Local Joint Executive Board v. NLRB

In right-to-work states the unilateral termination of a dues-checkoff is a violation of the NLRA for refusing to bargain to agreement or impasse.

Las Vegas union workers (collectively “the Union”) alleged that resort and casino owners (collectively “the Employers”) violated the National Labor Relations Act (“NLRA”) by “unilaterally terminat[ing] dues-checkoff before bargaining to agreement or impasse.” The Court has considered two Union petitions on this matter and remanded twice to the NLRB the issue of whether dues-checkoff in right-to-work states are a mandatory topic of bargaining or, alternatively, are subject to unilateral change. The Union, for a third time, petitions the Board’s latest ruling dismissing the complaint after the Board failed to a reach a majority consensus necessary to overturn its precedent. The Court held that although the NLRB is granted deference to shape labor policy, the Court must rule on the merits of the case because the Board failed to provide a well-reasoned determination and instead relied on a procedural explanation for its substantive holding. In order to avoid another deadlocked Board decision if the case were remanded, the Court found that the NLRA is unclear on the subject of dues-checkoff after the collective bargaining agreement has expired in right-to-work states. The Court ruled that the Employers’ unilateral termination of the dues-checkoff in a right-to-work state was akin to a refusal to bargain in violation of the NLRA. PETITION GRANTED and REMANDED.