Midwest Division-MMC, LLC v. National Labor Relations Board

867 F.3d 1288, 2017 WL 3568290, 209 L.R.R.M. (BNA) 3466, 2017 U.S. App. LEXIS 15637
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 18, 2017
Docket15-1312 Consolidated with 15-1359
StatusPublished
Cited by10 cases

This text of 867 F.3d 1288 (Midwest Division-MMC, LLC v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Midwest Division-MMC, LLC v. National Labor Relations Board, 867 F.3d 1288, 2017 WL 3568290, 209 L.R.R.M. (BNA) 3466, 2017 U.S. App. LEXIS 15637 (D.C. Cir. 2017).

Opinions

Opinion concurring in part and dissenting in part filed by Circuit Judge KAVANAUGH.

SRINIVASAN, Circuit Judge:

Kansas law calls for hospitals to establish an internal peer-review program to monitor the quality of care furnished by their medical professionals. As required by state law, Menorah Medical Center, a Kansas acute-care hospital, formed a peer-review committee for the facility’s nursing staff. The committee examines alleged violations of the applicable standard of care by the hospital’s nurses and reports serious breaches to the state licensing agency.

[1293]*1293This case arises out of the peer-review committee’s investigation of two nurses for substandard conduct. Menorah denied the nurses’ requests to allow a union representative to accompany them in their hearings before the committee. Menorah also refused the union’s request for a variety of information about the committee’s operations. Additionally, the hospital maintained a confidentiality rule barring employees from discussing incidents within the committee’s purview.

Those actions by Menorah led the union to file unfair-labor-practice charges against the hospital. The National Labor Relations Board ultimately found that Menorah had violated the National Labor Relations Act in the various ways alleged. Menorah now petitions for review of the Board’s decision against it.

We set aside the Board’s determination that Menorah improperly denied the nurses’ requests for union representation in the peer-review-committee hearings: when, as here, employees are not obligated to take part in an investigatory hearing, there is no requirement that they be permitted to bring a union representative if they elect to participate. We sustain the Board’s decision in all other respects, including the Board’s finding that Menorah committed unfair labor practices in denying the union’s request for information about the peer-review committee and in maintaining a confidentiality rule barring workers from discussing incidents subject to the committee’s oversight. Accordingly, we grant Menorah’s petition for review in part and enforce the Board’s order in part.

I.

A.

1. Section 7 of the National Labor Relations Act establishes the right of employees “to bargain collectively through representatives of their own choosing, and to engage'in other concerted activities for the purpose of collective bargaining or other mutual aid or protection ” 29 U.S.C. § 157. Section 8 of the NLRA declares it to be “an unfair labor practice for an employer ... to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in [Section 7]” or “to refuse to bargain collectively with the representatives of his employees.” Id. § 158(a)(1), (5).

As relevant here, Section 8 has been construed to impose three obligations on employers. First, an employed must be allowed to bring a Union representative to any investigatory interview she is required to attend if she reasonably believes the interview might result in disciplinary action. See NLRB v. J. Weingarten, Inc., 420 U.S. 251, 256, 95 S.Ct. 959, 43 L.Ed.2d 171 (1975). Second, absent an overriding need for confidentiality, employers must furnish to labor unions (upon request) information bearing on the administration of a collective-bargaining agreement. See Detroit Edison Co. v. NLRB, 440 U.S. 301, 303, 99 S.Ct. 1123, 59 L.Ed.2d 333 (1979). Third; employees presumptively must be permitted to communicate with one another in service of their Section 7 rights. See Martin Luther Mem’l Home, Inc., 343 N.L.R.B. 646, 646 (2004).

2. Kansas state law aims to “protect the public’s general health, safety and welfare” by establishing a peer-review system to monitor the quality of care provided by medical practitioners. Kan. Stát. Ann. § 65-4929(a). Under state law, every hospital must maintain a risk-management program designed to identify violations of the applicable standard of care and to facilitate the reporting of breaches- to the Kansas State Board of Nursing (the Nursing Board). See id. §§ 65-4922(a), 65-4923.

A hospital’s risk-management personnel must refer any qualifying incidents to a [1294]*1294peer-review committee established by the facility. Id. § 65-4923(a)(2). Menorah’s committee for its nursing staff is called the Nursing Peer Review Committee. ¡The Committee must in turn “report to the appropriate state licensing agency”—here, the Nursing Board—anytime it finds that a nurse has “acted below the applicable standard of care” in a way that “had a reasonable probability of causing injury to a patient, or in a manner which may be grounds for disciplinary action by the appropriate licensing agency.” Id. If the Nursing Board elects to strip a nurse Qf his license, he can no longer practice professional nursing in the state. Id, § 65-1114(a)(1).

The Nursing Peer Review Committee does not itself impose that (or any other) form .of state-administered, discipline. Rather, the Committee collects information and refers reportable incidents to the Nursing Board so that “the [Board] may take appropriate disciplinary .measures.” Id. § 65-4923(a)(2). Under the Kansas statute, though, the members of hospitals’ peer-review committees are deemed “state officers engaged in a discretionary function.” Id. § 65-4929(b).

Kansas law attaches a confidentiality privilege to certain aspects of peer-review proceedings: ■

[T]he reports, statements, memoranda, proceedings, findings and other records submitted to or generated by peer review committees or officers shall be privileged and shall not be subject to discovery, subpoena or other means of legal compulsion for their release to any ■person or entity, or be admissible in evidence in any judicial or administrative proceeding. Information contained in such records shall not be discoverable or admissible at trial in. the «'form of testimony by. an individual who participated in the peer review process. ■

Id. § 65-4915(b). ■

Menorah sought to fortify confidentiality protections through a provision of its Risk Management Plan. The' hospital’s Confidentiality Rule prohibits employees from “disclos[ing] information concerning reportable incidents’ except to their superiors, Hospital Administration," the Risk Manager, the appropriate Hospital and Medical Staff committees, legal counsel for the Hospital, or the applicable licensing agencies,” without prior approval from the “Risk Manager, Administration, or legal counsel.” D.A. 69.

Menorah and the union representing its nurses, the National Nurses Organizing Committee, have entered into a collective-bargaining agreement. Because the bargaining unit is comprised of registered nurses, a nurse who loses her license also relinquishes her union representation.

B.

In May 2012, Menorah nurses Sherry Centye and Brenda Smith received letters from the hospital’s Risk Manager alleging that they had “exhibited unprofessional conduct as defined by the Kansas Nurse Practice Act.” Id. at 71, 73.

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867 F.3d 1288, 2017 WL 3568290, 209 L.R.R.M. (BNA) 3466, 2017 U.S. App. LEXIS 15637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midwest-division-mmc-llc-v-national-labor-relations-board-cadc-2017.