Woodcrest Health Care Center in New Milford, New Jersey, has been ordered by the National Labor Relations Board (NLRB) to retroactively provide health benefit improvements and back pay to a group of workers it excluded just days before a union vote. The NLRB found that the nursing home violated federal labor laws by denying the enhancements solely to employees eligible to vote on union representation.
The dispute began when Woodcrest announced better health benefits, including lower premiums and copayments, but excluded workers involved in the upcoming union election. The company claimed it acted to maintain neutrality during the “critical period” of the union campaign. However, the board determined that Woodcrest failed to justify its actions with credible evidence or testimony.
Although a federal appeals court initially sided with Woodcrest and remanded the case for reconsideration, the NLRB reaffirmed that the facility’s conduct was unlawful under the correct legal standards. The board concluded that the company did not provide a legitimate business reason for its decision and did not consult the union or later offer the same benefits post-election.
The ruling marks another step in a years-long legal battle between the facility and union members of 1199SEIU United Healthcare Workers, represented by Katherine Hansen of Gladstein, Reif & Meginniss, LLP. The decision reinforces employee rights to organize and prohibits employers from discriminatory practices during union activities.