Lead Opinion
delivered the opinion of the Court.
The National Labor Relations Board (Board) awarded backpay to an undocumented alien who has never been legally authorized to work in the United States. We hold that such relief is foreclosed by federal immigration policy, as expressed by Congress in the Immigration Reform and Control Act of 1986 (IRCA).
Petitioner Hoffman Plastic Compounds, Inc. (petitioner or Hoffman), custom-formulates chemical compounds for businesses that manufacture pharmaceutical, construction, and household products. In May 1988, petitioner hired Jose Castro to operate various blending machines that “mix and cook" the particular formulas per customer order. Before being hired for this position, Castro presented documents that appeared to verify his authorization to work in the Unitеd States. In December 1988, the United Rubber, Cork, Linoleum, and Plastic Workers of America, AFL-CIO, began a union-organizing campaign at petitioner’s production plant. Castro and several other employees supported the organizing campaign and distributed authorization cards to co-workers. In January 1989, Hoffman laid off Castro and other employees engaged in these organizing activities.
Three years later, in January 1992, respondent Board found that Hoffman unlawfully selected four employees, including Castro, for layoff “in order to rid itself of known union supporters” in violation of § 8(a)(3) of the National Labor Relations Act (NLRA).
In June 1993, the parties proceeded to a compliance hearing before an Administrative Law Judge (ALJ) to determine the amount of backpay owed to each discriminatee. On the final day of the hearing, Castro testified that he was born in Mexico and that he had never been legally admitted to, or authorized to work in, the United States. 314 N. L. R. B. 683, 685 (1994). He admitted gaining employment with Hoffman only after tendering a birth certificate belonging to a friend who was born in Texas. Ibid. He also admitted that he used this birth certificate to fraudulently obtain a California driver’s license and a Social Security card, and to fraudulently оbtain employment following his layoff by Hoffman. Ibid. Neither Castro nor the Board’s General Counsel offered any evidence that Castro had applied or intended to apply for legal authorization to work in the United States. Ibid. Based on this testimony, the ALJ found the Board precluded from awarding Castro backpay or reinstatement as such relief would be contrary to Sure-Tan, Inc. v. NLRB,
In September 1998, four years after the ALJ’s decision, and nine years after Castro was fired, the Board reversed with respect to backpay. 326 N. L. R. B. 1060. Citing its earlier decision in A. P. R. A. Fuel Oil Buyers Group, Inc., 320 N. L. R. B. 408 (1995), the Board determined that “the most effective way to accommodate and further the immigrаtion policies embodied in [IRCA] is to provide the protections and remedies of the [NLRA] to undocumented workers in the same manner as to other employees.” 326 N. L. R. B., at 1060. The Board thus found that Castro was entitled to
Hoffman filed a petition for review of the Board’s order in the Court of Appeals. A panel of the Court of Appeals denied the petition for review.
This case exemplifies the principle that the Board’s discretion to select and fashion remedies for violations of the NLRA, though generally broad, see, e. g., NLRB v. Seven-Up Bottling Co. of Miami, Inc.,
“We are unable to conclude that Congress intended to compel employers to retain persons in their employ regardless of their unlawful conduct, — to invest those who go on strike with an immunity from discharge for acts of trespass or violence against thе employer’s property, which they would not have enjoyed had they remained at work.”306 U. S., at 255 .
Though we found that the employer had committed serious violations of the NLRA, the Board had no discretion to remedy those violations by awarding reinstatement with back-pay to employees who themselves had committed serious criminal acts. Two years later, in Southern S. S. Co., supra, the Board awarded reinstatement with backpay to five employees whose strike on shipboard had amounted to a mutiny in violation of federal law. We set aside the award, saying:
“It is sufficient for this case to observe that the Board has not been commissioned to effectuate the policies of the Labor Relations Act so single-mindedly that it may wholly ignore other and equally important [congressional objectives.”316 U. S., at 47 .
Although thе Board had argued that the employees’ conduct did not in fact violate the federal mutiny statute, we rejected this view, finding the Board’s interpretation of a statute so
Our decision in Sure-Tan followed this line of cases and set aside an award closely analogous to the award challenged here. There we confronted for the first time a potential conflict between the NLRA and federal immigration policy, as then expressed in the Immigration and Nationality Act (INA), 66 Stat. 163, as amended, 8 U. S. C. § 1101 et seq. Two companies had unlawfully reported alien-employees to the Immigration and Naturalization Service (INS) in retaliation for union activity. Rather than face INS sanction, the employees voluntarily departed to Mexico. The Board investigated and found the companies acted in violation of §§ 8(a)(1) and (3) of the NLRA. The Board’s ensuing order directed the companies to reinstate the affected workers and pay them six months’ backpay.
We affirmed the Board’s determination that the NLRA applied to undocumented workers, reasoning that the immigration laws “as presently written” expressed only a “ ‘peripheral concern’” with the employment of illegal aliens.
With respect to the Board’s selection of remedies, however, we found its authority limited by federal immigration policy. See id., at 903 (“In devising remedies for unfair labor practices, the Board is obliged to take into account another ‘equally important Congressional objective’ ” (quoting Southern S. S. Co., supra, at 47)). For example, the Board was prohibited from effectively rewarding a violation of the immigration laws by reinstating workers not authorized to reenter the United States. Sure-Tan,
The Board cites our decision in ABF Freight System, Inc. v. NLRB,
It is against this decisional background that we turn to the question presented here. The parties and the lower courts focus much of their attention on Sure-Tan, particularly its express limitation of backpay to aliens “lawftilly entitled to be present and employed in the United States.”
The Southern S. S. Co. line of cases established that where the Board’s chosen remedy trenches upon a federal statute or policy outside the Board’s competence to administer, the Board’s remedy may be required to yield. Whethеr or not this was the situation at the time of Sure-Tan, it is precisely the situation today. In 1986, two years after Sure-Tan, Congress enacted IRCA, a comprehensive scheme prohibiting the employment of illegal aliens in the United States. § 101(a)(1), 100 Stat. 3360, 8 U. S. C. § 1324a. As we have previously noted, IRCA “forcefully” made combating the employment of illegal aliens central to “[t]he policy of immigration law.” INS v. National Center for Immigrants’ Rights, Inc.,
Similarly, if an employer unknowingly hires an unauthorized alien, or if the alien becomes unauthorized while employed, the employer is compelled to discharge the worker upon discovery of the worker’s undocumented status. § 1324a(a)(2). Employers who violate IRCA are punished by civil fines, § 1324a(e)(4)(A), and may be subject to criminal prosecution, § 1324a(f)(l). IRCA also makes it a crime for an unauthorized alien to subvert the employer verification system by tendering fraudulent documents. § 1324c(a). It thus prohibits aliens from using or attempting to use “any forged, counterfeit, altered, or falsely made document” or “any document lawfully issued to or with respect to a person other than the possessor” for purposes of obtaining employment in the United States. §§ 1324c(a)(l)-(3). Aliens who use or attempt to use such documents are subject to fines and criminal prosecution. 18 U. S. C. § 1546(b). There is no dispute that Castro’s use of false documents to obtain employment with Hoffman violated these provisions.
Under the IRCA regime, it is impossible for an undocumented alien to obtain employment in the United States without some party directly contravening explicit congressional policies. Either the undocumented alien tenders fraudulent identification, which subverts the cornerstone of IRCA’s enforcement mechanism, or the employer knowingly hires the undocumented alien in direct contradiction of its IRCA obligations. The Board asks that we overlook this
The Board contends that awarding limited backpay to Castro “reasonably accommodates” IRCA, because, in the Board’s view, such an award is not “inconsistent” with IRCA. Brief for Respondent 29-42. The Board argues that because the backpay period was closed as of the date Hoffman learned of Castro’s illegal status, Hoffman could have employed Castro during the backpay period without violating IRCA. Id., at 37. The Board further argues that while IRCA criminalized the misuse of documents, “it did not make violators ineligible for back pay awards or other compensation flowing from employment secured by the misuse of such documents.” Id., at 38. This latter statement, of course, proves little: The mutiny statute in 'Southern S. S. Co., and the INA in Sure-Tan, were likewise understandably silent with respect to such things as backpay awards under the NLRA. What matters here, and what sinks both of the Board’s claims, is that Congress has expressly made it criminally punishable for an alien to obtain employment with false documents. There is no reason to think that Congress nonetheless intended to permit backpay where but for an employer’s unfair labor practices, an alien-employee would have remained in the United States illegally, and continued to work illegаlly, all the while successfully evading apprehension by immigration authorities.
Indeed, awarding backpay in a case like this not only trivializes the immigration laws, it also condones and encourages future violations. The Board admits that had the INS detained Castro, or had Castro obeyed the law and departed to Mexico, Castro would have lost his right to backpay. See Brief for Respondent 7-8 (citing A. P. R. A. Fuel Oil Buyers Group, Inc., 320 N. L. R. B., at 416). Cf. INS v. National Center for Immigrants’ Rights, Inc.,
We therefore conclude that allowing the Board to award backpay to illegal aliens would unduly trench upon explicit statutory prohibitions critical to federal immigration policy, as expressed in IRCA. It would encourage the successful evasion of apprehension by immigration authorities, condone prior violations of the immigration laws, and encourage future violations. However broad the Board’s discretion to
Lack of authority to award backpay does not mean that the employer gets off scot-free. The Board here has already imposed other significant sanctions against Hoffman — sanctions Hoffman does not challenge. See supra, at 140. These include orders that Hoffman cease and desist its violations of the NLRA, and that it conspicuously post a notice to employees setting forth their rights under the NLRA and detailing its prior unfair practices. 306 N. L. R. B., at 100-101. Hoffman will be subject to contempt proceedings should it fail to comply with these orders. NLRB v. Warren Co.,
The judgment of the Court of Appeals is reversed.
It is so ordered.
Notes
Section 8(a)(3) of the NLRA prohibits discrimination “in regard to hire or tenure of employment or any term or condition of employment to encourage or discourage membership in any labor organization.” 49 Stat. 452, as added, 61 Stat. 140, 29 U. S. C. § 158(a)(3).
The Courts of Appeals have divided on the question whether the Board may award backpay to undocumented workers. Compare NLRB v. A. P. R. A. Fuel Oil Buyers Group, Inc.,
For an alien to be “authorized” to work in the United States, he or she must possess “a valid social security account number card,” § 1324a(b)(C)(i), or “other documentation evidencing authorization of employment in the United States which the Attorney General finds, by regulation, to be acceptable for purposes of this section,” § 1324a(b)(C)(ii). See
Justice Breyer contends otherwise, pointing to a single Committee Report from one House of a politically divided Congress, post, at 157 (dissenting opinion) (citing H. R. Rep. No. 99-682, pt. 1 (1986)), which is a
When questioned at oral argument about the tension between affirmative mitigation duties under the NLRA and explicit prohibitions against employment of illegal aliens in IRCA, the Government candidly stated: “[T]he board has not examined this issue in detail.” Tr. of Oral Arg. 32. Justice Breyer says that we should nonetheless defer to the Government’s view that the Board’s remedy is entirely consistent with IRCA. Post, at 161 (dissenting opinion). But such deference would be contrary to Southern S. S. Co. v. NLRB,
Because the Board is precluded from imposing punitive remedies, Republic Steel Corp. v. NLRB,
Dissenting Opinion
dissenting.
I cannot agree that the backpay award before us “runs counter to,” or “trenches upon,” national immigration policy. Ante, at 147,149 (citing the Immigrаtion Reform and Control Act of 1986 (IRCA)). As all the relevant agencies (including the Department of Justice) have told us, the National Labor Relations Board’s limited backpay order will not interfere with the implementation of immigration policy. Rather, it reasonably helps to deter unlawful activity that both labor laws and immigration laws seek to prevent. Consequently, the order is lawful. See ante, at 142 (recognizing “broad” scope of Board’s remedial authority).
* * *
The Court does not deny that the employer in this case dismissed an employee for trying to organize a union — a crude and obvious violation of the labor laws. See 29 U. S. C. § 158(a)(3) (1994 ed.); NLRB v. Transportation Management Corp.,
Without the possibility of the deterrence that backpay provides, the Board can impose only future-oriented obligations upon law-violating employers — for it has no other weapons in its remedial arsenal. Ante, at 152. And in the absence of the backpay weapon, employers could conclude that they can violate the labor laws at least once with impunity. See A. P. R. A. Fuel Oil Buyers Group, Inc., 320 N. L. R. B. 408, 415, n. 38 (1995) (without potential backpay order employer might simply discharge employees who show interest in a union “secure in the knowledge” that only penalties were requirements “to cease and desist and post a notice”); cf. Golden State Bottling Co. v. NLRB,
Where in the immigration laws can the Court find a “policy” that might warrant taking from the Board this critically important remedial power? Certainly not in аny statutory language. The immigration statutes say that an employer may not knowingly employ an illegal alien, that an alien may not submit false documents, and that the employer must verify documentation. See 8 U. S. C. §§ 1324a(a)(l), 1324a(b); 18 U. S. C. § 1546(b)(1). They provide specific penalties, including criminal penalties, for violations. Ibid.; 8 U. S. C. §§ 1324a(e)(4), 1324a(f)(l). But the statutes’ language itself doe's not explicitly state how a violation is to effect the en
Nor can the Court comfortably rest its conclusion upon the immigration laws’ purposes. For one thing, the general purpose of the immigration statute’s employment prohibition is to diminish the attractive force of employment, which like a “magnet” pulls illegal immigrants toward the United States. H. R. Rep. No. 99-682, pt. 1, p. 45 (1986). To permit the Board to award backpay could not significantly increase the strength of this magnetic force, for so speculative a future possibility could not realistically influence an individual’s decision to migrate illegally. See A. P. R. A. Fuel Oil Buyers Group, Inc., supra, at 410-415 (no significant influence from so speculative a factor); Patel v. Quality Inn South,
To deny the Board the power to award backpay, however, might very well increase the strength of this magnetic force. That denial lowers the cost to the employer of an initial labor law violation (provided, of course, that the only victims are illegal aliens). It thereby increases the employer’s incentive to find and to hire illegal-alien employees. Were the Board forbidden to assess backpay against a knowing employer — a circumstance not before us today, see
The immigration law’s specific labor-law-related purposes also favor preservation, not elimination, of the Board’s back-pay powers. See A. P. R. A. Fuel Oil Buyers Group, Inc., supra, at 414 (immigration law seeks to combat the problem of aliens’ willingness to “work in substandard conditions and for starvation wages”); cf. also Sure-Tan,
Neither does precedent help the Court. Indeed, in ABF Freight System, Inc. v. NLRB,
The Court, trying to distinguish ABF Freight, says that the Court there left open “whether the Board could award backpay to an employee who engaged in ‘serious misconduct’ unrelated to internal Board proceedings.” Ante, at 146. But the Court does not explain why (assuming misconduct of equivalent seriousness) lack of a relationship to Board proceedings matters, nor why the Board should have to do more than take that misconduct into account — as it did here. 326 N. L. R. B. 1060,1060-1062 (1998) (thoroughly discussing relevance of immigration policies); see also A. P. R. A. Fuel Oil Buyers Group, Inc., 320 N. L. R. B., at 412-414 (same). The Court adds that the Board order in ABF Freight “did not implicate federal statutes or policies administered by other
The Court concludes that the employee misconduct at issue in ABF Freight, “though serious, was not at all analogous to misconduct that renders an underlying employment relationship illegal.” Ante, at 146. But this conclusion rests upon an implicit assumption — the assumption that the immigration laws’ ban on employment is not compatible with a backpay award. And that assumption, as I have tried to explain, is not justified. See supra, at 155-157.
At the same time, the two earlier cases upоn which the Court relies, NLRB v. Fansteel Metallurgical Corp.,
By way of contrast, the present case concerns a discharge that was not for “good cause.” The discharge did not sever any connection with an unfair labor practice. Indeed, the discharge was the unfair labor practice. Hence a determination that backpay was inappropriate in the former circumstances (involving a justifiable discharge) tells us next to nothing about the appropriateness as a legal remedy in the latter (involving an mjustifiable discharge), the circumstances present here.
The Court also refers to the statement in Sure-Tan, Inc. v. NLRB,
Finally, the Court cannot reasonably rely upon the award’s negative features taken together. The Court summarizes those negative features when it says that the Board “asks
Neither can the remaining two features — unlawfully earned wages and criminal fraud — prove determinative, for they tell us only a small portion of the relevant story. After all, the same backpay award that compensates an employee in the circumstances the Court describes also requires an employer who has violated the labor laws to make a meaningful monetary payment. Considered from this equally important perspective, the award simply requires that employer to pay an employee whom the emрloyer believed could lawfully have worked in the United States, (1) for years of work that he would have performed, (2) for a portion of the wages that he would have earned, and (3) for a job that the employee would have held — had that employer not unlawfully dismissed the employee for union organizing. In ignoring these latter features of the award, the Court undermines the public policies that underlie the Nation’s labor laws.
Of course, the Court believes it is necessary to do so in order to vindicate what it sees as conflicting immigration law policies. I have explained why I believe the latter policies do not conflict. See supra, at 155-157. But even were I wrong, the law requires the Court to respect the Board’s
For these reasons, I respectfully dissent.
