June 14, 2023
Supreme Court Update: Small Businesses Chalk Up Three Major Victories Over Big Labor and Big Government
Across the country, the NFIB Small Business Legal Center is involved in dozens of court cases to protect the rights of small businesses. The U.S. Supreme Court recently protected small businesses from labor unions destroying their property and federal government overreach in three precedent-setting cases.
Glacier Northwest, Inc. v. International Brotherhood of Teamsters
On June 1, 2023, the U.S. Supreme Court handed down a major decision in a case related to the balance of power between employers and labor unions. The court held that the National Labor Relations Act (NLRA) does not protect labor unions from being sued over intentional destruction of employer property. In an amicus brief, NFIB argued that unions are not immune from lawsuits involving the intentional destruction of employer property.
“Today’s decision reaffirms the established balance of power between labor unions and employers,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “The NLRA does not preempt legal action when employers are facing harassment and vandalism. Small business owners have the right to seek a remedy when their property and livelihoods are intentionally damaged.”
This case originated when employees from a building company, Glacier Northwest, went on strike after negotiations over a new union contract hit a stalemate. Because of the strike, Glacier lost 16 loads of concrete that were already loaded into the trucks when the strike was called.
Glacier sued The International Brotherhood of Teamsters over the wasted concrete, but the Washington Supreme Court concluded that the National Labor Relations Act (NLRA) preempts suits of this nature. Glacier successfully asked the U.S. Supreme Court to reverse the Washington Supreme Court’s harmful decision.
The U.S. Supreme Court’s decision protects both small business owners and private property owners from the intentional destruction of their property by unions during a labor dispute, and it maintains the congressionally established balance of power between unions and employers.
Sackett v. Environmental Protection Agency
On May 25, 2023, the U.S. Supreme Court issued a landmark decision regarding property rights for small business by determining the EPA and the U.S. Army Corps of Engineers had exceeded their authority to regulate waters on private property under the Clean Water Act (CWA). The Supreme Court’s decision significantly restricts the EPA’s jurisdiction over wetlands.
“Today’s decision in Sackett v. EPA provides long-needed clarity for small business owners and landowners,” said Beth Milito. “The ever-changing standard and definition of ‘waters of the United States’ has disproportionately impacted small businesses, including farmers, ranchers, home builders, and contractors. The Supreme Court’s ruling today affirmed the limits set by Congress and will rein in the extreme interpretation of the Clean Water Act.”
NFIB’s amicus brief in Sackett urged the Court to protect small businesses and property rights. Thankfully, the Court agreed with our brief. For more information, see NFIB’s explainer on this issue at NFIB.com/waters.
Geraldine Tyler v. Hennepin County
Also on May 25, the U.S. Supreme Court ruled unanimously in favor of Geraldine Tyler in a case concerning the Takings Clause of the Fifth Amendment (which states that the government may not claim private property without providing “just compensation” to the original owner). The question in this case was whether the Takings Clause prevents the government, after seizing and selling a person’s property to collect back taxes, from keeping the surplus amount collected from the sale. This government practice is commonly referred to as “home-equity theft.”
“Today’s ruling is good news for small business owners who work hard to comply with various government regulations,” said Beth Milito. “The Court agreed that the government has no authority to keep a surplus of money accumulated from a property owner due to the Fifth Amendment. We are pleased the Court ruled in favor of Tyler and reversed the lower court’s decision.” NFIB’s amicus brief advocated for this result.
The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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