Opinion ID: 3050844
Heading Depth: 2
Heading Rank: 4

Heading: Regional Director’s Decision as

Text: Evidence of Arbitrariness [8] Finally, we reject Friendly’s contention that the NLRB’s decision in Friendly Cab was arbitrary. Friendly’s argument is based on the fact that the same regional director that concluded Friendly’s taxicab drivers are employees in the Underlying Representation Proceeding also concluded in a separate representation proceeding that drivers for a rival taxicab company, Veteran’s Cab Corporation, are independent contractors. We find Friendly’s argument unpersuasive because it is the three-member panel’s Decision on Review — not the regional director’s Decision and Direction of Election — that is being reviewed pursuant to Section 9(d) of the Act, and, in any event, Veteran’s Cab is distinguishable. Under Section 3(b) of the Act, Congress provided the NLRB with the authority to delegate “any or all” of its powers to a three-member panel and to delegate “to its Regional Directors the [authority under Section 9] to determine the appropriate bargaining units, to direct elections, and to certify the results of such elections, subject to review by the Board.” Ritz-Carlton Hotel Co. v. NLRB, 123 F.3d 760, 762 (3d Cir. 1997) (citing Pub. L. 86-257, 73 Stat. 542 (1959) (codified as amended at 29 U.S.C. § 153(b) (1983))). Acting pursuant to this authority, the NLRB promulgated rules codified at 29 C.F.R. § 102.67 “delegating the initial decisionmaking on representation issues to the Regional Directors, but retaining the authority in the Board to make the final administrative deciNLRB v. FRIENDLY CAB COMPANY 195 sion.” Id. (citing 26 Fed. Reg. 3889 (May 4, 1961) (codified as amended at 29 C.F.R. § 102.67)). A decision by a regional director becomes final either if the parties fail to request a review by the Board or the Board denies such a request. See 29 C.F.R. § 102.67(f). Should the Board grant a request for review, it may affirm or reverse the regional director’s order, or determine that another disposition of the matter is appropriate. See 29 C.F.R. § 102.67(j). Friendly ignores the fact that the Board — acting through a panel — granted Friendly’s request to review the regional director’s decision and concluded that Friendly’s drivers are “employees” within the meaning of the Act.9 See Friendly Cab, 341 N.L.R.B. 722. The panel’s decision then became the final administrative decision that we review. See 29 C.F.R. § 102.67. That the regional director may have acted differently in another case is of little concern. Cf. Corporate Express, 292 F.3d at 781 (addressing challenge to the Board’s decision as being inconsistent with that of a regional director in another case and stating that “the decision of a Regional Director does not bind the Board”). Accordingly, we find Friendly’s argument that the regional director’s decision constitutes evidence of arbitrariness to be misplaced. Moreover, Friendly’s reliance on Veteran’s Cab is flawed because Friendly exercises substantially more control over its taxicab drivers than Veteran’s does over its drivers. The weekly gate charged by Veteran’s to its drivers depends solely on the type of cab they drive (city cab, airport, or clean natural gas) and does not vary from driver-to-driver based on discretionary factors such as driving record or driving ability. See Veteran’s Cab Corp. & East Bay Taxi Drivers Ass’n, 9 We note that this review is far from a “rubberstamp.” In affirming the regional director’s decision, the panel disagreed with the decision by the regional director on the question of whether the voucher system supports a finding that Friendly’s drivers are “employees.” See Friendly Cab, 341 N.L.R.B. at 722. 196 NLRB v. FRIENDLY CAB COMPANY N.L.R.B. Case 32-RC-5050, at 3 (Sept. 30, 2002). The regional director also found that Veteran’s drivers “are free to, and do, solicit independent business through the use of cell phones, pagers, etc., and they are free to use their cabs for personal reasons. They may use the Employer’s dispatch system, but are not required to do so.” Id. at 7-8. Veteran’s drivers are also permitted to distribute business cards with their cell phone and pager numbers. Id. at 4. Drivers are freely permitted to pick up fares from any location including various taxi stands, hotels and transit stations. Id. at 8. One driver testified that eighty percent of his business involves picking up passengers at various train stations. Id. at 4. Thus, the regional director found that “drivers are not dependent on the Employer’s dispatch system for their income.” Id. at 8. Veteran’s drivers also have the ability to sublease their taxicabs with Veteran’s permission, are not subject to discipline for refusing dispatches, and are not required to abide by a dress code. Id. at 4-5. Veteran’s also has no rules or limitations on their drivers’ use of taxicabs for personal business or vacation. Id. at 4. In fact, Veteran’s does not maintain any written policy manual or standard operating procedure. Id. Thus, we do not find any support for Friendly’s position that the NLRB’s decision is arbitrary based on the actions of the regional director in adjudicating the representation proceedings in this case and in Veteran’s Cab. Even if we could examine the regional director’s decisions for evidence of arbitrariness, we would find that they are sound because Veteran’s Cab exercises substantially less control over its drivers.