City of Los Angeles and County of Los Angeles v. Ann McLaughlin Secretary of Labor, and United States Department of Labor

The City and County of Los Angeles appeal the district court’s denial of a preliminary injunction sought against the Secretary of Labor. They sought the injunction because the Bureau of Labor Statistics, in response to a budget cut, switched to a less expensive statistical methodology in estimating the number of unemployed in Los Angeles County. The new methodology will result in a lower unemployment estimate for the county. As a consequence, Los Angeles County will receive less federal grant money through the Job Training Partnership Act, and unemployment statistics that would have been generated by the old methodology will be lost. The Secretary allowed the Bureau to change its methodology unilaterally, without formal notice, and without allowing opportunity for comment.

Appellants contend that the change violates the procedural requirements of the Job Training Partnership Act, the Administrative Procedure Act, and procedural and substantive due process.

FACTS

The Bureau of Labor Statistics calculates unemployment estimates for the Department of Labor. The Bureau’s estimates are used by the Department’s Employment & Training Administration to calculate grant amounts the…