Stewart v. National Labor Relations Board

851 F.3d 21, 2017 WL 1056112, 208 L.R.R.M. (BNA) 3441, 2017 U.S. App. LEXIS 4977
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 21, 2017
Docket15-1102
StatusPublished
Cited by11 cases

This text of 851 F.3d 21 (Stewart 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
Stewart v. National Labor Relations Board, 851 F.3d 21, 2017 WL 1056112, 208 L.R.R.M. (BNA) 3441, 2017 U.S. App. LEXIS 4977 (D.C. Cir. 2017).

Opinions

Opinion concurring in the judgment and dissentiing filed by Senior Circuit Judge SILBERMAN.

SRINIVASAN, Circuit Judge:

Employees commonly pay their union dues through a mechanism known as a checkoff arrangement. In a checkoff arrangement, an employee authorizes her employer to deduct union dues from her paycheck and remit the dues directly to the union on her behalf. That arrangement affords convenience and efficiency. It enables unions to avoid collecting payments from potentially numerous individual employees, and it enables employees to avoid writing periodic dues checks to the union.

An employee’s authorization for her employer to check off union dues from her wages is not irrevocable. A federal statute, Section 302(c)(4) of the Labor Management Relations Act, specifies circumstances in which an employee must be afforded the opportunity to revoke a checkoff authorization. And collective bargaining agreements, when establishing the availability of a checkoff arrangement for paying dues, correspondingly set out how an employee can revoke an authorization.

In this case, a group of employees, during the period between the expiration of the operative collective bargaining agreement and the commencement of a new one, resigned from their union and sought to revoke their dues-checkoff authorizations. The company, however, continued to deduct union dues from the employees’ wages, and the union continued to accept the payments. The National Labor Relations Board rejected charges that the company and union had committed an unfair labor practice by continuing to check off union dues from the employees’ wages.

We vacate the Board’s decision and remand the matter to the agency. The Board [23]*23treated the case as a straightforward application of its precedent pertaining to the revocability of dues-checkoff arrangements. But the circumstances of this case, as it comes to us, differ in significant ways from those in the precedent on which the Board relied. On remand, if the Board were to attempt to reach the same result again, it would need to explain how the outcome could be squared with its precedent and governing law. Because the Board’s decision, as it stands, lacks any such explanation, we cannot sustain it.

I.

A.

Section 302(c)(4) of the Labor Management Relations Act speaks to the revoca-bility of an employee’s dues-checkoff authorization. The Act generally makes it a crime for an employer to give payments to a labor union. 29 U.S.C. § 186. Section 302(c)(4) establishes an exception to that prohibition for dues-checkoff transfers from an employer to a union on an employee’s behalf. The exception states that the criminal bar on employer payments to a union is inapplicable “with respect to money deducted from the wages of employees in payment of membership dues in a labor organization.” Id. § 186(c)(4).

The exception requires, however, that an employee’s checkoff authorization be revocable in enumerated circumstances. In particular, the employer must have “received from each employee, on whose account such deductions are made, a written assignment which shall not be irrevocable for a period of more than one year, or beyond the termination date of the applicable collective agreement, whichever occurs sooner.” Id.

Those criminal provisions are administered by the Attorney General, not the National Labor Relations Board. But the Board has long held that employers and unions engage in unfair labor practices under Sections 8(a)(1)-(3) and 8(b)(1)(A) of the National Labor Relations Act if they check off union dues without an employee’s valid authorization. See e.g., Frito-Lay, Inc., 243 NLRB 137, 137 (1979). And in examining whether employers and unions have' committed unfair labor practices in that connection, the Board has interpreted Section 302(e)(4)’s directive that an employee’s checkoff authorization “shall not be irrevocable for a period of more than one year, or beyond the termination date of the applicable collective agreement, whichever occurs sooner.” 29 U.S.C. § 186(c)(4).

The Board has long understood that language to “guarantee[] an employee two distinct rights when he executes a checkoff authorization under a collective-bargaining agreement.” Atlanta Printing Specialties, 215 NLRB 237, 237 (1974), enf'd, 523 F.2d 783 (5th Cir. 1975). The first right, the Board explained in Atlanta Printing, is a “chance at least once a year to revoke his authorization” on the annual anniversary of his execution of the authorization. Id. The second right is “a chance upon the termination of the collective-bargaining agreement to revoke his authorization.” Id. And because the employer and union in Atlanta Printing had denied the “statutory rights” conferred by Section 302(c)(4), the Board held that they had committed an unfair labor practice. Id. at 238.

The Board’s later decision in Frito-Lay, Inc., 243 NLRB 137 (1979), elaborates on its understanding of. Section 302(c)(4) in a manner of particular relevance here. The employees in Frito-Lay executed checkoff authorizations which were irrevocable except during two 10-day “escape” windows corresponding to the dual rights recognized in Atlanta Printing: the first window was an annual 10-day period commencing [24]*2420 days before the yearly anniversary of an employee’s checkoff' authorization, and the second window was a 10-day period commencing 20 days before the expiration of. the operative bargaining agreement. The employees in question attempted to revoke their checkoff authorizations during a hiatus period between bargaining agreements — i.e., after expiration of the operative agreement. The company and union denied the revocation requests and continued deducting union dues. They reasoned that, under the terms of the checkoff authorizations, the employees had been required to revoke during the specified 10-day window preceding the initial agreement’s expiration, and had no entitlement to do so after its expiration.

The Board agreed, rejecting the General Counsel’s argument that the company and union committed an unfair labor practice by continuing to check off union dues during the contract hiatus. The General Counsel, relying on Section 302(e)(4)’s guarantee of a revocation opportunity “beyond the termination date of the applicable collective agreement,” contended that the employees had a statutory entitlement to revoke their checkoff authorizations after the initial agreement’s expiration. The Board was unpersuaded. It initially indicated that a violation of Section 302(c)(4) would not necessarily establish an unfair labor practice (even though it had found an unfair labor practice in Atlanta Printing based on a denial of the rights granted by that section). Id. at 138. The Board went on to hold that, insofar as Section 302(c)(4) bears on the existence of an unfair labor practice, there had been no violation of the statute. Id. at 138-39.

The Board explained that “there is no violation of Section 302(c)(4) ... as long as employees are accorded an opportunity to revoke their authorizations at least once a year and at the termination of any applicable collective-bargaining agreements.”

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851 F.3d 21, 2017 WL 1056112, 208 L.R.R.M. (BNA) 3441, 2017 U.S. App. LEXIS 4977, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-v-national-labor-relations-board-cadc-2017.