06/19/2008
NFIB pleased with the ruling protecting employers' speech during union drives but disappointed in ADEA case
Washington, D.C.--Karen Harned, executive director, National Federation of Independent Business Small Business Legal Center, issued the following statement in response to the U.S. Supreme Court's decisions issued today in Chamber v. Brown and Meacham v. Knolls:
"The U.S. Supreme Court issued two significant decisions today that will impact the small business community. NFIB is very pleased with the court's decision in Chamber v. Brown. The court held that two California statutes that regulated employers' communication with employees during a union drive are preempted by federal law because the state statutes regulated within ‘a zone protected and reserved for market freedom.' The court's decision protected the balance struck by Congress in the National Labor Relations Act between labor and management in regards to noncoercive speech. This decision will allow California small business owners the rights provided to them under the NLRA, and serves as a warning to other state legislatures considering regulating employers' noncoercive speech. Small business owners deserve the right to communicate with their employees, in a noncoercive manor, during a union organization drive. NFIB applauds the court for upholding the balance of rights between labor and management established by the NLRA and enforced by the NLRB."
"Unfortunately, the court's second decision issued today does not favor small business and will make it much harder for small business owners to defend themselves against allegations of violations of the Age Discrimination in Employment Act. In their decision in Meacham v. Knolls, the court held that the employer bears both the burden of production and persuasion for proving that an employment decision was made for reasonable factors other than age. This decision ties the hands of employers to respond to market changes and new technology without fearing that any real change in their business plan will prompt a baseless ADEA lawsuit. It's unfortunate that the court disregarded these concerns. Today's decision will make it that much easier for employees to be successful in discrimination cases against employers while forcing employers to do much more work to defend themselves against baseless ADEA claims."
