Civil penalties may be coming to NLRA

If enacted into law, President Joe Biden’s Build Back Better (BBB) reconciliation package will drastically expand the National Labor Relations Board’s (NLRB) remedial powers effective January 1, 2022. The BBB measure incorporates the penalty provisions of the prolabor Protecting the Right to Organize (PRO) Act, which has been pending in the U.S. Senate after passing the House.

BBB’s penalty provisions

The BBB legislation, which has been released but hasn’t yet passed the House or the Senate, would provide for:

• Civil penalties of up to $100,000 for National Labor Relations Act (NLRA) violations (the penalties can hit that level if an employee is discharged or faces “other serious economic harm,” while other violations are subject to fines of up to $50,000); and
• Individual liability for the civil penalties for corporate officers and directors.

Currently, the NLRB doesn’t have the authority to issue monetary fines. Instead, the Board can order employers to (1) reinstate employees, (2) provide back pay to those who were unlawfully terminated, and (3) grant other remedies such as cease-and-desist orders to prevent future NLRA violations.