On September 30, 2014, the National Labor Relations Board overruled established precedent once again. The Board’s decision enhanced the liability to which a successor employer is exposed when it fails to hire employees of its predecessor to avoid recognizing their union representative. In Pressroom Cleaners Inc., Decision and Order, Case No. 34-CA-071823 (Sept. 30, 2014), the Board held a successor found guilty of such a scheme, in addition to being required to recognize and bargain with the union, had to: (1) restore the “status quo” by putting in place the employment terms of its predecessor, i.e., those spelled out in their old labor agreement, until it bargained to an agreement or impasse with the union; and (2) pay the employees it unlawfully failed to hire back pay and benefits under the monetary terms under which they worked for the predecessor.
Home > Federal Law Articles > Labor Law > Successorship > Buyer Beware – Continuing Its Controversial Changes, NLRB Increases the Price Tag of a Successor’s Unlawful Failure to Hire Its Predecessor’s Employees