GT L&E Blog Global Developments In Labor & Employment Law

South Carolina Court strikes down NLRB notice-posting rule

Posted in Labor

We’ve been following the NLRB’s notice-posting rule, which would require nearly all private-sector employers to post a Notice of Employee Rights as of April 30, 2012. As we reported, on March 2 the United States District Court for the District of Columbia upheld the Board’ authority to require the posting of the notice, while striking down many of the rule’s enforcement mechanisms. On March 5, the court refused to enjoin the rule pending resolution of an appeal filed with the D.C. Circuit, setting the stage for the rule to take effect at the end of the month.

However, late yesterday afternoon, in another case challenging the rule, the United States District Court for the District of South Carolina struck down the rule in its entirety. Analyzing the case under Step One of Chevron, the court held that the Board lacked statutory authority to issue the rule requiring notice posting. Click here to read the court’s opinion in Chamber of Commerce v. NLRB.

Absent further action by the court, yesterday’s ruling will likely block implementation of the rule. We anticipate that the Board may ask the court to stay its ruling pending resolution of the appeal by the D.C. Circuit and will continue to monitor and report on this important issue.