National Labor Relations Act

14 Penn Plaza LLC v. Pyett

Issues

Is an arbitration provision in a collective bargaining agreement which precludes an employee from bringing a lawsuit in court for an alleged violation of statutory anti-discrimination law enforceable?

 

Steven Pyett, Thomas O’Connell, and Michael Phillips (the "employees") claim that their employer, Temco Service Industries, Inc., and the company, 14 Penn Plaza, LLC, that owns the building in which they worked, discriminated against them on the basis of their age, in violation of the Age Discrimination in Employment Act of 1967 ("ADEA"). The employees are members of Service Employees International Union, Local 32BJ, which negotiated a collective bargaining agreement ("CBA") with the Realty Advisory Board on Labor Relations, Inc. ("RAB"), of which Temco and 14 Penn Plaza are members. The CBA stated that the sole and exclusive remedy for all employment discrimination claims, including those brought under the ADEA, is the union’s grievance and arbitration procedure. The issue in this case is whether a union has the power to bargain away its members’ rights to litigate employment discrimination claims. The employees argue that the answer should be no, while the employers argue the opposite. The outcome of this case will clarify whether a union has the power to waive its members' statutory right to sue their employers in federal court for certain types of discrimination in favor of a mandatory arbitration procedure.

Questions as Framed for the Court by the Parties

Is an arbitration clause contained in a collective bargaining agreement, freely negotiated by a union and an employer, which clearly and unmistakably waives the union members’ right to a judicial forum for their statutory discrimination claims, enforceable?

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Epic Systems Corp. v. Lewis

Issues

Does the National Labor Relations Act prohibit the enforcement of agreements between employers and employees requiring individual employees to waive the right to participate in collective litigation, collective actions, and collective arbitration under the Federal Arbitration Act? 

At issue in this case is whether employment contracts barring employees from collectively arbitrating disputes with employers are illegal under the National Labor Relations Act (“NLRA”). Employees argue that preventing collective arbitration interferes with the NLRA’s Section 7 protections of “concerted activity” for “mutual aid and protection”. Employers counter that the Federal Arbitration Act governs the arbitration agreements, under which they are enforceable. Employers also contend that enforcing the agreements protects freedom of contract, thus promoting efficiency and protecting judicial resources. Employees respond that collective arbitration allows them to share the costs and risks of litigation, thereby allowing them to pursue claims that, in the aggregate, may reveal abusive practices by employers. One on hand, freedom of contract in the interest of judicial economy may be harmed if the Court does not uphold the validity of the waivers. On the other hand, if the Court does uphold the validity of the waivers, it will may become more difficult for employees to challenge abusive work practices in their workplaces.

Questions as Framed for the Court by the Parties

Whether the collective-bargaining provisions of the National Labor Relations Act prohibit the enforcement under the Federal Arbitration Act of an agreement requiring an employee to arbitrate claims against an employer on an individual, rather than collective, basis.

The Court here considers three consolidated cases: Epic Systems Corp. v. Lewis, Ernst & Young, LLP v. Morris, et al., and National Labor Relations Board (“NLRB”) v. Murphy Oil USA, Inc. Epic Systems, Ernst & Young, and Murphy Oil (“Employers”) urge the Court to uphold class action and collective arbitration waivers between employers and employees.

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National Labor Relations Act (NLRA)

National Labor Relations Act: An Overview

The focus of the traditional law of unions, which makes up the major part of the area of law known as labor law, is on workers collectively and their rights as a group. This may be distinguished from employment law which focuses more on issues relating to the rights of individual employees.

New Process Steel v. NLRB

Issues

Whether the National Labor Relations Board may decide cases with only two sitting members.

 

Under 29 U.S.C. §153(b), the “[National Labor Relations] Board is authorized to delegate to any group of three or more members any or all of the powers which it may itself exercise. . . . A vacancy in the Board shall not impair the right of the remaining members to exercise all of the powers of the Board, and three members of the Board shall, at all times, constitute a quorum of the Board, except that two members shall constitute a quorum of any group designated pursuant to [delegation].” New Process Steel argues that the National Labor Relations Board (“NLRB”) is prohibited by statute from deciding issues when it acts with only two sitting members on a five-member Board. The NLRB contends that it has the authority to issue decisions, even with only two current members on a five-member Board. The NLRB claims that its previous delegation of authority to a three-member Board allows the Board to continue operating with a two-member quorum. This case will decide how to interpret the 29 U.S.C. §153(b), and whether the current two-member quorum meets the minimum statutory requirement. This case will also affect how the Board handles pending or future cases when there are vacancies on the Board.

Questions as Framed for the Court by the Parties

Does the National Labor Relations Board have authority to decide cases with only two sitting members, where 29 U.S.C. §153(b) provides that “three members of the Board shall, at all times, constitute a quorum of the Board”?

New Process Steel operates steel processing facilities in the United States and Mexico. See New Process Steel, L.P. v. N.L.R.B., 564 F.3d 840, 842 (7th Cir.

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Starbucks Corp. v. McKinney

Issues

Should courts grant preliminary injunctions against companies for labor disputes based on the traditional four-factor test or on a different standard of whether the injunction is “just and proper” when there is reasonable cause to believe the unfair labor practices occurred?

This case presents to the Supreme Court the issue of whether district courts should defer to the National Labor Relations Board’s (NLRB) preliminary investigations and legal judgments when deciding on preliminary injunctions under Section 10(j) of the National Labor Relations Act (NLRA) during unfair labor practice investigations. The Petitioner, Starbucks Corp., argues that the Sixth Circuit improperly weighted the scales in favor of the NLRB by deferring too much to the Board's initial assessment of the case and its labor-law expertise, thus undermining judicial independence and overstepping established boundaries of agency deference. The Respondent, the NLRB, maintains that such deference is warranted given its role, expertise in labor relations, and the comprehensive investigatory and adjudicative processes it undertakes before seeking injunctive relief under Section 10(j). The Court's determination will crucially affect the balance of power between administrative agencies and the judiciary and will have significant implications for labor practices and the enforcement of labor rights in the United States.

Questions as Framed for the Court by the Parties

Whether courts must evaluate the National Labor Relations Board’s requests for injunctions under Section 10(j) of the National Labor Relations Act using the traditional, stringent, four-factor test for preliminary injunctions or some other more lenient standard.

In January 2022, a shift supervisor, Nikki Taylor, at the Memphis Starbucks location decided she was interested in unionizing the Memphis store. McKinney v.

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