• Court Of Appeals Injunction Prevents National Labor Relations Board’s posting Requirement from Going into Effect
  • April 24, 2012 | Author: Daniel W. Morris
  • Law Firm: Clifton Budd & DeMaria, LLP - New York Office
  • We have previously alerted our clients and friends of the firm about the National Labor Relations Board’s (NLRB) posting requirement. The rule was to have gone into effect on April 30. It would have required employers to post information about their employees’ rights to unionize under the National Labor Relations Act and penalized employers that did not comply. A court decision issued just yesterday, at least for now, halts the implementation of that rule.

    Yesterday, April 17, the United States Court of Appeals for the District of Columbia Circuit granted an injunction that prevents the NLRB from implementing the posting rule until after the Court decides whether the NLRB had the authority to issue the rule. In yesterday’s decision, the Court of Appeals did not make any determination on the validity of the posting requirement or proposed noncompliance penalties. It simply ruled that the NLRB may not implement the posting requirement or penalties now.

    Because of the schedule estabished in the Court’s decision, its final decision is unlikely to occur before September 2012. Until then, employers have no obligation to post the information required by the NLRB’s rule. Whether an employer will have an obligation to post after the final decision will depend on what the Court decides and its rationale.

    The decision also removes any uncertainty that had resulted from a ruling by a United States District Court in South Carolina last Friday that the NLRB’s posting requirements and penalties were invalid. In contrast, a March decision from another District Court concluded that the posting requirement was valid, but the penalties were not. That decision was appealed and yesterday’s injunction issued in connection with that appeal.