The Republican-Led NLRB Just Had One of Its Biggest Weeks: What to Know
The Republican-controlled National Labor Relations Board moved quickly this week to overturn a host of Obama-era panel decisions.
December 15, 2017 at 02:08 PM
6 minute read
The Republican-controlled National Labor Relations Board moved quickly this week to overturn a host of Obama-era panel decisions. The board adopted a more narrow definition of “joint employer,” took steps to undo sped-up union elections and voided wide-reaching changes to employee-handbook policies.
“What is striking is the rapidity with which these major decisions overruling precedent, some involving reversal of precedent and others that reconsider the rulemaking, for major deliberative matters,” said Wilma Liebman, a former Democratic NLRB member who once served as chairwoman. “They clearly came to the board knowing what they wanted to do.”
Here's a look at some of the big developments from the week.
What happened this week and why was it important?
The NLRB's decision in 2015 in the case Browning-Ferris Industries v. NLRB was one of the most divisive of the Obama-era labor board. The ruling widened the definition of who is considered an employer when it comes to labor violations, collective bargaining and other benefits. Companies did not like Browning-Ferris, a ruling that essentially put chains and big companies on the hook for franchises and contractors.
The business community said it went too far. Workers' rights groups said it ensured protections for contractors and employees who often fell through the cracks.The labor board, in a decision issued Thursday night, will move forward with a new standard that defines an employer as one with “direct” control rather “indirect,” rolling back the 2015 decision. McDonald's Corp. has a big case pending for an administrative law judge surrounding the question of indirect control, and it remains to be seen what will now happen with that case, for example, given the new directive.
The other decision that came down Thursday night may be even more wide-reaching because it affects employee handbook rules. The case before the board focused on a “no camera policy” but the decision extended to a range of workplace policies. This included overturning the no camera rule and rules that said it was unlawful to prohibit certain speech.
Both of these decisions followed a request for information to study a regulation that made it possible to hold union elections in as little as two weeks, something pro-business groups called the “ambush election” rule and workers' rights groups said created a more transparent and efficient process.
Why was there a flurry of activity?
It was all about a looming departure on the board. William Emanuel of Littler Mendelson and Marvin Kaplan, an Occupational Safety and Health Administration lawyer, joined current chair Philip Miscimarra to make up the Republican majority in the Trump administration. Democratic members Lauren McFerran and Mark Gaston Pearce are holdovers from the Obama-era.
Miscimarra is stepping down from his position this week and Trump will nominate a new member. Peter Robb, the NLRB's new general counsel, this month telegraphed his intention to overturn a wide range of Obama-era decisions in a memo he sent to the regional directors.
What about the pending joint employer court case in the D.C. Circuit?
The U.S. Court of Appeals for the District of Columbia Circuit is weighing a decision in the Browning-Ferris case itself. The company challenged the NLRB's “joint-employment” ruling in the federal appeals court. The parties in that case will, of course, have to abide by the court's decision, whenever it comes.
But no matter how the court rules, the labor board itself will operate under the new joint-employment standard the agency set out Thursday.
“The court could say, this is just a political football. We will look at the merits and the court can do what the courts do,” said Michael Lotito, a Littler Mendelson attorney. “But the labor board doesn't have to listen to the courts.”
Lotito said the labor board only will directly follow a mandate from the U.S. Supreme Court. If Browning-Ferris wins in the D.C. Circuit, the union could file an appeal. Compliance issues could arise if the D.C. Circuit upholds the Obama-era, wider definition of joint-employment—a standard the board itself now has overturned.
“Conflicting sides would give us a headache. But we will have headaches anyway,” said Steven Suflas, managing partner of the Denver office of Ballard Spahr. “As the NLRB has been more and more politicized, we are in a situation where we are advising our clients not only on what the substantive law is today but also to get on a magic eight ball if there is a change in the political makeup.”
The 2015 decision also inspired legislation, the Save Local Business Act, which attempts to write into law the definition of direct control constituting an employment relationship. That measure passed the House. Lotito said businesses want the certainty that this legislation could provide.
Charles Cohen, a former NLRB board member and Morgan, Lewis & Bockius senior counsel, offered a cautionary note to employers.
“Employers still need to be cognizant that joint employer relationships can and will be found based on demonstrated control over employees terms and conditions,” Cohen said. “So that employers would be well advised to make sure that joint employer relationships are not found based on routine business operations.”
NLRB Democrats are stepping up criticism.
Pearce and McFerran have issued strong commentary on the rapid pace of upending the rulemaking and decisions made by the previous board. Both Democratic members dissented in each move the board made this week. Pearce called the employee handbook decision “no more than seat-of-the-pants” rulemaking because the board chose to make a “sweeping standard that goes beyond the issues presented in the case.” He said it was, “essentially a how-to manual for employers intent on stifling protected concerted activity.”
Read more:
Trump's NLRB Goes on 'Quest for Alternative Facts,' Obama-Era Member Says
How NLRB General Counsel Peter Robb Wants to Upend Obama-Era Precedent
Ethics Pledges Get Close-Up at NLRB Amid Leadership Changes
Does the Cyclist Who Flipped Off Trump's Motorcade, and Got Fired, Have a Case?
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllBrownstein Adds Former Interior Secretary, Offering 'Strategic Counsel' During New Trump Term
2 minute readWeil, Loading Up on More Regulatory Talent, Adds SEC Asset Management Co-Chief
3 minute readFTC Sues PepsiCo for Alleged Price Break to Big-Box Retailer, Incurs Holyoak's Wrath
5 minute readSupreme Court Will Hear Religious Parents' Bid to Opt Out of LGBTQ-Themed School Books
Trending Stories
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250