Decade-old Delegations of Authority to NLRB General Counsel to Seek 10(j) Injunctions Still Vital: Second Circuit | Practical Law

Decade-old Delegations of Authority to NLRB General Counsel to Seek 10(j) Injunctions Still Vital: Second Circuit | Practical Law

In Kreisberg v. HealthBridge Management, LLC, the US Court of Appeals for the Second Circuit affirmed the district court's order granting a petition brought by the National Labor Relations Board (NLRB) under Section 10(j) of the National Labor Relations Act (NLRA), for temporary injunctive relief to enjoin alleged unfair labor practices (ULPs) by the appellants. In this case, the Second Circuit considered whether 2001 and 2002 contingent delegation of the NLRB's power to authorize Section 10(j) actions to the NLRB's General Counsel remained vital, a question of first impression for this circuit.

Decade-old Delegations of Authority to NLRB General Counsel to Seek 10(j) Injunctions Still Vital: Second Circuit

by Practical Law Labor & Employment
Published on 21 Oct 2013USA (National/Federal)
In Kreisberg v. HealthBridge Management, LLC, the US Court of Appeals for the Second Circuit affirmed the district court's order granting a petition brought by the National Labor Relations Board (NLRB) under Section 10(j) of the National Labor Relations Act (NLRA), for temporary injunctive relief to enjoin alleged unfair labor practices (ULPs) by the appellants. In this case, the Second Circuit considered whether 2001 and 2002 contingent delegation of the NLRB's power to authorize Section 10(j) actions to the NLRB's General Counsel remained vital, a question of first impression for this circuit.
In its October 15, 2013 opinion in Kreisberg v. HealthBridge Management, LLC, the US Court of Appeals for the Second Circuit affirmed the district court's order granting a petition brought by the NLRB under Section 10(j) of the NLRA (29 U.S.C. § 160(j)), for temporary injunctive relief to enjoin alleged unfair labor practices (ULPs) by the appellants.
HealthBridge manages six elder care facilities. In 2004, HealthBridge and the union representing some of its employees entered into a collective bargaining agreement (CBA), expiring in 2011. The union filed several ULP charges between 2010 and 2012 and the NLRB issued a ULP complaint against HealthBridge alleging that it, among other things, unlawfully:
  • Unilaterally changed several terms and conditions of employment for some of the union-represented employees.
  • Locked out union-represented employees.
  • Permanently replaced ULP strikers.
  • Unilaterally implemented employment terms from its last best bargaining offer without reaching a collective bargaining impasse.
Separately, the Board's Acting General Counsel authorized an NLRB regional director to petition in a federal district court under Section 10(j) of the NLRA to enjoin temporarily (pending final adjudication by the NLRB), HealthBridge's alleged ULPs, including imposing the employment terms in its last best offer.
The district court:
  • Held that:
    • the NLRB was likely to show that HealthBridge committed ULPs, by among other things, substantially changing the employee's terms and conditions of employment without bargaining to a lawful impasse; and
    • it is just and proper to require the employer to return to status quo before it had made unilateral changes to employees' terms and conditions.
  • Declined to dismiss the NLRB's petition for lack of subject matter jurisdiction based on HealthBridge's assertions that:
    • the panel heading the NLRB's judicial functions (Board) lacked a quorum when it purported to authorize the petition; or
    • the NLRB's General Counsel lacked the power to independently authorize the petition.
  • Issued an order granting the NLRB's petition under Section 10(j) of the NLRA.
HealthBridge appealed to the Second Circuit, arguing that:
  • The district court lacked subject matter jurisdiction (and the Section 10(j) petition was therefore not validly authorized) because:
    • the Board lacked a quorum when it purported to authorize the Section 10(j) petition; and
    • the Board's prior contingent delegation to its General Counsel of the power to authorize Section 10(j) petitions did not survive the loss of quorum.
  • The Second Circuit's established standard for evaluating Section 10(j) petitions (which the district court had relied on) was the wrong legal standard because it had been overruled by the Supreme Court decision in Winter v. Natural Resources Defense Counsel.
  • The district court abused its discretion in granting the petition.
The Second Circuit noted that to determine whether the regional director had authority to seek the 10(j) injunction in this case, the court needed to consider three delegations by the Board of its Section 10(j) power to the NLRB's General Counsel. These are:
  • The 2001 Delegation, which states that it "shall be effective during any time at which the Board has fewer than three Members."
  • The 2002 Delegation, in which the Board confirmed that "all existing delegations of authority to the General Counsel and to staff in effect prior to the date of this order remain in full force and effect including the December 14, 2001 delegation."
  • The 2011 Delegation, which states that it "shall be effective during any time at which the Board has fewer than three Members" and which delegates to the General Counsel "full and final authority and responsibility on behalf of the Board to initiate and prosecute injunction proceedings under Section 10(j) of the Act."
The court also noted that although HealthBridge challenges the validity of the 2011 Delegation (arguing that the Board lacked a quorum when it issued the order establishing the delegation), HealthBridge does not challenge the 2001 or 2002 Delegations.
The Second Circuit found that:
  • A properly constituted Board may delegate the power to authorize Section 10(j) petitions to the General Counsel in circumstances where it can no longer do so, such as whenever it lost a quorum.
  • As a matter of first impression for the Second Circuit, the delegations in 2001 and 2002 were still effective. The Board's later loss of a quorum in 2008-2010 did not end the delegations, as they were designed specifically for the loss of quorum circumstance. The Second Circuit joined the US Courts of Appeals for the Fifth, Eighth and Ninth Circuits in concluding that a Board delegation of authority to the General Counsel to seek 10(j) injunctions survives an intervening loss of quorum before the General Counsel approves a regional director to seek one of those injunctions (Overstreet v. El Paso Disposal, LP, Osthus v. Whitesell Corp. and Frankl v. HTH Corp.).
  • Whether the Board lacked a quorum when it made its 2011 delegation was immaterial.
  • The petition was properly authorized by the Acting General Counsel under those delegations.
Finally, the court:
Court documents: