UC Health v. National Labor Relations Board
419 U.S. App. D.C. 441
| D.C. Cir. | 2015Background
- The NLRA vests a five-member NLRB appointed by the President with Senate consent; the Board may delegate representation-election authority to Regional Directors, subject to Board review on timely objection. 29 U.S.C. § 153(b).
- From Aug. 2010 to Jan. 3, 2012 multiple Board terms expired and Senate confirmations stalled; the President made recess appointments later held invalid in Noel Canning, leaving the Board without a quorum until August 5, 2013.
- In March–April 2013, while the Board lacked a quorum, a Regional Director conducted and certified a union representation election at UC Health under a Stipulated Election Agreement; no party filed objections within the regulatory window.
- UC Health refused to bargain; the Acting General Counsel charged an unfair labor practice and the Board found UC Health’s challenge to the Regional Director’s authority waived or meritless, upholding the certification.
- UC Health petitioned for review in this court, arguing the Regional Director lacked authority to hold/certify the election while the Board had no three-member quorum.
- The D.C. Circuit majority held the statute ambiguous on whether preexisting delegations to Regional Directors lapse when the Board loses a quorum and deferred to the NLRB’s reasonable interpretation, denying review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether UC Health waived challenge by failing to raise it before the Board | UC Health should have objected during representation proceedings; failure to do so bars review | Challenges to agency composition/authority may be raised on review; composition challenges are excepted from waiver rules | Court: composition challenges can be raised on review; UC Health not barred |
| Whether preexisting delegation to Regional Directors survives when Board lacks a three-member quorum | The statutory quorum requirement applies to any actor exercising delegated Board authority; delegation ceases when Board lacks quorum (Laurel Baye) | The statute permits delegation to Regional Directors and preserves Board review; silence on lapse means deference to agency interpretation that delegations remain effective until Board acts | Court: statute ambiguous; defer to Board under Chevron; Regional Director retained authority |
| Whether Laurel Baye controls and forecloses Board interpretation | Laurel Baye held delegated authority to Board-member panels cannot persist absent the Board quorum; it should bar similar delegations | Laurel Baye involved different clause (delegee panels holding plenary Board power) and distinct agency-law concerns; it does not control delegations to nonmember Regional Directors | Court: Laurel Baye distinguishable; does not control this nonfinal-delegation context |
| Whether Chevron deference applies to NLRB interpretation of §3(b) here | UC Health/dissent: Chevron inapplicable because prior precedent interpreted the statute as unambiguous (Laurel Baye/New Process) or the Board did not invoke discretionary interpretation | Majority: statute is ambiguous as to nonfinal delegations; Board offered a reasonable interpretation deserving Chevron deference | Court: applied Chevron and deferred to the Board’s reasonable interpretation |
Key Cases Cited
- Am. Fed’n of Labor v. NLRB, 308 U.S. 401 (1940) (limits on review of representation proceedings)
- Chevron U.S.A., Inc. v. Nat. Res. Def. Council, Inc., 467 U.S. 837 (1984) (two-step deference framework for agency statutory interpretations)
- Laurel Baye Healthcare of Lake Lanier, Inc. v. NLRB, 564 F.3d 469 (D.C. Cir. 2009) (Board panels exercising plenary authority cannot act absent a three-member Board quorum)
- New Process Steel, L.P. v. NLRB, 560 U.S. 674 (2010) (Board powers must be vested in at least three members; distinguished delegations to nonmember actors)
- City of Arlington v. FCC, 569 U.S. 290 (2013) (agency entitled to deference on statutory jurisdictional questions)