New England Biz Law Update
A federal appellate court has temporarily blocked the National Labor Relations Board from implementing its controversial employer notice posting rule, which was set to go into effect April 30.
The D.C. Circuit U.S. Court of Appeals issued a temporary injunction preventing implementation of the rule, which requires most employers to post notices informing employees of their rights under the National Labor Relations Act.
The U.S. District Court for the District of Columbia had previously invalidated a part of the notice posting rule that made failure to post notice of employees’ rights under the NLRA an automatic unfair labor practice. However, the district court upheld the rule’s posting requirement.
A U.S. District Court in South Carolina subsequently ruled that the NLRB exceeded its authority in implementing the rule altogether. Given the split in decisions, the D.C. Circuit blocked the rule from going into effect until the legal issues are settled.
The National Association of Manufacturers, the plaintiffs challenging the rule, hailed the ruling.
“The facts in this case and the law have always been on the side of manufacturers, and we believe that granting an injunction is the appropriate course of action for the court,” said Nam president and CEO Jay Timmons in a statement. “The ‘posting requirement’ is an unprecedented attempt by the Board to assert power and authority it does not possess.”
But NLRB Chairman Mark Gaston Pearce defended the rule.
“We continue to believe that requiring employers to post this notice is well within the Board’s authority, and that it provides a genuine service to employees who may not otherwise know their rights under our law,” said Pearce in a statement.
