Chamber of Commerce of the United States v. National Labor Relations Board

856 F. Supp. 2d 778, 2012 WL 1245677, 193 L.R.R.M. (BNA) 2026, 2012 U.S. Dist. LEXIS 52419
CourtDistrict Court, D. South Carolina
DecidedApril 13, 2012
DocketNo. 2:11-cv-02516-DCN
StatusPublished
Cited by5 cases

This text of 856 F. Supp. 2d 778 (Chamber of Commerce of the United States v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chamber of Commerce of the United States v. National Labor Relations Board, 856 F. Supp. 2d 778, 2012 WL 1245677, 193 L.R.R.M. (BNA) 2026, 2012 U.S. Dist. LEXIS 52419 (D.S.C. 2012).

Opinion

ORDER

DAVID C. NORTON, District Judge.

This matter comes before the court on cross motions for summary judgment. The Chamber of Commerce of the United States and the South Carolina Chamber of Commerce (collectively, “plaintiffs”) seek review of a final rule promulgated by the National Labor Relations Board (“NLRB” or “the Board”). For over seventy-five years, the NLRB has been nearly unique among federal labor agencies in not requiring employers to post a general notice of employee rights in the workplace. On December 22, 2010, the Board changed course and issued a proposed rule: all employers subject to the National Labor Relations Act (“NLRA” or “the Act”) must post notices informing employees of their rights under the NLRA. After completing a notice-and-comment process, the Board published a final rule on August 30, 2011. The rule is presently set to take effect on April 30, 2012. As explained below, the Board, in promulgating the final rule, exceeded its authority in violation of the Administrative Procedure Act; therefore, the court grants summary judgment in favor of plaintiffs.

I. BACKGROUND

A. Procedural History

On September 19, 2011, plaintiffs filed a complaint for injunctive relief against the NLRB, Chairman Mark Pearce, Member Craig Becker, Member Brian Hayes, and General Counsel Lafe Solomon.1 By agreement, the parties filed cross motions for summary judgment on November 9, 2011. The parties then filed responses in opposition on December 7, 2011. On January 3, 2012, defendant Craig Becker’s ap[781]*781pointment as a Board Member expired, leaving only Chairman Pearce and Member Hayes on the Board. Following recess appointments to the Board by President Barack Obama, on January 11, 2012, Sharon Block, Terence F. Flynn, and Richard F. Griffin, Jr. were substituted as defendants. The court held oral argument on February 6, 2012.

B. The National Labor Relations Act

The NLRA, 29 U.S.C. §§ 151-169, governs labor relations between private sector employers, labor unions, and employees. It “creates a system for the organization of labor with emphasis on collective bargaining by employees with employers in regard to labor relations which affect commerce.” Republic Aviation Corp. v. NLRB, 324 U.S. 793, 799, 65 S.Ct. 982, 89 L.Ed. 1372 (1945). Enacted in 1935, the NLRA was originally known as the Wagner Act after its sponsor, Senator Robert F. Wagner of New York, and was signed into law by President Franklin Delano Roosevelt. Congress amended the Act in 1947, 1959, and 1974. See Labor Management Relations Act (“Taft-Hartley Act”), Pub.L. No. 80-101, 61 Stat. 136 (1947); Labor Management Reporting and Disclosure Act (“Landrum-Griffin Act”), Pub.L. No. 86-257, 73 Stat. 519 (1959); Health Care Amendments, Pub.L. No. 93-360, 88 Stat. 395 (1974). Congress also established the NLRB in 1935. The NLRB is an executive branch agency that administers and enforces the NLRA, and consists of a Chairman, four Members, and a General Counsel, all appointed by the President with the advice and consent of the Senate. The Board oversees various Regional Offices.

The first five sections of the Act are primarily structural. Section 1 sets forth Congress’s aspirations: to address the “inequality of bargaining power between employees ... and employers”; to “encourag[e] the practice and procedure of collective bargaining”; and to “protect[] the exercise by workers of full freedom of association, self-organization, and designation of representatives of their own choosing.” 29 U.S.C. § 151. Section 2 defines certain terms in the Act. Sections 3, 4, and 5 establish and lay out the composition of the Board, along with some of its authority and obligations.

Section 6 confers rulemaking authority on the Board: “The Board shall have authority from time to time to make, amend, and rescind, in the manner prescribed by the Administrative Procedure Act,2 such rules and regulations as may be necessary to carry out the provisions of this Act.” Id. § 156.

Section 7 lists the core labor rights of employees. These include employees’ rights “to self-organization”; “to form, join, or assist labor organizations”; “to bargain collectively through representatives of their own choosing”; “to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection”; and “to refrain from any or all such activities.” Id. § 157.

Sections 8 through 12 establish the Board’s authority over unfair labor practice disputes and representation elections. Sections 8 and 10 authorize the Board to investigate, prevent, and remedy “unfair labor practices,” or “ULPs,” that violate employees’ Section 7 rights. Congress prohibited five specific ULPs by employers, each of which is listed in Section 8. ULP charges are subject to a six-month statute of limitations, which may only be tolled if the person filing a charge was [782]*782delayed by reason of service in the armed forces. Id. § 160(b). Section 9 authorizes the filing of representation petitions, in which a petitioner alleges that a substantial number of employees wish to be represented by a union for collective bargaining. Under Section 9, the Board may investigate questions of representation, conduct hearings, hold secret-ballot elections, and certify the results thereof. Section 9(b) specifically requires the Board to decide the appropriate collective bargaining unit in each representation case. Section 11 gives investigatory powers to the Board in relation to its authority under Sections 9 and 10. Finally, Section 12 prohibits interference with the Board in the performance of its duties. The remaining provisions of the Act are not relevant to the instant case.

Through this framework, Congress intended the NLRB to be a quasi-judicial body that “has two main functions: to conduct representation elections and certify the results, and to prevent employers and unions from engaging in unfair labor practices.” NLRB, Basic Guide to the National Labor Relations Act 33 (1997), http://www.nlrb.gov/sites/default/files/ documents/224/basicguide.pdf. “In both kinds of cases the processes of the NLRB are begun only when requested.” Id. The Board readily acknowledges that it lacks “roving investigatory powers” and instead traditionally functions as a reactive agency. 76 Fed.Reg. 54,006, 54,010 (Aug. 30, 2011). In its most recent Performance and Accountability Report, the Board stated, “The NLRB acts only on those cases brought before it, and does not initiate cases. All proceedings originate with the filing of charges or petitions by labor unions, private employers, and other private parties.” NLRB, 2011 FY Performance and Accountability Report 12 (emphasis added). The Acting General Counsel, Lafe Solomon, has explained that the “NLRB’s processes can be invoked only by the filing of an unfair labor practice charge or a representation petition by a member of the public. The agency has no authority to initiate proceedings on its own.” NLRB GC Mem. 11-03, 2 (Jan. 10, 2011) (emphasis added).

C. The Rule

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856 F. Supp. 2d 778, 2012 WL 1245677, 193 L.R.R.M. (BNA) 2026, 2012 U.S. Dist. LEXIS 52419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chamber-of-commerce-of-the-united-states-v-national-labor-relations-board-scd-2012.