National Labor Relations Board v. Newark Electric Corp., No. 18-2784 (2d Cir. 2021)
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The Second Circuit granted the Board's petition for enforcement of its decision and order requiring the Companies to reinstate a former employee and to comply with their collective bargaining obligations with the Union. This case arose from a long-pending labor dispute between the Union and three closely related corporations doing business in Newark: Newark Electric, Newark 2.0, and Colacino.
Although the court agreed with the Companies that the Board's original complaint was invalid, the court rejected their challenge to its ratification by the NLRB's General Counsel and concluded that the Board's order may be enforced. The court also concluded that the Board's determination that the Companies were a single employer and alter egos is supported by substantial evidence. The court found persuasive the Companies' further argument that Colacino's termination of its Letter of Assent with the Union also needed Newark Electric's obligations toward the Union. Finally, the court found that substantial credible evidence supports the Board's conclusion that Colacino Industries violated section 8(a)(3) of the National Labor Relations Act when it terminated the employee.
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