For many years, employers that have been found in violation of the National Labor Relations Act (NLRA) had to pay traditional make-whole remedies to their employees, which mostly included back pay and reinstatement. However, due to a new 3-2 decision issued by the National Labor Relations Board (the Board), this rule is up for a big change.
On December 13, 2022, the Board ruled that employers who violate the NLRA could be required to pay consequential damages to their employees for any violation, no matter how big or small. The Board concluded that “in all cases in which our standard remedy would include an order for make-whole relief, the Board will expressly order that the respondent compensate affected employees for all direct or foreseeable pecuniary harms suffered as a result of the respondent’s unfair labor practice.”
