A federal appeals court just dealt another blow to the National Labor Relations Board’s effort to expand monetary remedies against employers – and the widening split among federal circuits makes Supreme Court review increasingly likely. In the October 31 Hiran Management v NLRB decision, the 5th Circuit held that the NLRB lacks authority to award damages for “foreseeable pecuniary harms” flowing from alleged labor law violations. The decision means the Board cannot force employers in Texas, Louisiana, and Mississippi to pay for expenses like credit-card interest, missed rent, or childcare costs that workers incur as a result of an employer’s alleged unfair labor practice. This decision follows the 3rd Circuit’s similar ruling late last year, while the 9th Circuit reached the opposite conclusion by upholding the NLRB’s broader authority to award damages. What do (even non-unionized) employers need to know about this decision – and what should you do?

NLRB Awards Employees Damages for All Foreseeable Pecuniary Harms

Hiran Management runs Hungry Like the Wolf, a Houston-based karaoke restaurant with an 80s vibe. After the owner hired a new supervisor, the non-unionized staff complained about extra duties and unkept promises of extra pay.

When tensions boiled over at a staff meeting, several employees walked out – then decided to strike and develop a list of demands. Most stayed off the schedule the next workday. The restaurant’s lawyer later invited them to a meeting to...

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