The South Carolina Chamber of Commerce said it had joined the U.S. Chamber in launching a lawsuit against the National Labor Relations Board.
While the NLRB has been in the news for its complaint against Boeing, the Chamber’s suit is over an entirely new matter– does the board have the authority to require that businesses post employees’ union rights in a visible place?
The issue is a new regulation that begins in November which requires businesses to post notices about the National Labor Relations Act provisions which detail employees’ unionization rights. Companies have opposed the rule since it even became official, saying it violates their right to free speech and that the NLRB does not have the authority to come up with new regulations.
Supporters of the new rule say companies are already required to post other laws, such as minimum wages, jobless benefits, and working conditions. However, those were required by congressional action.
“The NLRB’s new rule is just another example of the agency overreaching and overstepping its authority,” said Otis Rawl, president and CEO of the South Carolina Chamber of Commerce said in a statement, “At a time when South Carolina businesses are working to create jobs, this new rule will add unnecessary costs to doing business.”
AUDIO: Rawl discusses suit with Ashley Byrd of South Carolina Radio Network (5:40)
The lawsuit alleges that the NLRB’s final rule regarding “Notification of Employee Rights Under the National Labor Relations Act” (“Notification Rule”) violates the National Labor Relations Act (NLRA), the Administrative Procedure Act (APA), the Regulatory Flexibility Act (RFA), and the First Amendment.
The Chamber argues the rule creates a new “unfair labor practice,” exposing businesses to significant and costly liability for failure to comply. The rule — which applies to virtually all private employers in the United States — becomes effective on November 14, 2011.
The separate National Federation of Independent Business filed a similar lawsuit last week.