This browser is not actively supported anymore. For the best passle experience, we strongly recommend you upgrade your browser.
| 8 minute read

The NLRB and Labor Laws Under President Trump: What Has Happened and What to Expect Next

On Wednesday, October 22, Kris Hanson and Kevin Terry led a complimentary live webinar titled “The NLRB and Labor Laws Under President Trump: What Has Happened and What to Expect Next.” Together, they examined the legal battles surrounding executive authority, the implications of a temporarily non-functioning NLRB, current union organizing and negotiation tactics, and what employers should expect as new nominees and enforcement priorities take shape. 

The following information provided is for general informational purposes only and is not intended to be legal advice. While we strive to ensure the accuracy and timeliness of the information, laws and regulations are subject to change. We recommend contacting your Michael Best attorney for advice specific to your situation. 

The Current State of the National Labor Relations Board (NLRB) 

The NLRB is a five-member body. They must have a quorum to act, engage in rulemaking, and issue legal decisions. Currently, the board only has one member. Until two additional members are confirmed and added to the board, the NLRB is unable to act. Below are some of the main things that have happened since President Trump took office:  

Recission of the Previous General Counsel’s Memorandum  

Acting General Counsel William Cohen issued memoranda to rescind nearly all of General Counsel Abruzzo’s previous guidance memos from the Biden Administration. Memos that have been rescinded include: 

Confidentiality and Non-Disparagement Provisions in Severance Agreements  

  • Previous guidance endorsed prosecuting employers that imposed on employees broadly worded severance agreements with expansive non-disparagement and confidentiality clauses. 

 Damages 

  • Previous guidance greatly expanded the scope of consequential damages regional offices should seek in Unfair Labor Practices (ULP) proceedings, including pursuing “make-whole” remedies for employees harmed, regardless of whether the employees are identified in a charge.  

ULP Settlements  

  • Instructed regional offices to seek no less than 100% of the backpay benefits owed in cases that are settled. This required regional offices to include front pay in settlements for cases where a discharged employee waived reinstatement to their former position. 

Electronic Monitoring and Automated Management  

  • Advocated for the enforcement and broad adoption of a new framework to protect employees from intrusive or abusive forms of electronic monitoring that interfere with protected activity.  

“Stay-or-Pay" Provisions 

  • Directed regional offices to find “stay-or-pay" provisions and employee non-solicit agreements unlawful under the NLRA. 

Non-Compete 

  • Expressed General Counsel Abruzzo’s opinion that the use and enforcement of non-compete provisions in employment agreements violated the NLRA. 

10(j) Injunctions 

  • Instructed regional offices to seek 10(j) injunctions in federal court against employers to protect employee rights from remedial failure due to the passage of time, despite the four-part test articulated by the Supreme Court in Starbucks v. McKinney. 

 

Memoranda Issued by Acting General Counsel Cohen 

Seeking Remedial Relief in Settlement Agreements 

  • Directs regions not to automatically pursue nonmonetary remedies but typically limit them to cases involving widespread egregious, or severe misconduct.  

Surreptitious Recordings of Collective Bargaining Sessions 

  • Requires regions to pursue charges against parties for secretly recording collective bargaining sessions.  

    • If you think you may ever need to record a collective bargaining session, you should discuss that with your labor counsel to see if you can pursue a path forward with that. 

Investigating Salting Cases 

  •  Advises regions that discriminatory hiring cases should be evaluated based on the applicant's genuine interest in being hired.  

Guidance for Deferring ULP Cases  

  • Directs regions to no longer contact parties quarterly to inquire about the status of the grievance in deferred cases. Instead, charging parties must e-file deferral status reports twice a year in March and September.  

10(j) Injunctions 

  • Advises regions to apply the standard from Starbucks v. McKinney in determining interim injunctive relief. 

 

Challenges to the Constitutionality of the NLRB 

In January 2024, SpaceX appealed a decision from the NLRB finding ULPs by the company for wrongful termination. The basis for this challenge brought by SpaceX is that the NLRB is unconstitutionally insulated from presidential removal due to for cause removal protections.  

There is a long-standing Supreme Court Case that has largely upheld these sorts of for cause removals protections.  

Similar challenges have been presented against the SEC commissioners and the FCC as well.  

This is likely a case that will be brought to the Supreme Couty, but as far as the fifth circuit is concerned, all activity over the NLRB is on hold.  

State Law Jurisdiction 

Some states are reacting to this direct lack of a quorum by the NLRB.  

New York and California Laws 

Most states have equivalent public sector labor relations laws in place that govern employees that are employed by the municipalities. The NLRB and NLRA address employment in the public sector. Traditionally, states have not attempted to pass laws that would govern relations for private sector employees in their jurisdictions.  

New York and California recently enacted laws that would give their state agencies jurisdiction over private-sector labor disputes. This would disrupt the 90-year history of private-sector labor disputes being handled by the NLRB.  

  • The NLRB has challenged both state laws in court on the grounds that they are “preempted” by federal laws.  

Current Agency Activity 

  • NLRB Regions in Fifth Circuit Currently are currently inactive due to SpaceX Decision 

  • In the first 6 months of 2025, the NLRB oversaw 711 union elections. In 624 of those elections, the union prevailed.  

  • Since October 1, 2025, the federal government has been shut down. This includes federal agencies such as the NLRB and the Department of Labor. When a new spending bill is signed, NLRB regional offices will need to work through their backlog of pending charges or ongoing cases.  

Federal Mediation and Conciliation Services (FMCS) 

The FMCS is an independent agency, aside from the NLRB. It was established to resolve conflicts and assist with conflict management. Historically, they have served as mediators for collective bargaining. They have also offered a number of training opportunities for labor relations professionals and for unions across the country.  

Executive Order and Mass Layoffs 

  • President Trump’s EO from March directed FMCS to reduce operations to the “minimum presence and function required by law.”  

  • Approximately 95% of FMCS staff were laid off, reducing the workforce from over 200 to fewer than 20, only 5 of whom are mediators.  

FY2026 Federal Budget 

  • The 2026 budget allocates only $7 million for FMCS, down from a typical budget of $50-55 million, and is intended only for agency closure expenses.  

What this means for employers  

  • FMCS services are no longer available. Many employers across the country relied upon FMCS heavily for difficult negotiations. It was a free service for employers. Many of the FMCS mediators were familiar with their assigned regions, which made them extremely helpful in conflict resolution.  

  • Parties will need to explore paid alternatives to FMCS, including JAMS, AAA, and state-based services. 

  • For those who have collective bargaining agreements from which your arbitrators are derived from FMCS, you are going to want to communicate with the union about alternative options to include in your contracts going forward.  

    • At least look to include language that would indicate that parties will agree to confer should FMCS no longer be able to provide that service. 

Major Administrative Law Judges (ALJ) Decisions from 2025 

While the board itself is unable to issue decisions, ALJs across the country are continuing to issue decisions.  

Sutter Valley Hospitals (February 2025) 

  • In this case, employees were engaged in a strike. The employer notified them that if they did not end the strike, there would be a five-day replacement period where the striking employees would not be allowed to return to work and instead outside contractors would be brought in. The strike was not called off and the employer refused to reinstate employees until the replacement period expired.  

  • The ALJ issued a decision that the hospital was not obligated to reinstate employees because of the contract that it had put in place for the temporary replacement workers.  

Key takeaway: Employers do have the option to honor temporary agreements and not allow for immediate reinstatement of employees. However, one should be mindful of the costs associated with temporary employees and ensure there is a contract in place before a decision is made.  

Brookholders, LLC (March 2025)  

  • Brookholders LLC employed student workers. They were found to have violated the NLRA on the following grounds:  

    • Terminating an employee for discussing concerns about pay with her coworkers 

    • Requiring workers to sign an arbitration agreement that prohibited them from filing charges with the NLRB 

    • Forbidding employees from forming social media groups without their permission 

Key takeaway: Employees have the right to discuss terms and conditions of employment with one another and pay falls within the terms and conditions.  

Costco Wholesale Corp. (May 2025)  

  • The employer maintained a policy that required employees to remain silent about internal sexual harassment complaints and required employees to sign confidentiality agreements when they accused a coworker of sexual harassment.  

  • The ALJ found that the policy and confidentiality agreement were unlawful under the NLRB’s 2023 Stericycle Inc. Decision.  

Key takeaway: The concept of asking employees to maintain confidentiality during investigations has been heavily litigated in the past. To justify needing confidentiality, employers must be able to point to a legitimate business interest in needing confidentiality.  

Yapp USA Automotive Systems (June 2025) 

  • ALJ ruled that the employer committed several work rule and union election violations. 

  • Acting General Counsel, Cohen successfully removed charges regarding illegal restrictions on employees working for other businesses due to rescinding former GC Abruzzo’s memo regarding such limitations.   

Pittsburgh Post-Gazette (July 2025) 

  • Employees have been engaged in strike activities since October 2022.  

  • ALJ ruled that the employer’s practice of giving out yearly wage increases and merit bonuses was lawful because the employer had established the past practice back in 2016.  

  • However, the “newspaper of the year” bonuses were a new unilateral practice, and the ALJ determined that the new bonuses violated the NLRA.  

Key takeaway: When there are strike activities or a new organizing campaign, the employer must refrain from introducing new benefits to two employees in an effort to change their minds.  

GE Appliances (August 2025) 

  • The employer terminated an employee for yelling and causing a disruption after being asked to work overtime. 

  • NLRB attorney argued that the conduct was protected under the Interboro doctrine, but the ALJ held that the conduct was unprotected because there was no evidence to support that mandatory overtime violated the CBA between the parties.  

Key Takeaway: Once the NLRB board reaches a quorum, we can expect there will be a greater likelihood that employers will be able to curtail employee behavior in this regard. 

Brynn Marr Hospital, Inc. (August 2025) 

  • The employee complained to management about alleged harassment and retaliation against her and her husband, another employee. After the employer failed to act on the complaint, the employee posted on social media and was terminated.  

  • The ALJ ruled that the posts were protected activity because they were made while off-duty and only to her immediate connections on the website.  

Futurewei Tech, Inc. (September 2025) 

  • ALJ ruled that the confidentiality provision in a severance agreement was of “unlimited scope” and lacked any effort to “narrowly tailor” its breadth to preserve ongoing protected discussions.  

  • The ALJ explained that such a broad provision is expressly barred under McLaren Macomb 

Starbucks Corp. (September 2025) 

  • The employer terminated employees after they stayed in the store after store hours while engaged in an organizing meeting with a union representative.  

  • ALJ determined that the firings were discriminatory and ordered reinstatement and backpay.  

Key takeaway: Employers need to be very cautious about how they enforce policies.  

InfraSource Services LLC (September 2025)  

  • ALJ ruled that the employer violated the NLRA by installing surveillance cameras without bargaining with the union.  

  • The employer attempted to assert its management rights clause, but the ALJ responded that the provision didn’t clearly and explicitly mention video or audio monitoring of its employees.  

Key takeaway: Now is the time to review your management rights clause. As the current law stands, unless your management rights clause is very clear about what it allows you to do, there is a risk that unilateral action is going to be found to be an unfair labor practice.  

If you have any questions or would like to learn more, please connect with our Labor and Employment team 

 

Tags

l&e