September 20, 2021

Volume XI, Number 263

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September 20, 2021

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September 17, 2021

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Labor Board Orders Business to Reopen; D.C. Circuit Says Not So Fast

The NLRB has the authority to order an employer to reopen a business it finds was closed for discriminatorily anti-union reasons. In RAV Truck & Trailer Repairs, Inc., 369 NLRB No. 36 (Mar. 3, 2020), the NLRB did just that. However, upon review, the D.C. Circuit held that it “cannot decipher how the Board determined that the closure of [the business] constituted an unfair labor practice,” that the NLRB did “not purport to explain how restoration [of the operation] is even factually possible,” and remanded the case. RAV v. NLRB, No. 20-01090 (D.C. Cir. May 11, 2021).

RAV Truck and Trailer Repairs and Concrete Express of NY (a concrete supplier), although two separate entities, were found to constitute a single employer.   RAV operated from a large garage but in  February 2018 the building owner terminated RAV’s lease. RAV temporarily leased a much smaller space for a brief period to complete unfinished work projects but this space lacked state-mandated safety and environmental features.  That lease ended on May 31, 2018.

During this same period, the Teamsters Local 456, International Brotherhood of Teamsters was attempting to organize workers at both Concrete Express and RAV.

  • Concrete Express. On April 19, 2018, the Union filed a petition to represent Concrete Express drivers and mechanics. The NLRB held an election on May 10, 2018, which the Union lost. Subsequently, the Board found the employer committed multiple unfair labor practices leading up to the election and ordered a re-run election (in which the Union was again defeated).

  • On May 14, 2018, the Union filed a petition to represent the two mechanics who worked for RAV, but incorrectly listed “RAV Trucking Corporation” (a different entity) as the employer. The next day, RAV told its mechanics that ICE agents were in the area, and asked if they had papers authorizing them to work. RAV discharged the mechanic who said no, and later laid off the remaining mechanic for lack of work. The Union filed an unfair-labor-practice charge regarding the discharges. The Union then filed a corrected petition. However, that  same day, the employer informed the NLRB and the Union that RAV “will be shutting its doors …. It is now officially out of business.”

Eventually, the NLRB determined the employer’s discharge of the undocumented mechanic, the layoff of the other mechanic, and the closure of RAV were in retaliation for organizing or to chill remaining employees from engaging in union activity. In addition to other remedies, the Board ordered the employer to “reopen and restore the business operation of [RAV] as it existed on May 14, 2018.”

On review, the D.C. Circuit upheld the main thrust of the decision that the “discharge and layoff of these employees reflected impermissible retaliation for their pro-union activities.” However, it held “the record indicates that the Company closed the RAV operation because it could not exist without the leased space, not because of the Union activities.” The Court noted that while the Board could find the employer closed RAV to chill employees’ union activity at both RAV and Concrete Express, its conclusion was based only on the proximity of events. “Without a better explanation from the Board, we are constrained to remand.” As to the order to reopen, the Court found, “The Board’s decision fails to properly consider whether its restoration order is legally permissible, feasible, necessary, or unduly burdensome, as the law requires.” Even if it was unlawful to close RAV, it said, “the Company had no lawful, suitable location in which to house the RAV operation on May 14. And the Board has failed to cite any authority to support the legal legitimacy of an order that purports to compel a company to ‘reopen’ an operation that no longer exists due the loss of a lease and for which there is no adequate space to house the operation within the existing company facilities.” The D.C. Circuit remanded with the instruction, “as with any remedial order, the Board must justify its action.”

While the D.C. Circuit refused to enforce the Board’s order to reopen, in an appropriate case, the NLRB has the authority to take the extreme action of directing an employer to reopen. Such instances are relatively rare, and the facts, in this case, are unusual. 

Jackson Lewis P.C. © 2021National Law Review, Volume XI, Number 146
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About this Author

Jessica M. Marsh, Jackson Lewis, labor arbitrations lawyer, contract administration matters attorney
Of Counsel

Jessica M. Marsh is Of Counsel in the Minneapolis, MN, office of Jackson Lewis P.C. She is certified as a Labor and Employment Law Specialist through the Minnesota State Bar Association.

Ms. Marsh’s traditional labor experience includes assisting both unionized and union-free workplaces facing union organizing attempts, picketing and/or strike activity, and union election petitions. Ms. Marsh defends employers responding to unfair-labor practice charges at the NLRB Regional Offices and on exceptions to the NLRB. Ms. Marsh also represents...

612-359-1762
Thomas V. Walsh, Jackson Lewis, employment arbitration Lawyer, White plains, Union Organizing Attorney
Shareholder

Thomas V. Walsh is a Shareholder in the White Plains, New York, office of Jackson Lewis P.C. Since joining the firm in 1986, Mr. Walsh has represented employers in all aspects of labor and employment law and litigation.

Mr. Walsh has represented employers before numerous state and federal courts, regulatory agencies, as well as in numerous arbitrations. Mr. Walsh has extensive experience in representing employers faced with union organizing drives and in proceedings before the National Labor Relations Board. He has an...

914-872-6912
Richard F. Vitarelli Harford  Connecticut Labor Relations Lawyer at Jackson Lewis Law Firm
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Richard F. Vitarelli is a Principal in the Hartford, Connecticut, office of Jackson Lewis P.C. Part of the firm’s national labor practice, he has over two decades of experience representing employers nationally in strategic labor relations, collective bargaining, and union organizing, including in the context of mergers and acquisitions, corporate restructuring and contract administration. He serves as general labor and employment counsel for employers and multi-employer associations in various industries, including construction, manufacturing, health care and senior living,...

860-522-0404
Jonathan J. Spitz, Jackson Lewis Law Firm, Labor Employment Attorney, Atlanta
Shareholder

Jonathan J. Spitz is a Principal in the Atlanta, Georgia, office of Jackson Lewis P.C. He is Co-Leader of the firm’s Labor and Preventive Practices Group.

Mr. Spitz lectures extensively, conducts management training, and advises clients with respect to legislative and regulatory initiatives, corporate strategies, business ethics, social media issues and the changing regulatory landscape. He understands the practical and operational needs of corporate America, helping design pragmatic strategies to minimize risk and maximize performance. He has represented...

404-586-1835
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