03/13/2025: Regional Director Rejects Argument About Lack of Quorum
Regions can still run union elections in the absent of a quorum.
Magnum Management, 07-RC-360432 (Regional Election Decision)
This case involves a representation petition filed on February 14, 2025, by Local 324, International Union of Operating Engineers (IUOE), AFL-CIO seeking to represent a bargaining unit of employees at Magnum Management Corporation's amusement and water park in Muskegon, Michigan.
The key issue in this case was not the appropriateness of the bargaining unit, which was undisputed, but rather the Employer's argument that the Regional Director lacked authority to process representation petitions when the National Labor Relations Board (NLRB) lacks its statutorily mandated quorum of three members.
The case arose in the context of President Trump's removal of Board Member Gwynne Wilcox on January 27, 2025, which reduced the Board from three to two members. However, on March 6, 2025, the United States District Court for the District of Columbia held that Wilcox's removal violated Section 3(a) of the National Labor Relations Act and declared the removal "null and void."
The Regional Director determined that the Employer's argument was moot because the Board had a quorum following the court's reinstatement of Member Wilcox. The decision notes that even if the argument were not moot, it would fail based on established precedent. Multiple courts have held that the authority delegated to Regional Directors in 1961 to process representation cases survives any subsequent loss of a Board quorum.
Significant Cases Cited
New Process Steel, LP v. NLRB, 560 U.S. 674 (2010): Determined that statutory language requires the Board to have at least three members to act.
Brentwood Assisted Living Community, 355 NLRB No. 149 (2010): Held that Regional Directors properly process representation proceedings by virtue of delegated authority even when the Board lacks a quorum.
UC Health v. NLRB, 803 F.3d 669 (DC Cir. 2015): Upheld that Regional Directors' ability to exercise delegated authority does not cease when the Board lacks a quorum.
Magnesium Casting Co. v. NLRB, 401 U,S. 137 (1971): Upheld the Board's delegation of authority to Regional Directors to process representation cases.
Wilcox v. Trump, Case 1:25-cv-00334-BAH (D.D.C. March 6, 2025): Declared the removal of Board Member Wilcox "null and void," restoring the Board's quorum.
Watercrest Acquisition I, JD-20-25, 12-CA-328174 (ALJ Decision)
The dispute in this case centers on alleged violations of a collective bargaining agreement covering employees at the Employer’s North Miami Beach, Florida facility. According to the complaint, the Employer violated Section 8(a)(5) and (1) of the National Labor Relations Act by:
Failing to pay unit employees their accrued unused Paid Time Off (PTO) hours as of their termination dates, and
Failing to provide the Union with advance notice that it was transferring operations to a new operator.
Both actions were taken without the Union's consent and violated Articles 38 and 40 of the collective bargaining agreement that was effective from January 1, 2022, through December 31, 2024.
The Employer failed to file an answer to the complaint and did not respond to the General Counsel's notification of intention to seek a default judgment. The Employer also failed to appear at the hearing conducted via Zoom on March 4, 2025. Consequently, Judge Sandron sustained all allegations in the complaint and accepted the methodology and amounts of backpay set out in the compliance specification.
Significant Cases Cited
Advoserv of New Jersey, Inc., 363 NLRB 1324 (2016): Established requirement for compensating employees for adverse tax consequences of lump-sum backpay awards.
Don Chavas, LLC d/b/a Tortillas Don Chavas, 361 NLRB 101 (2014): Established requirement for employers to file reports allocating backpay awards to appropriate calendar years.