Adams & Associates, Inc. v. National Labor Relations Board

871 F.3d 358, 209 L.R.R.M. (BNA) 3598, 2017 U.S. App. LEXIS 17917
CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 15, 2017
Docket16-60333
StatusPublished
Cited by9 cases

This text of 871 F.3d 358 (Adams & Associates, Inc. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adams & Associates, Inc. v. National Labor Relations Board, 871 F.3d 358, 209 L.R.R.M. (BNA) 3598, 2017 U.S. App. LEXIS 17917 (5th Cir. 2017).

Opinion

JAMES E. GRAVES, JR., Circuit Judge:

Adams and Associates, Inc. (“Adams”) and McConnell, Jones, Lanier & Murphy LLP (“MJLM”) petition for review of an order of the National Labor Relations Board, holding them liable for unfair labor practices in violation of the National Labor Relations Act, 29 U.S.C. § 151 et seq. Adams and MJLM operate a Job Corps Youth Training Center in Sacramento, California, under a contract with the Department of Labor. The allegations in this case arose from Petitioners’ successorship to the former contractor, Horizons Youth Services, LLC (“Horizons”). During the period in which it operated the Center, Horizons had a collective-bargaining agreement with Sacramento Jobs Corps Federation of Teachers, AFT Local 4986, American Federation of Teachers (the “Union”). The Board’s order found that Adams violated Sections 8(a)(3) and (1) of the Act by discriminatorily refusing to hire five incumbent employees in order to avoid an obligation to bargain with the Union; and violated Sections 8(a)(5) and (1) by unilaterally imposing initial terms and conditions of employment on the unit employees and banning Union president Genesther Taylor from the Center. The Board further found that MJLM and Adams are joint employers and are jointly and severally liable for the aforementioned violations. The Board cross-petitions for enforcement of its order. For the reasons that follow, we deny the petition for review and grant the Board’s cross-petition for enforcement of the- order.

I. BACKGROUND

MJLM and Adams jointly bid for a contract with the Department of Labor (“DOL”) to operate the Job Corps Center in Sacramento (the “Sacramento Center” or the “Center”). The Job Corps program administered by the DOL provides academic and vocational training to economically disadvantaged youth, ages sixteen to twenty-four, at residential centers throughout the United States. Both companies have contracts to operate various Job Corps centers across the country. In early February 2014, the DOL awarded the primary contract to MJLM to operate the Center with Adams as its subcontractor for residential, wellness, recreation, counseling, and career services. MJLM has “overall responsibility for management of the Center” and “directly handles education and training, maintenance, finance, and administration.” Horizons had been operating the Center since 2009. Its collective-bargaining agreement (“CBA”) with the Union covered all bargaining unit employees, which included “[a]ll full-time Residential Advisors (RA), Non-Residential Advisors, and Day Residential Advis-ors employed at the [Center].” Horizons employed 26 bargaining unit RAs, who oversaw the students residing in the Center’s dormitories. The most recent agreement between Horizons and the Union was effective by its terms until June 2013, but had been extended to March 9, 2014.

Transition Process Begins

In early February 2014, MJLM and Adams opened a shared transition office in the Sacramento Center. Both Adams and MJLM personnel participated in the transition. From Adams, the transition management team consisted of Executive Director Jimmy Gagnon, Executive Director of Human Resources Valerie Weldon, and Deputy Center Director Kelly McGillis; from MJLM, Partner Sharon Murphy, HR Director Joyce Barrett, and Center Director Erica Evans participated. Adams’ CEO Roy Adams (“Roy”) and Vice President for Human Resources and General Counsel Tiffinay Pagni provided additional support from Adams’ headquarters. Evans had been the Horizons Center Director and was hired by MJLM to fill that same position. McGillis directly reported to Evans.

On February 11, the Union notified MJLM that it was the exclusive collective-bargaining representative of the unit employees and requested information concerning the hiring process. On February 13, Adams responded to the Union and stated that it would be responsible for hiring and employment of the Center’s RAs. That same day, Gagnon met with a group of Horizons RAs to announce the transition and advise them about the hiring process. Former Horizons RA and Union President Taylor attended the meeting. She later testified that Gagnon told the RAs that they had been “doing a really good job” and that “aside from disciplinary issues, he was 99 percent sure that [they] would all have a job” after the transition. Gagnon also stated that Adams planned to reduce the number of RAs from twenty-six to fifteen, but would also hire five people in the new position of Residential Coordinator (“RC”). RCs would have roughly the same job duties as RAs, but would also fill in for dormitory supervisors and shift managers when necessary. The Horizons employees were then invited to apply for up to two available positions and given twenty-four hours to return completed applications. They were permitted to review job descriptions at the meeting, but Taylor’s request for copies of the job descriptions was denied. Fourteen incumbent RAs applied for the fifteen available RA positions.

The following day, the Union demanded that Adams recognize and bargain with it as the representative of the RAs. Adams did not respond. Also on that day, Taylor visited the transition office to submit her employment application. She again requested copies of the job descriptions and asked Gagnon additional questions about the transition. Gagnon said that he was unable to provide copies or answer any of her questions and directed her to contact Pagni. Taylor also asked McGillis for a blank employment application for a Horizons RA on medical leave. McGillis referred Taylor to Weldon.

The Hiring Process

The transition period was put on hold for two weeks during a contract appeal and resumed in late February. Although Adams led the hiring process, both Adams and MJLM personnel interviewed applicants and made hiring recommendations. Gagnon made the final hiring decisions. In filling RA positions, Adams was required to follow Executive Order 13495 Non-Displacement of Qualified Workers under Service Contracts (“EO 13495”). EO 13495 incorporated a right of first refusal for displaced employees and required successor contractors to offer employment to all “qualified” incumbent employees of the predecessor contractor. EO 13495 also required the successor to issue employment offers no later than 10 days prior to the commencement of operations. To comply with EO 13495, Adams, through Pagni, created a “Justification for Disqualification of Potential Employment” form (“Disqualification Form”), which the transition team used to document the reasons for not hiring any incumbent applicants.

It is Adams’s practice in such transitions to hire management personnel first, in part so that they can provide input on the performance of incumbent employees. A new contractor is typically not given access to the former contractor’s personnel records and that was the case at the Sacramento Center. Horizons, however, did provide a list of all its current employees, including their job titles and hire and seniority dates (“Horizons List I”).

After Adams hired former Horizons dorm manager, Lee Bowman, McGillis shared Horizons List I with Bowman and sought her feedback on RA applicants. 1

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Cite This Page — Counsel Stack

Bluebook (online)
871 F.3d 358, 209 L.R.R.M. (BNA) 3598, 2017 U.S. App. LEXIS 17917, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adams-associates-inc-v-national-labor-relations-board-ca5-2017.