NFIB Legal Center Proclaims Victory in NLRB Poster Lawsuit

Date: January 15, 2014

Last week, the NFIB Legal Center proclaimed final victory in our lawsuit against the National Labor Relations Board’s “Notice Poster Rule.” The rule would have required virtually every employer in the country—even mom-and-pop shops—to prominently display a poster outlining employee “labor rights.” We took issue with the rule on several grounds, and decided to challenge it in federal court.

You may recall that we secured a victory in the Federal Court of Appeal for the D.C. Circuit in 2013—striking down the Notice Poster Rule. Now this case is shut and closed, as the NLRB has decided not to appeal to the Supreme Court. Karen Harned, Executive Director of the Legal Center, said in response: “We are pleased the labor board has decided to comply with the ruling and has declined to pursue this troubling agenda any further.”

As we have explained before, this case was a victory both in a big-picture sense and in practical terms. From the 1,000 foot level, this was a major victory for small business because the decision striking down the Poster Rule reinforced the idea that federal agencies have only limited powers—and specifically that NLRB lacked the power to require employers to put up a poster like this. But this was also a very tangible victory for small business owners. For one, they can now decide for themselves whether to put up the Notice Poster. That is a big deal because we saved countless business owners from lawsuits and penalties that they would have faced if the rule had gone into effect, if they had neglected to comply; however, it should be noted that—pursuant to an executive order from the Obama Administration—employers who contract with the federal government must still display this poster. 

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