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Thursday, October 1, 2026

How NLRB Guidance Supports Employer-Led Wage Hikes - Bloomberg Law

When an employer unilaterally changes a collective bargaining agreement, this is typically an unfair labor practice. But what happens when those changes benefit the union and are rooted in exigent circumstances?

Pandemic-driven guidance from the National Labor Relations Board suggests that employer changes to the collective bargaining agreement, such as wage increases, may be lawful in reaction to current labor shortages. Here is why employers may be justified in this action, and how that might play out.

Exigent Circumstances Analysis

Midterm modifications to the terms of a collective bargaining agreement by an employer often invite unfair labor practice charges from employees. And absent a waiver argument or an agreement by the union to reopen the labor contract, those charges will often result in a board-issued complaint.

The Covid-19 pandemic, however, created situations where employers, dealing with a rapidly evolving workplace landscape, were forced to unilaterally modify collective bargaining agreements and existing terms and conditions of employment.

In response, the board’s Office of the General Counsel issued a memorandum in March 2020 that summarized an...



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