In a recent decision, the National Labor Relations Board (NLRB) ruled that a fire sprinkler installation company had violated federal labor laws through unlawful terminations and other anti-union conduct but avoided directly addressing the larger issue of worker misclassification.

The case centered around the unlawful firing of two employees, William Hincks and Darrius Price, who were engaged in union-related activities.

What happened?

Atomic Fire Protection, a fire sprinkler installation company based in Illinois, found itself under scrutiny after allegations emerged regarding unfair labor practices. The company faced accusations of interrogating employees about their union affiliations and firing them due to union support. Both Hincks and Price were fired after discussing unionization with their coworkers, violating Section 8(a)(1) and (3) of the National Labor Relations Act (NLRA), which protects workers’ rights to organize without fear of retaliation.

The NLRB’s decision supported the findings of Administrative Law Judge Sarah Karpinen, who concluded that Atomic Fire had engaged in coercive interrogations and illegal dismissals. The Board affirmed the judge’s decision that the company’s actions, such as questioning employees about union activities during the hiring process and aggressively confronting them later about their union affiliations, were in direct violation of the NLRA.

However, the board upheld the ALJ’s ruling that misclassifying workers as independent contractors —while problematic — did not, under current precedent, amount to a standalone unfair labor practice.

Citing its 2019 Velox Express ruling, the board declined to use this case an opportunity to overturn precedent regarding independent contractor status.

2019 case

During the Trump administration, the NLRB adopted what’s generally considered a more employer-friendly standard.

In the Velox Express case, the board ruled that while misclassification of workers as independent contractors could be evidence of an employer’s unfair labor practices, the mere act of misclassifying a worker did not itself constitute an unfair labor practice under the NLRA.

Essentially, an employer could incorrectly classify a worker without automatically violating labor laws, unless there was additional anti-union or retaliatory behavior.

The decision to sidestep this issue leaves the misclassification issue unresolved, although board members David Prouty and Gwynne Wilcox indicated their willingness to revisit Velox Express in the future if the facts showed the employees knew their employer was classifying them as independent contractors.

The legal fallout

While the NLRB found that Atomic Fire Protection had violated labor laws, they refused to grant additional remedies that were requested. For instance, the board rejected the union’s call for the right to select replacement employees or for the company to issue apology letters to the workers who were unlawfully fired.

Instead, the board ordered a range of standard remedies, including reinstatement offers for Hincks and Price, back pay with interest, and the removal of any references to their terminations from company records.

In addition, the decision included a modified order for the company to hold a meeting with its employees during which a notice regarding workers’ rights would be read aloud, with a union representative present if desired.