A decertification petition was filed by an individual seeking to remove the Sacramento City Teachers Association, CTA/NEA (Union) as the bargaining representative for a unit of certificated employees and classroom teachers at St. HOPE Public Schools (Employer). The Employer asserted that the National Labor Relations Board (NLRB) lacked jurisdiction, arguing it was a political subdivision exempt from the National Labor Relations Act (NLRA).

The Regional Director, applying the two-prong test established in NLRB v. Nat. Gas. Util. Dist. of Hawkins County, 402 U.S. 600 (1971), found that the Board had jurisdiction. The Hawkins County test dictates that an entity is a political subdivision if it is either created directly by the state or administered by individuals responsible to public officials or the electorate.

First, the Employer failed the first prong of the Hawkins County test because it was created by a private individual and his foundation, not directly by the state. While the Employer required a charter from a public entity (Sacramento City Unified School District - SCUSD) to operate as a charter school, this requirement did not constitute direct creation by the state. The Board has held that the order of charter issuance and incorporation is not dispositive of direct state creation, as seen in cases like Chicago Mathematics & Science Academy Charter School, Inc. (CMSA), 359 NLRB 455 (2012) and Hyde Leadership Charter School-Brooklyn, 364 NLRB 1137 (2016).

Second, the Employer failed the second prong because its Board of Directors is not administered by individuals responsible to public officials. The bylaws of the Employer dictate that the Board manages its affairs. The bylaws provide for a Nominating Committee, designated by Kevin M. Johnson, to nominate directors, and that directors are generally appointed by and removed by the Board itself. While SCUSD has the authority to revoke the Employer's charter and impose corrective actions to compel compliance with a Memorandum of Understanding (MOU), this power is analogous to a state's ability to cease subcontracting with a private employer and does not convert the Employer into a public entity, as established in Pennsylvania Virtual Charter School, 364 NLRB 1118 (2016). The only exception is a single SCUSD representative seat, which is subject to removal by SCUSD. However, having authority over a minority of the board is insufficient to establish direct personal accountability to public officials, as a majority of the board must be responsible to public officials to meet this prong, as held in Regional Medical Center at Memphis, 343 NLRB 346 (2004) and Enrichment Services Program, Inc., 325 NLRB 818 (1998).

Consequently, the Regional Director concluded that St. HOPE Public Schools is an employer within the meaning of Section 2(2) of the Act and is not exempt as a political subdivision. Therefore, the Board has jurisdiction, and an election was directed to be held among the agreed-upon appropriate unit of employees.

Significant Cases Cited

This summary was generated using Google's Gemini 2.5 Flash Lite. It could contain errors.