Chamber of Commerce of the United States v. National Labor Relations Board
856 F. Supp. 2d 778
D.S.C.2012Background
- Plaintiffs challenge NLRB's final rule requiring NLRA employers to post notices of employee rights.
- For 75 years the NLRB did not require such posting; rule marks a regulatory shift.
- Board proposed rule on Dec. 22, 2010; final rule issued Aug. 30, 2011.
- Rule's effective date was set for Apr. 30, 2012.
- Court grants summary judgment for plaintiffs, finds rule exceeds Board authority under the APA.
- Court notes the Board's role is traditionally reactive to charges or petitions rather than proactive employer postings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Board lacked authority under Section 6 to issue the rule | NLRB has no Section 6 authority to mandate posting | Board has broad Section 6 authority to carry out the Act | Yes; Board lacks Section 6 authority to promulgate the rule |
| Whether gap-filling authority justifies the rule under Chevron step two | Gap-filling cannot authorize proactive posting rule | Chevron deference supports Board's permissible construction | No; court proceeds on Chevron step one and finds no delegation |
| Whether the NLRA's silence and legislative history foreclose posting requirement | Congress did not intend universal posting or delegate authority | Silence permits gap-filling under Chevron step two | Yes; silence and history show no intendment to impose posting obligation |
| Whether the rule conflicts with the Act's structure as reactive regulation | Posting obligation is incompatible with petition/charge-triggered regime | Rule fills a statutory gap to advance Act goals | Yes; rule is incompatible with Act's reactive framework |
Key Cases Cited
- Am. Hosp. Ass’n v. NLRB, 499 U.S. 606 (U.S. 1991) (rulemaking authority under §6 to carry out §9(b) found in AHA)
- NLRB v. Bell Aerospace Co., 416 U.S. 267 (U.S. 1974) (Board chooses between rulemaking and adjudication)
- Am. Ship Bldg. Co. v. NLRB, 380 U.S. 300 (U.S. 1965) (agency cannot exceed prescribed form of authority)
- Ins. Agents’ Int’l Union, 361 U.S. 477 (U.S. 1960) (courts respect when Board answers a question posed by Congress)
- Republic Aviation Corp. v. NLRB, 324 U.S. 793 (U.S. 1945) (Board’s authority and purposes under NLRA explained)