Expert Q&A on Noel Canning and Its Aftermath | Practical Law

Expert Q&A on Noel Canning and Its Aftermath | Practical Law

An expert Q&A with Harold P. Coxson of Ogletree Deakins Nash Smoak & Stewart P.C. on the US Supreme Court's June 26, 2014 decision in Noel Canning v. NLRB. In that case, the Supreme Court ruled that President Obama's January 4, 2012 recess appointments to the National Labor Relations Board (NLRB) were invalid and upheld a decision by the US Court of Appeals for the District of Columbia Circuit vacating a challenged NLRB decision for lack of a three-member quorum.

Expert Q&A on Noel Canning and Its Aftermath

Practical Law Article 5-573-9826 (Approx. 13 pages)

Expert Q&A on Noel Canning and Its Aftermath

by Practical Law Labor & Employment
Law stated as of 10 Jul 2014USA (National/Federal)
An expert Q&A with Harold P. Coxson of Ogletree Deakins Nash Smoak & Stewart P.C. on the US Supreme Court's June 26, 2014 decision in Noel Canning v. NLRB. In that case, the Supreme Court ruled that President Obama's January 4, 2012 recess appointments to the National Labor Relations Board (NLRB) were invalid and upheld a decision by the US Court of Appeals for the District of Columbia Circuit vacating a challenged NLRB decision for lack of a three-member quorum.
On June 26, 2014, in Noel Canning v. NLRB, the US Supreme Court unanimously upheld the US Court of Appeals for the District of Columbia Circuit decision invalidating President Obama's January 4, 2012 recess appointments to the panel (Board) heading the National Labor Relations Board's (NLRB) judicial and election functions (12-1281, (June 26, 2014)). In particular, the Supreme Court held that the appointments of Board Members Richard Griffin, Sharon Block and Terence Flynn were outside the President's authority under the Recess Appointments Clause and therefore unconstitutional. The decision was the first ruling in which the Supreme Court interpreted the US Constitution's Recess Appointments Clause, which empowers the President to "fill up all Vacancies that may happen during the Recess of the Senate" (U.S. Const. art. II, § 2, cl. 3). Even though the Court divided 5-4 on the basis for its ruling, the unanimous Court held the recess appointments were unconstitutionally made during a three-day period between pro forma Senate sessions, which was insufficient to trigger the Recess Appointments Clause. Because the appointments were unconstitutional, the Board lacked the three-Member quorum required under the National Labor Relations Act (NLRA) for it to act (see New Process Steel v. NLRB, 130 S. Ct. 2635 (2010)). As a result of the Court's decision in Noel Canning, all of the decisions that the unconstitutional and quorum-less Board issued from January 4, 2012 to July 31, 2013, when those recess appointees were replaced by a fully-confirmed five Member Board, are invalid. (See Legal Update, Supreme Court Holds 2012 Recess Appointments to the NLRB Were Invalid, Effectively Invalidates 20-Months of NLRB Decisions.)
Practical Law asked Harold P. Coxson of Ogletree Deakins Nash Smoak & Stewart P.C. to discuss the implications of this decision.
Hal is a Shareholder in Ogletree Deakins Washington DC Office. He chairs the firm's Government Relations Practice Group and is a Principal in Ogletree Governmental Affairs, Inc., the firm's wholly owned subsidiary. His practice focuses on traditional labor law and international labor relations.

Will Noel Canning affect how federal agencies function and how the President fills agency vacancies?

The Court's decision will affect future recess appointments for vacancies throughout the federal government. It will void hundreds of published and unpublished Board decisions and other actions beyond the quorum-less, unconstitutionally appointed Board's authority.
Yet, the Court's decision will not create a "Constitutional crisis," as the Board predicted. Had the Court agreed with the DC Circuit's interpretation of the Recess Appointments Clause, that decision may have crippled future presidential recess appointments. The DC Circuit ruled that recess appointments may only be constitutional if made during the recess between the two sessions of Congress (intersession, as opposed to intrasession recesses taken during sessions of Congress) and only when the vacancies arose during the recess as distinguished from vacancies that arose before and continued into an intersession recess. The Court did not go that far.
Instead, the Supreme Court ruled that:
  • The intersession/intrasession dichotomy is not controlling.
  • It makes no difference whether the appointments were made when the Senate was only engaged in pro forma sessions.
  • Recess appointments are available for preexisting vacancies.
After carefully examining the history of recess appointments, going back to the Founding Fathers in its lengthy decision and appendixes, the Court majority clearly wanted to preserve the President's authority to make recess appointments.
The Court ruled that the Recess Appointments Clause merely requires that Congress be in a recess of longer than three days and not in session, including pro forma sessions, when it can conduct business and consider appointments under its constitutional "advice and consent" responsibility. The Court found that recess appointments made during recess periods of three or fewer days, such as the period when President Obama made the recess appointments here, are invalid. In addition, appointments made during Senate recesses lasting fewer than ten days are presumptively invalid, except under extraordinary circumstances. Further, the Court ruled it is for the Senate, not the President, to determine when it is in session, pro forma or otherwise.

How will Noel Canning practically impact presidents' use of the Recess Appointments Clause?

As a practical matter, the Court's Noel Canning decision may slow the appointment process and in turn, the advancing of federal agencies' agendas. However, the need for recess appointments to fill vacancies at federal agencies including the NLRB may be less urgent because the Senate has decided to exercise the "nuclear option" (and now requires only a simple majority vote to advance Executive Branch and judicial nominations by banning a filibuster). What is likely to happen, however, is that Congress will simply stay in pro forma sessions convening every three days rather than recess for longer than three days. That was exactly what Senate Majority Leader Harry Reid did for over two years to preclude President George W. Bush from exercising his recess appointment authority to fill vacancies.

What does Noel Canning mean for the parties to that case?

For the parties to the case, Noel Canning and Teamsters Local 760, the effect of the Court's decision is to nullify the Board's decision that found that Noel Canning violated Section 8(a)(5) of the NLRA by refusing to execute a collective bargaining agreement (CBA) to which it had orally agreed (358 N.L.R.B. slip op. 4, (Feb. 8, 2012)). The Supreme Court's decision in Noel Canning returns the parties to the status before the unconstitutional Board panel considered the parties' exceptions (and opposition briefs) to an NLRB administrative law judge's (ALJ) recommended decision and order. The new five-Member Board may now reconsider that decision in light of the parties' exceptions and briefs.

What is the impact on the Board and the parties to the invalid decisions?

On June 26, the day the Court issued the Noel Canning decision, Board Chairman Mark Pearce issued a statement that promised, in part, "The Agency is committed to resolving any cases affected by today's decision as expeditiously as possible."
Chairman John Kline of the House Education and Workforce Committee along with the other majority leaders on the committee observed:
Now the board will have to begin the process of reconsidering hundreds of decisions issued by the unconstitutionally appointed members. These cases must be a top priority for the board, not the pursuit of controversial regulatory schemes that will simply wreak further havoc on our nation's workplaces. The men and woman who were thrown in limbo by the President's unconstitutional overreach have waited long enough for the justice they deserve.
The Board will be forced to juggle current cases, reconsider returned previously decided cases, and still address its other priorities, such as the pending R-Case Rules (the so-called ambush election rules) that govern union representation elections. Reconsideration of the significant decisions of the unconstitutional Board is likely to take many months. As Board Chairman Pearce and Committee Chairman Kline agreed, expedited consideration of the returned cases is owed to the parties, who have been in limbo since their cases were first decided. Yet, employers should not expect the Board to put the ambush election rulemaking on the back burner. Instead, employers should expect the Board to expedite the rulemaking as a priority before Board Member Schiffer's term expires on December 16, 2014. The expiration of Member Schiffer's term would likely reduce the Board to a 2-2 Democrat-Republican deadlock. Employers should also expect the Board to prioritize the most significant and precedent setting of the returned decisions for the same reason.

What will be the NLRB's next steps?

The Board issued over 700 published and unpublished decisions during the period when it lacked a quorum to act. Of those, 128 remain active before various federal courts of appeals. The active cases will either be remanded to the Board by the courts of appeals or set aside by the Board and recalled for reconsideration. In light of the Noel Canning decision, the NLRB Office of General Counsel, is contacting counsel of record in more than 100 active cases pending in the federal courts of appeals and asking for their positions on whether they would oppose a General Counsel motion:
  • Vacating the decision.
  • Agreeing to have the case remanded to the Board.
  • Asking that the court in question expedite the process.
For cases that were either resolved by compliance or settlement and are no longer active, there is no statute of limitations limiting appeal from a final Board order. It is then possible that even parties who failed to raise an objection to the Board's jurisdiction due to a lack of a quorum may revive their cases for reconsideration by the current Board.
If the Board follows the same procedures it did for reconsidering returned decisions in 2010 after New Process Steel, the Board will establish new three-member panels in every case that Noel Canning affected, consisting of a majority of members who have yet to consider the underlying facts. There is nothing to preclude the Board from forming some panels consisting of two Republican members, in which case the outcome may be different, at least to some degree, from the original decision. On returned five-Member decisions, there also now may be two dissents as compared with the single dissent in the decisions reconsidered from 2010 following New Process Steel. It now may not be as easy for the Board to "rubber stamp" the returned decision to the same degree it had after New Process Steel because the decisions are more significant and raise more difficult issues. The new Board Members may also insist on full review of these returned decisions.

Has the NLRB started taking these steps?

The Board wasted no time in recalling cases previously decided by the unconstitutional recess Board. On June 27, over the first weekend following the Noel Canning decision, the Board set aside the first series of many previously issued decisions that had been held in abeyance by the circuit courts. The Board will retain jurisdiction for reconsideration of these previously issued decisions under Section 10(d) of the NLRA (29 U.S.C. § 160(d)).

What are the most significant cases to be reconsidered?

Unlike the relatively noncontroversial cases returned to the Board for reconsideration following the Supreme Court's decision in New Process Steel, many of the invalid decisions that the Board must now reconsider following Noel Canning reversed long-standing and well-established legal precedent over strong dissents. Only one of the current Board Members, Chairman Mark Pearce, served on the Board and participated in deciding those cases. The other four Senate-confirmed Board Members, Democrats Schiffer and Hirozawa, and Republicans Johnson and Miscimarra, will now consider the difficult issues in the returned cases for the first time. The Board likely will push for reconsideration of the most controversial cases first, before Board Member Schiffer's term expires this December, when the Board will be reduced to a potential 2-2 deadlock.
The most significant previously issued decisions the Board can be expected to reconsider include:
  • Banner Estrella Medical Center (Banner Health System). In this case, the Board majority struck down a rule prohibiting employees from discussing ongoing investigations of misconduct with other employees. The Board ruled that the employer must show a legitimate justification that outweighs the employees' Section 7 rights. The employer argued that the request not to discuss the on-going investigation was made to preserve the integrity of the investigation. In dissent, Board Member Hayes noted that the employer had not promulgated a work rule but had merely suggested that the employees not discuss the investigation and had made no threat of discipline. (358 N.L.R.B. slip op. 93, (July 30, 2012) and see also Legal Update, Employer Violated NLRA by Asking Employees Not to Discuss Ongoing Investigations with Co-workers: NLRB.)
  • WKYC-TV, Gannett Co. In this case, the Board majority ruled that an employer must continue to deduct union dues from employees' paychecks after the governing CBA expired. The decision overturned over 50 years of well-established precedent (see Bethlehem Steel, 136 N.L.R.B. 1500 (1962)). As dissenting Board Member Hayes noted, the employer was lawfully entitled to cease deducting and remitting union dues under Bethlehem Steel, but that under the majority's ruling, once dues checkoffs are instituted, employers must continue them past expiration of the underlying CBA forever, or until the parties either agree to discontinue them or reach a valid impasse. (359 N.L.R.B. slip op. 30, (Dec. 12, 2012) and see also Legal Update, 50-year-old Precedent Overruled: Union Dues Checkoff Now Survives Expiring CBA: NLRB.)
  • Finley Hospital. In this case, the Board majority held that the employer violated the NLRA by failing to provide post-contract expiration wage increases of 3% per year under the expired CBA. In dissent, Board Member Hayes noted that there is neither a contractual nor a statutory duty to make further post-expiration adjustments. He described the majority's holding as "a startling and troubling revelation to employers of a heretofore unknown obligation to continue giving nondiscretionary wage and benefit increases post-expiration at the rate given in the final year of a CBA until the parties reach agreement on a successor contract or impasse." (359 N.L.R.B. slip op. 9, (Sept. 28, 2012) and see also Legal Update, Employer Must Maintain Status Quo by Continuing One-time Pay Raises After Collective Bargaining Agreement Ends: NLRB.)
  • Alan Ritchey, Inc. In this case, the Board held for the first time in its history that an employer must bargain with the newly-certified union before imposing discretionary discipline during the period before the parties have negotiated a CBA. Board Member Hayes was recused from participating in the decision. (359 N.L.R.B. slip op. 40, (Dec. 14, 2012) see also Legal Update, Unionized Employers Must Bargain about Individual Discipline In Absence of a Collectively-bargained Grievance Process: NLRB.)
  • Fresenius USA Manufacturing. In this decision, the Board majority held that the employer violated the NLRA when it terminated an employee for writing vulgar, offensive and threatening statements on materials left in a break room and subsequently lying during the employer's investigation of the incident which was called for by female employees who alleged the comments were sexual harassment. The Board majority held the offending employee was privileged to lie during a harassment investigation because his inappropriate comments were related to protected activity during a decertification election. This case presents the dichotomy between an employer's obligations under Title VII of the Civil Rights Act of 1964 (Title VII) and Section 7 of the NLRA. Title VII requires prompt investigation of sexual harassment charges, remedial action and truthfulness by the parties subject to the investigation. While, apparently, the Board majority holds that Section 7 allows the party being investigated to lie if the alleged offense occurred as part of concerted activity. Dissenting Board Member Hayes noted that the majority's ruling "confers on employees engaged in Section 7 activities a degree of insulation from discipline for misconduct that the Act neither requires nor warrants." He continued that the majority "impermissibly fetters the ability of employers to comply with the requirements of other labor laws to maintain civility and order in the workplace by monitoring and enforcing rules nondiscriminatorily prohibiting abusive and profane language, sexual harassment, and verbal, mental and physical abuse." (358 N.L.R.B. slip op. 138, (Sept. 19, 2012) and see also Legal Update, Employee's Offensive and Potentially Harassing Comments Are Protected under the NLRA: NLRB.)
  • Piedmont Gardens. In this case, the Board majority overturned the long-standing and well-established rule adopted in Anheuser-Busch, which held that an employer's general obligation to provide relevant information in response to a union's request does not include the duty to provide witness statements obtained during an employer's investigation of employee misconduct (237 N.L.R.B. 982 (1978)). As dissenting Board Member Hayes noted, the rule in Anheuser-Busch had provided a bright-line test for over 30 years which "protects the integrity of the arbitration process, protects employee witnesses who participate in workplace investigations from coercion and intimidation, and enables employers to conduct effective investigations into workplace misconduct." In addition, he noted, by overturning that rule, the Board Majority conflicts with guidance from the Equal Employment Opportunity Commission (EEOC) regarding confidentiality. (359 N.L.R.B. slip op. 46, (Dec. 15, 2012), set aside by Order, (June 27, 2014) and see also Legal Update, 34-year-old Precedent Overturned: Employers Obligated to Provide Witness Statements at Union's Request: NLRB.)
  • Costco Wholesale Corp. In this decision, the Board held that the company's social media policy violated the NLRA. The company's social media policy provided that employees should be aware that statements posted electronically (such as to online message boards or discussion groups) that damage the company, defame any individual or damage any person's reputation or violate the policies outlined in the Costco Employee Agreement, may be subject to discipline, up to and including termination of employment. The Board found that employees would reasonably construe the rule as one that prohibits Section 7 activity because it clearly encompasses concerted communications. (358 N.L.R.B. slip op. 106, (Sept. 7, 2012) and see also Legal Update, NLRB Invalidates Electronic Posting Rule in First Published Opinion Concerning Employers Limiting How Employees Use Social Media.)
  • Knauz BMW. In this decision, issued a few weeks after its Costco decision, the Board again analyzed the lawfulness of an employer's social media policy which required employees to be courteous and avoid being disrespectful in their dealings with customers, vendors and suppliers and their fellow employees. The Board majority found the policy was unlawful because employees would reasonably construe the prohibition against "disrespectful" conduct and "language which injures the image or reputation of the Dealership" as affecting their ability to engage in protected Section 7 activity. The Board added that employees would interpret the rule as meaning that "statements of protest or criticism" would violate the policy. Dissenting Member Hayes criticized the Majority's method of "reading words and phrases in isolation" effectively "invalidat[ing] any handbook policy that employees conceivably could construe to prohibit protected activity, regardless of whether they reasonably would do so." (358 N.L.R.B. slip op. 164, (Sept. 28, 2012) and see also Legal Update, Facebook Firing Lawful; Employer's "Courtesy" Rule Prohibiting Disrespectful Speech Was a ULP: NLRB.)
  • J.W. Marriott Los Angeles at L.A. In this case, the Board majority found that a company rule prohibiting off-duty employee access to interior areas of the hotel or to hotel property without managerial approval violated the NLRA. The majority determined the policy was unlawful under a three-part test announced nearly 40 years ago (see Tri-Cnty. Med. Ctr. 222 N.L.R.B. 1089 (1976)) because it did not "uniformly prohibit access to off-duty employees seeking entry to the property for any purpose." Dissenting Member Hayes argued that the Tri-County test "does not require a blanket prohibition on all off-duty access." In support of that position Hayes posed a rhetorical question: "what if an employee forgets her medication at the workplace and faces a medical emergency if she cannot retrieve it?" In response to his own query, Hayes provided the common-sense answer that the NLRA cannot reasonably be interpreted to force employers to choose between "inhuman rigidity and giving off-duty employees free rein to the interior of their facilities." (359 N.L.R.B. slip op. 8, (Sept. 28, 2012) and see also Sodexo Am. LLC, 358 N.L.R.B. slip op. 79, (July 3, 2012) and Legal Updates, Employer's Off-duty Employee Access Rule Invalid; Theoretically, Narrow Exceptions to a No-access Rule Could Be Valid: NLRB and Employer-related Business Exception to Off-duty Access Ban is Unlawful: NLRB).
  • Supply Technologies, LLC. In this case, the Board majority found that the nonunion employer's mandatory grievance-arbitration program violated the NLRA because it prohibited employees from filing unfair labor practice (ULP) charges or otherwise accessing the Board's processes. The majority noted that the arbitration agreement did not expressly designate complaints to the NLRB as exempt, and that its "ambiguity" made it unlawful. In dissent, Member Hayes criticized the majority's apparent shift from a standard of evaluating whether ambiguous language would reasonably tend to interfere with employees' Section 7 rights to a standard under which any ambiguity in a grievance and arbitration provision not clarified by an express guarantee of an employee's right to file ULP charges with the NLRB and to access the NLRB's processes is unlawful. (359 N.L.R.B. slip op. 38, (Dec. 14, 2012) and see also Legal Update, Disclaimer in Mandatory Arbitration Policy for Nonunion Workers Failed to Make Policy Unambiguous About Section 7 Rights: NLRB.)
  • Hispanics United of Buffalo, Inc. In this case, the Board majority found that the employer violated the NLRA by firing five employees for comments they posted on Facebook after learning a co-worker criticized their work performance. Member Hayes dissented stating the Facebook exchange was nothing more than griping around the "virtual water cooler." He argued that while the exchange was concerted (in the sense that it was group activity), it was not undertaken for the mutual aid and protection of the employees involved. (359 N.L.R.B. slip op. 37, (Dec. 14, 2012) and see also Legal Update, Employees' Facebook Posts about Coworker's Job Performance Criticisms was Protected Concerted Activity: Facebook Firings Unlawful: NLRB.)
  • Nurses and Allied Professionals (Kent Hospital). In this case, the Board majority held that unions may charge Beck objectors (bargaining unit employees who object to union dues being withdrawn from their pay to be used for certain union expenses) for lobbying expenses in some circumstances. In dissent, Member Hayes argued that the union improperly charged the Beck objectors for lobbying activities that were not so related to the union's representational duties to employees as to justify their compelled financial support of them. (359 N.L.R.B. slip op. 42, (Dec. 14, 2012).)
  • Flex Frac Logistics, LLC. In this case, the Board majority held that a confidentiality agreement that prohibited employees from, among other things, disclosing personnel information and documents to persons outside the organization was unlawfully overbroad in violation of the NLRA. The majority found that employees would reasonably construe this language as prohibiting them from discussing their wages and other terms and conditions of work with non-employees such as union representatives. In dissent, Board Member Hayes criticized the majority for cherry picking words or phrases in isolation thereby failing to read the entire rule in context and with appropriate consideration of its obvious legitimate business justifications, which included ensuring that the employer could bid for contracts without its competitors discovering its cost structure. (358 N.L.R.B. slip op. 127, (Sept. 11, 2012), enforced by 746 F.3d 205 (5th Cir. 2014) and see also Legal Update, Confidentiality Policy That Can Reasonably Be Interpreted To Restrict Discussion of Wages Violates NLRA: Fifth Circuit.)
  • Guide Dogs for the Blind. While Noel Canning does not impact Specialty Healthcare & Rehabilitation Center of Mobile (357 NL.R.B. slip op. 83, (Aug. 26, 2011)), it does impact several decisions relying on it, including Guide Dogs for the Blind, because the Board used the Specialty Healthcare ruling to affirm a micro-unit. The Board affirmed an NLRB regional director's Decision and Direction of Election finding the petitioned-for bargaining unit of canine welfare technicians and instructors was appropriate because they shared a substantial community of interest. The employer argued that the smallest appropriate unit needed to include employees from five additional departments, including breeding, puppy-raising, kennel, admissions and graduate services and veterinary. The Board found that the employer had not met its burden under Specialty Healthcare of demonstrating those employees shared an overwhelming community of interest with the petitioned-for employees, so as to require their inclusion in the unit. (359 N.L.R.B. slip op. 151, (July 3, 2013).) For information about Specialty Healthcare, see Legal Update, NLRB Changes Standard for Determining an Appropriate Bargaining Unit.

Are there other implications for the NLRB from Noel Canning?

Noel Canning leaves several other thorny issues unresolved. The decision expressly finds that the Board lacked authority to issue decisions and orders between January 4, 2012 and July 31, 2013. However, Noel Canning may also impact other actions by the Board during that period including the approvals of several NLRB Regional Directors' appointments. For example, the unconstitutional Board approved the NLRB's General Counsel appointments of NLRB regional directors in Regions 1 (Boston), 2 (New York), 4 (Philadelphia), 7 (Detroit), 10 (Atlanta), 12 (Tampa), 19 (Seattle), 21 (Los Angeles), 29 (Brooklyn) and 31 (Los Angeles) in 2012 and 2013. In light of Noel Canning, those regional director appointments approved by a Board when it was not authorized to act and all of those regional directors' actions may be invalid.
Regional directors take many consequential actions, such as issuing decisions and direction of elections, resolving election objections and challenged ballots, deciding whether to issue complaints or dismiss ULP charges, and seeking Section 10(j) injunctive relief in federal court when authorized by the Board.

What does the Court's analysis in Noel Canning suggest about the validity of Craig Becker's 2010 recess appointment to the Board?

Noel Canning also does not resolve questions about the validity of Board Member Craig Becker's recess appointment and cases decided during his recess term. Member Becker was given a recess appointment on March 27, 2010 after the Senate voted not to confirm his nomination. He served from April 5, 2010 until Jan. 3, 2012 when his recess appointment expired. After August 27, 2011, when Board Chair Wilma Liebman's term expired, Member Becker's appointment was necessary for the Board to have a three-member quorum because the only other two Board Members were Chairman Pearce and Member Brian Hayes, both of whom had been confirmed by the Senate. While Member Becker was given a recess appointment during a recess longer than three days and, therefore, Noel Canning may not be pertinent, there are pending cases challenging his recess appointment and the decisions issued when his membership was necessary for a Board quorum (see Legal Update, Third Circuit Joins DC Circuit in Condemning NLRB Intrasession Recess Appointments; Casts Doubt on Validity of Other Recess Appointees' Decisions).
Among the significant Board decisions issued during Member Becker's recess term that may be invalidated is D.R. Horton. In that case, the Board struck down class action waivers in arbitration agreements (357 N.L.R.B. slip op. 184, (Jan. 3, 2012) and Legal Update, Mandatory Arbitration Agreement Prohibiting Class and Collective Actions Violates the NLRA: NLRB.)
The Fifth Circuit granted the employer's petition for review and declined to enforce most of the Board's holding in D.R. Horton (D.R. Horton v. NLRB, 737 F.3d 344 (5th Cir. 2013)). However, NLRB ALJs continue to apply its principles in their decisions. For more information on D.R. Horton, see Legal Update, FAA Trumps NLRA in D.R. Horton Class Action Waiver Challenge: Fifth Circuit and Article, Class Action Waivers in Employment Agreements: Expert Q&A with D.R. Horton's Counsel, Ron Chapman of Ogletree Deakins.

What should an employer do now?

Although Board decisions and other actions between January 4, 2012 and July 31, 2013 are void under Noel Canning, employers should not simply ignore cases decided during that period. Affected parties should carefully and strategically consider actions to reopen the invalid decisions with advice of counsel. Employers that seek to reopen cases despite failing to challenge the Board's jurisdiction to act based on the invalid recess appointments and lack of quorum employers can expect to be challenged by the General Counsel, even though there is no statute of limitations. Cases relying on older precedent unaffected by Noel Canning, such as the general expansion of protected concerted activity, will continue to be pursued by the Board and General Counsel.
The decisions of the unconstitutional Board that overturned long-standing Board precedent, such as mandatory bargaining over interim discipline, post-contract expiration dues check off, wage increases after contract expiration, and production of witness statements, are invalid and may be ignored as nonprecedential at least until the fully confirmed, five-Member Board reconsiders those decisions.