Bass, Berry & Sims attorneys Tim Garrett and Hunter Yoches shared insight for a recent Law360 article discussing the recent decision by the U.S. Court of Appeals for the District of Columbia Circuit that invalidated the National Labor Relations Board’s (NLRB) successor bar doctrine in Hospital Menonita de Guayama Inc. v. NLRB.
The attorneys discussed how this ruling impacts employers considering the acquisition of a unionized business. Employers once again have the ability to challenge majority support and protect employee freedom after an acquisition. However, the decision does not completely invalidate the successorship concept and purchasers are not free to disregard incumbent unions.
Tim and Hunter provided guidance on understanding the NLRB successor bar doctrine, background on the Hospital Menonita de Guayama Inc. v. NLRB case, analysis of the D.C. circuit decision, and insight into how the D.C. Circuit has split from the direction of other circuits.
The attorneys also shared key implications for employers acquiring unionized businesses. “For employers considering the acquisition of a unionized business, the principal takeaway is practical,” said Tim and Hunter. “Hospital Menonita does not dismantle federal successorship law, but the successor bar should no longer be treated as an unavoidable one-year period during which majority support is legally irrelevant.”
The full article, “Rejection Of NLRB Successor Bar Renews An Employer Tool,” was published by Law360 on September 2 and is available online (subscription required). Tim and Hunter also wrote about this topic for the firm’s HR Law Talk blog on August 3; click here to access that post.