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Potential Costs Much Higher for Violating Labor Law

January 4, 2023

Via: SHRM

Under a new National Labor Relations Board (NLRB) rule, employers must compensate workers to make up for the direct consequences of unfair labor practices. This ruling could be expensive for employers, adding consequential damages to the board’s usual make-whole remedies. Here’s what that means as a practical matter.

The NLRB has a make-whole protocol for employees who are unfairly discharged, laid off or otherwise discriminated against to fully account for their actual economic losses. Historically, the remedies imposed included reinstatement of employment, back pay, payment of dues and fines, stopping unlawful rules or practices, or a notice posted at the workplace. The board’s recent decision expands that list significantly for employers.

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