NLRB General Counsel Jennifer Abruzzo is steadfast in her pursuit to expand boundaries and impose rigorous penalties on companies that delay bargaining processes. Earlier this March, a National Labor Relations Board (NLRB) regional office in Pittsburgh finalized a settlement securing $286,000 for employees who were deprived of their bargaining rights.
The settlement centered on Paragon Systems, Inc., a private security firm, and the United States Court Security Officers, representing over 500 employees previously employed by Paragon across various federal courthouses. This resolution resolved an unfair labor practice charge stemming from Paragon's employment of these workers under a government contract.
In February 2023, the NLRB brought a complaint asserting that Paragon engaged in bargaining with the union without genuine intent, particularly in relation to the wage reopener provision in their contract. Paragon's withdrawal of a proposed 1 percent wage increase slated for October 2021 and the premature cessation of bargaining were cited. The complaint sought a retroactive make-whole remedy for the employees’ lost opportunity to engage in good-faith bargaining for an annual wage increase.
Pursuant to the settlement agreement, Paragon consented to compensating all affected employees for lost wages, benefits, and any foreseeable financial losses incurred due to the lack of genuine bargaining over wage increases preceding the loss of the government contract. The employees stand to receive over $286,000 in monetary relief.
This settlement underscores the broader relief sought by Abruzzo in her efforts to challenge the longstanding Ex-Cell-O decision — which prevents the Board from imposing damages on companies that illegally refuse to bargain with a union. Abruzzo’s approach and this latest settlement further embolden the NLRB to compel a company to pay workers for the wages and benefits they would have received had the company adhered to its bargaining obligations.
For assistance during collective bargaining negotiations, please contact the Labor Relations team at Employers Council for expert assistance.