Nursing home’s attempt to dump union costs $1M — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Nursing home’s attempt to dump union costs $1M

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The Yuba Skilled Nursing Facility in Yuba City has paid $1 million in back pay and benefits after the National Labor Relations Board (NLRB) ruled against it in an unfair labor practice complaint filed by the Service Employees International Union and United Health Care Workers West.

Nasaky, Inc. purchased the facility in 2011. In an effort to turn it into a nonunion shop, Nasaky intentionally hired back less than half its previous employees. The National Labor Relations Act requires an entity that purchases a unionized workplace to recognize the union if it hires more than half of the existing employees. The NLRB ruled that Nasaky failed to hire many long-time employees to avoid meeting the threshold.

The NLRB ordered Nasaky to offer jobs to em­­ployees of the former owner, restore the terms and conditions of employment that existed before Nasaky assumed control of the business, recognize and bargain with the union and pay back $1 million in back wages.

Note: Taking over a business that has a unionized workforce has many pitfalls. Confer with an experienced labor attorney before purchasing such a company.

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