Lost during December’s heated discussions about funding the government and the new tax bill, the National Labor Relations Board (NLRB), led by Chairman Philip Miscimarra issued two rulings that have finally put to rest two critical club issues stemming from the Obama-era. Here is an explanation of the two rulings and what they mean for private clubs.
Joint Employer Ruling
On December 14 the NLRB reversed the Obama-era joint employer decision. That ruling, known as the Browning-Ferris decision, established any club that has “indirect control” over a contractor’s employees could be held liable for that contractor’s labor law violations. That decision meant a club that hired a landscaping or cleaning company could be held liable if that company did not meet its employment law requirements.
NCA and our allies on the Coalition for a Democratic Workplace opposed this ruling when it was first handed down in 2015 and we worked with our allies on Capitol Hill to pass legislation overturning it. Unfortunately, that legislation was stymied. Under the current NLRB, that has changed.
Now, the NLRB ruling requires more than just an ancillary connection between the club and contractor before liability can arise. This is great news for clubs that use contractors. While most contractors do right by their employees and the law, no club should be held liable for contractors that fail to comply with employment laws.
Micro-Union Ruling
On December 15, the NLRB issued another decision that rejects the micro-union rule. That rule stated that unions could organize smaller subsets of employees in a business. For the private club industry, this meant that a union could organize a “micro-union” of pool wait staff rather than the entire wait staff.
The December decision reinstated the previous standard that employees must share an “overwhelming community of interests” to be a bargaining unit. This ruling also reduces a club’s financial and administrative burdens when dealing with union organizing efforts by segments of staff.
Big Picture
The Obama-era NLRB issued several key rulings that have hampered the success of clubs while giving unions more power. A year into the Trump Administration, the new NLRB has reversed this trend and has set the course for a more positive outlook for clubs. NCA will continue to keep you informed on the latest NLRB decisions that impact clubs