A U.S. labor board rule requiring most companies to install workplace posters explaining union rights was thrown out by a second appeals court that said the agency had no legal right to enact the measure.
A three-judge panel of the U.S. Court of Appeals in Richmond, Virginia, today ruled that the National Labor Relations Act limited the National Labor Relations Board’s powers to reacting to unfair labor practices and conducting representation elections upon request.
“Had Congress intended to grant the NLRB the power to require the posting of employee rights notices, it could have amended the NLRA to do so,” U.S. Circuit Judge Allyson Duncan wrote in the ruling.
Hank Breiteneicher, an NLRB spokesman, didn’t immediately respond to an e-mail message seeking comment on the court’s
The ruling is a second victory for business groups that claimed the regulation would have required even employers without a union workforce to post the notices. The U.S. Court of Appeals in Washington in May ruled that the regulation violates employers’ free-speech rights.
The case is Chamber of Commerce v. National Labor Relations Board, 12-01757, U.S. Court of Appeals for the Fourth Circuit (Richmond).
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