Equal Employment Opportunity Commission v. Federal Labor Relations Authority

Background

A federal union (AFGE) proposed contract language requiring the Equal Employment Opportunity Commission (EEOC) to follow OMB Circular A-76, which sets rules for contracting out government work. The EEOC refused to bargain over the proposal. The Federal Labor Relations Authority (FLRA) ruled the proposal negotiable, and a divided Court of Appeals agreed, leaving the union's proposal in play.

Reasoning

The central question the Court addressed was whether the EEOC could raise new legal arguments here that it never presented earlier to the FLRA or the Court of Appeals. The Court found that a federal law (5 U.S.C. § 7123(c)) bars courts from considering objections not raised before the agency unless there are extraordinary circumstances. The Court treated that bar as nonwaivable simply because the FLRA did not itself raise it, and it declined to reach the newly raised questions about whether the Circular counts as an "applicable law" or a grievable rule.

Real world impact

Because the Supreme Court dismissed the case as improvidently granted, the lower court rulings stand and the proposal remains treated as negotiable for now. The decision limits when courts will hear arguments first advanced only at the Supreme Court level and sends the dispute back to the agency and the regular appeals process for fuller development. This is not a final ruling on the merits of how the Circular should be treated under the labor statute.

Dissents or concurrances

Two Justices dissented, arguing the Court should decide the merits now. They believed the FLRA effectively waived the bar and that the Circular is not an "applicable law," so they would reach the substance and reverse the Court of Appeals.