HealthBridge Management, LLC v. National Labor Relations Board

902 F.3d 37
CourtCourt of Appeals for the Second Circuit
DecidedAugust 23, 2018
Docket17-934; 17-1149; August Term 2017
StatusPublished
Cited by7 cases

This text of 902 F.3d 37 (HealthBridge Management, LLC v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HealthBridge Management, LLC v. National Labor Relations Board, 902 F.3d 37 (2d Cir. 2018).

Opinion

Dennis Jacobs, Circuit Judge:

HealthBridge Management, LLC and six healthcare centers that it operates (collectively "HealthBridge") petition for review of a decision of the National Labor Relations Board ("the Board") finding that HealthBridge engaged in a number of unfair labor practices in violation of the National Labor Relations Act ("NLRA"), 29 U.S.C § 158(a)(1), (5). See HealthBridge Mgmt., LLC , 365 NLRB 37 , 2017 WL 971615 (Feb. 22, 2017). The Board cross-applies for enforcement of its remedial order. Our standard of review is well established, and we discuss it further below. See NLRB v. Katz's Delicatessen of Houston St., Inc. , 80 F.3d 755 , 763 (2d Cir. 1996).

The proceeding arises chiefly from the 15-month employment of certain HealthBridge workers by a management company retained by HealthBridge, and their purported rehiring by HealthBridge without seniority, tenure, and other features of their prior positions. At issue are the validity of the rehiring, and two related matters:

*41 the company's failure to rehire two of the workers, and its threat to call the police to quell worker dissatisfaction when the rehiring terms were announced. (Point II)

Also in contention are additional charges of unfair labor practices lodged by the employees' union based on HealthBridge's discontinuation of two practices: providing holiday premium pay for part-time and per diem workers, and counting lunch periods as time worked for purposes of calculating overtime. (Point III)

We deny the petition for review and enforce the Board's remedial order.

I

New England Health Care Employees Union ("the union") has represented bargaining units of workers employed at HealthBridge's healthcare centers since the early 1990s. These units include certified nursing assistants, cooks, central supply clerks, and the employees primarily at issue here: housekeeping and laundry workers (hereinafter "housekeeping workers"). The union and the various centers entered into materially identical collective bargaining agreements ("CBAs") that were effective from 2004 to 2011.

Article 9(F) of each CBA provided that "[n]o bargaining unit work shall be subcontracted unless the subcontractor agrees in advance to retain the Employees and recognize all their rights, including seniority, under this agreement." HealthBridge , 2017 WL 971615 , at *1 n.7. "[A]ny purchaser, transferee, lessee, assign[ee]," "or other successor[ ]" was required to accept the CBAs' terms and to honor any benefits accrued by the employees thereunder. Id.

In 2006, HealthBridge subcontracted the supervision of its housekeeping workers to Healthcare Services Group ("HSG"). HSG supplied on-site managers to supervise (and provided certain supplies) while the employees continued to perform the same work as before at the HealthBridge centers and remained on HealthBridge's payroll. The terms of the CBAs were given full effect during the three years of that arrangement.

In February 2009, HealthBridge and HSG entered into a full-service subcontract covering the housekeeping workers at three of the HealthBridge centers. Under the new arrangement, HSG assumed "all managerial and payroll responsibility" for the workers, who continued to perform the same work as before. Id. at *2. HealthBridge continued to run the centers, and workers in other bargaining units (such as certified nursing assistants) continued to work independently of HSG.

At the outset of this new arrangement, the 48 affected housekeeping workers were told simply that they were being "transferred to HSG's payroll"; they were not told that they were being laid off or otherwise terminated by HealthBridge, and they were not asked to apply for employment with HSG. Id. (internal quotation marks omitted). HealthBridge assured the union that "all [of the housekeeping workers'] accrued benefits, seniority and job status w[ould] [remain] intact and [that] HSG w[ould] agree to all terms and conditions of the contract between the Union and [HealthBridge]." Id.

Fifteen months later (several months before the expiration of the 2004-2011 CBAs), that subcontract arrangement ended. On May 17, 2010, the 48 housekeeping workers received individual letters from HSG informing them that they would "no longer be employed by" HSG and that "[p]ayroll services" would no longer "be provided" for housekeeping workers at the three relevant centers. Id. at *3 (internal quotation marks omitted). The workers were further informed that they would *42 need to attend meetings at their respective centers to reapply for their jobs.

At each meeting, HealthBridge told the workers that those who wished to remain employed at the centers would need to apply for "rehire" by HealthBridge and that rehired workers would be treated as "new hires," without any of the seniority that they had accrued. Id. (internal quotation marks omitted). The upshot was that the rehired workers would lose up to a third of their hourly pay, as well as other contractual benefits, including job security and health insurance. When, at one of the three centers, the housekeeping workers protested the new arrangement, the HealthBridge administrator in charge threatened to call the police to eject workers who did not either fill out a rehire application or leave the premises immediately.

Within 24 hours, 47 of the 48 workers applied for rehire. All but two who applied were rehired either the same day or one day later. (Not rehired were Newton Daye and Myrna Harrison, who had worked at HealthBridge for 13 and 22 years, respectively.) The " 'rehiring' interviews were 'non-existent, perfunctory or cursory,' " and "[m]ost employees returned to work the same day they were reemployed, continuing to do the same work they had performed before and during the full-service HSG subcontracts." Id. at *4. HealthBridge refused to honor the seniority of the 45 rehired workers, and the union responded by filing charges of unfair labor practices with the Board.

The proceedings before the Board also resolved charges that were unrelated to the rehiring of the housekeeping workers, and which affected other units as well.

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Cite This Page — Counsel Stack

Bluebook (online)
902 F.3d 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/healthbridge-management-llc-v-national-labor-relations-board-ca2-2018.