Amazon, the major online retailer, has sued the New York Public Employment Relations Board (PERB) to stop the enforcement of a recently passed law that it claims is unconstitutional. The new law would give the PERB the authority to bring enforcement actions against companies like Amazon for engaging in unfair labor practices. However, Amazon is trying to block the law from coming into effect, saying that it is preempted by existing federal law.
What is This New Law?
The new law, Senate Bill 8034A, was signed into law on September 5 by Governor Kathy Hochul, which granted new authority to the PERB. Under this law, the PERB would have the authority to investigate and pursue litigation against employers for violations of the National Labor Relations Act (NLRA), if the National Labor Relations Board (NLRB) failed to exercise jurisdiction over the case. In effect, it would allow the state to prosecute federal labor violations that occur in New York when the federal government failed to take up the case on its own.
Why Was This Law Passed?
The law was passed to deal with a growing issue in the federal government, related to dysfunction at the NLRB. For months, the NLRB has operated without enough people on the board to establish a quorum, meaning that it could not issue new rulings on cases before the Board, leading to a growing backlog. This law is intended to address the issue by allowing the state PERB to handle these matters while the NLRB is unable to oversee the cases themselves.
Why is Amazon Suing?
Amazon has sued the PERB over enforcement of the new law, arguing that it is unconstitutional because it is preempted by the NLRA. They claim that, because the NLRB already has jurisdiction over these matters, New York State has no right to rule over these cases. Thus, the PERB has no right to pursue litigation against Amazon for any alleged NLRA violations, regardless of what the new law says.
Why Does it Matter?
This matters because a growing number of labor cases have stalled out waiting for the NLRB to act, but with the current presidential administration, it seems unlikely that the quorum issue will be addressed any time soon. This law tries to address some of the problems caused by the dysfunctional NLRB by granting the PERB the power to make rulings on the issue. However, it is unclear whether the new law will pass constitutional muster once it has been tested in the courts.
If you have an employment issue, give the Law Office of Andrew Ross Sack a call. Andrew Ross Sack is a New York and New Jersey employment lawyer who has considerable experience in handling the many aspects of labor and employment law. To schedule a consultation with New York City/Long Island/Westchester employment lawyer Andrew Ross Sack, call (516) 526-3319 or visit his contact page.
