aftermath of noel canning
TRANSCRIPT
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The Aftermath ofNoel CanningWhat Now?
The Legal, Policy, and Practical Considerations of How
Employers ho!ld Proceed "efore the NL#"
April $%, $&'(
Grady B. Murdock Eric L . Barnum Deanna W. Dudley M.Carter DeLorme
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The Noel CanningDecision. Other Pending Cases Raising
the Recess !!ointment"ssue.
#LRB ctions$Decisions"m!licated %y the NoelCanningDecision.
#LRB ctions$Decisions
Potentially "m!licated %y theNoel CanningDecision.
O!tions &or Em!loyers toConsider.
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genda
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The #LRB 'uorum Re(uirement
The National Labor Relations
Board cannot function without aquorum consisting of at leastthree members.
"n New Process Steel) *+, -.
Ct. +/0 1,*,2) the 3.-.-u!reme Court held that theBoard re(uires a (uorum o& +la4&ully seated mem%ers to
conduct any o5cial %usiness. Because the #LRB at the time
had only t4o mem%ers) theCourt held that its decisionscould not %e en&orced.
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Recess!!ointments
6anuary +) ,* 1or earlier27 Mem%er Becker8
recess a!!ointment e9!ires) lea:ing only t4omem%ers) Brian ;ayes and Mark Pearce.
The 3.-. -enate does not go into recess.
"n an e sessions e:ery + days?a tacti
used %y -enate Ma@ority Leader ;arry Reidto %lock President George W. Bush recessa!!ointments.
6anuary A) ,*7 #ot4ithstanding -enatesessions) President O%ama makes recessa!!ointments) announcing three ne4a!!ointees to the #LRB.
-haron Block
Terence lynn
Richard Gri5n
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NLRB Recess Appointments)
A!g!st $*, $&'') Wilma
Lie+mans term e-pires,
lea.ing the NL#" with only
three mem+ers/
0ne of the three, 1em+er
Craig "ec2er, was gi.en an
intrasession recess
appointment +y President
0+ama in 1arch $&'&/
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The Noel Canning Challenge
#oel Canning Cor!. losesa!!eal %e&ore the #LRBregarding re&usalto%argainallegations.
#oel Canning !etitions &orre:ie4 in the D.C. Circuit)arguing that the #LRB lacks a
(uorum %ecause the 6anuaryA) ,* recess a!!ointments4ere in:alid.
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The Recess !!ointmentsClause
The President shall have Power to llu! all "acancies that ma# ha!!en duringthe Recess of the Senate$ b# grantingCommissions which shall e%!ire at the&nd of their ne%t Session.'
(rticle ))$ Section *$ Clause +
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Noel Canning T4orguments
*. #arro47 There is no =recess> 4henthe -enate holds sessions e:ery +days.
Pre:iously) no President e:ertried to make recessa!!ointments 4hen -enateholds sessions e:ery + days.
. Broad7 Original meaning o& Recess!!ointments Clause.
=Po4er to ll u! all Facanciesthat mayha!!en during the
Recess o& the -enate.> Limited to :acancies that
arise during recess.
Limited to =the recess)> i.e.)the single %reak at the end o&the year.
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The Noel Canning Decision7 D.C.Circuit
Court o& !!ealsado!ts %roadoriginalistunderstanding o& theRecess !!ointmentsClause.
Recess !!ointments
only :alid i& theyoccur7*. During an
=intersession> recess.
. or :acancies thatarise during the8
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The Noel Canning Decision7 E2.
Noel Canningdecision is %indingla4 4ithin D.C. Circuit.
Deadline to le Petition &orRehearing En Banc A0 Days1March **) ,*+2.
Deadline to le Cert. Petition , Days ollo4ing Conclusion o&En Banc cti:ity.
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Calls into (uestion allactions) includinge9!edited electionrulemaking and cases)decided %y the Board atleast since ugust H),**.
Board orders are not sel&en&orcing.
ny Board order can %ea!!ealed to the D.C.
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Pending Cases Raising the Recess !!ointment "ssue7D.C. Circuit
D.C. Circuit 1* cases27
,- Sands Bethwors /aming v. NLRB) **A,I
*- 0ilum Te%tile Services Co. v. NLRB) **+0)**H0I
+- 0eredith Cor!. v. NLRB) **JHI
1- (erote v. NLRB) **H*I
2- 3imberl# Stewart:. #LRB) **++JI4- 3ec 5os!. of 6SC v. NLRB 7 Sode%o (merica
v. NLRB) **A*+) **A/I
8- 9resenius 6S( 0anufacturing v. NLRB) **+JH) **A*0I
:- 3(/ ;est v. NLRB) **+*I
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Pending Cases Raising the Recess !!ointment "ssue7 OtherCircuits
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Third Circ!it)NLRB v. New Vista
Nursing, ''3(%%&, '$3'&$* 4 '$3'5(67
NLRB v. New Vista Nursing &
Rehabilitation Center, '$3(8$%7 1621
Route 22 est !perating v. NLRB, '$3
(*69/
:o!rth Circ!it)NLRB v. "nterprise
Leasing Co. #"$ LLC, '$3'8'%7Nestle
%reer's (ce Cream Co. v. NLRB, '$3
'69%7)untington (ngalls (nc. v. NLRB,
'$3$&&&7 Coastal #unbelt *ro+uce v.
NLRB, '$3$$8%/
e.enth Circ!it)Richar+s v. NLRB, '$3
'5*(7,ohn Lugo v. NLRB, '$3'59%7
-# (nt'l *roppants v. NLRB, '$3(($$7
Big Ri+ge v. NLRB, '$3('$&/
Ninth Circ!it)%irecV v. NLRB, '$3
*'$5*, '$3'8'% 4 '$3*$8$6/
Ele.enth Circ!it)NLRB v. /alor+
Chemical Co., '$3'8%&%/
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NLRB Decisions: August 28, 2011 to January 31, 2013
Time Period #LRB Mem%ers Pu%lished 3n!u%lished
J$J$***$+$* P$;$B **, *0+*$$*H$A$* P$;$F/G/B J/ +A
H$0$**$*/$* P$;$G/B *A ,J
*$*H$**$J$* P$G/B *, A
Totals ++, /+H
#LRB Mem%ers
P Mark PearceI -enate Conrmed /$$*,) s4orn in A$H$*,
; Brian ;ayesI -enate Conrmed /$$*,) s4orn in /$$*,Iterm ended *$*/$*
B- Sharon Block; Recess Appointment, sworn in 1/9/12G- Richard Grifn; Recess Appointment, sworn in 1/9/12
F- errence Fl!nn; Recess Appointment, sworn in 1/9/12; resi"ned #/2$/12
B- %rai" Becker; Recess Appointment, sworn in $/&/1'; recess ended1/(/12 with ad)o*rnment o+ 112th%on"ress, 2d Session
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NLRB Actions/Decisions Impicate!"y t#eNoel CanningDecision
January $, 2012 to t#e %resent
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Decisions &'erruing NLRB %rece!ent
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"n WCTF) +0 #LRB #o. +, 1Dec. *) ,*2) the Board esche4ed0, years o& !recedent %y o:erruling its decision in Bethlehem -teel)
*+/ #LRB *0,, 1*/2. Board ma@ority held that an em!loyerNs o%ligation to check o test to other industries.
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"n Entergy Mississi!!i) "nc.) +0H #LRB #o. *HJ 1Dec. +,) ,**2 and DirecTF) +0H#LRB #o. *A 1Dec. ) ,**2) the Board addressed the denition o&=su!er:isor> under the ct.
Both cases held that the em!loyees in (uestion 4ere not su!er:isors.
"n Entergy) the em!loyees 4ere included in the %argaining unit.
"n DirecTF) the em!loyee8s !rounion acti:ity in the !reelection !eriod didnot constitute o%@ectiona%le conduct.
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*ection %roce!ures an! *ection Intererence
"n -isters ood Grou!) "nc.) +0H #LRB #o. */J 1Dec. ) ,**2) the
Board addressed 4hether rerun elections held on an em!loyer8s!remises 4ere im!ro!er. lthough the Board did not announce a!erse rule re(uiring rerun elections to %e held o
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4oing or5ar!67
*.3nder Noel Canning) all Board actions and decisions since ugust H),** are called into (uestion.
The logical im!lication o& the case is that no order issued since that
date can %e en&orced until a (uorum is restored through la4&ula!!ointments.
#LRB announced that the gency 4ill continue to o!erate 4ithrecess a!!ointees Gri5n and Block) and Chairman Pearce.
*.Noel Canning decision is %inding la4 in the D.C. Circuit unless
o:erturned. Board orders are not sel&en&orcing.
ny Board order can %e a!!ealed in the D.C. Circuit.
#LRB can le !etition &or en&orcement in other circuits.
+.ll !etitions &or re:ie4 o& #LRB orders should %e e9!editiously led in
the D.C. Circuit) unless good reason to %ring else4here.
A."n cases !ending in other circuits) 4here the recess a!!ointment issuehas not %een decided) and a case raising such issue is !rocedurally aheado& your case) consider re(uesting that court hold your case in a%eyance)including the %rieng schedule.
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A!!itiona ircuit ourt onsi!erations
*. "n any Boardrelated matter !ending in anycircuit court o& a!!eals) consider raising theissue o& the lack o& a Board (uorum.
. "& %rieng has already %een com!leted) ande:en i& oral argument has %een held)consider ling a J1@2 letter arguing thatthe Board order 4as issued 4ithout a!ro!er (uorum.
+. s the D.C. Circuit held in Noel Canning)
!arties should %e a%le to raise this issue incourt e:en i& you did not raise it %e&ore theBoard.
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A!ministrati'e %rocee!ings*. "n any matter !ending at the administrati:e le:el)
consider raising the issue o& the lack o& a Board
(uorum7 Petitions
3n&air la%or !ractice charges
Com!laints
-u%!oenas) i& issued %y Block$Gri5n
. "& initial ans4er already led) consider ling anamended or su!!lemental ans4er.
+. On any a!!eal &rom an ad:erse decision o& andministrati:e La4 6udge or Regional Director)
consider raising the issue o& the lack o& a Board(uorum.
A. "& initial %rieng has already %een com!leted)consider raising the matter in a su!!lemental!leading this issue should not %e time%arred)
%ecause it raises a @urisdictional de&ect in the28
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&t#er A!ministrati'e Issues
Consider challenging actions and decisions o&Regional Directors 4ho 4ere a!!ointed %y Boardsthat lacked a !ro!er (uorum 1*J out o& J RegionalDirectors may %e su%@ect to such a challenge2.
Consider challenging delegations %y a Board that
lacked !ro!er (uorum to its cting GeneralCounsel) es!ecially 4ith res!ect to *,1@2 in@unctionmatters.
Consider challenging any ty!e o& Board actiontaken !rior to ugust H) ,** 4here the Board) at
the time such action 4as taken) lacked there(uired (uorum.
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Thank you K 'uestions
Grady B. Murdock
Littler Mendelson !ica"o
312#795#3233
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&ric L. Barnu$
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404#437#7013e+arnu$%sc!i((!ardin.co$
M. arter ,eLor$e
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,eanna . ,udley
aiser er$anente akland
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