NLRB Targets Illegal Workplace Rules; La-Z-Boy Pays $297K

The National Labor Relations Board (NLRB) has been very busy over the last year. Among other things, it has focused on workplace rules, as an employer in the Midwest recently learned the hard way.

It ended up paying $297,000 to former workers. The six-figure settlement covered back pay, front pay, interest, excess tax, mileage and some medical expenses.

Here’s what happened, according to the NLRB’s press release.

Workplace rules: You can’t talk about that!

Region 25-Indianapolis issued a complaint against Hilst Enterprises, Inc. d/b/a La-Z-Boy Furniture Galleries based on a former employee’s charge against the company.

The complaint alleged La-Z-Boy maintained unlawful workplace rules that prohibited workers from discussing wages, hours and working conditions.

The employer also fired two employees who raised concerns about wages, hours and working conditions, purportedly “to discourage other employees from engaging in these and other concerted activities,” the NLRB said.

In the NLRB’s view, the alleged conduct amounted to violations of the National Labor Relations Act (NLRA).

“I applaud the great work of Region 25 staff investigating and litigating the case and obtaining this excellent settlement,” said NLRB Region 25 Regional Director Patricia K. Nachand. “Workers have a right to take collective action free from retaliation. These hard-fought remedies are a critical part of effectuating the National Labor Relations Act.”

Settlement includes revocation of rules, written apologies

To settle the dispute, La-Z-Boy agreed to pay a total of $297,000 to the workers and provide other relief, including:

• Rescind its unlawful work rules prohibiting employees from discussing their working conditions.
• Remove the unlawful discharges from the employees’ files.
• Send a letter of apology to the two discharged employees.
• Mail and email a notice about the settlement to its employees.

Takeaway for HR

Last fall the NLRB’s Stericycle Inc. decision adopted a new legal standard for evaluating workplace rules challenged as facially unlawful under Section 8(a)(1) of the NLRA.  

Now employers must narrowly tailor workplace rules so they don’t interfere with employees’ rights under the NLRA. 

In practical terms, it’s a good idea to review and revise the workplace rules outlined in your employee handbook if you haven’t already done so.

If you missed it, this guidance from the NLRB contains a checklist highlighting what employers CAN’T do under Section 8(a)(1) of the NLRA, which will help you assess and update your employee handbook.

Info: Region 25-Indianapolis Secures Settlement Requiring La-Z-Boy Furniture Galleries to Rescind Unlawful Work Rules, Pay $297,000 to Employees, 4/4/24.