THE RUDNICK REPORT : NEW CASE DEVELPMENTS AT THE NLRB FOR 3-1-26
Dear Employer Clients,
As of March 1, 2026, we are providing a legal update on recent National Labor Relations Board (NLRB) developments, with emphasis on precedential case law that continues to shape employer obligations under the National Labor Relations Act (NLRA).
Below are key decisions and their practical implications:
1. Workplace Rules and Handbook Policies – Stericycle, Inc., 372 NLRB No. 113 (2023)
In Stericycle, the Board adopted a more employee-protective standard for evaluating facially neutral workplace rules. Under this framework, a rule is presumptively unlawful if employees could reasonably interpret it to chill Section 7 activity. The burden then shifts to the employer to demonstrate that the rule advances legitimate and substantial business interests and is narrowly tailored.
Employer Impact:
Policies concerning civility, confidentiality, social media, recording, and investigations should be carefully reviewed. Overbroad language — even without evidence of discriminatory enforcement — may invite challenge.
2. Bargaining Orders and Union Recognition – Cemex Construction Materials Pacific, LLC, 372 NLRB No. 130 (2023)
Cemex significantly altered the union recognition framework. When a union presents evidence of majority support, an employer must either voluntarily recognize the union or promptly file for an election. If the employer commits any unfair labor practice that would require setting aside the election, the Board may issue a bargaining order requiring recognition without a rerun election.
Employer Impact:
Risk exposure during organizing campaigns has increased. Even minor ULP findings during a campaign may now result in mandatory bargaining orders.
3. Severance and Confidentiality Agreements – McLaren Macomb, 372 NLRB No. 58 (2023)
The Board held that offering severance agreements containing overly broad confidentiality or non-disparagement provisions may violate Section 8(a)(1), even if the employee does not sign the agreement.
Employer Impact:
Template severance agreements should be reviewed to ensure restrictions do not interfere with employees’ rights to discuss workplace conditions or file charges with the Board.
4. Conduct During Labor Disputes – Lion Elastomers LLC II, 372 NLRB No. 83 (2023)
The Board reinstated a more protective standard for employee conduct occurring in the context of protected concerted activity. Employees engaged in such activity are afforded broader leeway, even where conduct would otherwise violate workplace rules.
Employer Impact:
Disciplinary decisions involving heated workplace exchanges tied to labor activity should be evaluated carefully and documented with legitimate, non-retaliatory justifications.
5. Expanded Remedies – Thryv, Inc., 372 NLRB No. 22 (2022)
The Board expanded available remedies to include foreseeable consequential damages resulting from unfair labor practices (e.g., credit card interest, medical expenses, or other financial harms).
Employer Impact:
Potential financial exposure in ULP cases has increased beyond traditional back pay and reinstatement remedies.
6. Election Procedures and Regional Authority
The Board continues to defer to Regional Director determinations in representation cases and maintain expedited election procedures. Employers should be prepared for compressed timelines and heightened scrutiny of campaign conduct.
7. Practical Compliance Considerations
Given these developments, we recommend:
- Conducting a privileged audit of handbook provisions under the Stericycle framework
- Reviewing organizing-response protocols in light of Cemex
- Updating severance templates post-McLaren Macomb
- Training supervisors on lawful communications (TIPS framework)
- Carefully assessing disciplinary actions tied to protected activity
- Evaluating potential financial exposure under expanded remedial standards
8. The Board’s current posture reflects a broader interpretation of employee protections under Section 7. Proactive compliance remains the most effective method of minimizing litigation risk and operational disruption.
Please contact us if you would like a tailored policy review or strategic guidance regarding a pending matter by contacting Sanford Rudnick JD at 1-800-326-3046 or by email at sandy@rudnickpro.com, or the website, www.theunionexpert.com
Sincerely,
Sanford Rudnick JD
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If you have questions or would like to discuss your situation, I invite you to contact me for a confidential consultation. We'll take the time to understand your concerns, explain your options, and help you determine the best path forward.
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