Reported / Citable
Background
Troy B., a 56-year-old former Harris County deputy sheriff, applied for Title II disability insurance benefits after alleging disability beginning April 2, 2021. He reported anxiety and several physical conditions. An administrative law judge found severe anxiety, depression, and somatic disorder, but classified his diabetes, hypertension, hyperlipidemia, and obstructive sleep apnea as non-severe.
The ALJ determined that Troy B. could work at all exertional levels with certain nonexertional restrictions. Although he could not return to his past work, the ALJ found at step five that he could work as an industrial cleaner, hospital cleaner, or kitchen helper. After the Appeals Council declined review, Troy B. sought reversal and remand in federal court.
The Court’s Holding
The court held that any error in classifying sleep apnea as non-severe at step two was harmless because the ALJ continued through the remaining steps and was required to consider both severe and non-severe impairments when determining residual functional capacity. The court nevertheless found reversible error in the RFC analysis.
The ALJ called state-agency consultant Dr. Gary Smith’s opinion consistent with the medical record and persuasive, but did not identify the supporting records, explain the consistency finding, or address supportability as required by the regulations. That omission was harmful because Dr. Smith did not address Troy B.’s sleep apnea, daytime sleepiness, or obesity, while the ALJ relied on his opinion in finding no physical restrictions. The ALJ also incorrectly stated that the sleep apnea was controlled despite evidence that Troy B. had not obtained a prescribed CPAP machine because he could not afford it.
The vocational expert testified that a worker who was off task an additional 20% of the workday, or who needed two extra 15-minute breaks, could not perform the jobs identified by the ALJ. Because proper consideration of Troy B.’s untreated sleep apnea and daytime sleepiness might therefore have changed the disability determination, the court granted his summary-judgment motion, denied the Commissioner’s cross-motion, reversed the ALJ’s decision, and remanded for further proceedings.
Key Takeaways
- An ALJ’s step-two severity error is harmless when the analysis continues beyond that step and all medically determinable impairments are considered in assessing RFC.
- Merely labeling a medical opinion “consistent” and “persuasive” does not satisfy the requirement to explain its consistency and supportability.
- An RFC analysis must meaningfully address evidence that untreated sleep apnea and daytime somnolence may require additional off-task time or breaks, particularly when vocational testimony shows those limitations could eliminate the identified jobs.
Why It Matters
The decision illustrates that an ALJ’s failure to articulate the required medical-opinion analysis can warrant remand when the omitted reasoning bears directly on functional limitations and the step-five result. It also underscores that an impairment’s classification as non-severe does not permit the ALJ to disregard its possible effects when formulating the RFC.
On remand, the Commissioner must properly evaluate Dr. Smith’s opinion and consider Troy B.’s sleep apnea, daytime somnolence, and obesity in reassessing his functional capacity.