Amended Board Decision-Maywood SNF Operations

Download as pdf or txt
Download as pdf or txt
You are on page 1of 5

NOTICE: This opinion is subject to formal revision before publication in the answer to the complaint by the August 17 deadline,

ne, nor
bound volumes of NLRB decisions. Readers are requested to notify the Ex-
ecutive Secretary, National Labor Relations Board, Washington, D.C. requested an extension of time to do so.
20570, of any typographical or other formal errors so that corrections can In its response to the Board’s Notice to Show Cause, the
be included in the bound volumes.
Respondent argues that the General Counsel’s Motion for
Maywood SNF Operations LLC d/b/a Atlas Default Judgment should not be granted. We find the Re-
Healthcare at Maywood and 1199 SEIU, United spondent’s arguments unavailing.
Healthcare Workers East a/w Service Employees First, the Respondent states that its counsel “inadvert-
International Union. Case 22–CA–290363 ently overlooked the response date for filing an Answer”
October 13, 2023 and “did not calendar the Answer date of June 22, 2023,
DECISION AND ORDER which came and went.” But it is well settled that the Re-
spondent’s “inadvertent inattention of counsel” is not suf-
BY CHAIRMAN MCFERRAN AND MEMBERS KAPLAN
ficient to establish good cause within the meaning of Sec-
AND PROUTY
tion 102.20 of the Board’s Rules and Regulations. Careful
The General Counsel seeks a default judgment in this Courier Services, Inc., 344 NLRB 485, 485 (2005) (citing
case on the ground that Maywood SNF Operations LLC cases); see also Teamsters Local Union No. 455 (Cargill
d/b/a Atlas Healthcare at Maywood (the Respondent) has Meat Sols. Corp.), 364 NLRB 1788, 1789 (2016).
failed to file a timely answer to the complaint. Upon a Second, the Respondent asserts that its counsel’s adult
charge filed by 1199 SEIU, United Healthcare Workers son underwent serious medical issues beginning June 19,
East a/w Service Employees International Union (the Un- which necessitated Respondent counsel’s absence from
ion) on February 9, 2022, and amended on March 22, work from the end of June through the end of July. Alt-
2022, the General Counsel issued a complaint and notice hough we are sympathetic to the Respondent counsel’s ex-
of hearing on June 8, 2023,1 against the Respondent, al- tenuating personal circumstances, they do not excuse his
leging that it has violated Section 8(a)(1) of the Act. The failure to request an extension of time to file the Respond-
Respondent failed to file a timely answer. ent’s answer. Such failure to promptly request an exten-
On August 22, the General Counsel filed with the Na- sion of time is a factor demonstrating lack of good cause.
tional Labor Relations Board a Motion for Default Judg- See, e.g., V. Garofalo Carting, 362 NLRB 1369, 1369
ment. On August 24, the Board issued an order transfer- (2015); A.C.E. Construction, Inc., 340 NLRB 609, 610
ring the proceeding to the Board and a Notice to Show (2003); see Day & Zimmerman Services, 325 NLRB 1046,
Cause why the motion should not be granted. The Re- 1047 (1998) (father’s illness did not excuse respondent
spondent, on September 7, filed a response to the Board’s consultant’s failure to request extension of time to file an-
Notice to Show Cause and an answer to the complaint. swer). Moreover, the Respondent fails to explain why Re-
The Union and the General Counsel filed replies to the spondent counsel waited over a month after his son’s med-
Respondent’s response. ical issues resolved before ultimately filing the Respond-
The National Labor Relations Board has delegated its ent’s answer.
authority in this proceeding to a three-member panel.2 Third, the Respondent argues that, upon its counsel’s
Ruling on Motion for Default Judgment return to the office in early August, the Union and the Re-
Section 102.20 of the Board’s Rules and Regulations gion “oppos[ed] and/or ignore[ed its] overtures to accom-
provides that the allegations in a complaint shall be modate adjudicating this matter on the merits.” The Gen-
deemed admitted if an answer is not filed within 14 days eral Counsel and the Union dispute this assertion. But
from service of the complaint, unless good cause is shown. even if true, the Region, after already extending the Re-
In addition, the complaint affirmatively states that unless spondent’s deadline for filing its answer to August 17,
an answer is received on or before June 22, the Board may “had no obligation to delay its filing even further.” V.
find, pursuant to a motion for default judgment, that the Garofalo Carting, 362 NLRB at 1370.
allegations in the complaint are true. Further, the undis- Fourth, the Respondent argues that default will preju-
puted allegations in the General Counsel’s motion dis- dice the Respondent because the Respondent has merito-
close that the Region,3 by letter dated and emailed August rious defenses to the complaint allegations. The Board,
10, notified the Respondent that unless an answer was re- however, “will not address a respondent’s assertion that it
ceived by August 17, a motion for default judgment would has a meritorious defense if good cause has not otherwise
be filed. Thereafter, the Respondent neither filed an been demonstrated.” Careful Courier, 344 NLRB at 485

1 Dates are in 2023, unless otherwise indicated. 3 On June 13, the General Counsel transferred the case from Region
2 Member Wilcox took no part in the consideration of this case. 22 to Region 5.

372 NLRB No. 152


2 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD

(quoting Dong-A Daily North America, 332 NLRB 15, 16 Maywood facility) has been operating a nursing home
(2000)); accord Teamsters Loc. Union No. 455, 364 providing in-patient medical care.
NLRB at 1789 (citing cases). Annually, in the course and conduct of its business op-
Fifth, contrary to the Respondent’s suggestion, its coop- erations, the Respondent derived gross revenue in excess
eration and “the filing of a position statement during the of $100,000 and purchased and received at the Maywood
precomplaint investigative stage of an unfair labor prac- facility, goods and supplies valued in excess of $5000 di-
tice proceeding does not constitute good cause for not fil- rectly from suppliers located outside the State of New Jer-
ing a timely answer.” Teamsters Loc. Union No. 455, 364 sey.
NLRB at 1789. We find that the Respondent is an employer engaged in
Sixth, we reject the Respondent’s argument that its late commerce within the meaning of Section 2(2), (6), and (7)
filing should be excused because the “[c]omplainant can- of the Act and a health care institution within the meaning
not demonstrate any prejudice.” It is not necessary to of Section 2(14) of the Act. We further find that the Union
show prejudice to the General Counsel to require the Re- is a labor organization within the meaning of Section 2(5)
spondent to comply with the Board’s Rules. South Atlan- of the Act.
tic Trucking, Inc., 327 NLRB 534, 535 (1999). II. ALLEGED UNFAIR LABOR PRACTICES
Finally, we note that on September 7, when the Re-
At all material times, the following individuals have
spondent filed an untimely answer, it did not comply with
held the positions set forth opposite their names and have
the express instructions for doing so in Section
been supervisors of the Respondent within the meaning of
102.2(d)(2) of the Board’s Rules and Regulations. That
Section 2(11) and have been agents of the Respondent
is, it did not file “a motion that states the grounds relied
within the meaning of Section 2(13) of the Act.
on for requesting permission to file untimely,” accompa-
nied by an affidavit containing the facts relied on to sup- Eli Finklestein – Administrator
port the motion. See 2509 S. Fourth Operating, LLC, 370 Arleen Carasig – Director of Human Resources
NLRB No. 122, slip op. at 1 (2021). Even if the Respond-
ent’s affirmation in response to the Notice to Show Cause Joseph Ulysses – Unit Manager
could be construed as meeting the spirit of Section 1.(a) About October 2021, the Respondent’s employee,
102.2(d)(2), we note that the Respondent also failed to file Latoya Carter, along with other of the Respondent’s em-
its answer with the Regional Director as required by Sec- ployees, in the Maywood facility lunchroom, concertedly
tion 102.21 of the Board’s Rules and Regulations. The complained to the Respondent’s Administrator Eli
Board has long held that such a pattern of repeatedly ig- Finklestein regarding the wages, hours, and working con-
noring the Board’s procedures and warnings is incompat- ditions of the Respondent’s employees by complaining
ible with a showing of good cause. Odaly’s Management about the shortage of clean linens and towels, and other
Corp., 292 NLRB 1283, 1284 (1989); see South Atlantic terms and conditions of employment.
Trucking, 327 NLRB at 535 (“attorney’s unfamiliarity (b) About November 8, 2021, the Respondent’s em-
with the Board’s procedures does not constitute good ployee Latoya Carter concertedly complained regarding
cause for late filing”). the wages, hours, and working conditions of the Respond-
For the foregoing reasons, we find that the Respondent ent’s employees by posting on Facebook about the short-
has failed to show good cause why the Board should not age of clean linens and towels at the Respondent’s May-
find all allegations in the complaint to be true. Accord- wood facility, and other terms and conditions of employ-
ingly, we reject the late answer that the Respondent filed ment.
in response to the Motion for Default Judgment and No- (c) About November 19, 2021, the Respondent by its
tice to Show Cause. In the absence of good cause being Administrator Eli Finklestein, by telephone, discharged its
shown for the failure to file a timely answer, we deem the employee, Latoya Carter.
allegations of the complaint to be admitted as true, and we (d) The Respondent engaged in the conduct described
grant the Motion for Default Judgment. above in subparagraph (c) because Latoya Carter engaged
On the entire record, the Board makes the following in the conduct described above in subparagraphs (a) and
FINDINGS OF FACT (b) and to discourage employees from engaging in these
I. JURISDICTION or other concerted activities.
At all material times, the Respondent, a New Jersey cor- CONCLUSION OF LAW
poration with an office and place of business located at By the conduct described above in paragraph 1, the Re-
100 West Magnolia Avenue, Maywood, New Jersey (the spondent has been interfering with, restraining, and
ATLAS HEALTHCARE AT MAYWOOD 3

coercing employees in the exercise of the rights guaran- Further, we shall order the Respondent to compensate
teed in Section 7 of the Act in violation of Section 8(a)(1) Carter for the adverse tax consequences, if any, of receiv-
of the Act. The unfair labor practices of the Respondent ing a lump-sum backpay award and to file a report with
described above affect commerce within the meaning of the Regional Director for Region 5 allocating the backpay
Section 2(6) and (7) of the Act. award to the appropriate calendar year(s). AdvoServ of
REMEDY New Jersey, Inc., 363 NLRB 1324 (2016). In addition to
the backpay allocation report, we shall order the Respond-
Having found that the Respondent has engaged in cer-
ent to file with the Regional Director for Region 5 a copy
tain unfair labor practices, we shall order it to cease and
of Carter’s corresponding W-2 form(s) reflecting the
desist and to take certain affirmative action designed to
backpay award. Cascade Containerboard Packaging—
effectuate the policies of the Act. Specifically, having
Niagara, 370 NLRB No. 76 (2021), as modified in 371
found that the Respondent violated Section 8(a)(1) by dis-
NLRB No. 25 (2021).
charging employee Latoya Carter for engaging in pro-
The Respondent shall also be required to remove from
tected concerted activity, we shall order the Respondent to
its files any reference to the unlawful discharge of Carter
offer her full reinstatement to her former position or, if that
and to notify her in writing that this has been done and that
position no longer exists, to a substantially equivalent po-
the discharge will not be used against her in any way.5
sition, without prejudice to her seniority or any other
rights or privileges previously enjoyed. We shall also or- ORDER
der the Respondent to make Carter whole, with interest, The National Labor Relations Board orders that the Re-
for any loss of earnings and other benefits suffered as a spondent, Maywood SNF Operations LLC d/b/a Atlas
result of her unlawful discharge. Backpay shall be com- Healthcare at Maywood, Maywood New Jersey, its offic-
puted in accordance with F. W. Woolworth Co., 90 NLRB ers, agents, successors, and assigns shall
289 (1950), with interest at the rate prescribed in New Ho- Cease and desist from
rizons, 283 NLRB 1173 (1987), compounded daily as pre- (a) Discharging employees for engaging in protected
scribed in Kentucky River Medical Center, 356 NLRB 6 concerted activities by complaining about wages, hours,
(2010). and working conditions and raising concerns about the
In accordance with our decision in Thryv, Inc., 372 shortage of clean linens and towels and other terms and
NLRB No. 22 (2022), the Respondent shall also compen- conditions of employment.
sate Carter for any other direct or foreseeable pecuniary (b) In any like or related manner interfering with, re-
harms incurred as a result of her unlawful discharge, in- straining, or coercing employees in the exercise of the
cluding reasonable search-for-work and interim employ- rights guaranteed them by Section 7 of the Act.
ment expenses, if any, regardless of whether these ex- 2. Take the following affirmative action necessary to
penses exceed interim earnings.4 Compensation for these effectuate the policies of the Act.
harms shall be calculated separately from taxable net (a) Within 14 days from the date of this Order, offer
backpay, with interest at the rate prescribed in New Hori- Latoya Carter full reinstatement to her former position or,
zons, supra, compounded daily as prescribed in Kentucky if that position no longer exists, to a substantially
River Medical Center, supra.
4 Unlike his colleagues, Member Kaplan would require the Respond- should be resolved after a full briefing by the affected parties, and there
ent to compensate Carter for other pecuniary harms only insofar as the has been no such briefing in this case. Accordingly, we decline to order
losses were directly caused by the unlawful discharge, or indirectly the requested relief at this time. See, e.g., Guy Brewer 43 Inc., 363
caused by the unlawful discharge where the causal link between the loss NLRB No. 173, slip op. at 2 fn. 2 (2016); The H.O.P.E. Program, 362
and the unfair labor practice is sufficiently clear, consistent with his par- NLRB No. 128, slip op. at 2 fn. 1 (2015); Ishikawa Gasket America, Inc.,
tial dissent in Thryv, Inc., supra. 337 NLRB 175, 176 (2001), enfd. 354 F.3d 534 (6th Cir. 2004), and
5 The General Counsel additionally requests that we order the Re- cases cited therein.
spondent to offer Carter front pay should she waive her right to reinstate- Member Prouty would order the notice reading remedy requested by
ment, issue Carter a letter of apology, electronically distribute the Notice the General Counsel. See CP Anchorage Hotel 2 d/b/a Hilton Anchor-
to Employees if the Respondent is capable of communicating with em- age, 371 NLRB No. 151, slip op. at 9–15 (2022) (Member Prouty, con-
ployees through such methods, conduct a mandatory meeting during curring) (urging the Board to adopt a reading of the notice aloud and
work time to read or have read aloud the Notice to Employees, grant distribution to employees at a group meeting as a standard remedy for
Board agents access to verify compliance, and physically and electroni- unfair labor practices because “[h]aving the notice to employees read
cally post an Explanation of Rights document for one year or more. We aloud to them in a group meeting, with a copy in hand to follow along if
deny these requests because the General Counsel has not shown that they choose, is a superior means of disseminating and amplifying the
these additional measures are warranted in this case under current Board Board’s message to maximize the extent to which employees hear and
precedent. To the extent the General Counsel advocates for a change in comprehend it”).
Board law, we believe that the appropriateness of the proposed remedies
4 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD

equivalent position, without prejudice to her seniority or other electronic means, if the Respondent customarily
any other rights or privileges previously enjoyed. communicates with its employees by such means. Rea-
(b) Make Latoya Carter whole for any loss of earnings sonable steps shall be taken by the Respondent to ensure
and other benefits, and for any other direct or foreseeable that the notices are not altered, defaced, or covered by any
pecuniary harms, suffered as a result of her unlawful dis- other material. If the Respondent has gone out of business
charge, in the manner set forth in the remedy section of or closed the facility involved in these proceedings, the
this decision. Respondent shall duplicate and mail, at its own expense, a
(c) Compensate Latoya Carter for the adverse tax con- copy of the notice to all current employees and former em-
sequences, if any, of receiving a lump-sum backpay ployees employed by the Respondent at any time since
award, and file with the Regional Director for Region 5, November 19, 2021.
within 21 days of the date the amount of backpay is fixed, (h) Within 21 days after service by the Region, file with
either by agreement or Board order, a report allocating the the Regional Director for Region 5 a sworn certification
backpay award to the appropriate calendar year(s). of a responsible official on a form provided by the Region
(d) File with the Regional Director for Region 5, within attesting to the steps that the Respondent has taken to com-
21 days of the date the amount of backpay is fixed by ply.
agreement or Board order or such additional time as the Dated, Washington, D.C. October 13, 2023
Regional Director may allow for good cause shown, a
copy of Latoya Carter’s corresponding W-2 form(s) re-
flecting the backpay award. ______________________________________
(e) Within 14 days from the date of this Order, remove Lauren McFerran, Chairman
from its files any reference to the unlawful discharge of
Latoya Carter, and within 3 days thereafter, notify her in
writing that this has been done and that the discharge will ______________________________________
not be used against her in any way. Marvin E. Kaplan, Member
(f) Preserve and, within 14 days of a request, or such
additional time as the Regional Director may allow for
good cause shown, provide at a reasonable place desig- ______________________________________
nated by the Board or its agents, all payroll records, social David M. Prouty, Member
security payment records, timecards, personnel records
and reports, and all other records, including an electronic
copy of such records if stored in electronic form, neces- (SEAL) NATIONAL LABOR RELATIONS BOARD
sary to analyze the amount of backpay due under the terms
of this Order. APPENDIX
(g) Post at its facility in Maywood, New Jersey copies NOTICE TO EMPLOYEES
of the attached notice marked “Appendix.”6 Copies of the POSTED BY ORDER OF THE
notice, on forms provided by the Regional Director for Re- NATIONAL LABOR RELATIONS BOARD
gion 5, after being signed by the Respondent’s authorized An Agency of the United States Government
representative, shall be posted by the Respondent and
maintained for 60 consecutive days in conspicuous places, The National Labor Relations Board has found that we vi-
including all places where notices to employees are cus- olated Federal labor law and has ordered us to post and
tomarily posted. In addition to physical posting of paper obey this notice.
notices, notices shall be distributed electronically, such as FEDERAL LAW GIVES YOU THE RIGHT TO
by email, posting on an intranet or an internet site, and/or Form, join, or assist a union
6 If the facility involved in these proceedings is open and staffed by a within 14 days after service by the Region. If the notice to be physically
substantial complement of employees, the notice must be posted within posted was posted electronically more than 60 days before physical post-
14 days after service by the Region. If the facility involved in these pro- ing of the notice, the notice shall state at the bottom that “This notice is
ceedings is closed or not staffed by a substantial complement of employ- the same notice previously [sent or posted] electronically on [date].” If
ees due to the Coronavirus Disease 2019 (COVID-19) pandemic, the no- this Order is enforced by a judgment of a United States court of appeals,
tice must be posted within 14 days after the facility reopens and a sub- the words in the notice reading “Posted by Order of the National Labor
stantial complement of employees has returned to work. If, while closed Relations Board” shall read “Posted Pursuant to a Judgment of the United
or not staffed by a substantial complement of employees due to the pan- States Court of Appeals Enforcing an Order of the National Labor Rela-
demic, the Respondent is communicating with its employees by elec- tions Board.”
tronic means, the notice must also be posted by such electronic means
ATLAS HEALTHCARE AT MAYWOOD 5

Choose representatives to bargain with us on your allocating the backpay award to the appropriate calendar
behalf year(s).
Act together with other employees for your bene- WE WILL file with the Regional Director for Region 5,
fit and protection within 21 days of the date the amount of backpay is fixed
Choose not to engage in any of these protected ac- by agreement or Board order or such additional time as the
tivities. Regional Director may allow for good cause shown, a
copy of Latoya Carter’s corresponding W-2 form(s) re-
WE WILL NOT discharge you for engaging in protected flecting her backpay award.
concerted activity by complaining about wages, hours, WE WILL, within 14 days from the date of the Board’s
and working conditions or by raising concerns about the Order, remove from our files any reference to our unlaw-
shortage of clean linens and towels and other terms and ful discharge of Latoya Carter and WE WILL, within 3 days
conditions of employment. thereafter, notify her in writing that this has been done and
WE WILL NOT in any like or related manner interfere that her discharge will not be used against her in any way.
with, restrain, or coerce you in the exercise of the rights
listed above. MAYWOOD SNF OPERATIONS LLC D/B/A ATLAS
WE WILL, within 14 days from the date of the Board’s HEALTHCARE AT MAYWOOD
Order, offer Latoya Carter full reinstatement to her former
position or, if that position no longer exists, to a substan- The Board’s decision can be found at
tially equivalent position, without prejudice to her senior- www.nlrb.gov/case/22-CA-290363 or by using the QR
ity or any other rights or privileges she previously en- code below. Alternatively, you can obtain a copy of the
joyed. decision from the Executive Secretary, National Labor
WE WILL make Latoya Carter whole for any loss of Relations Board, 1015 Half Street, S.E., Washington, D.C.
earnings and other benefits resulting from her unlawful 20570, or by calling (202) 273-1940.
discharge, less any net interim earnings, plus interest, and
WE WILL also make her whole for any other direct or fore-
seeable pecuniary harms suffered as a result of her unlaw-
ful discharge, including reasonable search-for-work and
interim employment expenses, plus interest.
WE WILL compensate Latoya Carter for the adverse tax
consequences, if any, of receiving a lump-sum backpay
award, and WE WILL file with the Regional Director for
Region 5, within 21 days of the date the amount of back-
pay is fixed, either by agreement or Board order, a report

You might also like