Subject: A Courageous ALJ Says “Enough” to NLRB Overreach: LRI INK

October 23, 2024

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Note To Our Readers

by Michael VanDervort

A quick note to our readers. Next week, The INK newsletter will be a more compact version since many of us here in the Broken Arrow office are heading to Omaha to attend the CUE Conference. Looking forward to seeing everyone there!


If you have any suggestions on topics you would like to see us cover in the newsletter, please feel to send them my way via email. 

 

A Courageous Administrative Law Judge Says “Enough” to NLRB Overreach

by Phil Wilson

Even the Administrative Law Judges are getting frustrated with the Board’s “all in for unions” approach to labor law. In an impressive stand against overreach, Administrative Law Judge (ALJ) Lisa Ross made a principled decision to recuse herself from a case the NLRB recently remanded to her. The case involves actor Sean Penn's nonprofit organization, Community Organized Relief Effort (CORE).

 

The judge’s decision came in response to a remand order from the NLRB. Remands are somewhat routine. The Board decides there’s something in the ALJ decision they’d like looked at a little closer, or they want evidence taken on an issue they felt wasn’t fully fleshed out in the record.

 

The remand in CORE was not routine. Judge Ross (along with myself and I believe most objective readers of the Board decision) viewed the Board order as a demand for a predetermined outcome—specifically, one that would favor the General Counsel.

 

Judge Ross had previously ruled that the NLRB’s prosecutors failed to provide evidence showing that a 2021 email from Penn to his employees constituted a threat under the National Labor Relations Act. In her original ruling, Ross noted that the email—meant to rally the staff amid a grueling COVID-19 vaccination campaign—did not violate the Act. The NLRB, however, sent the case back to her, arguing that she had failed to apply the proper standard for evaluating Penn’s statements.

 

In a bold move, Judge Ross chose to recuse herself from the case rather than compromise her judicial integrity. Her justification? She had already used the very standard the NLRB claimed she ignored. “I do not know what the Board wants me to do in this situation, other than rule in the General Counsel’s favor,” Ross stated, making clear that the Board’s intentions were less about re-examining the facts and more about pushing for a preordained verdict.

 

Ross’s original decision was very sound. She considered the context of Penn’s email, which was delivered during a pandemic-induced crisis at Dodger Stadium in Los Angeles. CORE employees were working tirelessly to administer COVID-19 vaccinations. She rightly considered Penn’s email as a motivational speech aimed at uniting his team rather than a coercive threat. Penn’s remarks addressed anonymous internet criticisms of the organization’s working conditions, but Ross saw no evidence that the email had any adverse effects on employees or that it was intended to do so.

 

The NLRB’s insistence that Ross should have focused solely on whether the statement “had a reasonable tendency to coerce employees” is overly rigid and completely ignores the context. It disregards common sense and the realities of crisis management, where rallying language is often necessary to maintain morale. By refusing to be bullied into a decision pre-ordained by the Board, Ross demonstrated her commitment to fair and impartial adjudication.

 

Recusal was the right move to preserve judicial independence. It underscores a troubling trend at the NLRB: the willingness to ignore common sense and the integrity of its own judges to achieve desired outcomes. It’s disrespectful to her expertise and sets a dangerous precedent for future cases.

 

While the NLRB has every right to remand cases for reconsideration, it should not do so with the expectation that its judges will simply reverse their previous rulings to suit the Board’s agenda. The NLRB’s actions, in this case, undermine the credibility of its own adjudicative process.

 

Judge Ross’s principled stance reminds us that judicial independence is essential for ensuring that decisions are based on the law and evidence—not on external pressure. Her decision to step down speaks volumes about her integrity and the importance of resisting attempts to influence judicial outcomes. The NLRB would be wise to take Judge Ross’s message to heart..

Tricks, Not Treats: A Grab Bag Of Organizing Updates

by Kimberly Ricci

We just released our Q3 2024 petition and elections review, which provided a data-rich treasure trove for businesses to identify labor trends and prepare accordingly. Such a proactive approach to warding off union activity is always important, especially when Big Labor is chattering about a 2028 general coordinated strike on many industries.

 

Again, no industry is safe from union infiltration, and this reality is reflected throughout the retail, the arts, logistics, and higher ed sectors:

 

Apple: Only two of the tech giant’s U.S. retail stores have unionized thus far, but workers in Bethesda, Maryland, want to achieve the third by filing for an election to join CWA. This is happening on the heels of IAM and CWA reaching first contracts with workers at Towson, Maryland, and Oklahoma City Apple stores. Although those contracts were nothing to write home about, they yielded wage increases virtually equal to the 3% “standard” boosts seen annually throughout the U.S. workforce. 

 

Meanwhile, the NLRB has accused Apple of illegally prohibiting workers from using social media and Slack to discuss wages and workplace conditions. Apple denies the accusation, and only a few years ago, we noted reports about Apple workers stealthily using Android devices for organizing. As the saying goes, the more things change, the more they stay the same. 

 

Starbucks: Starbucks Workers United recently crossed the 500-unit mark in its nationwide union drive against the coffeehouse giant. In response, current Starbucks CEO Brian Niccol declared that the company is committed to bargaining “constructively” and in “good faith” as the two sides “are making meaningful progress towards our shared goals.”

 

Also this month, the NLRB ruled that ex-CEO Howard Schultz violated the NLRA by telling a union activist, “If you’re not happy at Starbucks, you can go work for another company.” The board’s ruling included that the overall backdrop of mounting ULP filings against the company “provide[d] ample context for finding Schultz’s statement objectively coercive.”

 

Logistics: This month, 550+ Gordon Food Service workers joined the Teamsters, and 800 Walmart warehouse workers in Canada joined Unifor

 

Performing arts: Since the start of the pandemic, ballet dancers from a dozen companies have joined the American Guild of Musical Artists, and that trend does not appear to be slowing anytime soon. These dancers seek higher wages, mandated rest time, and pension contributions for a career they say requires decades of training and carries a high risk of injury.

 

Chippendales performers don’t have as much advance training prep as ballet dancers, but they want higher pay, access to tips, sick leave, and health insurance. These dancers allege that they are paid a nominal fee per live show and are unpaid for group rehearsal hours, and Vegas-based members of the troupe filed a petition to join the Actors’ Equity Association. 

 

Dartmouth College is still declining to recognize SEIU’s representation of the men’s basketball team seven months after the union vote and also

following the 3rd Circuit Court of Appeals ruling that college athletes might be employees according to a new test. The NLRB is now considering whether to proceed further, proving that this issue – like many others in labor law – is anything but resolved. 

New Left Of Boom Show: Navigating Labor Law with Amy Moor Gaylord

by Michael VanDervort

In this episode of The Left of Boom Show, we are joined by Amy Moor Gaylord, a seasoned attorney with over 25 years of experience in traditional labor and employment litigation. As a partner at Akerman LLP, Amy’s extensive knowledge spans industries like healthcare, higher education, not-for-profit organizations, public safety, and hospitality.


From handling complex National Labor Relations Board (NLRB) proceedings to leading high-stakes collective bargaining negotiations, Amy brings a wealth of practical advice and expertise. Throughout our conversation, Amy shared her unique insights on key labor law issues, including recent bans on captive audience meetings and their potential impact on employers, emerging legislative changes, and strategies for navigating the ever-evolving labor landscape.


Drawing from her early career experiences at the NLRB and her work in both public and private sectors, Amy offers invaluable advice for employers across industries. We also discuss sector-specific challenges, particularly within healthcare, and how Amy balances her representation of public and private clients.


From her views on future labor law trends to her exciting projects, this episode is packed with insights to help employers stay ahead of the curve.


To close, we have a little fun as Amy shares which Chicago-based movie or TV show she’d love to star in and the character she’d portray!


Tune in for a comprehensive and engaging discussion on the current state of labor law.

 How AI Is Impacting Labor Relations—and Why Employers Need to Pay Attention

by Michael VanDervort

Artificial Intelligence (AI) is rapidly becoming a fixture in the workplace, streamlining tasks, improving productivity, and collecting valuable data. But with these benefits come challenges—especially for employers navigating labor relations in this new landscape.


The U.S. Department of Labor (DOL) recently released guidelines on the use of AI in the workplace, and the message is clear: protecting workers’ rights needs to be front and center. Employers must consider how AI affects their workforce, especially in unionized environments.


Here’s what employers need to know to stay ahead.


AI and Worker Empowerment: Unions Have a Say

One key takeaway from the DOL guidelines is the importance of worker involvement. In unionized workplaces, rolling out AI without worker input is risky. Unions are already pushing back, trying to ensure that AI doesn’t replace jobs or erode working conditions. Employers should expect collective bargaining proposals that set clear parameters around AI usage, from performance monitoring to task automation.


Industries like entertainment are leading the charge, with unions such as SAG-AFTRA and the WGA negotiating limits on AI-generated scripts and digital replicas. At ports, the International Longshoremen’s Association is resisting fully automated systems. These are clear signs that AI’s impact on labor is at the top of many unions' minds.


AI Can’t Be Used to Undermine Union Activity

Employers should be cautious about using AI for surveillance, particularly when it comes to union activities. The National Labor Relations Board (NLRB) is paying close attention to how AI is used, especially if it interferes with workers' rights to organize. The DOL has made it clear that AI tools designed to track or suppress union activity could land employers in hot water.


NLRB General Counsel Jennifer Abruzzo has urged the adoption of frameworks that protect employees from invasive surveillance and algorithmic management systems that may interfere with union organizing or other protected activities.


Health, Safety, and Pay—No Cutting Corners

AI is undoubtedly a powerful tool for boosting productivity, but it can’t come at the expense of workers' health, safety, or fair wages. AI-driven systems must comply with wage and hour laws, and employers must ensure that AI doesn’t push workers beyond safe limits or interfere with legally mandated breaks. The DOL is watching closely to make sure AI is used in ways that support workers, not harm them.


Full Transparency: Know What Your AI Is Doing

Employers must be transparent about how AI is used, especially if it affects hiring, performance evaluations, or other employment decisions. The DOL encourages businesses to openly communicate with employees about AI's role in the workplace. Workers should know how AI influences their jobs and have a say in its implementation.


In what some call a proactive move, Microsoft has partnered with the AFL-CIO to set industry standards for AI development. This kind of engagement shows that businesses can work alongside unions to find responsible ways to integrate AI without sacrificing transparency or trust.


Upskilling Is Key: Don’t Leave Workers Behind

AI is transforming jobs, but it shouldn’t lead to layoffs if employers proactively retrain their workforce. The DOL encourages employers to focus on upskilling and reallocating employees as roles shift due to AI. Training and professional development opportunities can help workers adapt to the new technology, making the transition smoother for everyone involved.


The bottom line? AI is here to stay, but how employers use it can impact your organization and your people. For employers, the smart play is staying transparent with workers and compliant with developing labor laws.

Stories You May Have Missed:


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The Port Strike Is a Reminder That Unions Have Too Much Power 

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UAW Releases New Video Condemning Stellantis for Broken Promises 

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Amazon Teamsters And Allies Rally In Queens To Demand Recognition

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About Labor Relations INK

Labor Relations INK is published weekly and is edited by LRI Consulting Services, Inc. Feel free to pass this newsletter on to anyone you think might enjoy it. New subscribers can sign up by visiting here.


If you use content from this newsletter, please attribute it to Labor Relations Institute and include our website: http://www.LRIonline.com 


Contributing editors for this issue: Greg Kittinger, Michael VanDervort, and Kimberly Ricci.


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About Labor Relations Institute

LRI exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 41 years, LRI has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

 

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