Hunton Profile

Pay and Promotions Task Force

Now more than ever, pay and promotion issues are tremendously important to employers.  Fair pay and equal work opportunities to all employees, regardless of gender, race, national origin or any other protected characteristic, is a top priority of the new administration.  Signing the Lilly Ledbetter Fair Pay Act, which extended the statute of limitations for filing alleged discriminatory pay and promotion claims, was President Obama’s first legislative act as President.  Recent events in Congress, including the introduction of additional legislation aimed at ensuring equal pay and advancement opportunities, paired with aggressive regulatory initiatives, are strong signals that the question is not “if” pay and promotion discrimination claims will rise, but when and how high.  Our attorneys are fully prepared to help employers maneuver through the special challenges these cases present.
 
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Nominee Craig Becker's Appointment to the NLRB is Blocked in Senate

National Labor Relations Board (NLRB) Nominee Craig Becker needed 60 Senate votes to overcome the Republican-led filibuster blocking his confirmation, but he only received 52 votes on Tuesday. Two Democrats, Sen. Blanche Lincoln (Ark.) and Ben Nelson (Neb.), went against their party to vote him down in the cloture vote, which failed 52-33.

Becker could still be appointed to the NLRB if the President makes a recess appointment. Currently, the Board has only two of its five seats filled, and requires a third to meet the quorum requirement.  However, given the controversy surrounding the Becker nomination, it would be a bold move for the President to fill the quorum by giving Becker the seat.  Two other current nominees, Mark Gaston Pearce (D.) and Bryan Hayes (R.) are less controversial than Becker and their nominations are also before the Senate for consideration. The controversy surrounding the Becker nomination is due principally to Becker’s background, which many believe displays an anti-free-market and pro-union bent.  Becker is a labor lawyer who has served as associate general counsel to the Service Employees International Union (SEIU) and the AFL-CIO.  For the past 27 years, Becker has taught and practiced labor law and written articles expressing extremely pro-union, anti-business views.

It appears that the Senate can confirm both Pearce and Hayes at any time. However, should  the Senate attempt  to confirm Pearce (the Democrat) without Hayes (the Republican), it is predicted that Senate Republicans will object or resist.
  
As for a recess appointment, it is unclear whether there will be a recess next week, given the blizzards this week that have resulted in snow days in Washington, D.C.  If the Senate takes off three (3) days or more next week, as originally planned, the President will have the opportunity to use his recess appointment power.  If so, the President could appoint Becker, Pearce, or Hayes, or any combination, including all three nominees to the NLRB.  If any of them receives the recess appointment, the appointment must be approved by the Senate by the end of the next session (which in current practice would likely be some time in December of 2011, although it is not certain), or the position becomes vacant again.
 
It is not clear why Senate Majority Leader Reid pushed the cloture vote when he knew last week that it would fail after Senators Enzi (R. Wyo.) and Murkowski (R. Alaska) of the Senate Health, Education, Labor, and Pensions Committee changed their votes to oppose Becker’s nomination. However, after the cloture vote, labor organizations are now more informed about who it should support, with Senators Lincoln and Nelson likely no longer on its list of supportive candidates.

Controversy Over NLRB Nominee Craig Becker Heats up as Proponents and Opponents Race to the Finish Line

On Tuesday, February 4th, the United States Senate Health, Education, Labor, and Pensions (“HELP”) Committee called a rare hearing to question Craig Becker, President Barack Obama’s nominee for the National Labor Relations Board (“NLRB”). While Becker was approved by the HELP Committee last year in a 15-8 vote, Arizona Senator John McCain (R.) placed a hold on his nomination, keeping a Senate vote from taking place. Therefore, the White House resubmitted his nomination and the Committee voted on Becker again yesterday, before a confirmation vote in the full Senate.

Although the Committee approved his nomination again, it did so with a 13-10 party line vote. The confirmation vote could take place as early as next week.

Anticipating another hold would be placed on Becker’s nomination,  proponents were pushing hard for a cloture vote before Massachusetts Senator-elect Scott Brown took his seat. However, Brown was sworn in by Vice President Biden shortly after 5 p.m. ET yesterday, ending the Democrats' supermajority and becoming the Republican's "41st vote" on health care.  Late yesterday, a cloture vote petition with seventeen (17) signatures was filed on Becker, and the vote will take place Monday evening. With Brown seated, Becker’s proponents are unlikely to obtain the 60 votes need to override any hold placed on the nomination.

The controversy surrounding the nomination is due principally to Becker’s background, which many believe displays an anti-free-market and pro-union bent. Becker is a labor lawyer who has served as associate general counsel to the Service Employees International Union (SEIU) and the AFL-CIO.  For the past 27 years, Becker has taught and practiced labor law and written articles expressing extremely pro-union, anti-business views.

The Senate HELP Committee received a letter from 23 major trade organizations last week expressing concern that the NLRB would be able to “radically interpret existing labor law should Becker be confirmed.” The Committee received a separate letter from 600 manufacturing employers urging members to oppose the confirmation.

Senator Johnny Isakson (R., Ga.) expressed concern that Becker's writings "have indicated a belief that the NLRB has the power to make some of the dramatic changes in the card-check bill." This legislation would permit unions to bypass secret-ballot elections and instead organize in workplaces by collecting signed cards from workers.

In an attempt to distance himself from his writings, during Tuesday’s hearing, Becker suggested that he doesn't believe the Board could take such a step. "The law is clear that the decision...(of) an alternative route to certification rests with Congress and not the board," Becker said, adding that his writings were "intended to be provocative and to ask fundamental questions in order for scholars and others to re-evaluate."

In a Huffington Post article posted Thursday, February 4, Stewart Acuff, Chief of Staff and Assistant to the President of the Utility Workers Union of America, illustrates these concerns as he states:

The Employee Free Choice Act has the support of a majority of the US Senate. But under the current rules in the Senate you need not a majority -- 50 votes-- but a super-majority of 60 votes to move legislation to where a vote to pass it can even take place. We are very close to the 60 votes we need. If we aren't able to pass the Employee Free Choice Act, we will work with President Obama and Vice President Biden and their appointees to the National Labor Relations Board to change the rules governing forming a union through administrative action… 

(emphasis added). 

At Tuesday’s hearing, Senator McCain grilled Becker over whether he would recuse himself from cases before the NLRB involving the SEIU, where Becker most recently worked. Becker said he would recuse himself from cases involving the SEIU for two years; however, he would not commit to doing so in a case mentioned by McCain involving a local chapter of the union.

Becker's Nomination To NLRB Delayed, Possibly Derailed; EFCA Debate Affected

On December 24, Craig Becker’s nomination to the NLRB ran into a significant obstacle when the Senate returned the nomination to the White House for reconsideration.

Becker, who works for the Service Employees International Union, was nominated by the President earlier this year to fill one of the two vacant Democratic seats on the NLRB.  There has been significant controversy surrounding his nomination due to what critics describe as his extreme, some say radical, pro-union views concerning possible changes to the nation’s labor laws.  The nominations of Democrat Mark Pierce and Republican Robert Hayes were both held over by the Senate for consideration during the next term, indicating that both are likely to be confirmed.  

Becker’s nomination was returned by the Senate in accordance with its operating rules because at least one Senator objected to having the nomination held over for consideration during the 2010 session.  Earlier this year Senator McCain (R, Ariz.) expressed his opposition to Becker’s nomination, referring to the nomination as one of the most controversial that he had seen in a long time and placing a hold on the nomination after his request for a public hearing was denied.

Whether Becker’s nomination will survive is unclear.  Because it has been returned, the President must resubmit the nomination in order for the Senate to consider Mr. Becker.  If he is re-nominated, the process could coincide with debate over the Employee Free Choice Act (EFCA), bringing into stark focus some of the most controversial aspects of organized labor’s agenda. 

This scenario may also create room for compromise, or at least the illusion of one.  To get EFCA passed and push Becker through to confirmation, proponents might be willing to modify the provision that would eliminate the right to call for a secret ballot union election.  However, with Becker on the NLRB, pro-union rules and decisions are more likely to predominate.  Among Mr. Becker’s most controversial views are:  (a) that employers should play no role whatsoever in the union selection process; and (b) that many of the NLRB’s current rules regarding the union selection process can be changed by rulemaking without legislation.

A compromise which defeats EFCA in its current form but allows Mr. Becker to be confirmed could, in the eyes of employers opposing EFCA’s passage, turn out to be a pyrrhic victory.