The National Labor Relations Board (NLRB) issued a Decision and Order finding that RM Contracting, LLC d/b/a 3M Contracting, LLC (the Respondent) violated Section 8(a)(5) and (1) of the National Labor Relations Act (the Act) by failing to remit union dues deducted from employee paychecks to the International Union of Operating Engineers Local No. 234 (the Union).

The case arose from a charge filed by the Union on September 26, 2024. The General Counsel issued a complaint and notice of hearing on March 10, 2025, alleging the Respondent's violations. The Respondent failed to file an answer to the complaint. On April 9, 2025, the General Counsel filed a Motion for Default Judgment. The Chief Administrative Law Judge (ALJ) subsequently issued an order transferring the proceeding to the Board and a Notice to Show Cause why the motion should not be granted. The Respondent did not respond to this notice.

The Board's legal analysis centered on its Rules and Regulations, specifically Section 102.20, which states that allegations in a complaint are deemed admitted if an answer is not filed within 14 days, absent good cause. The complaint itself warned that failure to receive an answer by March 24, 2025, could lead to a default judgment. Furthermore, the Region had advised the Respondent via email on March 24, 2025, that a motion for default judgment would be filed if an answer was not received that day. The Respondent's continued failure to file an answer, without showing good cause, led the Board to deem the complaint allegations as true.

The Board found that the Respondent is an employer engaged in commerce within the meaning of the Act, and the Union is a labor organization. The complaint alleged, and the Board accepted as true, that since approximately April 5, 2024, the Respondent failed to continue in effect the terms and conditions of its collective-bargaining agreement with the Union. This violation specifically involved withholding union dues deducted from employees' paychecks, pursuant to valid checkoff authorizations, and failing to remit these dues to the Union as required by the agreement. The Board concluded that this conduct constituted a failure and refusal to bargain collectively and in good faith with the Union, violating Section 8(a)(5) and (1) of the Act.

The Board ordered the Respondent to cease and desist from refusing to remit deducted union dues and from interfering with employees' Section 7 rights. Affirmative actions included making the Union whole for all withheld dues with interest, calculated in accordance with established Board precedent, and making employees whole for any expenses incurred as a result of the Respondent's failure to remit dues. The Respondent was also ordered to post notices of the decision and certify its compliance.

Administrative Law Judge Decision: While an ALJ played a procedural role in transferring the case to the Board after the Respondent failed to answer the complaint, the core legal findings and the ultimate decision were made by the National Labor Relations Board itself, based on the default judgment granted due to the Respondent's failure to respond. There is no separate, substantive ALJ decision on the merits of the unfair labor practice allegations presented in this Board Decision and Order.

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