October 16, 2018

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October 15, 2018

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Top Labor Law Developments for August and September 2018

President Donald Trump nominated Mark Gaston Pearce for a third term on the National Labor Relations Board (NLRB) on August 28. 

Pearce’s nomination came despite widespread criticism from Republicans and business groups who viewed Pearce as having taken an anti-business approach on many issues before the Board. It appears the nomination may have been part of a deal in which the Senate agreed to confirm Pearce in exchange for confirmation of a number of Trump appointees to positions in other agencies. If confirmed by the Senate, Pearce and Member Lauren McFerran will maintain the two-seat Democratic minority on the five-member Board.

The Board may apply the U.S. Supreme Court’s decision in Epic Systems Corp v. Lewis, et al., 138 S. Ct. 1612, 584 U.S. __ (May 21, 2018), to further limit what is considered “protected” activity under the National Labor Relations Act (NLRA). 

In Epic Systems, the Supreme Court upheld the legality of mandatory class action waivers, and in doing so found that filing a class action is not, in itself, a concerted act protected by the NLRA. On August 27, following the Supreme Court’s decision, the Board vacated and decided to reconsider its decision in Cordua Restaurants, in which it found that an employer violated the Act by firing a worker who filed a collective wage and hour lawsuit against the company. See Cordua Restaurants, 366 NLRB No. 72 (April 26, 2018). Some have suggested that by reconsidering the case, the Board hopes not only to confirm that filing a class action is no longer NLRA-protected, but also to expressly deny NLRA-protected concerted activity status to any activity not directly related to union organizing or collective bargaining.

The NLRB found an employer violated the NLRA by telling workers they could not discuss striking over higher wages while meeting in the employer’s parking lot. EYM King of Michigan, LLC d/b/a Burger King, 366 NLRB 156 (Aug. 15, 2018).

The employer maintained a non-solicitation rule prohibiting employees from soliciting inside or outside the employer’s facility. The employer disciplined an employee after she sat with another employee in a car in the parking lot while off-duty, discussing a wage survey and the possibility of a strike. The NLRB held that the non-solicitation policy violated the NLRA because it prohibited protected concerted activity (discussing wages and the possibility of a strike) in a non-work area on non-work time. The Board rejected the employer’s argument that solicitation in the parking lot could disrupt its drive-thru business, finding no evidence to suggest activity in the parking lot affected or was likely to affect sales.

The NLRB held that employees who signed severance agreements releasing legal claims did not waive the right to file Board charges in connection with their terminations. A.S.V., Inc. a/k/a Terex, 366 NLRB No. 162 (Aug. 21, 2018).

In the period around a union election, the employer allegedly threatened employees and interrogated them about their views on the union. The employer laid off employees following the union’s election loss, and 11 signed a severance agreement releasing the employer from all legal claims. The union filed NLRB charges claiming the employer violated the Act by the alleged threats and interrogations, and by requiring a release of the employees’ right to file NLRB charges concerning the terminations. The Board found the threats and interrogations violated the Act, and that the severance agreements signed by the 11 employees were invalid, as they were “part of a broader scheme to eliminate union supporters,” and because the agreements did not remedy the employer’s allegedly unlawful actions.

On September 14, the NLRB published a proposed rule that would change the standard for determining joint-employer status under the NLRA. 

Under the Board’s proposed rule, joint-employer status would be found only where two entities actually share or codetermine employees’ essential terms and conditions of employment, such as hiring, firing, discipline, supervision, and direction. An employer would have to possess and actually exercise substantial direct and immediate control over the essential terms and conditions of employment of another entity’s employees in a manner that is not limited and routine. If implemented, the rule would reinstate the traditional joint-employer standard the Board abandoned in its Browning-Ferris decision, 362 NLRB No. 186 (2015). In that case, the Board held that indirect control, or even the unexercised right to control, may be sufficient to establish a joint-employer relationship. The Board invited the public to submit comments on the proposed rule by November 13, 2018. 

Members of Congress have asked Board Member William Emanuel to recuse himself from the NLRB’s deliberations in a case in which the Board may reconsider its standard governing employees’ use of their employers’ email systems. 

In a September 17 letter to NLRB Chairman John Ring, Senators Elizabeth Warren (D-Mass.), Kirsten Gillibrand (D-N.Y.), Cory Booker (D-N.J.), Tammy Baldwin (D-Wis.), and Mazie Hirono (D-Haw.) asked that Emanuel not participate in deliberations over Caesar’s Entertainment Corp. They cited a potential conflict of interest due to work performed by Emanuel’s former law firm in Purple Communications, the decision the Board may reconsider in Caesar’s. In his September 24 letter responding to the Senators, Chairman Ring stated that NLRB recusal issues are handled under the prescribed government ethics rules and procedures and the Board’s Designated Agency Ethics Officer, not the Board Chair, makes recommendations on whether recusal is required in a particular case.

On September 14, the NLRB General Counsel’s Office, in an internal memorandum, directed Board regional officials to issue complaints against unions accused of certain “negligent” behavior toward members, such as misplacing employees’ grievances or failing to respond to employee phone calls. 

The memo instructs regional offices investigating these claims of negligence to issue a complaint where such negligence is alleged, unless the union had a procedure in place for avoiding the negligence (and the procedure “was not effective … for some clearly-enunciated reason”), or where there was a reasonable excuse or explanation for the alleged negligence.

The NLRB’s Division of Advice held that an employer did not violate the NLRA by maintaining a policy prohibiting audio recordings at work or by terminating an employee who violated the policy. Blue Cross Blue Shield of Tenn., 10-CA-207362 (Div. of Advice, released Sept. 14, 2018).

The employer’s “inappropriate behavior” policy prohibited making audio recordings at work. The employee was terminated after surreptitiously recording a meeting with a manager, sharing the recording, and lying about having shared the recording. Applying its decision in The Boeing Company, 365 NLRB No. 154 (Dec. 14, 2017), the Board found the no-recording rule was lawful as a “Category 1” rule (i.e., it advanced substantial legitimate management interests while causing only a minor infringement, if any, on Section 7 rights). Further, the Advice Division found the employee had not engaged in NLRA-protected activity anyway because the recording was made for the employee’s own interests, not as part of a concerted effort with other employees.

A newspaper’s policy against its employees publishing articles with competitors was a lawful work rule under the NLRA, the Board’s Division of Advice found. Washington Post, 05-CA-206213 (Div. of Advice, released Sept. 14, 2018).

However, the newspaper violated the NLRA by applying the policy to discipline a reporter who published an article criticizing the newspaper’s treatment of employees. Applying the Board’s decision in The Boeing Company, 365 NLRB No. 154 (Dec. 14, 2017), the Advice Division found the newspaper’s rule was a valid Category 1 rule. It found the rule furthered the employer’s legitimate interest in stopping its employees from working for competitors, while posing no significant impact on the reporters’ rights under the NLRA. The Advice Division, however, also found the rule was unlawful as applied to the employee who criticized the paper. The criticisms involved employees’ working conditions during contract negotiations. Therefore, they were protected under the NLRA.

Jackson Lewis P.C. © 2018

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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-...

212-545-4000
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 management in dozens of counter-organizing drives and participated in countless unfair labor practice proceedings, discrimination charges and other matters before the National Labor Relations Board, the Equal Employment Opportunity Commission and other federal and state administrative agencies, as well as in collective bargaining, arbitration and in employment litigation before state and federal courts. Mr. Spitz regularly counsels employers in employee relations and discipline and discharge matters, and also assists employers in drafting employment policies and in complying with the Family and Medical Leave Act, drug testing laws and regulations, the Americans with Disabilities Act and other federal and state employment laws.

404-586-1835
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
Howard Bloom, Jackson Lewis, labor union attorney, unfair practice investigations lawyer, employment legal counsel, bargaining law
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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
Chad P. Richter, Jackson Lewis PC, Alternative Dispute Resolution, Attorney
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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....

402-827-4233