The National Labor Relations Board (NLRB) issued a Decision and Order in the case of Performance Plumbing, LLC, addressing alleged violations of the National Labor Relations Act (NLRA). The Acting General Counsel sought a default judgment because Performance Plumbing, LLC (the Respondent) failed to file an answer to the consolidated complaint.
The complaint, issued on February 25, 2025, by the Acting General Counsel, alleged that the Respondent violated Section 8(a)(3) and (1) of the NLRA. These charges were based on filings made by the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada, AFL–CIO, Plumbers Local 296 (the Union). The Respondent did not file an answer by the stipulated deadline of March 11, 2025.
On May 29, 2025, the Acting General Counsel filed a Motion for Default Judgment. The Board issued an order transferring the proceeding to itself and a Notice to Show Cause on June 13, 2025. The Respondent again failed to respond.
The Board, applying Section 102.20 of its Rules and Regulations, which states that allegations in a complaint are deemed admitted if no answer is filed within 14 days without good cause shown, found the Respondent's failure to answer to be without good cause. Consequently, the Board deemed the allegations in the consolidated complaint as true and granted the Acting General Counsel’s Motion for Default Judgment.
The NLRB’s Findings of Fact established that Performance Plumbing, LLC is an employer engaged in commerce, and the Union is a labor organization. The alleged unfair labor practices included:
- Section 8(a)(1) violations:
- Threatening an employee with termination for discussing wage rates with coworkers.
- Interrogating an employee about their union activity and that of their coworkers.
- Promising benefits (paid time off and holiday pay) to discourage support for the Union.
- Threatening employees with job loss for supporting the Union.
- Section 8(a)(3) and (1) violations:
- Increasing employee benefits (paid time off and holiday pay) in December 2023.
- Refusing to consider for hire or hire specific applicants (Colton Lee, Brian McKee, Austin Peck, Cole Silcox, Sonny Welch, and Shain West) on October 26, 2023, despite having plans to hire employees.
- Laying off employees (Rebecca Arnold, Ryan Heinbach, and Felix Rosado) on December 21, 2023.
- The Board found these actions were taken because employees formed, joined, or assisted the Union in concerted activities, and to discourage such activities.
The Board concluded that the Respondent interfered with, restrained, and coerced employees in the exercise of their Section 7 rights, violating Section 8(a)(1). Furthermore, the Respondent discriminated in regard to hire and tenure of employment, discouraging membership in a labor organization, thereby violating Section 8(a)(3) and (1).
In its Remedy section, the Board ordered Performance Plumbing, LLC to cease and desist from the unlawful conduct. Affirmative actions included offering reinstatement to the laid-off employees and employment to the refused applicants, making all discriminatees whole for lost earnings and other benefits, including search-for-work and interim employment expenses, and any other direct or foreseeable pecuniary harms, with interest. The Respondent was also ordered to compensate discriminatees for adverse tax consequences of a lump-sum backpay award, file reports allocating backpay, and remove any reference to the unlawful actions from its files. The Respondent was also ordered to post a notice to employees about their rights under the NLRA.
The administrative law judge's decision is not included in the provided text; the NLRB's decision is the primary document analyzed here. The legal analysis hinges on the Respondent's failure to file an answer, leading to a default judgment and the admission of the complaint's allegations as true. The remedy section reflects current Board precedent regarding backpay and other remedial measures, including those established in Thryv, Inc.
Significant Cases Cited
- Thryv, Inc., 372 NLRB No. 22 (2022): This case established new remedies for discriminatees, including compensation for direct and foreseeable pecuniary harms beyond traditional backpay and expenses.
- King Soopers, Inc., 364 NLRB 1153 (2016), enfd. in relevant part 859 F.3d 23 (D.C. Cir. 2017): This decision requires employers to compensate discriminatees for search-for-work and interim employment expenses, regardless of whether these expenses exceed interim earnings.
- Kentucky River Medical Center, 356 NLRB 6 (2010): This case established that backpay awards should be compounded daily.
- New Horizons, 283 NLRB 1173 (1987): This decision set the rate of interest for backpay awards, which is compounded daily.
- F. W. Woolworth Co., 90 NLRB 289 (1950): This foundational case outlines the method for calculating backpay, which is the difference between net earnings and what the employee would have earned absent the discrimination.
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