For some time now the National Labor Relations Board (NLRB) has been facing questions from employers and others about its authority based upon the way it is structured as a government agency. There are various lawsuits around the country challenging the existence of the NLRB because its system of adjudication is seen as possibly unconstitutional. Last week, in a case brought on the west side of Michigan, a federal judge ruled that the NLRB’s protection of its judges under “just cause” removal was constitutional.

The case was brought by the NLRB against Trinity Health Grand Haven Hospital. The hospital tried to argue that because NLRB members and judge jobs are protected from removal by its just cause employment policy, this violated Article II of the United States Constitution.  The argument stated that the President of the United States should have authority to remove NLRB officers at will.

The underlying issue of this case came from the hospital pulling out from a decertification election and withdrawing recognition from the union. The withdrawal from the election was based upon the employer supported petition from workers to oust the union. The hospital withdrew from the election the day before the election results would have shown the union had won the election. The NLRB asserts that this was in violation of the National Labor Relations Act. Rather than acquiesce to the results, the hospital decided to challenge the NLRB’s right to hold the election at all.

Based upon earlier case law, the federal judge held that the NLRB was constitutionally structured and in turn granted the NLRB’s request for an injunction against the hospital’s withdrawal of recognition of the union. The judge further ruled that the hospital was wrong in stating its petition withdrawing recognition of the Service Employees International Union (SEIU) superseded the results of the decertification election that had been previously held. The election results showed the union had clearly won the election and the election was more demonstrative of the intention of the union members than was the withdrawal petition.

As stated above, there are currently other cases filed around the country challenging the constitutionality of the NLRB, and this case may be appealed as well. However, this is “strike one” against those employers challenging the constitutionality of the NLRB.

The case is Kerwin v. Trinitty Health Grand Haven Hospital Case No 1:24-cv-00445 US District Court for the Western District of Michigan.

Source: LAW 360 Employment Authority. NLRB wins Injunction, Defeats Constitutional Claims in Michigan (10/25/2024)