National Labor Relations Board v. Jag Healthcare, Inc.

665 F. App'x 443
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 13, 2016
Docket15-1563; 15-1607
StatusUnpublished
Cited by1 cases

This text of 665 F. App'x 443 (National Labor Relations Board v. Jag Healthcare, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Labor Relations Board v. Jag Healthcare, Inc., 665 F. App'x 443 (6th Cir. 2016).

Opinion

MARTHA CRAIG DAUGHTREY, Circuit Judge.

This labor-management dispute arose as the result of JAG Healthcare’s takeover of a small, unionized health care facility, Village Care, which it renamed Galion Pointe. In what amounted to an overnight coup, JAG fired all the Village Care employees, rehired only some of them, and refused— at least initially—to recognize the existing union. Following complaints filed by the union and union members, a hearing before an administrative law judge, and an order from the National Labor Relations Board to remedy unfair labor practices by JAG, the company filed this petition for review, contending that there is not substantial evidence in the record to support the findings of the Board, that JAG is not the proper respondent in this case, and that the NLRB erred as a matter of law in finding that certain announcements made by JAG’s owner and chief executive officer, Jim Griffiths, constituted illegal coercion rather than statements of fact or mere predictions, the expression of which is protected by the First Amendment. The Board cross-applies for enforcement of the order and contends that substantial evidence in the record supports its findings. The Board further argues that we lack jurisdiction to consider the question of whether JAG was the proper respondent in the case. For the reasons set out below, we deny the company’s petition for review and grant enforcement of the Board’s order.

I. FACTUAL AND PROCEDURAL BACKGROUND

Respondent JAG Healthcare is a management company that operates skilled nursing homes. Its business model involves identifying small nursing homes that are struggling financially and revamping their operations to make them profitable. JAG manages these nursing facilities and provides staffing for the nursing homes, and JAG oversees and manages the senior staff at its homes.

On July 1, 2010, JAG began operating two Ohio facilities owned by Cardinal Nursing Homes, Heritage Care and Village Care, which had previously been leased by Continuum. These facilities were renamed Shelby Pointe and Galion Pointe, respectively. Pursuant to an Operations Transfer Agreement signed by Village Care and Galion Pointe on June 29, Grif-fiths and his staff prepared to take over operation effective July 1. As part of that agreement, all Village Care employees were terminated at 11:59 p.m. on June 30, when Village Care ceased operation.

At that time, various employees of Village Care, including nurses’ aides, housekeepers, dietary aides, cooks, laundry employees, activity aides, environmental aides, and maintenance helpers, comprised a bargaining unit that was represented by the Service Employees International Union Local 1199 (SEIU). Those employees were notified of the transfer of ownership of the nursing home on June 30, primarily through a notice posted next to the Village Care time clock by Amanda Ronk, Village *446 Care’s director of nursing. The notice invited the employees to meet with the new owners of the nursing home that afternoon.

In the afternoon of June 30, JAG administrators went to Village Care to prepare to take control of operations—including deciding which Village Care employees they wished to rehire. JAG’s corporate director of nursing services, Miriam Walters, had primary responsibility for determining which employees to rehire, but Griffiths retained the final say over all hiring decisions. Walters relied heavily on Ronk’s input in determining which former Village Care employees to rehire.

When Village Care employee and union delegate Julie Barnhart saw the June 30 notice, she contacted SEIU organizer Dawn Courtright, who came to the facility to speak with Barnhart. When Connie Knight, Village Care’s human resources manager, saw Courtright arrive, she notified Griffiths, who approached Courtright and Barnhart and introduced himself. When Courtright asked if Griffiths would recognize the existing union, he said he would not, stating that none of his facilities were unionized and that Village Care also would not be. Griffiths then asked Court-right to leave the premises.

Courtright did not leave, but instead accompanied Barnhart to the scheduled meeting. Before the meeting began, Court-right was asked by Village Care administrator Paul Andrella to go to his office (which she did, along with Barnhart), where Andrella told Courtright that she had to leave the facility because she had not given 24 hours’ notice before her visit, as required by the collective bargaining agreement. Courtright responded that she had not been given 30 days’ notice that the nursing home was sold, also as required by the agreement. Andrella told Courtright that if she did not leave, he would call the police and have her arrested. Faced with that threat, Courtright left Village Care’s property.

During the June 30 meeting with Village Care employees, Griffiths explained JAG policies and terms and conditions of employment that differed from the policies in force at Village Care, including a ban on smoking, new uniforms that would have to be purchased through JAG, the elimination of shift differentials in pay for night, or weekend shifts, and the loss of paid time off accrued with Village Care. Griffiths also emphasized that none of JAG’s nursing homes were unionized and that, as of the next day, there would be no union at the newly named Galion Pointe. Griffiths also said that employees could unionize later if they wished, but that he did not believe they would need union representation. He then announced that JAG had a non-solicitation policy 1 and asked the *447 nursing staff to call the police in order to remove any union organizers who came to the facility on or after July 1, 2010.

On July 2, 2010, the SEIU held a press conference across the street from Galion Pointe to protest JAG’s decision not to rehire several former Village Care bargaining-unit employees. Several former Village Care employees, including Barn-hart, attended the press conference. Galion Pointe personnel, including Ronk, observed the press conference and noted which former employees were in attendance.

In addition to convening the press conference, union representatives continued to ask JAG to recognize and bargain with the union. After Courtright’s verbal request on June 30, she sent Griffiths a letter on July 6 requesting recognition. Also on July 6, SEIU Ohio Healthcare Division Director Frank Hornick filed a petition with the Board and wrote a letter to JAG regarding the petition. JAG apparently did not respond to either of these letters.

Three employment decisions that were made in the aftermath of the change in operations at Village Care/Galion Pointe are specifically at issue in this litigation. First, Traci Atkins, a dietary aide at Village Care and a member of the union, was not selected for rehire on July 1 but was offered a job by Dietary Manager Valerie McKelvey on July 6. Atkins accepted the offer to return to full-time employment effective July 19—the amount of time she needed to give proper notice at the job she had been working in the interim—and also agreed to fill in as needed until that date; she in fact worked a fill-in shift on July 7. Atkins also ordered a new uniform, had her picture taken for an ID badge, and submitted an additional application for employment to replace the one that McKelvey had misplaced.

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Cite This Page — Counsel Stack

Bluebook (online)
665 F. App'x 443, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-jag-healthcare-inc-ca6-2016.