A federal district court in South Carolina has determined that the National Labor Relations Board does not have the authority to require employers to post notices of employee rights under the National Labor Relations Act, according to a report by McGuireWoods.
In the case, filed by the U.S. Chamber of Commerce, the court based its determination on two principles, as described in the McGuireWoods report.
The recent ruling conflicts with a separate case in District of Columbia federal court, which threw out only part of the NLRB's final rule on notice of employee rights.
The NLRB's final rule required all employers subject to the National Labor Relations Act, which includes most hospitals, to post a notice to employees informing them of their rights under the Act by April 30. The Board originally had called for the posting of rights by Jan. 31, 2012, but delayed that implementation due to pending litigation.
According to the McGuireWoods report, the two decisions mean "it is now unclear whether the Board can force [employers] to post the notices that are scheduled to go up across the country on April 30, 2012." The NLRB is expected to issue additional guidance soon.
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In the case, filed by the U.S. Chamber of Commerce, the court based its determination on two principles, as described in the McGuireWoods report.
"1. The Court observed that Congress created the NLRB as a reactive quasi-judicial agency with two functions ─ to prevent and resolve unfair labor practices and to conduct representation elections. The Board's jurisdiction over these matters can be invoked only by the third-party actions of filing a complaint or petition.
2. The Court pointed outm that Congress authorized the Board to issue rules only to the extent that they were necessary to carry out the provisions of the Act."
The recent ruling conflicts with a separate case in District of Columbia federal court, which threw out only part of the NLRB's final rule on notice of employee rights.
The NLRB's final rule required all employers subject to the National Labor Relations Act, which includes most hospitals, to post a notice to employees informing them of their rights under the Act by April 30. The Board originally had called for the posting of rights by Jan. 31, 2012, but delayed that implementation due to pending litigation.
According to the McGuireWoods report, the two decisions mean "it is now unclear whether the Board can force [employers] to post the notices that are scheduled to go up across the country on April 30, 2012." The NLRB is expected to issue additional guidance soon.
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