Valley Hospital Medical Center, Inc. v. National Labor Relations Board

93 F.4th 1120
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 20, 2024
Docket22-1804
StatusPublished
Cited by2 cases

This text of 93 F.4th 1120 (Valley Hospital Medical Center, Inc. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Valley Hospital Medical Center, Inc. v. National Labor Relations Board, 93 F.4th 1120 (9th Cir. 2024).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

VALLEY HOSPITAL MEDICAL No. 22-1804 CENTER, INC., NLRB No. 28- CA-213783 Petitioner, v. OPINION NATIONAL LABOR RELATIONS BOARD,

Respondent, ----------------------------------------

LOCAL JOINT EXECUTIVE BOARD OF LAS VEGAS,

Intervenor.

NATIONAL LABOR RELATIONS BOARD, No. 22-1978 NLRB No. 28- Petitioner, CA-213783 v.

VALLEY HOSPITAL MEDICAL CENTER, INC.,

Respondent. 2 VALLEY HOSP. MED. CTR., INC. V. NLRB

On Petition for Review of an Order of the National Labor Relations Board

Argued and Submitted December 6, 2023 Pasadena, California

Filed February 20, 2024

Before: Diarmuid F. O’Scannlain and John B. Owens, Circuit Judges, and Matthew F. Kennelly, District Judge. *

Opinion by Judge O’Scannlain; Special Concurrence by Judge O’Scannlain

SUMMARY **

Labor Law

The panel denied Valley Hospital Medical Center’s petition for review, granted the National Labor Relations Board’s cross-application for enforcement, and enforced the Board’s order finding that Valley Hospital engaged in an unfair labor practice under the National Labor Relations Act (“NLRA”) by unilaterally ceasing union dues checkoff. The court previously remanded the case to the Board to explain better its decision that an employer may unilaterally

* The Honorable Matthew F. Kennelly, United States District Judge for the Northern District of Illinois, sitting by designation. ** This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. VALLEY HOSP. MED. CTR., INC. V. NLRB 3

cease union dues checkoff after the expiration of a collective bargaining agreement. On remand, the Board changed its mind, and rendered a new decision (1) readopting its prior rule prohibiting employers from unilaterally ceasing dues checkoff after expiration of a collective bargaining agreement, and (2) finding that Valley Hospital engaged in an unfair labor practice. Valley Hospital argued that the Board exceeded its authority because this court’s mandate authorized the Board to supplement its reasoning but not to change its interpretation of the NLRA. As a preliminary matter, the panel held that it had jurisdiction to consider Valley Hospital’s argument. The panel held that this court’s mandate did not clearly foreclose reconsideration of the Board’s underlying rule regarding dues checkoff after expiration of the applicable collective bargaining agreement, and therefore the Board was not bound by its prior decision. Valley Hospital next argued that the panel should affirm the Board’s first decision (“Valley Hospital I”) as the most reasonable interpretation of the NLRA based on the explanation in the dissenting opinion in the Board’s decision on remand (“Valley Hospital II”). The panel stated that it was reviewing the Board’s decision on remand in Valley Hospital II, not the Board’s decision in Valley Hospital I or the dissenting opinion in Valley Hospital II. The panel held that the Board followed a proper decisionmaking process in Valley Hospital II by providing a reasoned explanation for overruling its prior decision, and applied a permissible interpretation of the NLRA. Judge O’Scannlain specially concurred to highlight a troubling trend where the Board frequently changes its mind depending on its political composition, as illustrated by its 4 VALLEY HOSP. MED. CTR., INC. V. NLRB

changing approach in this case to union dues checkoff by employers pursuant to a collective bargaining agreement.

COUNSEL

Proloy K. Das, I (argued), Ford Harrison LLP, Hartford, Connecticut; Thomas H. Keim, Jr., Ford Harrison LLP, Spartanburg, South Carolina; Tammie Rattray, Ford Harrison LLP, Tampa, Florida; for Petitioner. Eric Weitz (argued), Attorney; Kira D. Vol, Supervisory Attorney; David Habenstreit, Assistant General Counsel; Ruth E. Burdick, Deputy Associate General Counsel; Peter S. Ohr, Deputy General Counsel; Jennifer A. Abruzzo, General Counsel; National Labor Relations Board, Washington, D.C.; for Respondent. Kimberley C. Weber (argued), McCracken Stemerman & Holsberry LLP, Oakland, California, for Intervenor Local Joint Executive Board of Las Vegas. VALLEY HOSP. MED. CTR., INC. V. NLRB 5

OPINION

O’SCANNLAIN, Circuit Judge:

We previously remanded this case to the National Labor Relations Board to explain better its decision that an employer may unilaterally cease union dues checkoff after the expiration of a collective bargaining agreement. Instead, the Board changed its mind and rendered a new decision to the contrary. We must decide whether its new decision violated our mandate and whether that decision was rational and consistent with the National Labor Relations Act. I A The Local Joint Executive Board of Las Vegas (“the Union”) represented employees at Valley Hospital Medical Center (“Valley Hospital”), a hospital in Las Vegas, Nevada. The Collective Bargaining Agreement (“the Agreement”) between the Union and Valley Hospital included a checkoff provision that required Valley Hospital to deduct union dues from participating employees’ paychecks and remit those dues to the Union. The Agreement also included a union security provision that required certain Valley Hospital employees to be Union members. Because Nevada is a right-to-work state, the union security provision was not applicable. Nev. Rev. Stat. § 613.250. The Agreement expired, and Valley Hospital initially continued dues checkoff. But about thirteen months later, Valley Hospital stopped deducting dues, without an agreement in place and without negotiating with the Union. The Union filed an unfair labor practice charge, the Board 6 VALLEY HOSP. MED. CTR., INC. V. NLRB

Regional Director issued a complaint, and an Administrative Law Judge dismissed the complaint. On review, the National Labor Relations Board (“the Board”) also dismissed the complaint. Valley Hosp. Med. Ctr., Inc., 368 N.L.R.B. No. 139, slip op. at 9 (2019) (“Valley Hospital I”). The Board overruled its precedent requiring employers to continue dues checkoff after the expiration of a collective bargaining agreement and reinstated a longstanding rule that employers have no such obligation. Id. at 8-9. We granted the Union’s petition for review and remanded the case because the Board’s “contract creation rationale” failed to acknowledge apparent departures from Board precedent. Local Joint Exec. Bd. v. NLRB, 840 F. App’x 134, 137 (9th Cir. 2020) (“LJEB V”) (remanding so that the Board could “explicitly address the prior decisions”). 1 We did not vacate the Board’s decision because we recognized that the Board would likely be able to cure the flaw in its reasoning. Id. at 137-38. But we also acknowledged that the Board has discretion and “may change direction.” Id. at 137. On remand, the Board indeed changed direction. The Board reversed its decision in Valley Hospital I, readopted its prior rule prohibiting employers from unilaterally ceasing dues checkoff after expiration of a collective bargaining agreement, and found that Valley Hospital engaged in an unfair labor practice. Valley Hosp. Med. Ctr., Inc., 371

1 Several relevant cases have identical names. To minimize confusion, we refer to these as LJEB I—LJEB V. The first four cases, LJEB I-IV, concern a different dispute between the Union and a hotel and casino operator. LJEB I-III are discussed below, and LJEB IV, 883 F.3d 1129 (9th Cir. 2018), addressed the remedy in that dispute. VALLEY HOSP. MED. CTR., INC. V. NLRB 7

N.L.R.B. No. 160, slip op. at 17 (2022) (“Valley Hospital II”). Valley Hospital now petitions for review, and the Board applies for enforcement.

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