Implications for the Hotel and Travel Industry

• The National Labor Relations Board (NLRB) has overturned a 40-year-old standard, restricting employers’ statements about the impact of unionization on managerial relations.
• The new standard requires employer statements regarding union impacts to be fact-based, reflect outcomes beyond the employer’s control, and avoid any hint of coercion or threats.

In a significant departure from previous norms, the National Labor Relations Board (NLRB) recently decided to tighten regulations on employer communications regarding the implications of unionization. Stemming from a case involving a national hospitality chain, the Board ruled that employers can no longer broadly caution employees that unionizing could disrupt their direct relationship with management.

This new standard, which overturns a 40-year-old precedent, requires employer statements to be rooted in verifiable facts, reflect outcomes outside the employer’s control, and avoid any insinuation of coercion or threats.

The case that prompted this shift involved a national hospitality chain, where managers allegedly suggested that unionization could strain managerial relations and potentially lead to changes in benefits. The NLRB’s decision to overturn the 1985 Tri-Cast standard, which permitted such statements as long as they did not explicitly or implicitly threaten employees, represents a significant shift in how the Board will assess employer communications about unionization.

The new standard aligns with the Supreme Court’s 1969 decision in NLRB v. Gissel Packing Co., which allowed employer predictions about union impacts only if they were fact-based and devoid of coercion.

A noteworthy aspect of this decision is that the Board has clarified that this standard will apply only to future cases. This enables past communications under the Tri-Cast standard to remain without retroactive penalties, an unusual scenario for NLRB decisions that are typically retroactive.

Given the hotel and travel industry’s high level of unionization, this decision has significant implications for the industry. Employers in this sector must now navigate carefully when discussing unionization impacts with their employees, ensuring their statements are grounded in verifiable facts and free of coercion.

Employers are advised to review their policies and practices promptly, provide managers with clear guidelines and training on lawful communication practices, and work with legal counsel to create compliant messaging strategies.

However, the future of this standard remains uncertain, as changes in the NLRB’s composition under the new administration may shift its stance on such labor-related issues. Employers should stay abreast of any updates and consult with their legal counsel to navigate the evolving labor relations landscape.

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