Barnhart

dissenting.

I must respectfully dissent from the decision to reverse the district court and to award disability benefits. The Commissioner’s decision to deny benefits may be overturned “only if it is not supported by substantial evidence.” Morgan v. Apfel, 169 F.3d 595, 599 (9th Cir.1999). Substantial evidence means “such relevant evidence as a reasonable mind might accept as adequate to support a decision.” Id. Where the evidence is susceptible to more than one rational interpretation, it is the ALJ’s conclusion that must be upheld. *777 Id.; Andrews v. Shalala, 53 F.3d 1035, 1041 (9th Cir.1995).

In this case, the ALJ rejected the recommendation of an examining physician that the claimant should refrain from repetitive upward and downward gazing or holding his head in a fixed position for a prolonged period of time. The ALJ may reject the uncontradicted opinion of an examining physician for “specific and legitimate reasons that are supported by substantial evidence in the record.” Lester v. Chater, 81 F.3d 821, 830-31 (9th Cir.1995). However, where a treating physician’s opinion is contradicted by a nontreating source, “the opinion of the nontreating source may itself be…

*774 MEMORÁNDUM *

Albert Williams appeals the district court’s grant of summary judgment that affirmed the Commissioner of the Social Security Administration’s (“Commissioner”) denial of disability insurance benefits (“DIB”) and supplemental social security income benefits (“SSI”). The Administrative Law Judge (“ALJ”) found that the medical evidence established that Williams had a “severe” physical impairment, 1 but concluded that Williams retained a residual functional capacity (“RFC”) for medium work and was therefore not eligible for DIB or SSI. In so concluding, the ALJ improperly dismissed an agreed medical examiner’s (“AME’s”) non-exertional limitations and discounted the findings of other examining physicians. We have jurisdiction under 28 U.S.C. § 1391 , and we reverse and remand for payment of benefits.

I.

In support of his application for benefits, Williams submitted the medical report of Dr. Watkins, the AME in Williams’ state workers’ compensation proceeding. The ALJ accepted Dr. Watkin’s opinion that Williams retained 75% of his prior lifting capacity. However, the ALJ concluded that Dr. Watkin’s opinion that Williams’ non-exertional limitations restricted Williams…