On February 27, 2023, the United States Court of Appeals for the Seventh Circuit (the Court) granted the NLRB’s Petition for contempt against Haven Salon + Spa, Inc. for failing to comply with a Board Order remedying Haven’s unlawful termination of an employee who engaged in protected concerted activity, which was enforced by the Court. To remedy Haven’s failure to comply, the Court ordered Haven to fully comply with the Board’s Order, pay all reasonable costs and expenses, including attorney’s fees, and pay a fine of $1,000, in addition to escalating daily fines, if Haven continued not to comply with the Court’s order.
As the Seventh Circuit explained, “Parties ignore court orders at their peril. . . . [T]he point applies with full force to orders of the National Labor Relations Board.”
In May 2020, Haven unlawfully fired an employee after protesting working conditions on behalf of herself and her co-workers, specifically that Haven was not doing enough to protect employees from COVID-19. After Haven heard that the employee had filed an unfair labor practice charge with the NLRB, Haven threatened legal action against her and her family.
After a hearing at which Haven failed to appear or participate, an Administrative Law Judge (ALJ) found that Haven had unlawfully terminated and threatened the employee in violation of the National Labor Relations Act. The ALJ recommended that the Board order Haven to compensate the employee for lost pay and expenses, offer reinstatement,...
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