Alaris Health at Boulevard East v. National Labor Relations Board, No. 23-1946 (3d Cir. 2024)
Annotate this Case
In April 2020, a nursing home decided to pay its employees bonuses in recognition of their efforts during the COVID-19 pandemic. These bonuses were temporary salary increases, which were gradually reduced over the next few months until salaries returned to almost original levels. The company did not notify the union representing its employees or provide an opportunity to bargain before implementing and scaling back the bonuses. The National Labor Relations Board (NLRB) determined that the bonuses were wages subject to mandatory bargaining under the National Labor Relations Act (the Act).
An Administrative Law Judge (ALJ) initially found that the bonuses were gifts rather than wages and thus not subject to mandatory bargaining. The ALJ also found that the management rights clause in the collective bargaining agreement (CBA) authorized the company's actions. However, the ALJ found the company violated the Act by failing to respond to the union's information request.
The United States Court of Appeals for the Third Circuit reviewed the case. The court upheld the NLRB's determination that the bonuses were wages tied to employment-related factors and constituted hazard pay, making them subject to mandatory bargaining. The court also agreed with the NLRB that the management rights clause did not survive the CBA's expiration and thus did not authorize the company's unilateral actions. The court denied the company's petition for review and granted the NLRB's cross-petition for enforcement, including the make-whole remedy for affected employees and compensation for adverse tax consequences. The court also enforced the order regarding the company's failure to respond to the information request.
Sign up for free summaries delivered directly to your inbox. Learn More › You already receive new opinion summaries from Third Circuit US Court of Appeals. Did you know we offer summary newsletters for even more practice areas and jurisdictions? Explore them here.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.