Lion Elastomers v. NLRB

108 F.4th 252
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 9, 2024
Docket23-60270
StatusPublished
Cited by6 cases

This text of 108 F.4th 252 (Lion Elastomers v. NLRB) 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
Lion Elastomers v. NLRB, 108 F.4th 252 (5th Cir. 2024).

Opinion

Case: 23-60270 Document: 93-1 Page: 1 Date Filed: 07/09/2024

United States Court of Appeals for the Fifth Circuit ____________ United States Court of Appeals Fifth Circuit No. 23-60270 ____________ FILED July 9, 2024 Lion Elastomers, L.L.C., Lyle W. Cayce Clerk Petitioner/Cross-Respondent,

versus

National Labor Relations Board,

Respondent/Cross-Petitioner.

United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial, and Service Workers International Union, Local 228

Intervenor. ______________________________

Petition for Review of an Order of the from the National Labor Relations Board Agency Nos. 16-CA-190681, 16-CA-203509, 16-CA-225153 ______________________________

Before Jones, Clement, and Wilson, Circuit Judges. Edith Brown Clement, Circuit Judge: The National Labor Relations Board was historically afforded deference when its interpretations of the National Labor Relations Act were Case: 23-60270 Document: 93-1 Page: 2 Date Filed: 07/09/2024

No. 23-60270

subject to judicial review. 1 But what about when the NLRB 2 tells us that it plans to use one interpretation on remand and then uses another? In Lion Elastomers v. NLRB I, the NLRB sought a remand to apply a new interpretation of the NLRA that was announced in General Motors—an agency adjudication issued after the dispute underlying this proceeding was initially adjudicated but before briefing on appeal. But that’s not what the Board did on remand. Instead, the Board used the remand proceeding as a vehicle to overrule General Motors. Because the NLRB not only exceeded the scope of the remand but also violated Lion Elastomers’s due-process rights during the remand proceeding, we VACATE the remand determination and REMAND once more. I. Lion Elastomers manufactures synthetic rubber in Port Neches, Texas. Around eighty-five to ninety of its approximately 200 employees are part of a bargaining unit represented by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial, and Service Workers International Union, Local 228. A. Section 7 of the National Labor Relations Act (NLRA) provides employees “the right to self-organization, to form, join, or assist labor _____________________ 1 After this case was argued, the Supreme Court issued Loper Bright Enterprises v. Raimondo, No. 22-1219, 2024 WL 3208360, at *1 (U.S. June 28, 2024), which formally overturned Chevron, U.S.A., Inc. v. Nat. Res. Def. Council, Inc., 467 U.S. 837 (1984). Although we discuss how an agency has understood a question of statutory interpretation, we resolve this case on other grounds and need not reach the validity of the agency’s interpretation. See Loper Bright, 2024 WL 3208360, at *21. 2 We use “Board” when referring to the National Labor Relations Board in its capacity as a quasi-judicial body and “NLRB” when referring to the National Labor Relations Board as an agency and party to this proceeding.

2 Case: 23-60270 Document: 93-1 Page: 3 Date Filed: 07/09/2024

organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining”—so called “protected activities.” 29 U.S.C. § 157. Section 8 of the NLRA, among other things, bars employers from “interfer[ing] with, restrain[ing], or coerc[ing] employees in the exercise of” protected activities. 29 U.S.C. § 158(a). Doing so is an unfair labor practice. 3 The NLRA is silent as to when bad behavior during union activities— e.g., through threats or the use of racial epithets during grievance meetings or picketing—renders those activities unprotected under Section 7 and therefore reasonable grounds for employee discipline. The NLRB has sought to fill that gap by issuing legal rules through adjudications, as is its standard practice. See Allentown Mack Sales & Serv., Inc. v. NLRB, 522 U.S. 359, 374 (1998) (“The [NLRB], uniquely among major federal administrative agencies, has chosen to promulgate virtually all the legal rules in its field through adjudication rather than rulemaking.”) (citation omitted). The Board treats its precedents as binding if and until a new majority of the Board deems a precedent incorrect. See Epilepsy Found. of Ne. Ohio v. NLRB, 268 F.3d 1095, 1097 (D.C. Cir. 2001) (“It is a fact of life in NLRB lore that certain substantive provisions of the NLRA invariably fluctuate with the changing compositions of the Board.”).

_____________________ 3 To carry out the NLRA, Congress created the five-member National Labor Relations Board. The Board and its General Counsel are appointed by the President and confirmed by the Senate. 29 U.S.C. § 153. The General Counsel acts as prosecutor of charges of unfair labor practices. The Board plays a quasi-judicial role, adjudicating, among other disputes, charges brought by the General Counsel. Board members’ terms are staggered so that one member’s term expires annually. 29 U.S.C. § 153(a). It is customary, although not legally required, that a majority of the Board’s members belong to the President’s political party, which can ensure that a majority of the Board shares the President’s policy views.

3 Case: 23-60270 Document: 93-1 Page: 4 Date Filed: 07/09/2024

Until July 2020, whether a union member’s behavior constituted protected activity depended on “setting-specific” standards—i.e., different factors applied depending on where the behavior took place. For workplace outbursts, for instance, the NLRB applied a four-factor standard pronounced in Atlantic Steel Co., which considered “(1) the place of the discussion; (2) the subject matter of the discussion; (3) the nature of the employee’s outburst; and (4) whether the outburst was, in any way, provoked by an employer’s unfair labor practice.” Atlantic Steel Co., 245 N.L.R.B. 814, 816 (1979). B. In May 2020, the Board found that Lion Elastomers had committed unfair labor practices by threatening, disciplining, and discharging an employee, Joseph Colone, for engaging in protected activities. In so holding, the Board adopted an Administrative Law Judge’s (ALJ) decision that, among other things, applied Atlantic Steel to assess whether Colone’s behavior lost its protected status. Lion Elastomers filed a petition for review of the Board’s Decision and Order in this court in June 2020. But on July 21, 2020—before the appeal of the Board’s decision had even been briefed—the Board issued General Motors LLC, which announced that the agency would no longer use Atlantic Steel or other setting-specific standards to assess “whether employers have unlawfully discharged or otherwise disciplined employees who had engaged in abusive conduct in connection with activity protected by Section 7 of the [NLRA].” 369 N.L.R.B. No. 127, 2020 WL 4193017, at *1 (2020). The decision held that the Board would instead apply its Wright Line burden-shifting framework, which first requires the General Counsel to make an initial showing that “(1) the employee engaged in Section 7 activity, (2) the employer knew of that activity, and (3) the employer had animus against the Section 7 activity,

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Bluebook (online)
108 F.4th 252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lion-elastomers-v-nlrb-ca5-2024.