By Jim Butler & Scott Brink of the Global Hospitality Group®
Author of www.HotelLawBlog.com
September 13, 2011

A highly controversial new law, which many employers believe will unfairly foster union organizing, requires that employers post notices of employee rights -- including the right to organize, join or discuss the activities of a union. The law goes into effect on November 14, 2011.

Employers must comply with the new rule whether they have a unionized work force or not.

My partner, labor and employment lawyer Scott Brink, has outlined in his article below the requirements the new rule imposes on employers.

Scott and the labor and employment lawyers of JMBM's Global Hospitality Group® have represented the hospitality industry in all aspects of labor and employment law including union prevention, collective bargaining negotiations, and defense of unfair labor practice charges before the NLRB. If you have questions about how this new rule will impact your hotel business, we can help.

The National Labor Relations Board ("NLRB") published in the Federal Register last week a Final Rule requiring most private-sector employers -- even if not unionized -- to notify employees of their rights under the National Labor Relations Act ("NLRA") by posting paper and, where applicable, electronic notices identifying those rights.

The Rule, which was highly controversial due to the perception of some employers that it is intended to unfairly foster union organizing, will take effect within 75 days. Employers covered by the NLRA should begin posting the notice on November 14, 2011. Employers engaged in interstate commerce (which includes employers who buy, sell, or ship more than $50,000 of goods or services out of state) typically fall within the jurisdiction of the NLRA.

In contrast to most other federal and state employment laws, the NLRA does not require notice to employees of their rights under it. The new rule changes this and requires employers to give notice of employee rights, such as:

• The right to organize a union to negotiate with an employer concerning wages, hours and other terms and conditions of employment
• The right to form, join or assist a union
• The right to discuss terms and conditions of employment or union organizing with co-workers or a union.

The 11-by-17-inch notice required by the Rule is similar in content and design to a notice of NLRA rights that must be posted by federal contractors under a Department of Labor rule. Additionally, covered employers with intranets are required to distribute the notice in electronic form if the intranet is used to post personnel policies and procedures. The NLRB will provide an acceptable form of the notice on November 1.

The NLRB published the following "questions and answers" with the new Rule:

Does my company have to post the notice?

The posting requirement applies to all private-sector employers (including labor unions) subject to the National Labor Relations Act, which excludes agricultural, railroad and airline employers. In response to comments received after the proposed rule was announced, the Board has agreed to exempt the U.S. Postal Service for the time being because of that organization's unique rules under the Act.

When will the notice posting be required?

The final rule takes effect 75 days after it is posted in the Federal Register, or on November 14, 2011.

There is no union in my workplace. Will I still have to post the notice?

Yes. Because NLRA rights apply to union and non-union workplaces, all employers subject to the Board's jurisdiction (aside from the USPS) will be required to post the notice.

I am a federal contractor. Will I have to post the notice?

The Board's notice posting rule will apply to federal contractors, who already are required by the Department of Labor to post a similar notice of employee rights. A contractor will be regarded as complying with the Board's notice posting rule if it posts the Department of Labor's notice.

I operate a small business. Will I have to post the Board's notice?

The rule applies to all employers subject to the Board's jurisdiction, other than the U.S. Postal Service. The Board has chosen not to assert its jurisdiction over very small employers whose annual volume of business is not large enough to have a more than a slight effect on interstate commerce. The jurisdictional standards are summarized in the rule.

How will I get the notice?

The Board will provide copies of the notice on request at no cost to the employer beginning on or before November 1, 2011. These can be obtained by contacting the NLRB at its headquarters or its regional, sub-regional, or resident offices. Employers can also download the notice from the Board's website and print it out in color or black-and-white on one 11-by-17-inch paper or two 8-by-11-inch papers taped together. Finally, employers can satisfy the rule by purchasing and posting a set of workplace posters from a commercial supplier.

What if I communicate with employees electronically?

In addition to the physical posting, the rule requires every covered employer to post the notice on an internet or intranet site if personnel rules and policies are customarily posted there. Employers are not required to distribute the posting by email, Twitter or other electronic means.

Many of my employees speak a language other than English. Will I still have to post the notice?

Yes. The notice must be posted in English and in another language if at least 20% of employees are not proficient in English and speak the other language. The Board will provide translations of the notice, and of the required link to the Board's website, in the appropriate languages.

Will I have to maintain records or submit reports under the Board's rule?

No, the rule has no record-keeping or reporting requirements.

How will the Board enforce the rule?

Failure to post the notice may be treated as an unfair labor practice under the National Labor Relations Act. The Board investigates allegations of unfair labor practices made by employees, unions, employers, or other persons, but does not initiate enforcement action on its own.

What will be the consequences for failing to post the notice?

The Board expects that, in most cases, employers who fail to post the notice are unaware of the rule and will comply when requested by a Board agent. In such cases, the unfair labor practice case will typically be closed without further action. The Board also may extend the 6-month statute of limitations for filing a charge involving other unfair labor practice allegations against the employer. If an employer knowingly and willfully fails to post the notice, the failure may be considered evidence of unlawful motive in an unfair labor practice case involving other alleged violations of the NLRA.

Can an employer be fined for failing to post the notice?

No, the Board does not have the authority to levy fines.

Was there a public comment period? What was the response?

The Board received more than 7,000 public comments after posting a notice of the proposed rule in the Federal Register. A detailed description of the comments and the Board's response to them, including responsive modifications to the rule, may be found in the Preamble to the Final Rule.

The full text of the Rule can be found here:
Final Rule for Notification of Employee Rights

For more information on the Rule and its application to your business, contact Scott Brink.

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This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. We've done more than $60 billion of hotel transactions and have developed innovative solutions to unlock value from hotels. Who's your hotel lawyer?

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Scott Brink is a senior member of JMBM's Global Hospitality Group® and a partner in JMBM's Labor & Employment Law Department. Scott is a management labor lawyer with more than two decades of experience representing employers in all aspects of labor relations and employment law including union prevention, collective bargaining negotiations, defense of unfair labor practice charges before the NLRB, wrongful discharge litigation, individual and class action employment discrimination and wage-and-hour claims, sexual-harassment litigation, arbitrations, personnel policies, California wage and hour law, and employee discipline and discharge. An experienced trial attorney, Scott has litigated a number of high-profile and complex cases involving a wide range of labor and employment law matters. For more information, contact Scott Brink at RSB@jmbm.com or +1 (310) 785-5365.

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Our Perspective. We represent hotel lenders, owners and investors. We have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,300 properties all over the world. For more information, please contact Jim Butler at jbutler@jmbm.com or +1 (310) 201-3526.

Jim Butler is a founding partner of JMBM, and Chairman of its Global Hospitality Group® and Chinese Investment Group™. Jim is one of the top hospitality attorneys in the world. GOOGLE "hotel lawyer" and you will see why.

Jim and his team are more than "just" great hotel lawyers. They are also hospitality consultants and business advisors. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them.

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JMBM’s Global Hospitality Group®
The hotel lawyers in the Global Hospitality Group® of Jeffer Mangels Butler & Mitchell (JMBM) comprise the premier hospitality practice in a full-service law firm and are the authors of the Hotel Law Blog. We represent hotel owners, developers, investors and lenders and have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,000 properties worldwide. For more information about the Global Hospitality Group®, go to www.HotelLawBlog.com. For more information about full range of legal services provided by JMBM, go to www.JMBM.com.