Hunton Employment & Labor Perspectives

As we discussed in a prior blog entry, the National Labor Relations Board (“NLRB” or “Board”) ordered a novel remedy — consequential damages — against an employer in its decision in Thryv, Inc., 372 NLRB No. 22 (2021).  The current Board envisions this sort of remedy as covering a wide swath of potential financial repercussions against a party found to have violated employee rights, such as unlawful termination of employees.  This could, include, for instance, mortgage payments and credit card late fees.  With interest, these damages can quickly balloon to tens of thousands of dollars and change the risk and settlement calculus. 

The National Labor Relations Act (“Act”) empowers the National Labor Relations Board (“Board”) to “take such affirmative action including reinstatement of employees with or without backpay, as will effectuate the policies of this Act.” 29 U.S.C. § 160(c). For much of the Board’s history, that has generally resulted in Board Orders that involve some combination of notice posting, backpay, and reinstatement.