On June 23, 2022, National Labor Relations Board General Counsel Jennifer A. Abruzzo issued memorandum GC 22-06 advising regions that they can seek judgment to force employers to comply with specific terms. settlement agreements in unfair labor practice (ULP) charges. rather than a default judgment.
GC memo 22-06 commended regions for continuing to require “full remedies” in settlement agreements consistent with previous guidance and advised regions that they “must be proactive in ensuring compliance with settlement agreements.” , including the application of default judgment provisions in the event of non-compliance. Although the issuance of an order “providing a full remedy for violations of the alleged complaint” is “most often” the best response to non-compliance, there may be situations in which an “order of the Commission requiring the accused party to perform the obligations, the terms of the settlement may better enforce the National Labor Relations Act (NLRA), the memorandum states.
For example, the memorandum cites in a footnote a situation in which a victim of discrimination settles a ULP charge by agreeing to waive reinstatement in exchange for an upfront payment so the employee can relocate for another use. The employee in this situation would only benefit from fulfilling the terms of the settlement agreement “because reinstatement had been rendered impossible,” the memorandum says.
The memorandum directed the regions to include new default language in the settlement agreements that the accused party agrees that the Board may enter default judgment against the accused party on the ULP allegations”and or an order compelling the Charged Party to perform the terms of this Settlement Agreement. » [Emphasis added.]
The advice comes after the Advocate General last year told regions to “provide the fullest and most effective relief possible to victims” of alleged ULP violations. This includes coverage for all remedies such as prepayments, prepayments, and consequential damages, such as reimbursement of credit card late fees or loss of a home or car for nonpayment. loan repayments following unlawful dismissal.
The new memorandum further highlighted some of the “comprehensive remedies” regions have already achieved under this approach, including: reimbursement of the cost of formula milk due to loss of breast pumping areas at work ; send letters of apology to reinstated employees; allow unions to use employers’ bulletin boards; provide employee contact information to unions; training of supervisors and managers; reimbursement of union bargaining costs during periods of alleged bad faith bargaining; and even create “a video recording of the Commission officer reading the notice, with the accused party’s senior official present, to distribute to employees at multiple facilities.”
Key points to remember
The latest memorandum expands the requirement that settlement agreements must include full remedies, which can be cumbersome for employers to provide, and opens the door for employers to be ordered to comply. Employers may consider meeting settlement obligations under these procedures when deciding whether or not to settle a ULP charge.