Document: 432 U.S. 416 97 S.Ct. 2399 53 L.Ed.2d 448 Richard A. BATTERTON, etc., et al., Petitioners,v.Robert FRANCIS, al. No. 75-1181. Argued April 19, 1977. Decided June 20, Syllabus Section 407(a) of the Social Security Act delegates to Secretary Health, Education, and Welfare power prescribe "standards" for determining what constitutes "unemployment" purposes eligibility benefits under Aid Families with Dependent Children-Unemployed Fathers (AFDC-UF) program. Pursuant § 407(a), promulgated a regulation authorizing participating States, within their discretion, exclude from definition an unemployed father one "whose unemployment results participation in labor dispute or who is by reason conduct circumstances which result would disqualification compensation State's law." In class actions on behalf families were denied AFDC-UF state rule because fathers' resulted discharges misconduct, involvement strike, voluntarily quitting jobs, courts below held federal invalid as exceeding Secretary's statutory authority. Held : The proper exercise authority reasonable. Pp. 424-432. (a) Since statute expressly delegated standards eligibility, reviewing court not free set aside simply it have interpreted different manner Secretary, but only if exceeded his "arbitrary, capricious, abuse otherwise accordance 424-426. (b) By allowing States persons be disqualified law, has incorporated well-known widely applied standard "unemployment," exclusion individuals are out work own thus consistent goal AFDC-UF, namely, aid involuntarily unemployed. 426-429. (c) gives sufficient flexibility recognize local options including option denying participants dispute. While congressional purpose was promote greater uniformity application program, such can met without imposing identical each State, hence approach does defeat statute's purpose. 429-432. 529 F.2d 514 515, reversed. Joel J. Rabin, Baltimore, Md., petitioners. C. Christopher Brown, respondents. Mr. Justice BLACKMUN delivered opinion Court. 1 This case concerns validity 45 CFR 233.100(a)(1) (1976),1 (HEW) pursuant delegation rulemaking Act, 42 U.S.C. 607(a).2 issue whether 2 * contained Act's Title IV, do primarily Children (AFDC). AFDC program established 1935 provide welfare payments where children needy death, absence, incapacity parent. 606(a). original conception allow widows divorced mothers care at home having go work, eliminating practice removing situations that kind institutions. See Burns v. Alcala, 420 575, 581-582, 95 1180, 1184-1185, 43 469 (1975). originally designed assist family breadwinner unable find work; contemplated other programs alleviate problem attacking directly. Carleson Remillard, 406 598, 603, 92 1932, 1935, 32 352 (1972); King Smith, 392 309, 313, 327-329, 88 2128, 2131, 2138-2139, 20 1118 (1968). Other parts encouraged establishment programs, through tax incentives, role these so great AFDC. Ohio Bureau Employment Services Hodory, 431 471, 1898, 52 513 (1977). 3 IV amended 1961 add 407. Pub.L. 87-31, 1, 75 Stat. 75. section experimental (AFDC-UF)3 assistance some cases parent causes dependent needy. given broad define determine relationship this new existing plans. 1968 made permanent, 81 882, criteria modified withdraw definitional States. now requires State child "has been deprived parental support (as determined prescribed Secretary) father." 607(a). Philbrook Glodgett, 421 707, 709-711, 1893, 1896-1897, 44 525 (1975).4 4 Both cooperative ventures Federal Government elect participate administer them HEW supervision. Funding provided revenues matching basis. See, e. g., Shea Vialpando, 251, 253, 94 1746, 1750, 40 120 (1974); U.S., 316, S.Ct., 2132. Although every currently participates AFDC, about half Dept. HEW, Public Assistance Statistics, Oct. 1976, table 5, p. 9 II 5 instant originated 1971 challenge Rule 200.X.(A)(2) Maryland Department Services. That denies reasons disqualify him insurance compensation.5 plaintiffs represented two classes thereby ineligible benefits: had discharged misconduct (excessive absenteeism), strike. defendants officials responsibility administration public grants State. A three-judge United District Court convened consider claim violated Equal Protection Clause Fourteenth Amendment. sustained constitutionality went hold contrary prescribing determination Francis Davidson, 340 F.Supp. 351 (Md.), summarily aff'd, 409 904, 93 223, 34 168 (1972) (Francis I ). did agree its inconsistent 200.X.(A)(2), Solicitor General, memorandum amicus curiae, filed Court's invitation, 408 920, 2495, 33 330 (1972), suggested summary affirmance light then-forthcoming revision regulation. 6 regulation, amended, expressly, authorizes discretion defining unemployment. Generally, person he works less than 100 hours month, except intermittent employment, "except that, need include whose (1976). stated amendment nullify effect making explicit policy based particular work.6 7 After became effective, defendant moved dissolve earlier injunction issued March 16, 1972, after decided, against enforcement 200.X.(A)(2). recognized "(t)he conflict between ended former amended," nevertheless motion continued ground statute. 379 78, (Md.1974) First, regard fathers people necessarily "unemployed," meaning statute, any invalid. Second, clear term "unemployed" includes involved held, however, question coverage providing uniform national standard. Id., 81-82. 8 dismissed direct appeal want jurisdiction, 419 1042, 614, 636 (1974), appeals taken Chamber Commerce intervenor, Appeals Fourth Circuit. There consolidated similar case. Bethea Mason, 384 1274 (Md.1974), single Judge followed holding same insofar authorized deny quit previous jobs. Circuit affirmed three unpublished per curiam adopting respective opinions Judges. 515 petitioned certiorari, contending current therefore should dissolved.7 invitation Court, 425 969, 96 2164, 48 792 (1976), supporting defendants' position. We granted certiorari. 429 939, 352, 50 307 III 10 ultimate may respondents receiving benefits. no doubt CRF (1976) embodies interpretation. Thus, actual we must decide how interpreted, proper. 11 (1-3) Ordinarily, administrative interpretations terms important controlling significance. approach, example, when consideration "wages" included backpay award. Board Nierotko, 327 358, 369, 66 637, 643, 90 L.Ed. 718 (1946).8 12 Unlike II, Congress eligibility. situation kind, entrusts rather courts, primary interpreting term. exercising responsibility, adopts regulations legislative effect. those manner. American Telephone & Telegraph Co. 299 232, 235-237, 57 170, 172, 142 (1936).9 13 entitled more mere deference weight. It §§ 706(2) (A), (C).10 14 (4) turn grounds Courts invalid, keeping mind narrow scope review indicated situation. 15 These standards, first place, permitted part father's language thought make relevant whether, why, work: 16 " 'A man cause employer ways conclusion'. . (N)o combination unemployed." F.Supp., 81, quoting I, 366. 17 And like reasoning job considered 1280-1281. 18 unambiguous. often used specialized context job. For concept frequently limited connection force, is, desire capable working, who, usually always, jobs past. addition, feature involuntariness linked Limitations nature found definitions Labor compiling statistics.11 generally confine manner.12 Indeed, provisions s 407 impose limitations, indicating intended work.13 19 conclude tautological imposed Judges Appeals. itself appreciated self-evident, standards. Respondents argue, "hours-worked" intend further additions specified fact, minimum hours-worked case, there indication history foreclose factors 21 Of course, unlimited. He could not, adopt bears But here even limits "unemployment." Exclusion unemployed.14 On hand, ordinarily available waiting period number weeks months. during periods before available, fills significant gap social coverage.15 Thus cannot say defeats 22 extent allows laws V 23 (5, 6) second Judges' Appeals' dispute.16 entirely us, appears regarded fatal failure control States' decisions optional feature.17 Presumably, rationale alternative basis uncontrolled 24 major retract previously 407(a). 710, 1896. We, think shift required precludes recognition policies. If result, might changed "unemployment defined State)" Secretary)." Instead, reads "determine" remains 25 history, acknowledge, variance language. described "provide throughout States," "authorize Secretary." S.Rep. 744, 90th Cong., 1st Sess., 3-4, 160; U.S.Code Cong. Admin.News 1967, pp. 2834, 2997 (1967). H.R.Rep. 544, 3, 17, 108 (1967); 113 Cong.Rec. 32592 (1967) (remarks Sen. Long). understand comments mean, prohibited read literally provides unemployment; best definition. quarrel statements definition; so. 26 Certainly, applicability somewhat liberal test Secretary. Macias Finch, 324 1252 (ND Cal.), 400 913, 91 180, 27 153 (1970). conclude, therefore, present Our conclusion reinforced our understanding involving federalism. and, noted, fact served all totally unavailable. Accordingly, lightly infer intention preclude recognizing legitimate policies New York Soc. Dublino, 413 405, 413-414, 421-422, 2507, 2512-2513, 2516-2517, 37 688 (1973). 28 adequately promotes reducing interstate variations respect, both reasonable 29 judgment 30 ordered. 31 WHITE, whom BRENNAN, MARSHALL, STEVENS, join, dissenting. C.F.R. include, "at State," law. (Emphasis added.) today sustains notwithstanding "a 407(a)." Ante, 430. reasons, citation authority, "the State." 431. Contrary majority, believe reflects intent achieve merely "greater uniformity" record plainly reveals applicable subject conforms mandate, affirm acknowledges variance" understates case; repeatedly unequivocally affirms strong objective creating common wording Secretary)" express "eliminat(ing) unemployment." 719, 1901, us contemplates leaving completely cover working disputes discharge cause.* my view, flatly thrust recitation. Senate, most amendments done Finance Committee. Committee reported bill 35 "(e) modify States." 2837 (emphasis added). 36 "A characteristic law left 'unemployment.' committee believes worked detriment wide variation instances, very few helped. relatively broad. correct improvements "The proposed authorize ." 160 2996. 38 Ways Means Committee, carried legislation House, adopted view: 39 "Under (t)he up individual Under Government." also id., (using almost Senate supra, 160). 41 Undersecretary Wilbur Cohen, expressed Department's view require standard: "Today, (children unemployed). differences great. narrowly broadly they wish, requiring substantial experience experience. shown clearly adjacent Southwestern Arizona, Utah, Colorado. Each population million, yet Arizona parents received May, while month 880 Utah 1,600 Arizona's kept token level. House continues choose will time complete agreement Hearings H.R. 12080 Finance, 268 members Undersecretary's remarks: "Senator Williams: notice you 269 Finally, enactment amendments, unequivocal summing provisions: programs." 2d Report Amendments 1967 248, Brief Summary Major Provisions Detailed Comparison Prior Law (July 15, 1968) 63 ("Unemployment Welfare"); 23054 Rep. Mills) ("(W)e unfortunate results. Bill situation"); Long) ("(T)here 'unemployment' "); 36373-36374 ("(T)he law"); Means, (Comm. Print 1967) unemployment"). 46 means says confines regulatory Secretary; amending place establish S.Rep.No.744, 4; 2837; H.R.Rep.No.544, 3. majority defer agree, delegate respects return prior Here, describing category eligible then obvious Congress, leaves categories claimants invites diversity prevent. respectfully dissent. "s 233.100 fathers. "(a) Requirements Plans. wishes fathers, plan Part must, paragraph section: "(1) Include shall apply 233.20 chapter. Such who: "(i) Is employed month; "(ii) Exceeds excess temporary evidenced 100-hour months expected next 607. fathers; 'dependent child' shall, 606(a) title, meets requirements 606(a)(2) title father, living relatives 606(a)(1) residence maintained (or their) home." expire 30, 1962. extended, five years, 76 193, 1968, 94. Before referred State)." receipt affect 407(b)(2)(C)(ii) added "with respect week child's receives 302, 82 273. 710 n. 6, 1897, observed eliminate among 407(b)(2)(C) (ii) nationwide "receipt" refuse receive instead. 713-719, 1898-1901. decision counteracted following year again denial qualified refuses accept it. 94-566, 502, 2688. Rule, since redesignated COMAR 07.02.09.10(A)(2) (1975), paid "(t)o meet due being insurance." Maryland's Unemployment Insurance specifies various others, good cause, gross suspension disciplinary measure (temporary nine weeks), certain stoppages lockouts. Md.Ann.Code, art. 95A, 6(a), (b), (c), (e) (1969). read: "Dependent Unemployed "Notice hereby forth tentative, form Administrator, Rehabilitation Service, approval Welfare. alternatives amend 233.100(a)(1), work. "In applying permit option, use imposes additional conditions relating unemployment, Davidson Francis, U. S. Supreme October district effect, hours-of-work test, prohibits excluding compensation. "Accordingly, explicit, stating father. Alternative B, exclusive conditions. change policy, way courts." Fed.Reg. 49 "Alternative A" eventually adopted. 18549. intervenor petition 75-1182, arguing payment disputes. act petition, brief respondent-intervenor today's decision, certiorari 75-1182 denied. explained: "Administration, interprets circumstances, acts power. declared 'back pay' awards treated wages. employers employees Except interpretive agencies' functions, neither. An agency finally judicial function. well understood word 'wages' indicate receipts govern taxes Act. borderline follow wages act. "We Board's interpretation back pay goes beyond boundaries routine limits." 643 (footnote omitted). Legislative, substantive, "issued implement as, proxy rules Securities Exchange Commission .. force Justice, Attorney General's Manual Administrative Procedure (1947). Mersky, 361 431, 437-438, 80 459, 463, 423 (1960); Atchison, T. F. R. Scarlett, 300 474, 541, 543, 748 (1937). contrast, give interpretative Varying degrees accorded interpretations, timing consistency agency's position, expertise. General Electric Gilbert, 125, 141-145, 401, 410-412, 343 (1976); Morton Ruiz, 415 199, 231-237, 1055, 1072-1075, 270 Skidmore Swift Co., 323 134, 140, 65 161, 164, 89 124 (1944). K. Davis, Treatise 5.03 (1958 Supps. 1970, 1976); L. Jaffe, Judicial Control Action 564-565 (1965). kinds procedural aspects 706(2)(B), (D), time. Neither substantial-evidence nor trial de novo, 706(2)(E), (F), Camp Pitts, 411 138, 140-142, 1241, 1243-1244, 106 (1973); Citizens Preserve Overton Park Volpe, 401 402, 413-416, 814, 822-823, 136 (1971). "Employed (1) 12th day unpaid family-operated enterprise (2) temporarily absent regular illness, vacation, industrial dispute, reasons. "Unemployed survey week, illness looked preceding weeks. Persons layoff start days counted ". classified unemployed; group retired, engaged housework, attending school, long-term discouraged seeking personal market idle. Labor, Monthly Review (Apr. 1977). "Unemployment cash regularly become able willing suitable jobs." Programs 54 482 487 1905-1906, 1908. Among 407(b) actively seek employment. 1897 floor cosponsor concern "involuntarily put emphasis 'involuntarily.' 107 3767 (1961) Byrnes). When President Kennedy adoption 1961, example gave sort covered "who exhausted adequate assistance. Message Economic Recovery Growth, 1679 (1961). contains separate labor-dispute provision directly attach significance initially strikers failed 367-368. 81-82, "national states channelized confined." 82. tolerated clear. court, stopped short repudiating definition" supports still benefits; "determined Secretary," concludes "determined" suggests words paper-thin distinction "determining" escapes me. Moreover, according logic, Secretary"; instead, eliminated references commonsense see, susceptible history.

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