U.S. Court of Appeals Strikes Down National Labor Relations Board Poster Rule

The U.S. Court of Appeals for Washington, D.C. has ordered an injunction blocking a new National Labor Relations Board (NLRB) rule that was originally scheduled to go into effect on April 30. The new rule would require employers to place posters informing employees of their rights to unionize. The appeal originated with a group of business lobby groups who claim that the NLRB has stepped beyond its authority with the introduction of the rule.

The lobby groups, including the National Association of Manufacturers, the National Right to Work Legal Defense and Education Foundation, and others, argue that the rule would negatively affect up to six million employers with its overly pro-union stance. The court of appeals has delayed the implementation of the rule until the appeal has been heard. This delay comes on the heels of an earlier ruling by a federal district court that let the rule stand but diminished its authority to punish noncompliant employers.

The judge presiding over the district court stated that, “an employer’s mere failure to supply information” does not constitute a violation of labor laws. This effectively removed the whole impact the rule was intended to make, ruling that failing to display the poster was not an unfair labor practice. However, as a factor in a larger charge, failing to post the information could play a role in determining whether or not an employer is in violation of federal law. The NLRB is in the process of appealing this decision.