In a monumental decision, the National Labor Relations Board (NLRB) has ruled that Color Of Change violated federal labor law by unlawfully laying off 54 employees without bargaining. Workers first unionized with the Washington-Baltimore News Guild in October 2020.
Color Of Change, one of the nation’s largest racial justice nonprofits, illegally laid off workers in mid 2023, but the NLRB found that the organization, represented by Seyfarth Shaw, did not meet its obligation to notify and bargain with the union before taking action. It’s illegal for organizations to lay off workers after they unionize prior to winning a first contract, a period called status quo.
Key Highlights from the Decision:
- Unlawful Layoffs: Color Of Change laid off workers in three rounds in 2023 without bargaining with the workers in the union, a violation of the National Labor Relations Act.
- Reinstatement and Back Pay: The NLRB has ordered Color Of Change to reinstate all unlawfully laid-off workers and compensate them for lost wages and benefits, including interest, making the affected employees whole for their losses.
- Union Bargaining Rights Affirmed: This decision reaffirms the rights of unionized workers to be included in decisions that impact their employment, even during challenging financial times. The ruling underscores that employers must negotiate with unions before implementing layoffs or making other significant changes.
“Today’s NLRB ruling sends a powerful message: workers’ rights are not optional,” said Washington-Baltimore News Guild President, Dan Gabor. “When employers violate labor laws, there will be consequences. Reinstatement and back pay are about more than just compensation; they’re a restoration of justice for the illegally laid-off workers and a reminder to all employers that the Washington-Baltimore News Guild will always defend our members and demand our rights be respected.”
This ruling from one of the NLRB’s administrative law judges makes clear that unions and workers must be respected and that employers must negotiate before making any change, including the decision to reduce staff.
The Board gave them 14 days to comply: Management at Color Of Change must begin following federal law by immediately complying with today’s decision by the NLRB.