Scomas of Sausalito, LLC v. National Labor Relations Board
2017 U.S. App. LEXIS 3975
| D.C. Cir. | 2017Background
- Scomas, a restaurant, had recognized UNITE HERE! Local 2850 as exclusive bargaining representative from 2000–2013.
- Employee Georgina Canche collected a decertification petition signed by 29 of 54 unit members (a majority) and filed it with the NLRB; the petition instructed Scomas to withdraw recognition if petitioners constituted 50%+ and otherwise to seek an election at 30%+.
- Union organizer Lian Alan persuaded six signatories to sign revocation forms; Alan did not inform Scomas of the revocations.
- Unaware of the revocations, Scomas verified signatures against payroll and withdrew recognition on October 31, 2013; the Union then filed an unfair labor practice (ULP) charge claiming it still had majority support.
- The ALJ and the NLRB found Scomas violated § 8(a)(5)/(1) because the Union retained majority support after the revocations were counted; the Board ordered Scomas to recognize and bargain and imposed a bar on raising questions about the Union’s majority status for a reasonable time.
- The D.C. Circuit affirmed liability but vacated the Board’s affirmative bargaining order as an abuse of discretion, remanding for a new remedy.
Issues
| Issue | Plaintiff's Argument (Union) | Defendant's Argument (Scomas) | Held |
|---|---|---|---|
| Whether Scomas violated the NLRA by withdrawing recognition | Union: revocation signatures left it with majority; withdrawal therefore unlawful | Scomas: acted in good-faith reliance on a facially valid majority-signed petition; Levitz should not bar withdrawal based on post-withdrawal evidence or should be modified to require union notice | Court: Accepted Board/ALJ finding (not contested) that revocations left Union with majority at withdrawal; Scomas therefore violated the Act under Levitz standard |
| Whether an affirmative bargaining order (with a decertification bar) is an appropriate remedy | Union/Board: bargaining order vindicates employees’ §7 rights, removes employer’s incentive to delay, and dissipates the "taint" of the unlawful withdrawal | Scomas: order is extreme and punitive; violation was inadvertent and good-faith; a Board-supervised election (triggered at 30%) is an adequate, less intrusive remedy | Court: Vacated bargaining order as an abuse of discretion; held the Board failed to justify such an extreme remedy given Union nondisclosure, the absence of flagrant employer misconduct, and availability of election relief |
Key Cases Cited
- NLRB v. Curtin Matheson Scientific, 494 U.S. 775 (1990) (presumption of continuing union majority status supports industrial peace)
- Auciello Iron Works, Inc. v. NLRB, 517 U.S. 781 (1996) (presumption of majority support is rebuttable outside limited exceptions)
- Vincent Indus. Plastics, Inc. v. NLRB, 209 F.3d 727 (D.C. Cir. 2000) (articulates three-factor balancing for affirmative bargaining orders)
- Caterair Int'l v. NLRB, 22 F.3d 1114 (D.C. Cir. 1994) (review standards for Board remedies and caution on decertification bars)
- Skyline Distribs. v. NLRB, 99 F.3d 403 (D.C. Cir. 1996) (vacating bargaining order where it unduly restrains employee free choice)
- Douglas Foods Corp. v. NLRB, 251 F.3d 1056 (D.C. Cir. 2001) (Board must analyze why bargaining order fits the specific facts; extensive quotation is insufficient)
- Daisy's Originals, Inc. v. NLRB, 468 F.2d 493 (5th Cir. 1972) (seriousness and flagrance of an employer's misconduct inform whether bargaining order is appropriate)
- Seven-Up Bottling Co. v. NLRB, 344 U.S. 344 (1953) (Board charged with devising remedies to effectuate statutory policies)
