BakerHostetler Secures D.C. Circuit Reversal of NLRB Successor Bar for Hospital Menonita de Guayama

BakerHostetler represented Hospital Menonita de Guayama of Puerto Rico before the U.S. Court of Appeals for the District of Columbia in a challenge to the National Labor Relations Board’s practice concerning successor employers and incumbent union representation. The dispute arose after the NLRB found that the incoming hospital administration committed an unfair labor practice by refusing to bargain with the incumbent union, even though evidence indicated the union had lost majority support among employees. BakerHostetler argued that the Board’s so‑called “successor bar,” which can prohibit challenges to an incumbent union’s representation status for up to one year after a change in ownership, was inconsistent with the National Labor Relations Act and infringed on employee freedom and the principle of majority rule in collective bargaining. A three‑judge panel of the D.C. Circuit ruled 2‑1 in favor of the hospital, holding that the NLRB’s successor‑bar policy was incompatible with the NLRA. The court’s majority explained that the panel’s earlier 2024 decision had relied on Chevron deference; after the U.S. Supreme Court vacated that earlier ruling and remanded the case in light of its decision in Loper Bright Enterprises v. Raimondo, the panel determined that the Board’s approach exceeded the authority delegated by Congress. BakerHostetler represented Hospital Menonita de Guayama with a team composed by: Patrick M. Muldowney, Partner; Meagan Martin, Partner.

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BakerHostetler Secures D.C. Circuit Reversal of NLRB Successor Bar for Hospital Menonita de Guayama

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BakerHostetler Secures D.C. Circuit Reversal of NLRB Successor Bar for Hospital Menonita de Guayama

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