In an important ruling for the franchise industry, today, the U.S. District Court of Appeals issued an emergency injunction to delay the effective date, originally set as April 30, for the National Labor Relations Board’s (NLRB) “Notice Posting Rule,” which would have required businesses to post a biased notice explaining an employee’s right to organize as a union.
“This is a critical win for franchise business owners as we continue our aggressive efforts to battle against unfair and unnecessary regulations that impede the industry’s ability to grow and create jobs,” said IFA President & CEO Steve Caldeira. “The injunction in this case is the right ruling as we continue to make the case that this rule is unfair to business owners. We will work with other business groups to appeal the original ruling so that franchise businesses can operate on a level playing field.”
IFA and other members of the Coalition for a Democratic Workforce said that the poster failed to explain an employee’s right to decertify an unwanted union, right to refuse to pay dues used for political purposes, or explain employees’ rights in “right to work” states such as South Carolina, Indiana and North Carolina. Today’s ruling delays the implementation date until the court has a chance to hear arguments and issue a ruling.
The injunction comes at the request of employers after a decision by a federal district court in South Carolina that struck down the NRLB rule. On Friday, April 13, the U.S. District Court of South Carolina agreed with the U.S. Chamber of Commerce, who filed the suit against the NLRB. The court stated that the National Labor Relations Act does not “even mention the issue of notice posting.” The decision means businesses will likely no longer have to post the notice by April 30, 2012.
The April 13 ruling was an important step towards limiting the NLRB’s recent excesses. The poster is a small part of a larger battle IFA continues to fight against organized labor’s desire to tilt the playing field in its favor. IFA continues to wait a court decision on the CDW lawsuit challenging the NLRB’s “Ambush Election Rule,” which is likely to come this month. Also, the DC Circuit court has to decide on CDW’s suit determining whether the NLRB even has the authority to conduct business given the nature of the recent “recess” appointments by the Administration. As a Management Committee leader in CDW, the IFA plays a critical role in holding the NLRB accountable for the many unlawful decisions it has made or proposed in the last year.