Short List of Possible Trump NLRB Candidates Reported

President Donald J. Trump has narrowed his list of candidates to fill the two open seats on the five-member National Labor Relations Board to Marvin Kaplan, William Emanuel, and Douglas Seaton, according to Bloomberg BNA. Emanuel and Seaton are labor attorneys and Kaplan is counsel to the Commissioner of the Occupational Safety and Health Review Commission.

A full NLRB is expected to result in a pro-business 3-to-2 majority – the first such majority since December 16, 2007, when Republicans Peter C. Schaumber, Peter N. Kirsanow, and Robert J. Battista were Members. Nominees to the NLRB require Senate confirmation.

According to his resume, as Workforce Policy Counsel on the House Education and Workforce Committee from January 2012 to September 2015, Kaplan “led efforts to fight DOL overtime and 2012 unconstitutional NLRB recess appointments” and “[d]rafted … the Workforce Democracy and Fairness Act,” legislation that sought to overturn the Board’s 2012 Specialty Healthcare bargaining unit decision and “quickie election” rulemaking by amending the National Labor Relations Act.

Emanuel describes himself as having “extensive experience representing employers in traditional labor matters….”

Seaton’s views on labor issues are clear. In an interview with Bloomberg BNA, he said, “the board [sic] has gone very, very far to the left or to the pro-union side of things, and I’d be happy and honored if I could help bring it back to the middle.”

The new Board, once appointed and confirmed, likely will revisit recent NLRB rules and decisions, including those covering (1) class action waivers, (2) joint employer, (3) temporary workers, (4) quickie elections, (5) expansion of protected concerted activity (e.g., its impact on workplace policies), (6) definition of appropriate bargaining units, and (7) status of college/university faculty and student athletes.

 

 

 

R. Alexander Acosta Picked to Head Department of Labor

President Donald Trump has nominated R. Alexander Acosta to be Secretary of Labor. His nomination comes one day after Andrew Puzder, Trump’s first pick to lead the Department of Labor, withdrew his nomination.

Acosta, currently the Dean of Florida International University’s law school, is the son of Cuban immigrants. If confirmed, Acosta would be the first Hispanic member of Trump’s Cabinet.

Acosta is a graduate of Harvard College and Harvard Law School. He clerked for Justice Samuel A. Alito, Jr. when Alito was a Judge on the U.S. Court of Appeals for the Third Circuit, in Philadelphia. Acosta then went into private practice at the Washington, D.C. law firm Kirkland & Ellis and taught law at the George Mason School of Law.

Acosta has been confirmed by the Senate three times — to become a National Labor Relations Board member, then to become Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice, and finally when he was nominated to be U.S. Attorney for the Southern District of Florida.

He was appointed by President George W. Bush as member of the National Labor Relations Board, and served as a Board member from December 17, 2002, through August 21, 2003. Acosta reportedly authored approximately 125 opinions during his tenure on the Board.

Thereafter, Acosta served as Assistant Attorney General for the Department of Justice’s Civil Rights Division under President George W. Bush until June 2005. He later was appointed U.S. Attorney for Southern District of Florida, where he served until becoming the Dean of FIU Law in 2009.

DOL Chief Nominee Puzder Withdraws

According to reports, Andrew Puzder, President Donald J. Trump’s nominee for Department of Labor Secretary, has withdrawn his name from consideration. This comes on the heels of a Washington Post report that seven Republican Senators were set to vote against his nomination.

DOL Nominee’s Confirmation Hearing To Take Place Next Week

The confirmation hearing for Secretary of Labor-nominee Andrew Puzder before the Senate Health, Education, Labor and Pensions (HELP) committee will take place on February 16, according to Politico.

The hearing has been delayed four times. The last one, scheduled for February 7, was put off “indefinitely” because the HELP committee had not received the required paperwork from the Office of Government Ethics. The Committee now has.

In a nine-page letter dated February 7 to Robert Shapiro, an ethics official with the Department of Labor, Puzder explained how he intends to handle possible conflicts of interest. Among other things, Puzder pledged to resign from his positions with CKE Restaurants Holdings, Inc.and forfeit his 2016 bonus if he does not receive it before he takes over as Secretary. Puzder also disclosed that, in January, he had resigned his positions with the International Franchise Association and the American Enterprise Institute.

Supreme Court Delays Oral Argument in Class Action Waiver Cases

The United States Supreme Court has notified the parties in National Labor Relations Board v. Murphy Oil USA, Case No. 16-307; Epic Systems Corp. v. Lewis, Case No. 16-285; and Ernst & Young LLP v. Morris, Case No. 16-300 that oral argument will take place in October 2017.  It is expected that the vacancy on the Court will be filled by then.  Jackson Lewis has represented Murphy Oil USA throughout these proceedings. For more on this development, click here.

NLRB GC Instructs Regions to Hold on Class Action Waiver Cases Until Supreme Court Rules

The General Counsel of the National Labor Relations Board has instructed Regional Offices to hold in abeyance cases involving mandatory arbitration agreements with opt in or opt out clauses. Regions must do the same in cases where an employer argues that the class action waiver in its arbitration agreement is different than the one at issue in Murphy Oil. Regions are to evaluate cases independently.

The GC’s memorandum results from the United States Supreme Court’s recent grant of certiorari in National Labor Relations Board v. Murphy Oil USA (No. 16-307), Epic Systems Corp. v. Lewis (No. 16-285), and Ernst & Young LLP v. Morris (No. 16-300). (Jackson Lewis is co-counsel in the Murphy Oil case).  The cases focus on the common issue of whether arbitration agreements that prevent employees from pursuing work-related claims on a collective or class basis violate the National Labor Relations Act.

In cases covered by the Memorandum, the GC directed Regions to enter informal settlement agreements if the cases have merit and conditioned on the Supreme Court finding class action waivers in arbitration agreements to be unlawful. Recognizing cases may contain multiple issues, Regions are instructed to enter similar informal settlement agreements regarding the class action waiver issue. If the parties are unable to settle the alternative issues in the case, those issues should move forward if the Region finds they have merit.

The Supreme Court’s decision will loom large for employers. President Trump’s appointment of a Justice to fill the seat vacated by Justice Antonin Scalia, who passed away last year, may be the deciding vote in the cases’ outcomes. (See our article on the nominee, President Trump Nominates Neil Gorsuch to U.S. Supreme Court.)

 

 

 

NLRB General Counsel Concludes Division I Scholarship Football Players are Employees under Labor Law

Scholarship football players in Division I FBS private sector colleges and universities are employees under the National Labor Relations Act, National Labor Relations Board General Counsel Richard F. Griffin has concluded. Accordingly, he explained, the players have all of the rights and protections available to employees under the Act. Click here to read the full article.

DOL Chief Nominee Puzder’s Hearing Postponed Again

For the fourth time, Secretary of Labor nominee Andrew Puzder’s hearing before the Senate Health, Education, Labor and Pensions (HELP) Committee has been postponed, this time indefinitely, according to Politico.  The Wall Street Journal reports the postponement  is the result of “persistent questions about his ethics and financial paperwork” and that the hearing will not be rescheduled until the HELP Committee receives Puzder’s filing with the Office of Government Ethics.

The hearing was scheduled to take place on February 7, after having been postponed from January 17 and February 2.

Public Sector Employees in Three States Sue to Nix Fair Share Fees

Four Pennsylvania school teachers, two Santa Clara Valley Medical Center pharmacists, and three New York school workers have filed separate suits challenging the constitutionality of state requirements permitting the unions that represent them to require them, if they do not join and pay dues, to pay a “fair share fee” (similar in amount to the dues paid by union members) toward their union representation.

In Abood v. Detroit Board of Educ., 431 U.S. 209 (1977), the Supreme Court held that fair share fees were constitutional and that employees could be compelled to pay them as a condition of employment “insofar as [they] are applied to collective-bargaining, contract administration, and grievance-adjustment purposes.” The Pennsylvania, California, and New York public sector employees (represented by the National Right to Work Legal Defense Foundation) seek to overturn that precedent and have the fees outlawed. They argue that the fee requirements violate their First Amendment rights.

In Friedrichs v. California Teachers Assoc., 136 S. Ct. 1083 (2016), the Court had an opportunity to reconsider its decision in Abood. The plaintiffs had argued that their First Amendment rights were violated when the government, through a collective bargaining agreement, required the employees to pay a fair share payment to a union whose views they did not necessarily wholly share. However, following the death of Justice Antonin Scalia, who was widely expected to cast the fifth vote against the California fair share fee requirement, the Court split 4-4. (The tie vote resulted in an affirmance of the lower court decision upholding the fees.)

President Donald Trump is expected to announce his choice to fill the Supreme Court vacancy on February 2. If, as anticipated, he nominates a conservative jurist who is confirmed by the Senate, the likelihood will increase greatly that Abood will be overturned and fair share fees will be ruled unconstitutional.

 

 

 

 

 

 

 

 

Puzder Hearing Delayed to February 7

The confirmation hearing for Secretary of Labor nominee Andrew Puzder before the Senate Health, Education, Labor, and Pensions (HELP) Committee has been rescheduled from February 2 to February 7. No reason has been announced.

Senator Patty Murray (D. WA) released a letter in which she asked Puzder “when the Health, Education, Labor, and Pensions (HELP) Committee might expect to see the required Committee paperwork in advance of [his] hearing.” She also “reiterate[d] [her] request that all of President Trump’s Cabinet nominees provide three years of tax returns as part of the Senate vetting process.”

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