rec. 24,773,

> Compare FDA v. Brown & Williamson Tobacco Corp., 529 U.S. 120,
133, 137, 120 S.Ct. 1291, 146 L.Ed.2d 121 (2000) (effectively consid-
ering legislative history at step one of Chevron analysis), Pauley v.
BethEnergy Mines, Inc., 50\ U.S. 680, 697-99, 111 S.Ct. 2524, 115 L.Ed.2d
604 (1991) (same), Pension Benefit Guar. Corp. v. LTV Corp., 496 U.S.
633, 649-50, 110 S.Ct. 2668, 110 L.Ed.2d 579 (1990) (same), and Japan
Whaling Ass'n v. Am. Cetacean Soc'y, 478 U.S. 221, 233-41, 106 S.Ct.
2860, 92 L.Ed.2d 166 (1986) (same), with K Mart Corp. v. Cartier, Inc.,
486 U.S. 281, 293 n. 4, 108 S.Ct. 1811, 100 L.Ed.2d 313 (1988) (opinion
of Kennedy, J.) (noting in the first step of a Chevron inquiry that “any
reference to legislative history [ ] is in the first instance irrelevant”),
Sutton v. United Air Lines, Inc., 527 U.S. 471, 482, 119 S.Ct. 2139, 144
L.Ed.2d 450 (1999) (finding statutory text clear enough to ignore any
arguments from legislative history), and Nat'l R.R. Passenger Corp. v.
Boston & Me. Corp., 503 U.S. 407, 417, 112 S.Ct. 1394, 118 L.Ed.2d 52
(1992) (finding only statutory text to be relevant for first-step Chevron
“analysis).

19a

24,801 (1973). Senator Harrison Williams explained the
purpose of the “companionship services” exemption through
an analogy to the “babysitting” exemption:

We use the situation in which people are in a household
not to do household work but are there, first, as baby-
sitters. I think we all have the full meaning in mind of
what a babysitter is th ere for-to watch the youngsters.

“Companion,” as we mean it, is in the same role-to be
there and to watch an older person, in 2 sense.

{Household work] which is purely incidental would not
change the category of the person being there in the
household.

Id. Without attaching primacy to using legislative history at
_step one, it seems to us more likely than not that Congress
understood that when employees are in the home “first” to be
companions or babysitters, they may engage in “incidental”
housework without falling outside the exemption. The DOL’s
regulatory choice of the twenty percent allowance for inci-
dental work is not clearly contravened by either the text of the
statute or the intent of Congress to the extent it is discernable.

More troubling is the second sentence of the regulation,
which is not delimited by the twenty percent rule. It does
seem to allow, as Coke argues, virtually unlimited household
work as long as it is “related to the care of the aged or infirm
person.” The DOL, however, in its amicus brief explains:

Under section 552.6, an employee must “provide fel-
lowship, care, and protection” for a person unable to
care for himself in order to meet the requirements of the
“companionship services” exemption. While the regu-
lation allows for the performance of some household
work, it must be either “related to” or “incidental” to
the “care of the aged or infirm person. See 29 C.F.R.

20a

552.6.” Thus, contrary to [Coke’s] suggestion, an em-
ployee hired only to perform household work or as a
“full-time cook” would not meet the requirements of the
regulation. An employee who has not been hired pri-
marily to provide “fellowship, care, and protection” will
not be considered exempt under the Act or the
regulations.

Br. of Amicus Curiae DOL at 19 (citations omitted). The
‘DOL’s explanation is adequate. At best, the regulation is
ambiguous on the question of whether the first sentence of the
regulation must be satisfied—that an employee must first
provide “fellowship, care, and protection” —before proceed-
ing to the inquiry about whether to exempt the. “related”
household work.

We note, however, that we have no occasion to limit the
. enforcement of § 552.6 to the DOL’s litigation position here
because Coke concedes that her challenge is:to the regulation
“on its face,” that is, in all its applications. Coke has
specifically refused to challenge the regulation “as applied” to
any particular class of employees. We do not rule out the
possibility of an application that would contravene the plain
statutory mandate, but because there are many applications of
the regulation that are consistent with the statute, we cannot
declare it invalid on its face. See generally Reno v. Flores,
507 U.S. 292, 301 (1993) (extending the no-set-of-circum-
stances test for facial constitutional challenges to statutes
under United States v. Salerno, 481 U.S. 739 (1987), to
Chevron challenges). In any event, Coke presents no facts
upon which we could conclude that the agency has ever
applied the regulation in the purportedly impermissible way
she envisions.

If we refused to consider the unequivocal legislative his-
tory at step one of Chevron, the statute is at best ambiguous
on the question of whether incidental services and household
work related to the care of the individual may accompany the

x

2la

fellowship and companionship focus of the exemption.* And
step two of Chevron requires us to inquire if the DOL’s
regulation “harmonizes with the language, origins, and pur-
pose of the statute.” Bankers Life & Cas. Co. v. United
States, 142 F.3d 973, 983 (7th Cir.1998). Consideration of
legislative history is generally accepted at this stage of the
analysis. E.g., Toibb v. Radloff, 501 U.S. 157, 162 (1991);
Bankers Life, 142 F.3d at 983.

Coke also argues that § 552.6 fails step two of Chevron.
Coke repeats the arguments she makes in connection with
step one and also focuses on Senator Burdick’s statement in
the legislative history that sums up the “companionship ser-
vices” exemption as one targeted for “elder sitter[s].” See
119 Cong. Rec. at 24,801. Coke intimates that a sitter must
only sit, without lifting a hand to help the elderly or infirm
with incidental housework. But, again, we agree with the
district court that § 552.6 survives the Chevron inquiry. The
Senate Report, cited by Coke, makes clear that some inciden-
tal household work and housework related to the care of the
elderly or infirm does not contravene the purpose of the
exemption. See 119 Cong. Rec. at 24,801 (1973). The idea
that a sitter merely sits is belied by Senator Burdick’s anal-
ogy: Sitters provide care, and care entails other incidental
tasks such as food preparation, feeding, cleaning up messes,
changing diapers, and other services. Accordingly, given the
deference afforded the agency under Chevron, we are unable

* The DOL’s 2001 statements do not prove that § 552.6 is unenforce-
able. First, the DOL’s contemporaneous assessment of congressional in-
tent is more probative: Apparently, the DOL thought § 552.6 represented
congressional intent in 1974 and the enacting Congress expressed no dis-
content. Second, the DOL’s interpretation of congressional intent, whether
in 2001 or 1974, could never be dispositive for our Chevron inquiry. Of
course, the entire purpose of the Chevron inquiry is to determine congres-
sional intent quite apart from what the agency interprets that intent to be.
Only if we conclude that the enacting Congress's intent is ambiguous do
we defer to reasonable interpretations of the gap left by the ambiguity.

22a

to conclude that § 552.6 is arbitrary, capricious, or manifestly
contrary to the statute with respect to either (1) the twenty
percent allowance for incidental housework in the agency’s
legislative regulation, or (2) the agency’s allowance for
household work related to the care of the individual.

Every circuit to have considered the question of the en-
forceability of § 552.6 has found the regulation enforceable
on its face. See, e.g., Johnston, 213 F.3d at 565; Salyer, 83
F.3d at 787; McCune, 894 F.2d at 1110. Only Harris, 2001
WL 78448, at *5, 2001 U.S. Dist. LEXIS 23263, at *17, a
district court decision from the Northern District of Illinois,
found the regulation too broad. Harris, of course, in no way
binds us. Moreover, Harris was an “as applied” case and its
ultimate pronouncement was narrow. While it calls § 552.6
“unreasonably broad” in the text of the opinion, id. at *3,
2001 U.S. Dist. LEXIS 23263, at *11, it is more circumspect
when it announces its final holding: “§ 552.6, as currently
drafted, is invalid fo the extent it exempts homemakers from
[FLSA] coverage,” id. at *5, 2001 U.S. Dist. LEXIS 23263,
at *17 (emphasis added); only the particular case of the
regulation “as applied” to homemakers—as the plaintiffs
were in that case—was held to be outside the “companionship
services” exemption. ;

In the case before us, however, because Coke does not tell
us anything about what “home healthcare attendants” actually
do, it is impossible for us to pass on the question of whether
the particular work she did was considered by Congress to be
outside the exemption. Consistent with her facial challenge
to § 552.6, Coke refused to amend her complaint to be more
specific about what she does. For the foregoing reasons, the
regulation withstands Chevron deference on this challenge.
Accordingly, we AFFIRM the district court’s ruling with
respect to the enforceability of § 552.6.

23a
V. The Enforceability of 29 C.F.R. § 552.109(a)

We now turn to Coke’s challenge to § 552.109(a), which
applies the exemption to “companionship services” rendered
by those who are employed by third parties, rather than by the
family of the recipient of the services.

A. Degree of deference to accord to the DOL

The threshold question concerning § 552.109(a)’s enforce-
ability is the degree of deference to be afforded the DOL.
Coke argues that the district court erred by according Chevron
deference to the regulations that the DOL itself calls “inter-
pretations.” The DOL argues that such deference was
appropriate. Although the district court did not directly
consider the question, it is purely one of law, which we con-
sider de novo. See Ossen, 361 F.3d at 764.

In favor of applying Chevron deference is Chevron ‘s own
broad statement and Mead’s endorsement of that statement:

When Congress has “explicitly left a gap for an agency
to fill, there is an express delegation of authority to the
agency to elucidate a specific provision of the statute by
regulation,” and any ensuing regulation is binding in the
courts unless procedurally defective, arbitrary or Capri-
cious in substance, or manifestly contrary to the statute.

Mead, 533 U.S. at 227 (citation omitted) (quoting Chevron,
467 U.S. at 843-44). Thus, to the extent that the statute is
silent on the definition of a “domestic service employee” and
contains no reference to third party employers, such matters
might be understood to be appropriately delegated to the
DOL. An agency interpretation “qualifies for Chevron de-
ference when it appears that Congress delegated authority to
the agency generally to make rules carrying the force of law,
and that the agency interpretation claiming deference was
promulgated in the exercise of that authority.” Mead, 533
U.S. at 226-27, 121 S.Ct. 2164 (emphasis added). The

24a

statute, 29- U.S.C. § 213(a)(15), expressly delegated authority
to the DOL to define and delimit the terms “companionship
services” and “domestic service employee,” and the DOL
argues that Chevron deference follows accordingly.

Moreover, the regulation at issue is “a long-standing, con-
temporaneodus construction of a statute,” and, as such, “enti-
tled to great weight.” Leary, 395 U.S. at 25 (internal quota- -
tion marks omitted). Indeed, Congress has revisited § 213 by
amending it seven times since 1974, without expressing any
disapproval of the DOL regulation at issue, see Pub.L. No.
95-151 (1977); Pub.L. No. 96-70 (1979); Pub.L. No. 101-157
(1989); Pub.L. No. 103-329 (1994); Pub.L. No. 104-88 (1995);
Pub.L. No. 104-188 (1996); Pub.L. No. 105-78 (1997). Such
congressional acquiescence is “persuasive evidence that the
[agency] interpretation is the one intended by Congress.”
Commodity Futures Trading Comm'n v. Schor, 478 U.S. 833,
846 (1986).°

Finally, when an agency action is “‘the fruit{ } of notice-
and-comment rulemaking or formal adjudication,’” courts
generally accord the agency Chevron deference. Chao, 291
F.3d at 227 (quoting Mead, 533 U.S. at 230). Here, no one
contests that, although the agency calls § 552.109(a) an

* The argument from congressional acquiescence-affectionately known
as the “dog didn’t bark canon”-must always be qua’fied by the observa-
tion that evidence of what subsequent Congresses intend pales in compari-
son to probative evidence about what the enacttng Congress intended;
even Schor did not rely on what it called the “silence” rule. 478 U.S. at
846, 106 S.Ct. 3245. See generally William N. Eskridge, Jr. et al., Cases
and Materials on Legislation: Statutes and the Creation of Public Policy
1020-21 (3d ed.2001) (discussing the “dog didn’t bark canon”). Further-
more, because Congress, in amending § 213, never reenacted the FLSA or
the relevant provisions thereof, this is not a case that implicates the “re-
enactment rule” delineated in Lorillard v. Pons, 434 U.S. 575, 580, 98
S.Ct. 866, 55 L.Ed.2d 40 (1978), where “Congress is presumed to be
aware of an administrative . . . interpretation of a statute and to adopt that
interpretation when it re-enacts a statute without [relevant] change.”

25a

“interpretation,” it was promulgated following notice and
comment procedures. However, it is also true (and a cause of
concern) that the rule the agency adopted after comments
were received was the opposite of the rule proposed in the
original notice. There was no separate notice and comment
on the rule as ultimately adopted.

All courts that have considered § 552.109(a) have accorded
it Chevron deference. See, e.g., Johnston, 213 F.3d at 561-
62; Terwilliger v. Home of Hope Inc., 2\ F.Supp.2d at 1299
n. 2. But Coke is correct that none of these prior cases care-
fully considered the question before us now: Does Mead,
which post-dates the cases affording § 552.109(a) Chevron
deference, require a different analysis yielding a different re-
sult insofar as it holds that some agency regulations should be
accorded less than Chevron deference?

Coke argues that Mead requires us to apply a lesser degree
of deference to § 552.109(a) as an “interpretive,” rather than a
“legislative” regulation. Indeed, “interpretive rules . . . enjoy
no Chevron status as a class.” Mead, 533 U.S. at 232.

This circuit, even before the Supreme Court’s clarification
in Mead, contemplated that interpretive regulations should
not receive full Chevron deference. In Reich v. New York,3 —
F.3d 581, 587 (2d Cir.1993), we considered DOL regulations
promulgated to define and delimit the administrative exemp-
tion in the FLSA at 29 U.S.C. § 213(a)(1). We held, “In
contrast to the controlling authority given the [DOL’s] /egis-
lative rules—i.e., those promulgated pursuant to an express
grant of Congressional authority—the respect accorded the
[DOL’s] interpretive regulations depends upon their persua-
siveness ... .” /d. We foretold the precise distinction later
drawn in Mead when that Court distinguished between those
regulations that are accorded Chevron deference and those
that are not. In Reich v. New York, the interpretations from
which Chevron deference was withheld were classified as
“interpretations” by the regulations themselves. See also

26a

Freeman, 80 F.3d at 83-84 (refusing to accord Chevron defer-
ence to DOL interpretations under the FLSA despite their
promulgation with notice and comment procedures); Reich v.
Gateway Press, Inc., 13 F.3d 685, 699 n. 18 (3d Cir.1994)
(“The DOL interpretations do not have the force of law.”).

We find § 552.109(a) to be an interpretive rather than a
legislative regulation. While the rule “grants nghts, imposes
obligations, or produces other significant effects on private
interests,” as legislative regulations do, White v. Shalala,
7 F.3d 296, 303 (2d Cir.1993) (internal quotation.marks omit-
ted), a rule can only be legislative “if the agency intended to
use [the legislative power delegated to it by Congress] in
promulgating the rule at issue,” American Postal Workers
Union, AFL-CIO v. United States Postal Serv., 707 F.2d 548,
558 (D.C.Cir.1983). Here, the DOL did not intend to use the
legislative power delegated in § 213(a)(15) when it promul-
gated § 552.109(a). This is most apparent from its inclusion
of the regulation under “Subpart B—Interpretations” as op-
posed to “Subpart A—General Regulations.” This appear-
ance is supported by substance.

Congress expressly delegated to the DOL authority to de-
fine terms in § 213(a)(15), and the DOL expressly states in
29 C.F.R. § 552.2(c) that “[t]he definitions required by
§ [2]13(a)(15) are contained in §§ 552.3, 552.4, 552.5 and
552.6.” Accordingly, the regulation at issue, § 552.109(a), is
effectively conceded by the DOL not to have been prom-
ulgated pursuant to Congress’s express legislative delegation
in § 213(a)(15). Mead holds that administrative implementa-
tion of a particular statutory provision does not qualify for
Chevron deference unless “it appears that the agency inter-
pretation claiming deference was promulgated in the exercise
of that authority.” 533 U.S. at 226-27. Thus, § 552.109(a)
does not qualify for Chevron deference because, by the DOL’s
own account, it was self-consciously not promulgated in exer-
cise of Congress’s delegated authority pursuant to § 213(a)(15).

27a

The DOL places emphasis on the fact that in 1974
§ 552.109(a) was promulgated after notice and comment and, ~
indeed, Mead explicitly instructs us to consider whether a rule
was the product of notice and comment in assessing whether
to accord it Chevron deference. Mead, 533 U.S. at 230-31,
121 S.Ct. 2164. However, “while notice and comment are
required for legislative rules, they are by no means prohibited
for interpretive rules.” Mejia-Ruiz v. INS, 51 F.3d 358, 365
(2d Cir.1995). Mead does nothing to undermine this conclu-
sion. See Mead, 533 U.S. at 230-31, 121 S.Ct. 2164; Thomas
W. Merrill, The Mead Doctrine: Rules and Standards, Meta-

' Rules and Meta-Standards, 54 Admin. L.Rev. 807, 814

(2002) (“1 do not think the Court was saying [in Mead]...
that if an agency adopts notice-and-comment or trial-type
hearing procedures on its own authority, its interpretation is
presumptively entitled to Chevron deference.” (emphasis re-
moved and emphasis added; citations omitted)).

In this case, the agency undertook a notice and comment
procedure for an interpretative regulation despite the fact that
the procedure was not required. While Mead does not offer
specific guidance on wheiher putting a proposed interpre-
tation out for notice and comment

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385016_0503%3A02. Public record. Not legal advice.
