The National Labor Relations Board (NLRB) and General Counsel Jennifer Abruzzo continue to push the envelope to solve the problem of defiant employers that fail to comply with Board-ordered remedies. In a recent development, the NLRB has taken a significant step by introducing contempt charges against corporate individuals.
The case of NLRB v. Haven Salon + Spa, No. 21-2413 (7th Cir. Sept. 30, 2021) began in 2021, when an employee was discharged for complaining about Haven’s COVID-19 safety protocols. The Board ruled the termination violated the National Labor Relations Act (NLRA) because these complaints were protected concerted activity. Haven was ordered to reinstate the worker with back pay, remove all references to her discharge from company files, and write a letter of apology. Haven was also ordered to post a notice of employee labor rights within the workplace. Haven failed to fully comply with the Board’s orders.
In February 2023, the NLRB sought a contempt order against Haven in a federal district court. The Court granted the request but offered to forgive the increasing fines if Haven complied within one week. Haven continued to defy the Board and Court’s order.
In August 2023, the Board requested that two company officials be held personally responsible for the contempt charges. The Board argued that these officials were responsible for Haven's noncompliance, showing that they deliberately evaded service of the Board’s orders on several occasions.
On September 12, 2023, the Court granted the request, sending the U.S. Marshals Service to take the officials into custody and ordering them to appear before a U.S. magistrate judge. In the presence of the judge, the officials agreed that they would promptly comply with the Court's orders, including personally paying a $30,000 fine and the attorney’s fees owed by Haven.
General Counsel Abruzzo expressed great satisfaction at the outcome. She stated that this is an example of the “agency’s vigorous pursuit of justice. Employers should be on notice that they can face steep consequences if they continue to skirt the law, including being taken into custody until they comply. Violators of the Act should promptly comply with Board orders in order to quickly remedy their unlawful activities and dissipate the adverse effects that they had upon workers.”
This development serves as a stark warning to employers: deliberately refusing to comply with legal mandates could potentially lead to corporate officials being apprehended on contempt charges and held personally responsible for financial penalties. The takeaway here is clear: Noncompliance with NLRB or court orders is a risky and ill-advised legal strategy. There should be no doubt about the NLRB's resolute stance on enforcement.
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