NLRB encourages regional offices to pursue alternative make-whole remedies

Recent developments suggest the NLRB plans to seek harsher remedies for unfair labor practice violations than it has done historically.

In her memorandum, the GC highlights a number of alternative remedies that Regional Directors should consider seeking to make employees whole. (Photo: Diego M. Radzinschi/THE NATIONAL LAW JOURNAL)

Key takeaways


The Office of the General Counsel to the National Labor Relations Board (NLRB) recently issued a memorandum to all Regional Directors encouraging them “to continue exploring new and alternative remedies” to ensure that the victims of unfair labor practices are made whole for the losses they suffer as a result of unlawful conduct. This is an important development for employers to monitor because it strongly suggests that the NLRB plans to seek harsher remedies for unfair labor practice violations than it has done historically.

If the Board finds that an employer has committed an unfair labor practice then it must issue an order requiring the employer to cease and desist from the identified unfair labor practice and to “take such affirmative action including reinstatement of employees with or without back pay, as will effectuate the policies of [the NLRA].”

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In the vast majority of cases, the remedy for an employee who suffers an unfair labor practice is reinstatement with back pay. But, in line with recent Board opinions, the General Counsel is taking the position that, sometimes, mere back pay is not enough to fully remedy the wrong.

In the recent memorandum, the GC stated, “Like the Board, I, too, welcome the opportunity to revisit remedies, and during my tenure as General Counsel, I expect to periodically issue remedy updates.” Further, a recent NLRB ruling said, “… in addition to back pay, Board order required employer to submit ‘appropriate W-2 forms’ to the Social Security Administration and compensate affected employees for adverse tax consequences, if any, as a result of unlawful layoffs, unlawful subcontracting, and unlawful changes to calculation of profit-sharing plan payments.”

In her memorandum, the GC highlights a number of alternative remedies that Regional Directors should consider seeking to make employees whole. The suggestions include, but are not limited to, the following:

Additional remedies for unlawfully terminated employees

Additional remedies for unlawful conduct committed during union organizing drive

Additional remedies for unlawful failures to bargain

Furthermore, the General Counsel specifically directs Regional Directors to report all cases to the Division of Advice in which they decline to provide a make-whole compensatory remedy for failures to bargain, stating in the memorandum, “Therefore, it is clear that the General Counsel is carefully monitoring each Region’s metrics and is making ‘make-whole alternative remedies’ a key enforcement priority.”

Brian Peterson is an attorney at Spencer Fane LLP in the firm’s Kansas City, Missouri, office. He helps businesses, both large and small, avoid employment-related lawsuits by drafting and reviewing employee handbooks and policies and, conducting employee training programs.


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