The National Labor Relations Board ruled that Alaris Health at Boulevard East violated federal labor law by ending COVID-19 bonuses without bargaining with 1199SEIU United Healthcare Workers East, represented by Gladstein, Reif & Meginniss LLP attorneys Kent Y. Hirozawa and William S. Massey.
In a decision issued by a three-member panel, the Board overturned an administrative law judge who had previously found that Alaris did not violate the National Labor Relations Act. The panel concluded that the bonuses, which equaled 100% of workers’ hourly rates during the first wave of the pandemic, were tied to terms and conditions of employment and therefore subject to mandatory bargaining. Because employees only received the payments if they worked, the Board determined the bonuses were compensation rather than discretionary gifts.
The panel also noted that Alaris disregarded repeated reminders from the union that it had a right to be consulted before any changes were made. The Board held that excluding the union from these decisions was inconsistent with the statutory framework designed to promote stable labor relations.
In addition, the Board granted partial summary judgment to the NLRB general counsel on back pay allegations, holding that the company was in the best position to determine the amounts owed since it had unilaterally modified bonuses between April and November 2020.
The case is Alaris Health at Boulevard East and 1199SEIU United Healthcare Workers East, Case No. 22–CA–268083, before the National Labor Relations Board.