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Top Five Labor Law Developments for June 2019

1. An employer violated the National Labor Relations Act (NLRA) by maintaining a mandatory arbitration policy, making arbitration the exclusive forum for resolving all employment claims because it denied employees access to the National Labor Relations Board (NLRB), the Board has ruled. Prime Healthcare Paradise Valley, LLC, 368 NLRB No. 10 (June 18, 2019). The Board held that “such provisions significantly impair employee rights, the free exercise of which is vital to the implementation of the statutory scheme established by Congress in the [NLRA]. No legitimate justification outweighs, or could outweigh, the adverse impact of such provisions on employee rights and the administration of the Act.” For a full discussion of Prime Healthcare, see our article, Labor Board Revisits Arbitration Agreements after Supreme Court’s ‘Epic’ Decision.

2. The NLRB announced that it will propose rules on the standard for determining whether students who perform services at private colleges or universities in connection with their studies are “employees” covered by the NLRA. Some say the Board’s decision to tackle this issue through rulemaking likely will result in the reversal of a controversial 2016 Board decision issued in a case involving graduate students. There, the Board significantly changed federal labor policy by ruling that such students may be treated as employees under the Act and eligible to unionize. See Columbia Univ., 364 NLRB No. 90 (2016). However, even if rulemaking results in a return to the Board’s pre-Columbia Univ. position, graduate student unionization still may occur, if such students pressure universities to voluntarily recognize their unions, a tactic used in many recent graduate student organizing efforts.

3. The Board found an employer did not violate the NLRA by restricting union representatives from accessing the employer’s store, after the representatives failed to follow longstanding visitation ground rules. Fred Meyer Stores, Inc., et al., 368 NLRB No. 6 (June 18, 2019). Claiming a right under a visitation provision in the collective bargaining agreement, eight union representatives visited the employer’s store to speak with employees. Only some of the representatives checked in with the employer before meeting with employees outside the employee breakroom. The employer directed the representatives to meet employees only in the breakroom. The employer also said too many union representatives were present. The union filed an unfair labor practice charge alleging these restrictions violated the Act. On remand from the U.S. Court of Appeals for the D.C. Circuit, the NLRB found the employer did not violate the Act because, although union representatives were permitted to visit the store under their collective bargaining agreement’s visitation provision, they acted outside the scope of that provision and past practice.

4. NLRB Chairman John Ring filed a formal complaint against the Board’s Inspector General (IG), a move many interpreted as an attempt to push out the IG over his role in the evolving debate in the Board’s joint-employer standard. Ring’s complaint concerns IG David Berry’s allegedly harsh treatment of Board employees and Equal Employment Opportunity Commission (EEOC) complaints filed against him over the past few years. Some have said Ring’s complaint was motivated by Berry’s February 2018 report concluding Board Member William Emanuel should have recused himself from participating in the Board’s decision in Hy-Brand Indus. Contractors, 365 NLRB No. 156 (Dec. 14, 2017), because of an alleged conflict of interest. In Hy-Brand, the Board reversed its standard for determining when two employers are joint employers jointly liable for, among other things, unfair labor practices committed by the other. Member Emanuel voted with the majority. The Board subsequently vacated Hy-Brand, based, in part, on IG Berry’s report. A majority of the Board’s four sitting members (three are Republicans) would have to agree to terminate and remove the IG.

5. The NLRB General Counsel’s (GC) office has recommended that the Board limit the use of “Scabby the Rat,” a giant inflatable balloon rat used for decades by labor unions during labor disputes, and similar inflatable animals. Summit Design + Build, LLC, 13-CC-225655 (Adv. Mem. Dec. 20, 2018, released June 2019). Federal labor law strictly regulates “secondary” activity by unions, including protests against “neutral” businesses with whom a union has no direct dispute. Under the Board’s standards, picketing a neutral employer is almost always unlawful, while informational handbilling is not. The Obama-era Board had ruled that use of Scabby (and other inflatable animals) is more like handbilling than picketing (and therefore is generally lawful). The current GC’s Office took a different position in Summit. Evaluating a union’s use of an inflatable “Fat Cat” against a neutral employer, the GC’s Advice Division held the “Fat Cat” created a “symbolic, confrontational barrier to anyone seeking to enter or work.” It found the use of the animal more like picketing than handbilling. As a result, the Advice Division recommended the Board return to its pre-Obama-era position, interpreting such tactics as unlawful when targeted at neutral employers.

Jackson Lewis P.C. © 2019

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About this Author

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...

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Philip B. Rosen Jackson Lewis  Preventive Practices Lawyer & Collective Bargaining Attorney
Principal

Philip B. Rosen is a Principal in the New York City, New York, office of Jackson Lewis P.C. He is a member of the firm's Board of Directors and co-leads the firm's Labor and Preventive Practices Group. He joined the firm in 1979 and served as Managing Partner of the New York City office from 1989 to 2009.

Mr. Rosen lectures extensively, conducts management training, and advises clients with respect to legislative and regulatory initiatives, corporate strategies, business ethics, social media, reorganizations and reductions-in-force, purchase/sale transactions, sexual harassment and other workplace conduct rules, compliance with the Americans With Disabilities Act, wrongful discharge and other workplace litigation, corporate campaigns and union organizing matters, collective bargaining, arbitration and National Labor Relations Board proceedings. He has been quoted by the press on many labor matters, including the National Labor Relations Board’s recent initiatives on protected concerted activity and the proposed Notice Posting requirements.

Mr. Rosen has extensive experience advising clients developing integrated corporate-wide labor relations strategies - whether the organization is union-free, partially unionized or entirely unionized. He has led teams conducting multi-facility labor-related legal assessments where clients are seeking to develop creative, strategic legal approaches which anticipate major issues and achieve a company’s labor relations goals. Mr. Rosen also has advised clients being confronted with corporate campaigns and requests for neutrality agreements. He has represented organizations seeking to maximize management rights through their development of pro-active employee relations approaches to remain union-free. He also has advised unionized organizations on lawful negotiating strategies – in situations ranging from “hard bargaining” to recapture management rights to more “cooperative” negotiations – in all cases, providing legal advice designed to assist clients in achieving their primary goals.

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Howard Bloom, Jackson Lewis, labor union attorney, unfair practice investigations lawyer, employment legal counsel, bargaining law
Principal

Howard M. Bloom is a Principal in the Boston, Massachusetts, office of Jackson Lewis P.C. He has practiced labor and employment law representing exclusively employers for more than 36 years.

Mr. Bloom counsels clients in a variety of industries on labor law issues. He trains and advises executives, managers and supervisors on union awareness and positive employee relations, and assists employers in connection with union card-signing efforts, traditional union representation and corporate campaigns, and union decertification...

617-367-0025
Richard Greenberg, Jackson Lewis, workplace grievances lawyer, arbitrations litigation attorney
Principal

Richard Greenberg is a Principal in the New York City, New York, office of Jackson Lewis P.C. He advises both unionized and union-free clients on a full-range of labor and employee relations matters.

With respect to traditional labor matters, Mr. Greenberg represents clients in collective bargaining negotiations, labor disputes, grievances and arbitrations, proceedings before the National Labor Relations Board, and in state and federal court. Mr. Greenberg also advises clients on the legal aspects of remaining union-free....

212-545-4080
Chad P. Richter, Jackson Lewis PC, Alternative Dispute Resolution, Attorney
Principal

Chad Richter is a Principal in the Omaha, Nebraska, office of Jackson Lewis P.C.

Mr. Richter’s practice is divided into three areas: (1) preventive counseling and training; (2) traditional labor law; and (3) workplace litigation. With regard to Mr. Richter’s preventive practice, he routinely provides day-to-day advice and counseling to management on a variety of employment law matters including human resource management, traditional labor relations, employment discrimination, wage and hour, privacy, disability leave management, and reductions in force. Mr....

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