A decision yesterday from the NLRB means employers may now be called upon to compensate suspended and discharged workers beyond backpay and other traditional forms of make-whole relief when found to have committed labor violations. The 3-2 decision in Thryv, Inc. saw the Democratic majority rule that employers are now on the hook for “all direct or foreseeable” damages flowing from any violation of the National Labor Relations Act, such as out-of-pocket medical expenses, restitution for lost credit rating, and missed mortgage and rental payments. This groundbreaking decision extending the Board’s remedial arsenal in all agency proceedings to include consequential damages will probably soon come under judicial review, but for the time being employers should prepare for the new normal after this latest setback from the current Labor Board.
A decision yesterday from the NLRB means employers may now be called upon to compensate suspended and discharged workers beyond backpay and other traditional forms of make-whole relief.