Allstates Refractory Contractors, LLC v. Su, No. 22-3772 (6th Cir. 2023)
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Allstates, a full-service industrial general contractor, employs people throughout the country, subject to the Occupational Safety and Health (OSH) Act. Allstates must comply with Occupational Safety and Health Administration (OSHA) workplace safety standards. It has been the subject of enforcement actions, including a $10,000 fine for a 2019 catwalk injury. In a facial challenge to the OSH Act, Allstates argued that, because the only textual constraint on setting workplace-safety standards is that they be “reasonably necessary or appropriate,” 29 U.S.C. 652(8), OSHA does not have the constitutional authority to set those standards and employers do not have a duty to comply with OSHA’s standards. Allstates sought a permanent nationwide injunction. The district court granted the government summary judgment, reasoning that the “reasonably necessary or appropriate” standard provided an “intelligible principle” to satisfy the nondelegation doctrine because the Supreme Court has repeatedly upheld similar delegations.
The Sixth Circuit affirmed, finding OSHA’s delegation constitutional. The Act provides an overarching framework to guide OSHA’s discretion, and the Act’s standards comfortably fall within limits previously upheld by the Supreme Court. “To require more would be to insist on a degree of exactitude which not only lacks legal necessity but which does not comport with the requirements of the administrative process.”
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