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.

"That means the board is going to start going after employers for things like credit card interest, late fees and early withdrawal penalties," said Grant Pecor, an attorney with Barnes & Thornburg in Grand Rapids, Mich. "If an individual can show they lost their car or home because they could no longer afford to make payments, the employer involved may be on the hook for the cost of a replacement."

Stakes Are Higher

It's a big change, according to Marissa Mastroianni, an attorney with Cole Schotz in Hackensack, N.J. "The NLRB has redefined its traditional remedy for employer violations of the National Labor Relations Act [NLRA]," she said. "Employers need to understand that the cost of violating the NLRA could be much higher than...

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