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NRCA issues a statement on NLRB's notice posting rule

May 2013

NRCA applauds a May 7 ruling by the U.S. Court of Appeals in Washington, D.C., in favor of a lawsuit brought against a regulation issued by the National Labor Relations Board (NLRB) that would, if implemented, require employers to post a notice of employee labor rights in the workplace. The lawsuit challenging the regulation was filed by the Coalition for a Democratic Workplace, of which NRCA is a member, and other business plaintiffs.

NRCA opposed the notice posting rule when it was originally proposed in 2011 primarily on the grounds that the NLRB does not have the statutory authority to issue the regulation. Allowing a government agency to issue regulations without clear legal authority would set a terrible precedent. NRCA represents union and open-shop contractors and supports policies that maintain an equitable balance in labor-management relations. NRCA opposes the NLRB notice posting rule as unnecessary, biased and exceeding the board's authority under federal law.

On May 7, the appeals court ruled the NLRB does not have the authority to require employers to post the notice and also that the NLRB lacks legal authority to enforce the posting requirement as an unfair labor practice. This result is in accord with NRCA's opposition to the regulation.

In March 2012, a lower court had ruled the NLRB has the authority to issue the regulation but invalidated its enforcement mechanism. The May 7 appeals court ruling overturns the lower court ruling with respect to the NLRB's authority to issue the rule and affirms the lower court ruling with respect to lack of authority for the enforcement mechanism.

The NLRB notice posting regulation has not been implemented to date because of an injunction based on the March 2012 lower court ruling. It is unclear whether the government will appeal the May 7 decision to the Supreme Court or what other potential action the NRLB may take in response to the ruling.

This is a significant victory for NRCA and allied business groups. NRCA will continue working to protect employers from excessive regulations in the legislative, regulatory and legal arenas.

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