July 29 (Reuters) - A U.S. appeals court on Monday
signaled that a recent U.S. Supreme Court ruling curbing the
in-house enforcement powers of some federal agencies could
impact the National Labor Relations Board, in a case involving
alleged labor law violations by Macy's.
A three-judge panel of the San Francisco-based 9th U.S.
Circuit asked lawyers for the board, Macy's, and a union
representing the retailer's employees to file briefs explaining
how the Supreme Court's June ruling in Jarkesy v. U.S.
Securities and Exchange Commission may affect the NLRB's ability
to impose remedies in administrative cases.
Macy's is appealing an NLRB decision that said it unlawfully
locked out a group of building engineers in 2020 after they
ended a strike over stalled union contract negotiations, and
required the company to post notices informing workers of their
rights.
The International Union of Operating Engineers affiliate
that represents those workers filed a cross-appeal arguing that
the board did not go far enough in imposing remedies on Macy's.
The 9th Circuit heard oral arguments in the case in March.
Macy's and lawyers for the union did not immediately respond
to requests for comment. An NLRB spokeswoman declined to
comment.
The Supreme Court in its Jarkesy ruling said the SEC's
practice of imposing monetary penalties for financial fraud in
administrative cases violates defendants' constitutional right
to a jury trial.
The decision only directly impacts the SEC, but is widely
expected to lead courts to block other agencies from handing
down penalties in administrative cases.
Federal labor law only allows the NLRB to impose remedies
that make workers subjected to unlawful conduct whole and does
not allow for statutory penalties, but the board in recent years
has attempted to expand them.
In a 2022 decision in the case Thryv Inc, the board said it
would begin ordering employers to reimburse workers for
pecuniary harms tied directly to unlawful labor practices, such
as out-of-pocket medical expenses and credit card fees incurred
by workers as a result of being illegally fired.
The New Orleans-based 5th Circuit in May threw out the Thryv
ruling, but it did so on the merits of the board's decision and
did not address the broader issue of remedies.
The 5th Circuit ruling does not bind the 9th Circuit, which
in Monday's two-sentence order asked for briefs on Jarkesy's
impact "on the award of remedies under the National Labor
Relations Board's decision in Thryv Inc."
The panel includes 9th Circuit Judges Jacqueline Nguyen and
Patrick Bumatay and Federal Circuit Judge Evan Wallach, who is
sitting by designation.
The case is Macy's Inc v. NLRB, 9th U.S. Circuit Court of
Appeals, No. 23-150.
For the NLRB: Barbara Sheehy
For the union: David Rosenfeld of Weinberg, Roger &
Rosenfeld
For Macy's: Laura Ann Pierson-Scheinberg of Jackson Lewis
Read more:
NLRB ruling that expanded money damages for workers rejected
by 5th Circuit
SEC in-house judges violate right to jury trial, appeals
court rules
US Supreme Court faults SEC's use of in-house judges in
latest curbs on agency powers
NLRB GC directs staff to seek expansive remedies for workers
Workers entitled to more money from employers who break the
law - labor board
(Reporting by Daniel Wiessner in Albany, New York)