Search
 
 

Practices

 

Search

FILTERS

  • Please search to find attorneys
Close Btn

Publications

12/03/2021

NLRB General Counsel Announces New Tough Guidelines For Case Settlements

A general remedy for a wrongful termination in violation of the National Labor Relations Act traditionally has been limited to backpay and reinstatement. In certain cases, the General Counsel of the NLRB has accepted less than full back pay settlements if to do so would "effectuate the purposes of the Act."

As we have reported, with a new General Counsel, who effectively controls of much of what goes on with the NLRB, as well as a Democratic majority on the NLRB, there were bound to be some significant changes in the NLRB's policies. One of those changes was just announced by the NLRB General Counsel, Jennifer Abruzzo, who has instructed NLRB offices to also include "consequential damages" for unlawfully fired workers. Those damages could include medical, legal, or moving expenses, and might also include such things such as compensation for damages to credit ratings, expenses involved with the liquidation of investment accounts so that the employee could cover living expenses, and even training to get a new occupational license. NLRB offices were also urged to be creative in seeking other remedies to make unlawfully terminated employees whole. Another remedy mentioned as a possibility was a letter of apology from the employer.

Typically, "non-admission clauses" in settlement agreements, by which the employer would settle a case, but not admit any wrongdoing, have been common. The recent memo directs their usage to be rare and, to the contrary, that agreements with repeat violators should feature explicit admissions of wrongdoing.

The most recent memo, combined with other recently announced policies, illustrate the hawkish stance that the NLRB is taking under the new Administration. As a result, employers should be forewarned to be much more diligent when responding to charges of unlawful conduct filed with the NLRB by unions or employees.