Preferred Building Services, Inc. v. NLRB

Court of Appeals for the D.C. Circuit·Decided August 21, 2026·No. 24-1384·Published

Opinion

United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued May 12, 2026 Decided August 21, 2026

No. 24-1384

PREFERRED BUILDING SERVICES, INC., PETITIONER

v.

NATIONAL LABOR RELATIONS BOARD, RESPONDENT

SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 87, INTERVENOR

Consolidated with 25-1042

On Petition for Review and Cross-Application for Enforcement of an Order of the National Labor Relations Board

Tyler M. Paetkau argued the cause and filed the briefs for petitioner.

Joel A. Heller, Attorney, National Labor Relations Board, argued the cause for respondent. With him on the brief were

Crystal S. Carey, General Counsel, Ruth E. Burdick, Deputy Associate General Counsel, Meredith L. Jason, Assistant General Counsel, and Elizabeth A. Heaney, Supervisory Attorney.

Corinne Johnson argued the cause for respondentintervenor . With her on the brief were Stacey Leyton and John D’Elia. Scott A. Kronland and Steven Ury entered appearances.

Before: MILLETT, PILLARD, and WILKINS, Circuit Judges.

Opinion for the Court filed by Circuit Judge MILLETT.

MILLETT, Circuit Judge: Twelve years ago, a group of janitors staged a series of pickets to protest their poor working conditions at Preferred Building Services, Inc. (“Preferred”) and Ortiz Janitorial Services (“Ortiz”). A local union assisted the janitors’ protests. In response, Preferred and Ortiz fired multiple employees who had picketed.

The union filed a charge with the National Labor Relations Board, and the Board’s General Counsel issued a complaint alleging that Preferred and Ortiz had committed a variety of unfair labor practices proscribed by the National Labor Relations Act. Before an administrative law judge (“ALJ”), Preferred and Ortiz defended on the ground that the employees themselves had violated the Act by engaging in unlawful secondary and recognitional picketing. The administrative law judge ruled in favor of the General Counsel, but the Board reversed, holding that the employees had engaged in unlawful secondary picketing, in violation of 29 U.S.C. § 158(b)(4).

The Ninth Circuit granted the union’s petition for review.

That court held that the Board lacked substantial evidence to support its finding of secondary picketing.

On remand, Preferred argued that the ALJ had erroneously prevented it from presenting evidence to support its secondary- picketing defense, and it proffered evidence of an additional picket that the ALJ had not considered. The Board took the evidentiary proffer as true and determined that the new evidence did nothing to substantiate the secondary-picketing defense. The Board also rejected the recognitional-picketing defense, held that Preferred and Ortiz had violated the Act, and ordered a variety of remedies.

Preferred petitioned for review but Ortiz did not. The Board cross-petitioned for enforcement. We deny Preferred’s petition and grant the Board’s cross-petition.

I

A

Section 7 of the National Labor Relations Act (“Act”)

guarantees employees the right “to engage in * * * concerted activities for the purpose of collective bargaining[.]” 29 U.S.C. § 157. Section 8 of the Act protects those rights against the “unfair labor practice[s]” of both employers and labor organizations. Id. § 158(a)–(b). Unfair labor practices include interfering with an employee’s exercise of her rights under Section 7, id. § 158(a)(1), and discharging an employee due to her participation in a labor organization, id. § 158(a)(3).

Picketing generally qualifies as a protected concerted activity. See United Steelworkers of America, AFL-CIO v. NLRB, 376 U.S. 492, 499 (1964); Washington Serv.

Contractors Coalition v. District of Columbia, 54 F.3d 811, 816 (D.C. Cir. 1995). This case involves two exceptions to that rule.

First, a labor organization’s picketing violates the Act if it (1) “threaten[s], coerce[s], or restrain[s]” a neutral third party, 29 U.S.C. § 158(b)(4)(ii), with (2) the object of forcing that neutral party to cease doing business with the employer, which is referred to as the “primary employer,” id. § 158(b)(4)(ii)(B). When picketing takes place at a site where both the primary employer and a neutral “secondary” business operate, the Board applies its test under Sailors Union of the Pacific (Moore Dry Dock), 92 NLRB 547 (1950), to distinguish between lawful “primary” picketing and unlawful “secondary” picketing, id. at 549.

Moore Dry Dock sets out four factors that, when satisfied, generate a presumption that picketing at the secondary business’s premises was lawful. Moore Dry Dock, 92 NLRB at 549; see Local 560, Int’l Brotherhood of Teamsters, 360 NLRB 1067, 1067 (2014). First, the picketing must be “strictly limited to times when” the secondary business and primary employer share a work site. Moore Dry Dock, 92 NLRB at 549; see District 29, United Mine Workers of America v. NLRB, 977 F.2d 1470, 1471 n.2 (D.C. Cir. 1992). Second, “at the time of the picketing[,] the primary employer [must be] engaged in its normal business” at the picketed location. Moore Dry Dock, 92 NLRB at 549. Third, the picketing must take place “reasonably close” to the shared work site. Id. Fourth, “the picketing [must] disclose[] clearly that the dispute is with the primary employer.” Id. Even when all four factors are satisfied, Board precedent allows the employer to rebut the presumption by presenting independent evidence of an impermissible secondary object of the picketing. Local 560, Int’l Brotherhood of Teamsters, 360 NLRB at 1067–1068.

Second, the Act proscribes picketing with an organizational or recognitional object when a union representation petition has not been “filed within a reasonable period of time not to exceed thirty days from the commencement of such picketing[.]” 29 U.S.C. § 158(b)(7)(C). Recognitional picketing aims to “forc[e] or requir[e] an employer to recognize or bargain with a labor organization as the representative of [its] employees[.]” Id. § 158(b)(7). Organizational picketing, on the other hand, seeks to “forc[e] or requir[e] the employees of an employer to accept or select such labor organization as their collective bargaining representative[.]” Id. Recognitional or organizational picketing is not an unfair labor practice when the “labor organization is currently certified as the representative of [the] employees[,]” id., or when the picketing has “the purpose of truthfully advising the public * * * that an employer does not employ members of, or have a contract with, a labor organization,” id. § 158(b)(7)(C) (the “publicity proviso”).

B

Preferred Building Services provides janitorial services in the San Francisco Bay area. Over a decade ago, Preferred subcontracted with Ortiz Janitorial Services to clean several commercial office buildings in San Francisco, including 55 Hawthorne Street, 631 Howard Street, and One Kearny. A building management company called Harvest Properties managed 55 Hawthorne and 631 Howard.

In 2014, several janitors who worked for Preferred and Ortiz sought help from a local union, Service Employees International Union Local 87. The employees expressed concerns about poor working conditions, low pay, and sexual

harassment. At the Union president’s suggestion, the employees decided to picket to air their grievances.

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