Hoffman Plastic Compounds, Inc. v. National Labor Relations Board

535 U.S. 137, 122 S. Ct. 1275, 152 L. Ed. 2d 271, 15 Fla. L. Weekly Fed. S 178, 169 L.R.R.M. (BNA) 2769, 2002 Daily Journal DAR 3304, 70 U.S.L.W. 4209, 2002 Cal. Daily Op. Serv. 2731, 2002 U.S. LEXIS 2147
CourtSupreme Court of the United States
DecidedMarch 27, 2002
Docket00-1595
StatusPublished
Cited by303 cases

This text of 535 U.S. 137 (Hoffman Plastic Compounds, Inc. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hoffman Plastic Compounds, Inc. v. National Labor Relations Board, 535 U.S. 137, 122 S. Ct. 1275, 152 L. Ed. 2d 271, 15 Fla. L. Weekly Fed. S 178, 169 L.R.R.M. (BNA) 2769, 2002 Daily Journal DAR 3304, 70 U.S.L.W. 4209, 2002 Cal. Daily Op. Serv. 2731, 2002 U.S. LEXIS 2147 (2002).

Opinions

[140]*140Chief Justice Rehnquist

delivered the opinion of the Court.

The National Labor Relations Board (Board) awarded backpay to an undocumented alien who has never been legally authorized to work in the United States. We hold that such relief is foreclosed by federal immigration policy, as expressed by Congress in the Immigration Reform and Control Act of 1986 (IRCA).

Petitioner Hoffman Plastic Compounds, Inc. (petitioner or Hoffman), custom-formulates chemical compounds for businesses that manufacture pharmaceutical, construction, and household products. In May 1988, petitioner hired Jose Castro to operate various blending machines that “mix and cook" the particular formulas per customer order. Before being hired for this position, Castro presented documents that appeared to verify his authorization to work in the United States. In December 1988, the United Rubber, Cork, Linoleum, and Plastic Workers of America, AFL-CIO, began a union-organizing campaign at petitioner’s production plant. Castro and several other employees supported the organizing campaign and distributed authorization cards to co-workers. In January 1989, Hoffman laid off Castro and other employees engaged in these organizing activities.

Three years later, in January 1992, respondent Board found that Hoffman unlawfully selected four employees, including Castro, for layoff “in order to rid itself of known union supporters” in violation of § 8(a)(3) of the National Labor Relations Act (NLRA).1 306 N. L. R. B. 100. To remedy this violation, the Board ordered that Hoffman (1) cease and desist from further violations of the NLRA, (2) post a detailed notice to its employees regarding the remedial order, and (3) offer reinstatement and backpay to the [141]*141four affected employees. Id., at 107-108. Hoffman entered into a stipulation with the Board’s General Counsel and agreed to abide by the Board’s order.

In June 1993, the parties proceeded to a compliance hearing before an Administrative Law Judge (ALJ) to determine the amount of backpay owed to each discriminatee. On the final day of the hearing, Castro testified that he was born in Mexico and that he had never been legally admitted to, or authorized to work in, the United States. 314 N. L. R. B. 683, 685 (1994). He admitted gaining employment with Hoffman only after tendering a birth certificate belonging to a friend who was born in Texas. Ibid. He also admitted that he used this birth certificate to fraudulently obtain a California driver’s license and a Social Security card, and to fraudulently obtain employment following his layoff by Hoffman. Ibid. Neither Castro nor the Board’s General Counsel offered any evidence that Castro had applied or intended to apply for legal authorization to work in the United States. Ibid. Based on this testimony, the ALJ found the Board precluded from awarding Castro backpay or reinstatement as such relief would be contrary to Sure-Tan, Inc. v. NLRB, 467 U. S. 883 (1984), and in conflict with IRC A, which makes it unlawful for employers knowingly to hire undocumented workers or for employees to use fraudulent documents to establish employment eligibility. 314 N. L. R. B., at 685-686.

In September 1998, four years after the ALJ’s decision, and nine years after Castro was fired, the Board reversed with respect to backpay. 326 N. L. R. B. 1060. Citing its earlier decision in A. P. R. A. Fuel Oil Buyers Group, Inc., 320 N. L. R. B. 408 (1995), the Board determined that “the most effective way to accommodate and further the immigration policies embodied in [IRCA] is to provide the protections and remedies of the [NLRA] to undocumented workers in the same manner as to other employees.” 326 N. L. R. B., at 1060. The Board thus found that Castro was entitled to [142]*142$66,951 of backpay, plus interest. Id., at 1062. It calculated this backpay award from the date of Castro’s termination to the date Hoffman first learned of Castro’s undocumented status, a period of AVz years. Id., at 1061. A dissenting Board member would have affirmed the ALJ and denied Castro all backpay. Id., at 1062 (opinion of Hurtgen).

Hoffman filed a petition for review of the Board’s order in the Court of Appeals. A panel of the Court of Appeals denied the petition for review. 208 F. 3d 229 (CADC 2000). After rehearing the case en banc, the court again denied the petition for review and enforced the Board’s order. 237 F. 3d 639 (2001). We granted certiorari, 533 U. S. 976 (2001), and now reverse.2

This case exemplifies the principle that the Board’s discretion to select and fashion remedies for violations of the NLRA, though generally broad, see, e. g., NLRB v. Seven-Up Bottling Co. of Miami, Inc., 344 U. S. 344, 346-347 (1953), is [143]*143not unlimited, see, e. g., NLRB v. Fansteel Metallurgical Corp., 306 U. S. 240, 257-258 (1939); Southern S. S. Co. v. NLRB, 316 U. S. 31, 46-47 (1942); NLRB v. Bildisco & Bildisco, 465 U. S. 513, 532-534 (1984); Sure-Tan, Inc. v. NLRB, supra, at 902-904. Since the Board’s inception, we have consistently set aside awards of reinstatement or backpay to employees found guilty of serious illegal conduct in connection with their employment. In Fansteel, the Board awarded reinstatement with backpay to employees who engaged in a “sit down strike” that led to confrontation with local law enforcement officials. We set aside the award, saying:

“We are unable to conclude that Congress intended to compel employers to retain persons in their employ regardless of their unlawful conduct, — to invest those who go on strike with an immunity from discharge for acts of trespass or violence against the employer’s property, which they would not have enjoyed had they remained at work.” 306 U. S., at 255.

Though we found that the employer had committed serious violations of the NLRA, the Board had no discretion to remedy those violations by awarding reinstatement with back-pay to employees who themselves had committed serious criminal acts. Two years later, in Southern S. S. Co., supra, the Board awarded reinstatement with backpay to five employees whose strike on shipboard had amounted to a mutiny in violation of federal law. We set aside the award, saying:

“It is sufficient for this case to observe that the Board has not been commissioned to effectuate the policies of the Labor Relations Act so single-mindedly that it may wholly ignore other and equally important [congressional objectives.” 316 U. S., at 47.

Although the Board had argued that the employees’ conduct did not in fact violate the federal mutiny statute, we rejected this view, finding the Board’s interpretation of a statute so [144]

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535 U.S. 137, 122 S. Ct. 1275, 152 L. Ed. 2d 271, 15 Fla. L. Weekly Fed. S 178, 169 L.R.R.M. (BNA) 2769, 2002 Daily Journal DAR 3304, 70 U.S.L.W. 4209, 2002 Cal. Daily Op. Serv. 2731, 2002 U.S. LEXIS 2147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoffman-plastic-compounds-inc-v-national-labor-relations-board-scotus-2002.