The U.S. Court of Appeals for the District of Columbia Circuit on Tuesday granted an injunction delaying indefinitely the effective date of a controversial National Labor Relations Board rule requiring employers to post notice advising workers of their right to organize a union.
The rule, which applies to most private-sector employers, was to take effect April 30, following a previous postponement.
The National Association of Manufacturers, which had sought the injunction pending appeal of an earlier court ruling, immediately applauded the appeals courts decision.
"The facts in this case and the law have always been on the side of manufacturers, and we believe that granting an injunction is the appropriate course of action for the Court. The posting requirement is an unprecedented attempt by the Board to assert power and authority it does not possess," said NAM President and CEO Jay Timmons in a prepared statement.
NAM sought the injunction after a U.S. District Court in March upheld the NLRBs authority to require businesses to post the notice but raised questions around enforcement actions.
In light of Tuesdays injunction, the NLRB will not implement the rule pending the resolution of the issues before the court, the board said in a statement.
NAM, meanwhile, said it would aggressively pursue the appeal of the flawed ruling. It also cheered a South Carolina District Court decision issued last week that determined the NLRB lacks the authority to promulgate the notice-posting rule.
"The decision last week by the South Carolina District Court correctly reined in the NLRBs egregious overreach in its authority, and todays injunction is a positive step in overturning this harmful rule," NAMs Timmons stated.
The NLRB said it would appeal the decision by the South Carolina District Court.
"We continue to believe that requiring employers to post this notice is well within the Boards authority, and that it provides a genuine service to employees who may not otherwise know their rights under our law," said NLRB Chairman Mark Gaston Pearce in a statement on the recent court rulings.