Labor News & Commentary January 4, Third Circuit curbs NLRB remedial power, & more

https://onlabor.org/january-4-2025/

By Anjali Katta

Anjali Katta is a student at Harvard Law School.

In today’s news and commentary, Biden blocks the acquisition of U.S. Steel, the Third Circuit curbs NLRB remedial power, and DOL’s Wage and Hour Division’s year in review.

President Biden announced that he would block a $15 billion dollar take over of U.S. Steel by the Japanese company Nippon Steel, citing national security concerns over foreign control of a critical domestic industry. The United Steelworkers union has also strongly opposed the deal, arguing that it lacks sufficient guarantees for union jobs at U.S. Steel’s older mills. The company currently employs around 11,000 workers.

The Third Circuit has rejected the Board’s Thryv decision, denying the NLRB the authority to order employers to pay the foreseeable financial harms of their unfair labor practices. Specifically, the Third Circuit held that the Board can only order payment for damages directly resulting from unfair labor practices—such as backpay for wages lost as a result of an illegal discharge—but not for the indirect costs of unfair labor practices such as out-of-pocket medical expenses or credit card debt that would not have been incurred but for the ULP. The case involves Starbucks and two employees who were allegedly wrongfully terminated and sought compensation for both direct and indirect harms.

In 2024, the DOL’s Wage and Hour Division closed fewer cases against employers but imposed significantly higher civil money penalties than in previous years. While the agency resolved nearly 3,000 fewer cases compared to 2023, it collected almost $10 million more in penalties.