After Court Ruling, Challenges Expected to Regulations Implemented by NLRB - Modern Distribution Management

Log In

After Court Ruling, Challenges Expected to Regulations Implemented by NLRB

Court rules that the President's National Labor Relations Board recess appointments were 'unconstitutional.'
PublicPolicy-blog
Author
Date

A federal appeals court ruled today that the recess appointments to the National Labor Relations Board in January 2012 were unconstitutional, a move that could call into question several new regulations that have been introduced in the past 12 months. The reason? The Court says Congress wasn't really in recess when the appointments were made.

While this ruling officially only applies to this specific case, brought by bottler and distributor Noel Canning, it establishes a precedent for additional and broader challenges to regulations implemented by the NLRB since the board lost its quorum at the end of 2011.

In response to the ruling, the Justice Department released a statement saying: "We disagree with the court’s ruling and believe that the President’s recess appointments are constitutionally sound." And the White House says that for now, things will be business as usual with the NLRB.

The aggressive regulatory agenda by government agencies such as the NLRB has been one of the top concerns for distributors this past year (see Top Election Concerns for Distributors). And several industry associations, including the National Association of Wholesaler-Distributors, have been keeping a close eye on this case – and will continue to do so with a probable appeal on the horizon.

In response to the ruling, NLRB Chairman Mark Gaston Pearce issued this statement:

"The Board respectfully disagrees with today’s decision and believes that the President’s position in the matter will ultimately be upheld. It should be noted that this order applies to only one specific case, Noel Canning, and that similar questions have been raised in more than a dozen cases pending in other courts of appeals.

"In the meantime, the Board has important work to do. The parties who come to us seek and expect careful consideration and resolution of their cases, and for that reason, we will continue to perform our statutory duties and issue decisions."

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.