loader
Page is loading...
generic_insight_detail

NLRB Disregards Corporate Entity and Holds Individual Owners Liable for CBA Violations


In a case from earlier this week, Bella Masonry LLC was held to be the alter ego of Ace Masonry Inc. dba Ace Unlimited and both companies were found to have violated Section 8(a)(5) of the Labor Management Relations Act. Accordingly, the two companies were ordered by the National Labor Relations Board (NLRB) to make whole the employees for any differences in their pay resulting from the employer’s violations and also to make whole certain union benefit funds where the two companies had defaulted on their contractually obligated contributions. However, both companies – who had ceased doing operations – failed to comply with the board’s order. The failure by the two companies to comply with the order teed up the ultimate question:  can individuals connected with these corporate entities be held personally liable for the amounts owed per the board’s order? Not surprisingly, the board answered this question in the affirmative and held that certain owners (and non-owners) were financially responsible for making the employees and benefit funds whole per the board’s order. In short, the board found that the owners and non-owner commingled personal assets with corporate entities and transferred funds amongst the companies to avoid liability.  The board’s analysis can be found here.


RELATED ARTICLES

Catch-22? Company’s Scrutiny of Immigration Documents Deemed Unlawful

May 27, 2020 | Labor Relations, National Labor Relations Board, Union Organizing

NLRB Nixes Telephonic Pre-Election Hearing, Orders Remote Video Hearing Instead

May 15, 2020 | Labor Relations, National Labor Relations Board

Union Elections and Employer Considerations During Social Distancing

April 21, 2020 | Labor Relations, National Labor Relations Board, Unions and Union Membership, Union Organizing

How to Respond to Union Information Requests Regarding COVID-19

April 9, 2020 | Labor Relations, Unions and Union Membership, National Labor Relations Board

Back To Normal? Labor Board To Restart Union Elections

April 2, 2020 | Labor Relations, National Labor Relations Board

Subscribe

Do you want to receive more valuable insights directly in your inbox? Visit our subscription center and let us know what you're interested in learning more about.

View Subscription Center
RELATED TOPICS
CBA violations
NLRB
Trending Connect
We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to use cookies.