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Labor Board’s Power to Sue Unions Reduced

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Bloomberg News

The National Labor Relations Board has been too quick to accuse companies of illegally suing unions, the U.S. Supreme Court ruled.

The justices, overturning an NLRB policy that dates back two decades, unanimously said a company doesn’t violate federal labor law simply by losing a lawsuit that was filed in retaliation for union activity. The ruling was a victory for California industrial contractor BE&K; Construction Co.

The court said the 1st Amendment protects employers as long as they had a “reasonable basis” for filing the suit.

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