National Labor Relations Board officials have approved a $3.6 million settlement in a case involving an employer’s alleged unlawful refusal to rehire workers who participated in a strike. The substantial settlement demonstrates the significant financial exposure employers face when they discriminate against strikers or fail to reinstate them after labor disputes end. The case illustrates why construction contractors with union workforces must carefully manage strike situations and rehiring processes.
Federal labor law provides strong protections for employees who engage in strikes. Once a strike ends, workers generally retain rights to return to their positions or comparable jobs. Employers cannot discriminate against strikers in rehiring, layoffs, or other employment decisions based on strike participation.
The Striker Rehiring Dispute
When employers violate these protections, remedies typically include back pay, front pay, and reinstatement. In this settled case, the $3.6 million remedy reflects years of back pay for workers who were not rehired following the labor dispute.
Construction contractors with unionized workforces need comprehensive plans for handling strikes, even when they hope strikes will not occur. Strikes are inevitable in some union relationships. When they happen, contractors must understand that post-strike retaliation exposes them to massive liability.
Settlement Terms and NLRB Approval
Rehiring decisions following strikes are particularly dangerous ground. Contractors cannot use strike participation as a factor in any employment decision, even if it seems justified by the strike’s impact.
Managing strike situations legally:
• Establish clear rehiring policies well before strikes occur
• Apply rehiring consistently regardless of strike participation
• Document rehiring decisions based on legitimate operational needs
• Avoid any references to strike participation in personnel files
• Maintain open communication with union representatives about rehiring process
• Understand that temporary layoffs following strikes may require reinstatement
• Consult employment counsel before making post-strike personnel decisions
• Never use strike participation as basis for refusing rehire
Takeaways for Labor Relations
Clear policies and consistent application provide the best protection against reinstatement liability.
This substantial settlement will likely encourage other workers with similar claims to pursue litigation or NLRB charges. Employers should audit their strike response policies and ensure they comply with reinstatement requirements. For construction contractors, understanding that strikes create specific legal obligations regarding rehiring is essential risk management.
For further details, please contact the lawyers at Tobia & Lovelace Esq., LLC at 201-638-0990.