New Process Steel, L. P. v. NLRB
Encyclopedia
New Process Steel v. NLRB, 130 S. Ct. 2635 (2010), was a case before the United States Supreme Court holding that the National Labor Relations Board
(NLRB) cannot make decisions without a quorum.
to oversee labor related disputes for private companies and the United States Postal Service
. In 1947 the Congress passed the Taft-Hartley Act
which Congressionally approved of the NLRB. It required that its members be confirmed by the Senate and also increased its size from three to five. The Act also raised the quorum needed from two to three. In December 2007 three of its five members terms were set to expire. President George W. Bush
attempted to nominate new members but was blocked by Senate Democrats. Just before the NLRB lost its quorum the five member board delegated its powers to the two remaining members. In between December 2007 and March 2009 the two issued almost 600 rulings. They informally decided to hear only noncontroversial opinions until the board had quorum. In September 2007 the board brought against New Process Steel two unfair labor practices. New Process Steel sued arguing that the board's actions were illegal because it lacked the Congressionally delegated quorum. The First
, Second
and Seventh Court of Appeals
ruled in the government’s favor, however the United States Court of Appeals for the D.C. Circuit ruled against it. The Department of Justice
asked the Supreme Court to review the issue given the stakes and lack of agreement among the lower courts.
The court ruled for the plaintiffs. The NLRB lacked the authority to issue rulings with only two members, regardless if a majority of the board had delegated its power. The court determined that as the statute was written Congress only allowed the NLRB to delegate power to three of the five members. If Congress had wanted to allow two members then it would have written it into the statute. It rejected the government’s argument for the sake of efficiency.
National Labor Relations Board
The National Labor Relations Board is an independent agency of the United States government charged with conducting elections for labor union representation and with investigating and remedying unfair labor practices. Unfair labor practices may involve union-related situations or instances of...
(NLRB) cannot make decisions without a quorum.
Background
The NLRB was created by Executive Order on June 29, 1934 by President Franklin D. RooseveltFranklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...
to oversee labor related disputes for private companies and the United States Postal Service
United States Postal Service
The United States Postal Service is an independent agency of the United States government responsible for providing postal service in the United States...
. In 1947 the Congress passed the Taft-Hartley Act
Taft-Hartley Act
The Labor–Management Relations Act is a United States federal law that monitors the activities and power of labor unions. The act, still effective, was sponsored by Senator Robert Taft and Representative Fred A. Hartley, Jr. and became law by overriding U.S. President Harry S...
which Congressionally approved of the NLRB. It required that its members be confirmed by the Senate and also increased its size from three to five. The Act also raised the quorum needed from two to three. In December 2007 three of its five members terms were set to expire. President George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
attempted to nominate new members but was blocked by Senate Democrats. Just before the NLRB lost its quorum the five member board delegated its powers to the two remaining members. In between December 2007 and March 2009 the two issued almost 600 rulings. They informally decided to hear only noncontroversial opinions until the board had quorum. In September 2007 the board brought against New Process Steel two unfair labor practices. New Process Steel sued arguing that the board's actions were illegal because it lacked the Congressionally delegated quorum. The First
United States Court of Appeals for the First Circuit
The United States Court of Appeals for the First Circuit is a federal court with appellate jurisdiction over the district courts in the following districts:* District of Maine* District of Massachusetts...
, Second
United States Court of Appeals for the Second Circuit
The United States Court of Appeals for the Second Circuit is one of the thirteen United States Courts of Appeals...
and Seventh Court of Appeals
United States Court of Appeals for the Seventh Circuit
The United States Court of Appeals for the Seventh Circuit is a federal court with appellate jurisdiction over the courts in the following districts:* Central District of Illinois* Northern District of Illinois...
ruled in the government’s favor, however the United States Court of Appeals for the D.C. Circuit ruled against it. The Department of Justice
United States Department of Justice
The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...
asked the Supreme Court to review the issue given the stakes and lack of agreement among the lower courts.
Decision of the Court
The question before the court was; Does the National Labor Relations Board have authority to decide cases with only two sitting members, where 29 U.S.C. § 153(b) provides that "three members of the Board shall, at all times, constitute a quorum of the Board"?The court ruled for the plaintiffs. The NLRB lacked the authority to issue rulings with only two members, regardless if a majority of the board had delegated its power. The court determined that as the statute was written Congress only allowed the NLRB to delegate power to three of the five members. If Congress had wanted to allow two members then it would have written it into the statute. It rejected the government’s argument for the sake of efficiency.