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Wednesday, December 3, 2025

NLRB Weakens Ability of Employers to Rely on Management Rights Clauses in Collective Bargaining Agreements . . . For Now - JD Supra

On December 10, 2024, the National Labor Relations Board (NLRB or “the Board”) took advantage of its Democratic majority in the waning days of the Biden administration to issue its decision in Endurance Environmental Solutions, LLC, and overturn a Trump-era standard that had strengthened management rights clauses in collective bargaining agreements.

In Endurance Environmental Solutions, the employer installed cameras in its entire fleet of 400 trucks without bargaining with the union that represented its drivers. Installation of security cameras is a mandatory subject of bargaining, and employers typically must bargain over the installation. In this case, however, the management rights clause in the collective bargaining agreement with the union allowed the company to “implement changes in equipment.” The Company relied on this management rights language in deciding unilaterally to install the security cameras.

The union challenged the employer’s actions by filing an unfair labor practice charge with the NLRB. An administrative law judge (ALJ), at first, agreed with the Company and its reliance on MV Transportation, Inc., 368 NLRB No. 66 (2019). Under MV Transportation, Inc., the Board applies the “contract coverage” test and examines the plain language of the parties’ contract to determine whether the employer’s actions fell “within the compass or scope” of the contract, such that the employer had the “right to act unilaterally.” If so, the change would not violate the...



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