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No. 10708097
United States Court of Appeals for the Ninth Circuit
National Labor Relations Board v. MacY's Inc.
No. 10708097 · Decided October 21, 2025
No. 10708097·Ninth Circuit · 2025·
FlawFinder last updated this page Apr. 2, 2026
Case Details
Court
United States Court of Appeals for the Ninth Circuit
Decided
October 21, 2025
Citation
No. 10708097
Disposition
See opinion text.
Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
INTERNATIONAL UNION OF No. 23-124
OPERATING ENGINEERS,
NLRB No.
STATIONARY ENGINEERS,
20-CA-270047
LOCAL 39,
ORDER AND
Petitioner, AMENDED
v. OPINION
NATIONAL LABOR RELATIONS
BOARD,
Respondent,
----------------------------------------
MACY’S INC.,
Intervenor.
MACY’S INC., No. 23-150
NLRB No.
Petitioner,
20-CA-270047
v.
NATIONAL LABOR RELATIONS
BOARD,
2 INT’L UNION OF OPERATING ENGINEERS V. NLRB
Respondent,
----------------------------------------
INTERNATIONAL UNION OF
OPERATING ENGINEERS,
STATIONARY ENGINEERS,
LOCAL 39,
Intervenor.
NATIONAL LABOR RELATIONS No. 23-188
BOARD,
NLRB No.
20-CA-270047
Petitioner,
v.
MACY’S INC.,
Respondent,
----------------------------------------
INTERNATIONAL UNION OF
OPERATING ENGINEERS,
STATIONARY ENGINEERS,
LOCAL 39,
Intervenor.
INT’L UNION OF OPERATING ENGINEERS V. NLRB 3
On Petition for Review of an Order of the
National Labor Relations Board
Argued and Submitted March 28, 2024
San Francisco, California
Filed January 21, 2025
Amended October 20, 2025
Before: Evan J. Wallach, * Jacqueline H. Nguyen, and
Patrick J. Bumatay, Circuit Judges.
Order;
Opinion by Judge Wallach;
Partial Dissent by Judge Bumatay;
Dissent from Order by Judge R. Nelson
SUMMARY **
Labor Law
The panel filed (1) an order denying a petition for
rehearing en banc and amending the opinion and partial
dissent filed on January 21, 2025; and (2) an amended
opinion and an amended partial dissent denying petitions for
review brought by the International Union of Operating
*
The Honorable Evan J. Wallach, United States Circuit Judge for the
Federal Circuit, sitting by designation.
**
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
4 INT’L UNION OF OPERATING ENGINEERS V. NLRB
Engineers, Stationary Engineers, Local 39 (the “Union”) and
Macy’s Inc., and granting the National Labor Relations
Board’s cross-application for enforcement of its final order
in a case in which the Union charged Macy’s with unfair
labor practices under the National Labor Relations Act
(“NLRA”).
During negotiations over a successor collective
bargaining agreement, Union members voted to reject
Macy’s Final Offer and began a strike. After three months,
the Union ended its strike and unconditionally offered to
return to work. Macy’s locked out the Union members who
reported for work. The Union charged that Macy’s lockout
was an unfair labor practice. The Board adopted the
conclusion of the ALJ, and found that Macy’s violated the
NLRA.
In the amended opinion, the panel held that it had
jurisdiction because the Union is a “person aggrieved.”
The panel rejected Macy’s contention that it could
lawfully lock out the employees under Section 8(a)(1) and
(3) of the NLRA because it could not show legitimate and
substantial business justifications for the lockout. The
Board applied the correct legal standard when it considered
Dayton Newspapers, Inc., 339 N.L.R.B. 650
(2003). Reviewing the record as a whole, the panel found
substantial evidence supporting the Board’s conclusion that
Union employees were not clearly and fully informed of
conditions they needed to satisfy to be
reinstated. Considering Dayton Newspapers, the panel
concluded that the lockout was not justified.
Finding no clear abuse of discretion, the panel enforced
the Board’s remedial order. The Board did not abuse its
discretion in declining to award additional extraordinary
INT’L UNION OF OPERATING ENGINEERS V. NLRB 5
remedies, requested by the Union, because the traditional
remedies awarded were sufficient to effectuate the policies
of the NLRA here. Rejecting Macy’s challenges, the panel
held that the Board did not clearly abuse its discretion in
ordering make-whole relief pursuant to Thryv, Inc., 372
N.L.R.B. No. 22 (Dec. 13. 2022). The panel agreed with the
partial dissent that the Board was not authorized to award
“consequential damages,” but the Board did not award such
damages here. The panel concluded that the Board’s
invocation of Thryy’s make-whole relief framework in this
case vindicated a public right. The panel noted that its
amendments merely reiterated that it was unable to permit or
prohibit any specific forms of relief at this stage. Such
determinations must await the forthcoming compliance
proceeding, where Macy’s can raise the arguments the
dissent urges the panel to consider now.
In the amended partial dissent, Judge Bumatay would
hold that the Board had no authority to order the type of
monetary relief it did, requiring Macy’s to compensate
Union members for direct or foreseeable pecuniary harms
incurred as a result of the unlawful lockout, and for ongoing
harms accumulating to this day—more than four years since
the lockout. Blessing the Board’s authority to impose these
remedies would implicate the Seventh Amendment’s right to
a jury trial. The Board’s actions were arbitrary and
capricious and unsupported by the record. While he agreed
with the denial of the Union’s petition for review, he
dissented from the denial of Macy’s petition for review and
from the grant of the Board’s application for enforcement.
Dissenting from the denial of rehearing en banc, Judge
R. Nelson, joined by Judges Callahan, Ikuta, Lee, Bumatay,
and VanDyke, wrote that this case should be reheard en banc
because the majority erred in affirming the NLRB’s
6 INT’L UNION OF OPERATING ENGINEERS V. NLRB
unprecedented award of consequential Thryy damages,
which are unauthorized by statute and forbidden by the
Seventh Amendment right to a jury trial.
COUNSEL
David A. Rosenfeld (argued), Gary P. Provencher, Bruce A.
Harland, and Sara J. Zollner, Weinberg Roger & Rosenfeld,
Emeryville, California, for Petitioner.
Barbara A. Sheehy (argued), Attorney; Usha Dheenan,
Supervisory Attorney; David Habenstreit and Meredith
Jason, Assistant General Counsel; Ruth E. Burdick, Deputy
Associate General Counsel; Peter S. Ohr, Associate General
Counsel; Stephanie Cahn, Acting Deputy General Counsel;
William B. Cowen, Acting General Counsel; Jennifer A.
Abruzzo, General Counsel; National Labor Relations Board,
Washington, D.C.; for Respondent.
M. Christopher Moon (argued), Jackson Lewis PC, Salt
Lake City, Utah; Dylan B. Carp and Laura A. Pierson-
Scheinberg, Jackson Lewis PC, San Francisco, California;
Daniel D. Schudroff, Jackson Lewis PC, New York, New
York; Paul D. Clement, Matthew D. Rowen, and Kyle R.
Eiswald, Clement & Murphy PLLC, Alexandria, Virginia;
for Intervenor.
Jordan L. Von Bokern and Maria C. Monaghan, U.S.
Chamber Litigation Center, Washington, D.C.; Michael E.
Kenneally, Morgan Lewis & Bockius LLP, Washington,
D.C.; for Amici Curiae the Chamber of Commerce of the
United States of America, Coalition for a Democratic
Workplace, and National Retail Federation.
INT’L UNION OF OPERATING ENGINEERS V. NLRB 7
ORDER
The opinion and partial dissent filed on January 21, 2025
(Dkt. No. 93), and reported at 127 F.4th 58, are amended.
The amended opinion and partial dissent will be filed
concurrently with this Order.
Judge Nguyen voted to deny the petition for rehearing en
banc and Judge Wallach so recommended. Judge Bumatay
voted to grant the petition for rehearing en banc. The full
court was advised of the petition for rehearing en banc. A
judge requested a vote on whether to rehear the matter en
banc. The matter failed to receive a majority of the votes of
the nonrecused active judges in favor of en banc
consideration. Fed. R. App. P. 40.
The petition for rehearing en banc (Dkt. No. 102) is
DENIED, and no further petitions for rehearing will be
entertained in these cases.
OPINION
WALLACH, Circuit Judge:
When engaging in “collective bargaining” under the
National Labor Relations Act (“NLRA” or the “Act”),
“representatives of an employer and a union attempt to reach
an agreement by negotiation, and, failing agreement, are free
to settle their differences by resort to such economic
weapons as strikes and lockouts, without any compulsion to
reach agreement.” NLRB v. Amax Coal Co., 453 U.S. 322,
336 (1981) (emphasis added) (citations omitted); see also
8 INT’L UNION OF OPERATING ENGINEERS V. NLRB
29 U.S.C. § 158(a), (d) (listing certain prohibited unfair
labor practices by an employer and imposing an obligation
for collective bargaining). During negotiations over a
successor collective bargaining agreement (“CBA”),
communications between Macy’s Inc. (“Macy’s” or
the “Company”) and the International Union of Operating
Engineers, Stationary Engineers, Local 39 (the “Union”) set
off a chain reaction. The Union members voted to reject the
Company’s last, best, and final offer (the “Final Offer”) and
began a strike. After the Final Offer expired, the Union
offered its proposal on wages and pensions, which Macy’s
then rejected. After three months, the Union ended its strike
and unconditionally offered to return to work. Three days
later, Macy’s locked out the Union members who reported
for work.
The Union filed its Charge Against Employer
(“Charge”) with the National Labor Relations Board
(“NLRB” or the “Board”), alleging that the Company’s
lockout was an unfair labor practice under the NLRA. An
Administrative Law Judge (“ALJ”) ultimately ruled in the
Union’s favor.
The Board adopted the conclusion of the ALJ, who found
that Macy’s violated Section 8(a)(1) and (3) 1 of the Act,
1
Under Section 8(a)(1) and (3) of the NLRA:
It shall be an unfair labor practice for an employer—
(1) to interfere with, restrain, or coerce employees in
the exercise of the rights guaranteed in section 157 of
this title;
***
INT’L UNION OF OPERATING ENGINEERS V. NLRB 9
29 U.S.C. § 158(a)(1), (3), when on December 7, 2020,
Macy’s locked out its employees without presenting a
timely, clear, and complete offer that set forth the conditions
necessary to avoid a lockout. Macy’s, Inc.,
372 N.L.R.B. No. 42 (Jan. 17, 2023) (“Decision and
Order”). The Board amended the ALJ’s recommended
Order with respect to remedial provisions, modifying the
“make-whole remedy” to include direct or foreseeable
pecuniary harms incurred due to the lockout.
Before us are three prayers for relief: (1) the Union
petitions for remand for the Board to reconsider its requested
additional remedies; (2) Macy’s petitions for dismissal of
the Union’s petition and transfer of the proceedings
elsewhere, or alternatively, either remand or reversal on the
merits in its favor; and (3) the Board applies for enforcement
of its final Order. We have jurisdiction under 29 U.S.C.
§ 160(e)–(f). We deny the Union’s and the Company’s
Petitions for Review and grant the Board’s
Cross-Application for Enforcement.
(3) by discrimination in regard to hire or tenure of
employment or any term or condition of employment
to encourage or discourage membership in any labor
organization . . . .
29 U.S.C. § 158(a)(1), (3); see also Metro. Edison Co. v. NLRB,
460 U.S. 693, 698 n.4 (1983) (“[A] violation of § 8(a)(3) constitutes a
derivative violation of § 8(a)(1).” (citations omitted)).
10 INT’L UNION OF OPERATING ENGINEERS V. NLRB
I. FACTUAL AND PROCEDURAL
BACKGROUND 2
Macy’s is a retail business with more than 700 stores and
75,000 employees nationwide. The Union represents
building engineers and craftsmen who perform carpentry,
painting, as well as maintenance and repair work, especially
on heating, ventilation, and air conditioning (HVAC) and
electrical systems, at two Macy’s stores in Reno, Nevada,
and approximately forty other stores across Northern
California and the San Francisco Bay Area. On April 1,
2020, Macy’s laid off about sixty Union engineers, after
closing its stores and furloughing most of its employees in
response to the COVID-19 pandemic. Later that year,
Macy’s started to reopen its stores, and by mid-August, it
recalled forty-three Union engineers back to work.
For over twenty years, Macy’s and the Union maintained
a collective-bargaining relationship. In July 2020, Macy’s
and the Union began bargaining for a successor CBA since
the CBA then in place, covering between sixty to seventy
Union employees, was set to expire on August 31, 2020.
After nearly a dozen bargaining sessions, they had yet to
reach an agreement. On August 31, 2020—the day the CBA
would expire—Macy’s presented its Final Offer proposing
terms relating to wages and pensions. On September 2,
2020, the Union members overwhelmingly voted to reject
the Final Offer and the Union decided it would begin its
strike in two days. From September 4, 2020, to December
4, 2020, the Union staged its strike, picketing every day
2
Only the factual assertions pertinent to resolving the matter before us
are presented here, and they are primarily drawn from the findings within
the April 6, 2022 ALJ’s Decision (“ALJ’s Decision”), which the Board
affirmed in its January 17, 2023 Decision and Order.
INT’L UNION OF OPERATING ENGINEERS V. NLRB 11
during business hours at Macy’s Union Square store in San
Francisco. Macy’s argued before the ALJ that during the
strike, the Union employees engaged in a variety of
misconduct and sabotage.
On October 8, 2020, Rose Ashmore (“Ashmore”), the
Company’s lead negotiator, told Jay Vega (“Vega”), the
Union’s lead negotiator, over the phone that the Final Offer
would expire in a week; Ashmore confirmed this once more
in an email to Vega four days later. On October 15, 2020,
the Final Offer expired. Vega called Ashmore on November
9, 2020, and asked if Macy’s would present another offer.
Ashmore said no, but asked whether the Union would like to
resume bargaining; Vega said he would get back to her. On
November 25, 2020, the day before Thanksgiving, Vega sent
an email to Ashmore including the Union’s proposal on
wages and pensions. Ashmore replied to Vega over text,
notifying her receipt of the email and her inability to speak
with her team at Macy’s about the offer until after the
holiday.
On December 4, 2020, Ashmore emailed Vega rejecting
the Union’s wage proposal. That same day, Vega replied
that the Union no longer wished the dispute to continue, so
it was making “an unconditional offer to return our members
to work immediately.” After Vega sent this email, the Union
ended its strike and stopped picketing. Later that evening,
Ashmore replied to Vega, stating that she would respond to
the Union’s unconditional offer by the end of business on
Monday, December 7, 2020, because she needed to discuss
the offer “with all necessary partners.” In the reply,
Ashmore told Vega “please do not have the members report
to work yet.” Vega asked her over email, “[d]oes this mean
you are locking them out till Monday?” On December 5,
2020, Ashmore answered that Macy’s would need to fully
12 INT’L UNION OF OPERATING ENGINEERS V. NLRB
evaluate “several administrative, logistical, and economic
issues” implicated by the Union’s “unexpected offer,” and
requested “the courtesy of giving us until the close of
business Monday to assess.” On December 6, 2020, Vega
responded that “[u]nfortunately, we cannot accommodate
your request. Unless you are locking them out, they will [be]
showing up to work Monday morning.” Ashmore replied,
repeating that “the team should not return to work on
Monday,” as well as stating that “[t]his is not a lockout but
we won’t be ready for them.”
On Monday, December 7, 2020, some Union engineers
started returning to work but were turned away. That same
day, Ashmore emailed Vega, asserting “[w]e are not willing
to reinstate bargaining [Union] employees until there is an
agreement in place; this decision is being made in support of
our bargaining position.”
On December 10, 2020, Macy’s and the Union engaged
in subsequent negotiations. Ashmore emailed Vega the
Company’s new bargaining proposal, which includes wage
increases that were reduced from those within the Final
Offer. The Union countered with an offer to cap wages at
the rates originally proposed in the Final Offer. No deal was
made. The next day, Macy’s presented another proposal,
which was still worse than the Final Offer. The Union gave
its additional proposal, deleting certain provisions from the
contract. Once again, Macy’s and the Union failed to reach
an agreement.
On December 9, 2020, and February 4, 2021, the Union
respectively filed its original and first amended Charge
forms with the NLRB, alleging that Macy’s committed an
unfair labor practice by locking out the Union engineers after
they gave their unconditional offer to return to work. On
INT’L UNION OF OPERATING ENGINEERS V. NLRB 13
February 11, 2021, the NLRB issued its Complaint and
Notice of Hearing (“Complaint”), which alleges that Macy’s
violated Section 8(a)(1) and (3) of the Act. In June 2021, the
ALJ conducted a six-day hearing, and at that time, Macy’s
and the Union “had still not reached an agreement on a new
contract, and [the Company’s] lockout of the engineers
continued.”
In the ALJ’s Decision issued on April 6, 2022, the ALJ
concluded that Macy’s violated Section 8(a)(1) and (3) of
the NLRA, “[b]y locking out its employees on December 7,
2020, without providing them with a timely, clear, or
complete offer, which sets forth the conditions necessary to
avoid the lockout[.]” The ALJ recommended that Macy’s
“offer reinstatement to all employees who were unlawfully
locked out and make them whole for any losses of pay and
benefits that they may have suffered by reason of the
lockout,” including “search-for-work and interim
employment expenses, regardless of whether those expenses
exceed interim earnings.” With respect to the ALJ’s
Decision, Macy’s filed its Exceptions and the Union filed its
Cross-Exceptions.
On January 17, 2023, the Board in its Decision and Order
affirmed the ALJ’s rulings, findings, and conclusions, and
adopted the ALJ’s recommended Order, making two
modifications. The Board modified the ALJ’s
recommended Order, first, “to conform to the violations
found and to the Board’s standard remedial language, and in
accordance with” prior NLRB decisions, and second, to
amend the “make-whole remedy” to provide that Macy’s
“shall also compensate the employees for any other direct or
foreseeable pecuniary harms incurred as a result of the
unlawful lockout, including reasonable search-for-work and
14 INT’L UNION OF OPERATING ENGINEERS V. NLRB
interim employment expenses, if any, regardless of whether
these expenses exceed interim earnings.”
Macy’s petitioned for review over the Board’s Decision
and Order in the Fifth Circuit, and the Union filed its petition
in this Court. Pursuant to 28 U.S.C. § 2112, the Judicial
Panel on Multidistrict Litigation transferred their Petitions
for Review here, after this Court was randomly selected.
The NLRB filed a Cross-Application for Enforcement of its
final Order. These three petitions were consolidated here.
II. STANDARD OF REVIEW
We “must uphold a Board decision when substantial
evidence supports its findings of fact and when the agency
applies the law correctly.” United Nurses Ass’ns of Cal. v.
NLRB, 871 F.3d 767, 777 (9th Cir. 2017) (internal quotation
marks and citation omitted). “We review de novo whether
the Board applied the correct legal standard.” NLRB v.
Bingham-Willamette Co., 857 F.2d 661, 663 (9th Cir. 1988)
(citing Allied Chem. & Alkali Workers of Am. v. Pittsburgh
Plate Glass Co., 404 U.S. 157, 182 (1971)). The Board’s
factual findings “shall be conclusive” if they are “supported
by substantial evidence on the record considered as a
whole . . . .” 29 U.S.C. § 160(e)–(f). “The Board has special
expertise in drawing” inferences of unlawful motive and
credibility, so “its determinations are entitled to judicial
deference.” Kallmann v. NLRB, 640 F.2d 1094, 1099
(9th Cir. 1981) (citation omitted); accord Universal Camera
Corp. v. NLRB, 340 U.S. 474, 496 (1951) (“We intend only
to recognize that evidence supporting a conclusion may be
less substantial when an impartial, experienced examiner
who has observed the witnesses and lived with the case has
drawn conclusions different from the Board’s than when he
has reached the same conclusion.”).
INT’L UNION OF OPERATING ENGINEERS V. NLRB 15
Moreover, the Board’s “discretion in selecting remedies
is ‘exceedingly broad,’ and we will enforce a remedy ‘unless
it represents a clear abuse of discretion.’” NLRB v.
Ampersand Publ’g, LLC, 43 F.4th 1233, 1236 (9th Cir.
2022) (quoting NLRB v. C.E. Wylie Constr. Co.,
934 F.2d 234, 236 (9th Cir. 1991)). “Such an abuse of
discretion is present if it is shown that the order is a patent
attempt to achieve ends other than those that can be fairly
said to effectuate the policies of the Act.” Id. at 1236–37
(quoting Wylie, 934 F.2d at 236).
“Because the Board adopted the ALJ’s analysis” by
affirming the ALJ’s rulings, findings, and conclusions, “we
treat the Board’s order and the adopted ALJ analysis as one
order.” Kava Holdings, LLC v. NLRB, 85 F.4th 479, 491 n.5
(9th Cir. 2023) (citation omitted).
III. DISCUSSION
To address the inherent “inequality of bargaining power”
between employers and “employees who do not possess full
freedom of association or actual liberty of contract,”
29 U.S.C. § 151, the NLRA “‘encourag[es] the practice and
procedure of collective bargaining,’ between labor and
management to resolve ‘industrial disputes arising out of
differences as to wages, hours, or other working
conditions,’” Glacier Northwest, Inc. v. Teamsters,
598 U.S. 771, 775 (2023) (alteration in original) (quoting
29 U.S.C. § 151). “The NLRA makes it unlawful for an
employer to engage in unfair labor practices[.]” Hooks ex
rel. NLRB v. Nexstar Broad., Inc., 54 F.4th 1101, 1106
(9th Cir. 2022) (citing 29 U.S.C. § 158). The NLRA also
“grants the Board broad discretion to impose remedies for
unfair labor practices.” Ampersand, 43 F.4th at 1238
(cleaned up). “The Board may take any ‘affirmative action’
16 INT’L UNION OF OPERATING ENGINEERS V. NLRB
that ‘will effectuate the policies’ of the Act.” Id. (first
quoting 29 U.S.C. § 160(c); then citing Va. Elec. & Power
Co. v. NLRB, 319 U.S. 533, 539–40 (1943)). “Within this
limit the Board has wide discretion in ordering affirmative
action; its power is not limited to the illustrative example of
one type of permissible affirmative order, namely,
reinstatement with or without back pay.” Va. Elec.,
319 U.S. at 539 (citing Phelps Dodge Corp. v. NLRB,
313 U.S. 177, 187, 189 (1941)). “The particular means by
which the effects of unfair labor practices are to be expunged
are matters ‘for the Board not the courts to determine.’” Id.
(quoting Int’l Ass’n of Machinists v. NLRB, 311 U.S. 72, 82
(1940)).
The Board here found that the Company’s lockout
constituted unfair labor practices under Section 8(a)(1) and
(3) of the Act. We deny both the Union’s and the Company’s
Petitions for Review, and we grant the Board’s
Cross-Application for Enforcement for the following
reasons: (1) we have jurisdiction over this consolidated
appeal; (2) substantial evidence supports the Board’s factual
findings regarding the Company’s unlawful lockout; (3) the
Board’s selection of remedies here is not a clear abuse of
discretion; and (4) the Board’s final Order is enforceable
under the circumstances here disclosed.
A. Jurisdiction
“A federal court of appeals may review the Board’s final
order, if an aggrieved party seeks judicial review or if the
Board seeks enforcement of its order.” Starbucks Corp. v.
McKinney, 602 U.S. 339, 343 (2024) (citing 29 U.S.C.
§ 160(e)–(f)). Macy’s argues that the Union lacks standing
as a “person aggrieved” by the Board’s Decision and Order
within the meaning of § 160(f), because the Union “does not
INT’L UNION OF OPERATING ENGINEERS V. NLRB 17
deny that the Board granted it all of the relief that it had
specifically sought in the [C]harge form[s] and
[C]omplaint.” 3 Int’l Union of Operating Eng’r Loc. 501 v.
NLRB, 949 F.3d 477, 482 (9th Cir. 2020). We review this
jurisdictional question de novo, see Advanced Integrative
Med. Sci. Inst., PLLC v. Garland, 24 F.4th 1249, 1256
(9th Cir. 2022), and conclude that we have jurisdiction
because the Union is a “person aggrieved.” 4
After Macy’s filed its Exceptions to the ALJ’s Decision,
the Union properly requested additional remedies not
granted by the ALJ in its Cross-Exceptions. See 29 C.F.R.
§ 101.11(b) (“Whenever any party files exceptions, any
other party . . . may file cross-exceptions relating to any
portion of the administrative law judge’s decision.”
(emphasis added)). Among other things, the ALJ’s
recommended Order required that Macy’s, at “all locations
3
The NLRB’s “‘authority kicks in when a person files a charge with the
agency alleging that’ an employer or labor union has engaged in an unfair
labor practice.” McKinney, 602 U.S. at 342–43 (first quoting Glacier,
598 U.S. at 775; then citing 29 C.F.R. § 101.2 (2021)). Next, a Regional
Director investigates the charge. Id. at 343 (citing 29 C.F.R. § 101.4
(2023)). “If the charge appears to have merit,” 29 C.F.R. § 101.8, then
the Regional Director “institutes a formal action against the offending
party by issuing an administrative complaint,” McKinney, 602 U.S. at
343 (citing 29 C.F.R. § 101.8). The NLRB General Counsel “prosecutes
the government’s case.” Ampersand, 43 F.4th at 1235 (citing 29 U.S.C.
§ 153(d)).
4
Although Macy’s does not challenge our “jurisdiction to resolve the
Board’s application for enforcement under 29 U.S.C. § 160(e),” we must
assure ourselves of our own jurisdiction over the Board’s
Cross-Application for Enforcement. NLRB v. Siren Retail Corp.,
99 F.4th 1118, 1122, 1124 (9th Cir. 2024). Because we have jurisdiction
under § 160(e) also, we may “proceed to the merits of the Board’s
application for enforcement.” Id. at 1124.
18 INT’L UNION OF OPERATING ENGINEERS V. NLRB
in Northern California and Reno, Nevada,” physically
maintain and post the Board’s notice “for 60 consecutive
days in conspicuous places,” as well as distribute the same
notice electronically to employees, or if Macy’s “has gone
out of business or closed the facilit[ies] involved in these
proceedings, . . . duplicate and mail, at its own expense, a
copy of the notice to all current employees and former
employees employed by the [Company] at any time since
December 7, 2020.” According to the Board, the Union
requested “several extraordinary remedies, including
multiple notice readings by upper-level managers involved
in the lockout, notice posting on the [Company’s] public
website, notice mailing to all of the [Company’s] employees
who had worked at locations where employees were locked
out, and notice posting for at least three years.”
The Board then denied “in part the relief sought,”
29 U.S.C. § 160(f), by expressly denying the Union’s
request for “several extraordinary remedies . . . because the
Board’s traditional remedies are sufficient to effectuate the
policies of the Act in this matter.” See Textile Workers
Union of Am., AFL-CIO v. NLRB, 475 F.2d 973, 974 & n.2
(D.C. Cir. 1973) (per curiam) (noting that the union was a
“party aggrieved,” as it “petitioned for review of the Board’s
refusal to order more stringent remedies”). Thus,
jurisdiction over this consolidated appeal is proper. 5
5
By random selection for multidistrict litigation, see 28 U.S.C.
§ 2112(a)(1), (3), the Union’s and the Company’s Petitions for Review
were first transferred and then consolidated here. As the alleged “truly
aggrieved party,” Macy’s asserts that any remaining proceedings should
be transferred to the Fifth Circuit, “wherein” Macy’s “resides or transacts
business[.]” 29 U.S.C. § 160(f). However, the Union as a “person
INT’L UNION OF OPERATING ENGINEERS V. NLRB 19
B. The Lockout
Under American Ship Building Co. v. NLRB,
380 U.S. 300, 318 (1965), an employer may lawfully lock
out employees under Section 8(a)(1) and (3) of the Act “after
a bargaining impasse has been reached,” if the lockout is “for
the sole purpose of bringing economic pressure to bear in
support of [its] legitimate bargaining position.” Macy’s
insists that this is exactly what it did. We disagree.
Two years after American Ship, the Supreme Court in
NLRB v. Fleetwood Trailer Co., 389 U.S. 375 (1967), found
that when, “after conclusion of the strike, the employer
refuses to reinstate striking employees, the effect is to
discourage employees from exercising their rights to
organize and to strike,” id. at 378 (citing 29 U.S.C. §§ 157,
163). The Supreme Court determined that such interference
with these rights by an employer constitutes an unfair labor
practice under Section 8(a)(1) and (3) of the Act. Id. (citing
29 U.S.C. § 158(a)(1), (3)). Accordingly, as “the employer
who refuses to reinstate strikers,” Macy’s “is guilty of an
unfair labor practice” unless it can show “legitimate and
substantial business justifications” for its lockout. Id. (citing
NLRB v. Great Dane Trailers, Inc., 388 U.S. 26, 34 (1967)).
Macy’s does not make such a showing, and substantial
evidence supports the Board’s related findings.
Macy’s first argues that the Board legally erred by failing
to apply the so-called “Great Dane framework” to evaluate
aggrieved,” could also file its petition with “the circuit wherein” the
alleged unlawful lockout occurred. Id. Thus, we deny the Company’s
request, Case No. 23-188, Dkt. 16, for transfer.
20 INT’L UNION OF OPERATING ENGINEERS V. NLRB
the alleged Section 8(a)(3) violation. We have previously
acknowledged that:
The Supreme Court has established a
framework for determining whether
employer conduct is unlawfully
discriminatory. Some employer conduct is so
“inherently discriminatory or destructive” of
employee rights that anti-union motivation is
inferred. NLRB v. Erie Resistor Corp.,
373 U.S. 221, 227–28, 83 S. Ct. 1139,
10 L. Ed. 2d 308 (1963). If employer
conduct is “inherently destructive,” the
Board may find an improper motive
regardless of evidence of a legitimate
business justification. See NLRB v. Great
Dane Trailers, Inc., 388 U.S. 26, 33,
87 S. Ct. 1792, 18 L. Ed. 2d 1027 (1967). If,
on the other hand, “the adverse effect of the
discriminatory conduct on employee rights is
‘comparatively slight,’” and the employer
establishes a legitimate and substantial
business justification for its actions, there is
no violation of the Act without a finding of
an actual anti-union motivation. Id. at 34,
87 S. Ct. 1792[.]
Fresh Fruit & Vegetable Workers Loc. 1096 v. NLRB,
539 F.3d 1089, 1096 (9th Cir. 2008); see also id. (“In
determining whether or not a company has violated the
NLRA, the relevant inquiry is whether or not the employer’s
action likely discouraged union membership and was
motivated by anti-union animus.” (citing Metro. Edison,
460 U.S. at 700)). “The Supreme Court has defined
INT’L UNION OF OPERATING ENGINEERS V. NLRB 21
‘inherently destructive’ conduct as conduct that ‘carries with
it an inference of unlawful intention so compelling that it is
justifiable to disbelieve the employer’s protestations of
innocent purpose.’” Id. at 1096–97 (quoting Am. Ship,
380 U.S. at 311–12). Under this framework, the “burden of
proving justification is on the employer.” Fleetwood
Trailer, 389 U.S. at 378 (citing Great Dane, 388 U.S. at 34).
Upon de novo review, we conclude that the Board
applied the correct legal standard when it considered Dayton
Newspapers, Inc., 339 N.L.R.B. 650 (2003), enforced in
relevant part, 402 F.3d 651 (6th Cir. 2005), a prior NLRB
decision in which the Board applied the Great Dane
framework. See, e.g., Dayton Newspapers, 339 N.L.R.B. at
664 (“An employer’s unlawful refusal to reinstate economic
strikers is conduct so inherently destructive of employee
rights that evidence of specific antiunion motivation is not
necessary to establish a violation of the Act.” (citing Great
Dane, 388 U.S. 26)). “[T]he Board is not obligated to justify
its interpretation anew with every application if it has done
so adequately in a previous decision.” ITT Indus., Inc. v.
NLRB, 413 F.3d 64, 70 (D.C. Cir. 2005) (citation omitted).
The Board therefore did not legally err on this ground.
For a lockout to be deemed lawful, “the union must be
informed on a timely basis of the employer’s demands so
that the union can evaluate whether to accept them and
prevent the lockout.” Alden Leeds, Inc., 357 N.L.R.B. 84,
93 (2011) (collecting cases), enforced, 812 F.3d 159
(D.C. Cir. 2016). “[I]n order for employees to ‘knowingly
[re]evaluate their position’ . . . , the employees must not only
be informed that they are locked out, but they must be clearly
and fully informed of the conditions they must meet to be
reinstated.” Dayton Newspapers, 339 N.L.R.B. at 656
(quoting Eads Transfer, Inc., 304 N.L.R.B. 711, 712 (1991),
22 INT’L UNION OF OPERATING ENGINEERS V. NLRB
enforced, 989 F.2d 373 (9th Cir. 1993)). Relying on Alden
Leeds and Dayton Newspapers, the Board concluded that
Macy’s violated Section 8(a)(1) and (3) of the NLRA “by
locking out employees, while at the same time never clearly
and fully informing them of the conditions that must be met
in order to be reinstated.”
Reviewing the record as a whole, we find that substantial
evidence supports the Board’s conclusion that Union
employees were not clearly and fully informed of conditions
they need to satisfy to be reinstated. As the ALJ found,
[a]t the time Macy’s locked out the [Union]
engineers on December 7, neither the Union
nor the strikers knew [the Company’s]
bargaining position. All they knew was that
Macy’s was refusing to allow the engineers
to return to work until there was a contract in
place. However, because the Final Offer had
expired, and Macy’s had not presented any
other bargaining proposals to the Union, at
the time of the lockout, neither the Union nor
the employees were “clearly and fully
informed of the conditions they must meet to
be reinstated,” Dayton Newspapers,
339 [N.L.R.B.] at 656, nor did they have “a
clear statement of the conditions that [the]
employees must accept to avert the lockout.”
Alden Leeds, Inc., 357 [N.L.R.B.] at 95.
Nevertheless, Macy’s counters that its lockout was
justified. “An employer must reinstate an economic striker
who offers unconditionally to return to work, unless the
employer has a substantial and legitimate business reason for
INT’L UNION OF OPERATING ENGINEERS V. NLRB 23
refusing to do so.” Zapex Corp. v. NLRB, 621 F.2d 328, 333
(9th Cir. 1980) (citations omitted); see also Dayton
Newspapers, Inc. v. NLRB, 402 F.3d 651, 662 (6th Cir.
2005) (“An employer violates NLRA § 8(a)(3) and (1) if it
fails to reinstate striking workers without showing a
legitimate and substantial business justification.” (first citing
Fleetwood Trailer, 389 U.S. at 378; then citing Great Dane,
388 U.S. at 34)). Macy’s asserts that the lockout was
justified because it was imposed in support of its bargaining
position. Macy’s further argues that it “followed Eads
Transfer’s guidance by promptly informing the Union of its
lockout on December 7, the first business day after the Union
offered to return to work after a three-month strike.”
Considering Dayton Newspapers, we conclude that the
lockout was not justified.
In Dayton Newspapers, 339 N.L.R.B. 650, the Board
found an unlawful lockout where union workers, after a
six-month strike, gave their unconditional offer to return to
work during the holiday season on Thursday, December 23,
1999, and the company refused their request for
reinstatement four days later, on Monday, December 27,
1999. See, e.g., Dayton Newspapers, 402 F.3d at 662 (“As
a consequence of this refusal, the NLRB found that as of
December 27, 1999, [the company] was engaged in an illegal
lockout.”). Before the Board in Dayton Newspapers, the
company complained that the union’s offer to return to work
“came before the holidays and in the midst of [the
company’s] attempt to solve problems with Y2K
adjustments,” and that the company’s “representatives
involved in decision-making were not available at a
moment’s notice at that time of year[.]” 339 N.L.R.B. at
667. Recognizing that the Board “has the primary
responsibility for balancing management’s business needs
24 INT’L UNION OF OPERATING ENGINEERS V. NLRB
with the workers’ right to be reinstated,” Dayton
Newspapers, 402 F.3d at 663 (citing Fleetwood Trailer,
389 U.S. at 378), the Sixth Circuit concluded that the Board
“did not err in finding that after December 27, [the
employer’s] demands became a ‘moving target’ that made it
ever more difficult for the [u]nion to knowingly evaluate its
position and end the lockout,” id. Simply put, “employees
must know at any point in the lockout what they can do to
end it.” Id. at 662.
As the NLRB, Macy’s, and the Union all agree here, at
the time of the lockout there was no offer at all on the table—
not a confusing or uncertain one or even a moving target.
See Alden Leeds, Inc. v. NLRB, 812 F.3d 159, 164–66
(D.C. Cir. 2016) (concluding that the Board’s finding that
the employer violated the NLRA is supported by substantial
evidence, where the employer communicated an “unclear”
proposal, “failing to provide the [u]nion with a timely, clear,
and complete offer setting forth the conditions necessary to
avoid the lockout”). Macy’s did not inform the Union of its
demands or conditions in a timely, clear, and complete
manner, preventing the Union members from having a fair
opportunity to evaluate any bargaining proposals for either
lockout or reinstatement purposes. See id. at 165. Worse
than a “moving target” is not knowing where to aim at all.
See Dayton Newspapers, 339 N.L.R.B. at 656.
Macy’s concedes that it withdrew its Final Offer, and
substantial evidence supports the Board’s finding that
Macy’s rejected the Union’s wage proposal without
proffering any other bargaining proposals before the lockout.
Although Macy’s argues that its condition was that it
required an agreement in place to end the lockout, we
conclude that substantial evidence supports the Board’s
INT’L UNION OF OPERATING ENGINEERS V. NLRB 25
finding that such an indeterminate condition did not satisfy
its obligations.
The Union ended its strike and gave Macy’s its
unconditional offer to return to work on December 4, 2020.
Two days later, on December 6, 2020, Vega sent an email to
Ashmore, stating that the employees would show up to work
the next morning unless they were being locked out. That
afternoon, Ashmore replied that:
[The Union’s] unexpected offer, coming on a
Friday afternoon after a contentious strike of
over three months, implicates several
administrative, logistical, and economic
issues that need to be fully evaluated on our
end with the input of several company
employees. For that reason, the team should
not return to work on Monday. This is not a
lockout . . . .
The next morning, on Monday, December 7, 2020, at
least some of the Union members reported to work. On that
day, Ashmore wrote to Vega:
We have carefully evaluated your offer to
have bargaining [Union] members return to
work. We are not willing to reinstate
bargaining [Union] employees until there is
an agreement in place; this decision is being
made in support of our bargaining position.
Macy’s was “obligated to declare the lockout before or
in immediate response to the strikers’ unconditional offer[]
to return to work.” Eads Transfer, 304 N.L.R.B. at 713
(emphasis added). It was further required to inform the
26 INT’L UNION OF OPERATING ENGINEERS V. NLRB
Union fully and clearly on the conditions necessary for
employees to be reinstated. See Dayton Newspapers,
339 N.L.R.B. at 656. Macy’s failed to satisfy either of these
requirements, and instead it declared its lockout three days
after the Union gave its unconditional offer to return to work
and a day after Ashmore told Vega, “This is not a
lockout . . . .” With such misdirection, the Union engineers
would not be able to “knowingly reevaluate their position
and decide whether to accept the employer’s terms and . . .
take other appropriate action.” Eads Transfer, Inc. v. NLRB,
989 F.2d 373, 376 (9th Cir. 1993). Thus, we are
unpersuaded that Macy’s met the “guidance” set forth by
Eads Transfer, when Dayton Newspapers applied just that
and found that a similarly situated employer there failed to
set forth its conditions clearly and fully, so “the [u]nion
could not intelligently evaluate its position and obtain
reinstatement.” Dayton Newspapers, 339 N.L.R.B. at 656.
Macy’s alternatively argues that its lockout was not only
offensive, but also defensive. “[T]he Supreme Court’s
American Ship decision has obliterated, as a matter of law,
the line previously drawn by the Board between offensive
and defensive lockouts.” Evening News Ass’n,
166 N.L.R.B. 219, 221 (1967). Accordingly, “a
fundamental principle underlying a lawful lockout is that the
Union must be informed of the employer’s demands, so that
the Union can evaluate whether to accept them and obtain
reinstatement,” Boehringer Ingelheim Vetmedica, Inc.,
350 N.L.R.B. 678, 679 (2007) (emphasis added) (quoting
Dayton Newspapers, 339 N.L.R.B. at 656), regardless of
whether we characterize the lockout as offensive or
defensive. Moreover, a lockout that is “defensive” in nature
must be justified by an intent “to avoid severe and unusual
hardships.” Id.
INT’L UNION OF OPERATING ENGINEERS V. NLRB 27
Before the ALJ, Macy’s argued that it had “good-faith
concerns” over misconduct and sabotage by the Union,
especially during the holiday shopping season, which it
claims justified the “defensive” lockout. The ALJ
systematically reviewed the Company’s submitted evidence,
including witness testimony, and ultimately concluded that
Macy’s provided those “post-hoc excuses” to bolster its
defense and that the Company’s true “motive” in locking out
its employees was to “gain economic leverage so the Union
would accept” its new wage proposal that it submitted to the
Union on December 10, 2020. Because the Board “carefully
examined the record and [found] no basis for reversing” the
ALJ’s credibility findings, we conclude that the Board’s
“determinations are entitled to judicial deference[,]” based
on its “‘special expertise in drawing’ inferences of
credibility and unlawful motive[.]” Kava Holdings,
85 F.4th at 486 (quoting Kallmann, 640 F.2d at 1099). “We
may not reject the ALJ’s credibility determinations unless a
clear preponderance of the evidence shows they are
incorrect.” Lippincott Indus., Inc. v. NLRB, 661 F.2d 112,
114 (9th Cir. 1981) (citations omitted). Here, the record as
a whole shows that the ALJ’s conclusions and the Board’s
reasoning about the Company’s misconduct and sabotage
arguments and evidence were well-supported by the
articulated and admissible facts.
In sum, on this record, substantial evidence supports the
Board’s finding that Macy’s violated the Act at the time of
the lockout, where Macy’s failed to inform the Union fully
and clearly on the conditions necessary for employees either
to be reinstated, see Dayton Newspapers, 339 N.L.R.B. at
656, or to avoid a lockout before one even occurred, see
Alden Leeds, 357 N.L.R.B. at 95. Macy’s failed to timely,
clearly, and fully inform the Union of the conditions
28 INT’L UNION OF OPERATING ENGINEERS V. NLRB
necessary (e.g., new contract offers or other bargaining
proposals) to prevent a lockout or to be reinstated, when the
Final Offer expired on October 15, 2020, and Macy’s
rejected the Union’s November 25, 2020 wage proposal
without providing “any type of counter offer” before the
lockout on December 7, 2020. In other words, Macy’s failed
to meet its “burden of showing such a legitimate
justification.” Eads Transfer, 989 F.2d at 375 (citing
Fleetwood Trailer, 389 U.S. at 378).
C. Remedies
“The function of the remedy in unfair labor cases is to
restore the situation, as nearly as possible, to that which
would have occurred but for the violation.” Kallmann,
640 F.2d at 1103 (citing Phelps Dodge, 313 U.S. at 194).
The Board’s selected remedies are challenged on two fronts.
The Union argues that its requested additional remedies were
improperly denied, but Macy’s contends that the traditional
ones were awarded in error. The NLRB counters that its
selection of remedies strikes the proper balance under its
broad discretion. The Board’s “discretion in selecting
remedies is ‘exceedingly broad,’ and we will enforce a
remedy ‘unless it represents a clear abuse of discretion.’”
Ampersand, 43 F.4th at 1236 (quoting Wylie, 934 F.2d at
236). Finding no clear abuse of discretion, we enforce the
Board’s remedial order.
1. The Union’s Requested Additional Remedies
The Board denied the Union’s request for “several
extraordinary remedies” because it concluded that
“traditional remedies are sufficient to effectuate the policies
of the Act” here. The Union petitions for review of that
determination, requesting four additional remedies: (1) a
notice reading in the presence of members of management
INT’L UNION OF OPERATING ENGINEERS V. NLRB 29
responsible for the lockout decision; (2) an extended notice
posting more than the standard sixty-day period; (3) a notice
mailing to all Union members, including those who were
locked out; and (4) a notice expressly explaining how
Macy’s violated the Act. 6 We conclude that the Board did
not clearly abuse its discretion in declining to award these
remedies. See Wylie, 934 F.2d at 236.
With respect to the first three additional remedies (a
notice reading with management’s presence, an extended
notice posting, and a notice mailing), we observe that they
are typically reserved for “cases involving respondents who
have shown a proclivity to violate the Act or who have
engaged in egregious or widespread misconduct.” Noah’s
Ark Processors, LLC, 372 N.L.R.B. No. 80, slip op. at 4
(Apr. 20, 2023) (finding “egregious or widespread”
misconduct, where the respondent’s “violations seriously
affected the entire unit by undermining their chosen
bargaining representative, violating their right to have the
[u]nion negotiate on their behalf, and demonstrating to them
in no uncertain terms that the [r]espondent was willing to
ignore a court order in order to violate their rights”),
enforced, 98 F.4th 896 (8th Cir. 2024); see also Whitesell
Corp., 357 N.L.R.B. 1119, 1124 (2011); HTH Corp.,
361 N.L.R.B. 709, 714 (2014), enforced in relevant part,
823 F.3d 668 (D.C. Cir. 2016). Based on the record before
us, we conclude that the Board did not clearly abuse its
discretion, where the record does not contain evidence that
Macy’s is a repeat offender of the Act or engaged in such
6
On appeal, the Union challenges the Board’s Decision and Order only
to the extent its extraordinary remedies were denied; it does not take
issue with the traditional remedies that were granted and the Board’s
conclusion that Macy’s violated the Act by unlawfully locking out
employees.
30 INT’L UNION OF OPERATING ENGINEERS V. NLRB
egregious or widespread misconduct that warrants these
extraordinary remedies.
As to the fourth additional remedy, the Union argues that
the Board’s notice does not “contain affirmative language
expressly explaining how Macy’s violated the Act.” For
example, the Board’s notice that is required to be physically
posted at the Company’s facilities and electronically
distributed to employees, includes the statement, “WE
WILL NOT lock you out without providing you with a
timely, clear, and complete offer, that sets forth the
conditions necessary to avoid the lockout.” Specifically, the
Union requests that the Board either substitute or supplement
“We will not” statements with those stating “[w]e have done
or committed . . . .” 7 We agree with the NLRB that the
7
The Board’s notice also includes the following “We will” statements:
WE WILL make the locked-out employees whole for
any loss of earnings and other benefits resulting from
the unlawful lockout, less any net interim earnings,
plus interest, and WE WILL also make them whole for
any other direct or foreseeable pecuniary harms
suffered as a result of the unlawful lockout, including
reasonable search-for-work and interim employment
expenses, plus interest.
To further clarify the Company’s actions to employees, however, the
Union proposes the following amended language to the Board’s notice:
We were found by the National Labor Relations Board
to have violated federal law by refusing to allow
members of [the Union] to return to work and
unlawfully locked them out. We have agreed to
remedy this violation by reinstating all locked out
employees who wish to return and by making them
whole for our conduct.
INT’L UNION OF OPERATING ENGINEERS V. NLRB 31
Union fails to show how it clearly abused its discretion by
applying its “decades-old practice of including only ‘WE
WILL’ and ‘WE WILL NOT’ phrases in its notices . . . .”
See, e.g., HTH Corp. v. NLRB, 823 F.3d 668, 672 (D.C. Cir.
2016) (“In the ‘notice’ the officials are . . . to state 15
specific assurances in the form, ‘We will’ adhere to specified
NLRA obligations and remedy various breaches, or ‘We will
not’ violate the Act in a wide range of specified ways.”).
Accordingly, we do not find a “clear abuse of discretion,”
Ampersand, 43 F.4th at 1236 (quoting Wylie, 934 F.2d at
236), when the Board denied the Union’s “several
extraordinary remedies” because traditional ones sufficed
here. Thus, we deny the Union’s Petition for Review.
2. The Company’s Challenges to the Board’s
Make-Whole Relief
Macy’s argues that the Board erred in finding that it was
liable throughout the lockout and in awarding the Union’s
make-whole relief pursuant to Thryv, Inc.,
372 N.L.R.B. No. 22, slip op. at 1 (Dec. 13, 2022)
(clarifying that “make-whole relief” includes compensation
“for all direct or foreseeable pecuniary harms” to affected
employees), order vacated in part on other grounds,
102 F.4th 727 (5th Cir. 2024). 8 On June 4, 2024, the NLRB
8
Macy’s also argues that the Board erred by retroactively applying Thryv
to award the Union’s make-whole remedy. On appeal, this argument is
barred because Macy’s neither raised it first in a motion for
reconsideration before the Board nor showed any extraordinary
circumstances here. See 29 U.S.C. § 160(e) (“No objection that has not
been urged before the Board, its member, agent, or agency, shall be
considered by the court, unless the failure or neglect to urge such
objection shall be excused because of extraordinary circumstances.”);
see also NLRB v. Legacy Health Sys., 662 F.3d 1124, 1127 (9th Cir.
32 INT’L UNION OF OPERATING ENGINEERS V. NLRB
filed its Rule 28(j) letter, apprising this Court of the Fifth
Circuit’s May 24, 2024 opinion in Thryv, Inc. v. NLRB,
102 F.4th 727 (5th Cir. 2024), which did not address the
merits of the Board’s revised make-whole relief. We note
that, “[a]s far as we can tell, this is a question of first
impression for the Ninth Circuit . . . .” United Steel Workers
of Am. AFL-CIO-CLC v. NLRB, 482 F.3d 1112, 1115 n.4
(9th Cir. 2007). We conclude that the Board did not clearly
abuse its discretion in ordering make-whole relief. Thryv’s
make-whole framework is valid when the remedies are
equitable and “only actual losses [are] made good.” Phelps
Dodge, 313 U.S., at 194. In other words, Thryv remedies
must be “sufficiently tailored to expunge only the actual, and
not merely speculative, consequences of the unfair labor
practices.” See Sure-Tan, Inc. v. NLRB, 467 U.S. 883, 900
(1984) (describing this principle as “cardinal”).
i. The Company’s Liability During the
Entirety of the Lockout
Macy’s insists that it cured the taint of its lockout by
tendering its December 10, 2020 wage proposal to the
Union, three days after the lockout began. We disagree.
“We review the Board’s finding of taint for substantial
evidence.” Denton Cnty. Elec. Coop., Inc. v. NLRB,
962 F.3d 161, 168 (5th Cir. 2020) (citations omitted). “[T]o
cure a lockout, the employer must restore the status quo ante
as well as end the lockout.” Alden Leeds, 812 F.3d at 166
(citing Greensburg Coca-Cola Bottling Co.,
311 N.L.R.B. 1022, 1029 (1993), enforcement denied on
2011) (“Section 10(e) . . . bars judicial review of a newly minted
objection to a remedial order when a party fails to move for
reconsideration of the Board’s sua sponte modification.” (citations
omitted)).
INT’L UNION OF OPERATING ENGINEERS V. NLRB 33
other grounds, 40 F.3d 669 (3d Cir. 1994)). “[A] lockout
unlawful at its inception retains its initial taint of illegality
until it is terminated and the affected employees are made
whole.” Movers & Warehousemen’s Ass’n of Metro. Wash.,
D.C., Inc., 224 N.L.R.B. 356, 357 (1976) (emphasis added),
enforced, 550 F.2d 962, 966 (4th Cir. 1977) (“We think it
dispositive of the issue that the employers here failed to
dissipate the effects of their unlawful lockout.”), cert.
denied, 434 U.S. 826 (1977). Substantial evidence supports
the Board’s finding that the lockout’s taint “was not cured
when Macy’s presented the Union with its new wage
proposal on December 10,” because that offer neither
terminated the lockout nor made the affected employees
whole.
We recognize, however, that Macy’s may “avoid further
liability if it is able to show affirmatively that a failure to
restore the status quo ante did not adversely affect
subsequent bargaining.” Alden Leeds, 812 F.3d at 166
(emphasis added) (quoting Greensburg Coca-Cola,
311 N.L.R.B. at 1029). It is the Company’s burden—not the
Union’s or the NLRB General Counsel’s—“to show that its
failure to restore the status quo ante had no adverse impact
on the subsequent collective bargaining.” Movers,
224 N.L.R.B. at 358. This burden requires Macy’s “to
disentangle the consequences for which it was chargeable
from those from which it [was] immune.” Id. (quoting NLRB
v. Remington Rand, 94 F.2d 862, 872 (2d Cir. 1938), cert.
denied, 304 U.S. 576 (1938)). The ALJ found that Macy’s
failed to carry its burden to make this affirmative showing.
Indeed, the ALJ observed that, at the hearing, “[n]o such
evidence was presented” by Macy’s.
Macy’s counters that these erroneous findings “ignore[]
substantial evidence that the parties negotiated in good faith
34 INT’L UNION OF OPERATING ENGINEERS V. NLRB
after the lockout.” According to Macy’s, “[i]f the lockout
had adversely impacted the parties’ ongoing bargaining, then
the [r]ecord would show . . . the Union was forced to accept
a substandard proposal because of the lockout.” However,
Macy’s misunderstands the standard. The fact that the
record does not show the Union’s acceptance of a
substandard proposal does not on its own satisfy the
Company’s burden of showing “no adverse impact on the
subsequent collective bargaining.” Alden Leeds,
357 N.L.R.B. at 84 n.3 (emphasis added) (quoting Movers,
224 N.L.R.B. at 358). The ALJ found that even the “limited
evidence in the record” relating to the subsequent bargaining
indicated that the Union made concessions, which were
indicative of its weakened position because of the
Company’s unlawful lockout. Those concessions included
an offer to cap wage rates at the levels proposed in the Final
Offer as well as proposals to “delete two engineer
classifications from the contract, and further delete a section
from the agreement that required Macy’s to contribute over
$500 per engineer to a training fund.” Instead of addressing
these concessions, Macy’s maintains that no inferior offer
was accepted by the Union. These concessions represent
substantial evidence in support of the ALJ’s finding. “In
these circumstances, without a cessation of the lockout and
a restoration of the status quo ante, it is difficult to conclude
that any bargaining which ensued was not adversely
affected[.]” 9 Movers, 224 N.L.R.B. at 358 (first and third
9
Under the NLRA, when negotiations fail, there is no “compulsion to
reach agreement.” Amax, 453 U.S. at 336 (citations omitted). Macy’s
needed to demonstrate that the lockout “did not adversely affect
subsequent bargaining[,]” not subsequent contracting. Alden Leeds,
812 F.3d at 166 (emphasis added) (quoting Greensburg Coca-Cola,
311 N.L.R.B. at 1029).
INT’L UNION OF OPERATING ENGINEERS V. NLRB 35
emphases added). We conclude that substantial evidence
supports the ALJ’s findings, as adopted by the Board, that
Macy’s unlawful lockout placed the Union in a weakened
bargaining position, and that Macy’s failed to satisfy its
burden of showing otherwise.
ii. The Board’s Revised Make-Whole
Remedial Framework
In Thryv, the Board “standardiz[ed] [its] make-whole
relief to expressly include the direct or foreseeable pecuniary
harms suffered by affected employees . . . .” 10
372 N.L.R.B. No. 22, slip op. at 7. The Board noted that
“‘direct harms’ are those in which an employee’s ‘loss was
the direct result of the [employer’s] illegal conduct,’” id. at
13 (quoting BRC Injected Rubber Prods., Inc.,
311 N.L.R.B. 66, 66 n.3 (1993)), and that “foreseeable
harms” are “those which the [employer] knew or should
have known would be likely to result from its violation of
the Act, regardless of its intentions,” id. Macy’s argues that
the compensation for “direct or foreseeable pecuniary
harms” as contemplated by Thryv would be improper
“compensatory damages,” “consequential damages,” or
“make-whole relief.”
“[V]esting in the Board the primary responsibility and
broad discretion to devise remedies . . . , subject only to
10
In response to the Court’s order requesting supplemental briefing,
Macy’s argues that under the Supreme Court’s recent opinion in SEC v.
Jarkesy, 603 U.S. 109 (2024), it is entitled to a jury trial on the so-called
“Thryv remedies.” Macy’s failed to raise a Seventh Amendment
objection to the Board, see 29 U.S.C. § 160(e), and it similarly failed to
raise any Seventh Amendment arguments in this Court until prompted to
do so by the Court’s order. We therefore decline to entertain this
argument. See Greenwood v. FAA, 28 F.3d 971, 977 (9th Cir. 1994).
36 INT’L UNION OF OPERATING ENGINEERS V. NLRB
limited judicial review,” Sure-Tan, 467 U.S at 898–99
(collecting cases), Section 10(c) of the NLRA empowers the
Board to “take any ‘affirmative action’ that ‘will effectuate
the policies’ of the Act,” Ampersand, 43 F.4th at 1238 (first
quoting 29 U.S.C. § 160(c); then citing Va. Elec.,
319 U.S. at 539–40). We will not disturb the Board’s
remedial order, “unless it can be shown that the order is a
patent attempt to achieve ends other than those which can
fairly be said to effectuate the policies of the Act.” Va. Elec.,
319 U.S. at 540. Macy’s makes no such showing here.
After “careful consideration” of both its “remedial
authority” and “history of addressing the effects of unfair
labor practices,” the Board in Thryv clarified and
standardized its definition of “make-whole relief” to
“expressly include the direct or foreseeable pecuniary harms
suffered by affected employees” to “more fully effectuate
the make-whole purposes of the Act.” 372 N.L.R.B. No. 22,
slip op. at 7. We agree that make-whole relief, as a general
matter, furthers the policy of the NLRA because it is
“directly targeted” at the Company’s unlawful lockout and
aimed at “restor[ing] the economic strength that is necessary
to ensure a return to the status quo ante at the bargaining
table.” Ampersand, 43 F.4th at 1238 (alteration in original)
(citation omitted).
According to Macy’s (and the partial dissent), the
Board’s decision in Thryv improperly authorizes itself to
award full compensatory damages. Macy’s contends that
“the Board lacks the authority to award damages for
purportedly foreseeable financial harms.” See, e.g.,
UAW-CIO v. Russell, 356 U.S. 634, 642–43 (1958) (“The
power to order affirmative relief under [Section] 10(c) is
merely incidental to the primary purpose of Congress to stop
and to prevent unfair labor practices. Congress did not
INT’L UNION OF OPERATING ENGINEERS V. NLRB 37
establish a general scheme authorizing the Board to award
full compensatory damages for injuries caused by wrongful
conduct.” (citation omitted)).
We agree that the NLRB is not authorized to award
“consequential damages.” See Partial Dissent at 52. The
NLRB “does not pursue the ‘adjudication of private rights.’
Rather, it ‘acts in a public capacity to give effect to the
declared public policy of the Act . . . .’” EEOC v.
Occidental Life Ins. Co. of Cal., 535 F.2d 533, 538 (9th Cir.
1976) (alteration in original) (quoting Nat’l Licorice Co. v.
NLRB, 309 U.S. 350, 362 (1940)), aff’d, 432 U.S. 355
(1977). The broad “grant of remedial power” under the Act
also “does not authorize punitive measures, but making the
workers whole for losses suffered on account of an unfair
labor practice is part of the vindication of the public policy
which the Board enforces.” 11 NLRB v. Strong,
393 U.S. 357, 359 (1969) (cleaned up).
11
Significantly, the Board remains within its orbit here because its
make-whole relief is designed “solely to ‘restore the status quo[,]’” so it
is equitable in nature. Jarkesy, 603 U.S. at 123 (quoting Tull v. United
States, 481 U.S. 412, 422 (1987) (“Remedies intended to punish
culpable individuals, as opposed to those intended simply to extract
compensation or restore the status quo, were issued by courts of law, not
courts of equity.”)).
The Board specifically states that its “make-whole remedies do not
punish bad actors, but rather implement the statutory principles of
rectifying the harms actually incurred by the victims of unfair labor
practices and restoring them to where they would have been but for the
unlawful conduct.” Thryv, 372 N.L.R.B. No. 22, slip op. at 11. We
agree because “[t]he instant case”—where no actual remedies or
monetary relief have been ordered—“is not a suit at common law or in
38 INT’L UNION OF OPERATING ENGINEERS V. NLRB
But the NLRB has not awarded such damages here. We
therefore conclude that the Board’s invocation of Thryv’s
make-whole relief framework in this case vindicates a public
right. See Va. Elec., 319 U.S. at 543 (“The instant
reimbursement order is not a redress for a private wrong.
Like a back pay order it does restore to the employees in
some measure what was taken from them because of the
[c]ompany’s unfair labor practices.” (emphasis added)).
“The fact that these proceedings (may) operate to confer an
incidental benefit on private persons does not detract from
this public purpose.” Occidental Life, 535 F.2d at 538
(citation omitted). To the extent that the Board’s
make-whole relief “somewhat resemble[s] compensation for
private injury,” that compensation is merely incidental to
“the effectuation of the policies of the Act” because the
remedy is primarily “designed to aid in achieving the
elimination of industrial conflict[,]” vindicating “public, not
the nature of such a suit.” NLRB v. Jones & Laughlin Steel Corp.,
301 U.S. 1, 48 (1937).
That any make-whole remedy must be “sufficiently tailored to the
actual, compensable injuries suffered,” Sure-Tan, 467 U.S. at 901,
contrary to the partial dissent’s view, also does not equate to the
improper “adjudication or vindication of private rights,” Haleston Drug
Stores v. NLRB, 187 F.2d 418, 420 (9th Cir. 1951), cert. denied,
342 U.S. 815 (1951); see also Amalgamated Util. Workers v. Consol.
Edison Co. of N.Y., 309 U.S. 261, 269–70 (1940) (“It is the Board’s right
to make that order that the court sustains. The Board seeks enforcement
as a public agent, not to give effect to a ‘private administrative remedy’.
Both the order and the decree are aimed at the prevention of the unfair
labor practice.”). Instead, it merely underscores how the remedy is “an
incident to [permissible] equitable relief,” Jones & Laughlin, 301 U.S. at
48, which “eschews mechanical rules and depends on flexibility,”
Albemarle Paper Co. v. Moody, 422 U.S. 405, 417 (1975) (cleaned up).
INT’L UNION OF OPERATING ENGINEERS V. NLRB 39
private rights.” 12 Va. Elec., 319 U.S. at 543 (first citing
Agwilines, 87 F.2d at 150–51; then citing Phelps Dodge,
12
On December 27, 2024, the Third Circuit issued its opinion in NLRB
v. Starbucks Corp., --- F.4th ----, No. 23-1953, 2024 WL 5231549
(3d Cir. Dec. 27, 2024), granting the Board’s petition to enforce its order,
yet vacating the Thryv remedies for exceeding the Board’s authority
under the NLRA. Unlike the partial dissent, we do not view Starbucks
as wholly in conflict with today’s opinion. Like the Third Circuit, we
agree and recognize that the NLRB has long ordered, and still may order,
monetary relief akin to backpay. Starbucks, --- F.4th ----,
2024 WL 5231549, at *11–12. We also agree, as we have emphasized,
that any make-whole relief must be equitable in nature. Id. As the Third
Circuit acknowledges, any monetary relief ordered by the NLRB must
be a form of restitution addressing the result of the employer’s violation
of the NLRA. See, e.g., id. at *11 (“The Board can still award monetary
relief based on what the employer withheld as a result of an unfair labor
practice.” (emphasis added)); accord Partial Dissent at 52; see also
Phelps Dodge, 313 U.S. at 198 (“[O]nly actual losses should be made
good[.]”).
However, to the extent that the Third Circuit’s opinion could be read
to invalidate any form of monetary relief because it “resembles an order
to pay damages,” we disagree. Starbucks, --- F.4th ----,
2024 WL 5231549, at *12 (emphasis added) (citing Damages, Black’s
Law Dictionary (12th ed. 2024) (defining “damages” as “[m]oney . . .
ordered to be paid to[] a person as compensation for loss or injury”)).
Resemblance alone cannot be dispositive, where Congress’s express
grant of broad authority to the NLRB to fashion appropriate remedies,
see 29 U.S.C. § 160(c), and those remedies’ nature and purpose, indicate
that make-whole relief can operate “[l]ike a back pay order” that
does restore to the employees in some measure what
was taken from them because of the Company’s unfair
labor practices. In this both these types of monetary
awards somewhat resemble compensation for private
injury, but it must be constantly remembered that both
are remedies created by statute—the one explicitly
40 INT’L UNION OF OPERATING ENGINEERS V. NLRB
313 U.S. 177). After all, the NLRA’s overriding policy is
“industrial peace.” Fall River Dyeing & Finishing Corp. v.
NLRB, 482 U.S. 27, 38 (1987) (quoting Brooks v. NLRB,
348 U.S. 96, 103 (1954)).
Accordingly, compensation for “direct or foreseeable
pecuniary harms,” so long as it is equitable, would allow for
“a restoration of the situation, as nearly as possible, to that
which would have obtained but for” the unlawful lockout
here. Phelps Dodge, 313 U.S. at 194. As such, the Board’s
remedial order is not “a patent attempt to achieve ends other
and the other implicitly in the concept of effectuation
of the policies of the Act—which are designed to aid
in achieving the elimination of industrial conflict.
They vindicate public, not private rights.
Va. Elec., 319 U.S. at 543 (emphases added) (first citing Agwilines,
87 F.2d at 150–51; then citing Phelps Dodge, 313 U.S. 177); see also
Russell, 356 U.S. at 643 (quoting the same). Any permissible Thryv
remedy must therefore operate like like a backpay order, serving to
effectuate the policies of the Act by eliminating industrial conflict and
giving something akin to restitution—in other words, it must be
equitable. See Curtis, 415 U.S. at 197 (“[C]ourts of appeals have
characterized back pay as an integral part of an equitable remedy, a form
of restitution.”); see also Restitution, Black’s Law Dictionary (12th ed.
2024) (defining “restitution” as “[r]eturn or restoration of some specific
thing to its rightful owner or status”). Such remedies only incidentally
compensate employees to “insure meaningful bargaining,” Fibreboard
Paper Prods. Corp. v. NLRB, 379 U.S. 203, 216 (1964), and to “restore
the economic strength that is necessary to ensure a return to the status
quo ante at the bargaining table,” Ampersand, 43 F.4th at 1238 (cleaned
up) (citation and alteration omitted); see also supra note 11. “For this
reason it is erroneous to characterize” equitable Thryv remedies “as
penal or as the adjudication of a mass tort. It is equally wrong to fetter
the Board’s discretion by compelling it to observe conventional common
law or chancery principles in fashioning” the make-whole relief here.
Va. Elec., 319 U.S. at 543.
INT’L UNION OF OPERATING ENGINEERS V. NLRB 41
than those which can fairly be said to effectuate the policies
of the Act.” 13 Va. Elec., 319 U.S. at 540. We will not
disturb the Board’s remedial order here, where “both the
terms of the Act and the case law construing the Act support
the Board’s action in this case,” and there has been no
showing of any actual, issued remedy that is inequitable.
King Soopers, Inc. v. NLRB, 859 F.3d 23, 38 (D.C. Cir.
2017) (collecting cases); see also id. at 37 (“The Board is
entitled to considerable deference in crafting remedies for
unfair labor practices, and the reasons given by the Board to
13
To the extent that Macy’s argues that “Thryv grants the Board
unfettered discretion to determine whether a pecuniary loss is direct or
foreseeable,” we disagree because the Supreme Court has previously
acknowledged that “Section 10(c) . . . was intended to give the National
Labor Relations Board broad authority to formulate appropriate
remedies[,]” Loc. 28 of Sheet Metal Workers’ Int’l Ass’n v. EEOC,
478 U.S. 421, 446 n.26 (1986) (emphasis added), and that:
[I]n the nature of things Congress could not catalogue
all the devices and stratagems for circumventing the
policies of the Act. Nor could it define the whole
gamut of remedies to effectuate these policies in an
infinite variety of specific situations. Congress met
these difficulties by leaving the adaptation of means to
end to the empiric process of administration.
Phelps Dodge, 313 U.S. at 194 (emphasis added); see also Va. Elec.,
319 U.S. at 539 (emphasizing that the Board’s remedial power “is not
limited to the illustrative example of one type of permissible affirmative
order,” such as backpay, and cautioning that the “particular means by
which the effects of unfair labor practices are to be expunged are matters
‘for the Board not the courts to determine’” (first citing Phelps Dodge,
313 U.S. at 187, 189; then quoting Machinists, 311 U.S. at 82)).
42 INT’L UNION OF OPERATING ENGINEERS V. NLRB
justify the new make-whole remedial framework pass
muster.”). 14
Macy’s also contends that the “pecuniary damages that
[the Board] seeks to award are the wolf of consequential
damages in the sheep’s clothing of ‘make-whole’ relief.”
Macy’s asserts that this kind of relief here would be
prohibited consequential damages under United States v.
Burke, 504 U.S. 229 (1992), which is a tax consequence case
relating to an action under Title VII of the Civil Rights Act
of 1964 for sex-based discrimination in the payment of
salaries. Although not controlling in the NLRA context,
Burke demonstrates how the Board’s make-whole relief
under Thryv is appropriate here, contrary to the Company’s
assertion. For the below reasons, we find no reason to
disturb the Board’s remedy, when it serves to “more fully
effectuate the make-whole purposes of the Act.” Thryv,
372 N.L.R.B. No. 22, slip op. at 7.
The Supreme Court in Burke distinguished between
make-whole relief and damages recoverable under tort law.
It considered this distinction in the context of determining
whether a settlement payment relating to a backpay claim
arising under Title VII would be excludable from gross
income under the federal Internal Revenue Code (“IRC”), as
14
This is not Chevron deference. See Chevron, U.S.A., Inc. v. Nat. Res.
Def. Council, Inc., 467 U.S. 837 (1984), overruled by Loper Bright
Enters. v. Raimondo, 603 U.S. 369 (2024). Rather, it is a reflection of
the discretion afforded by Congress to allow the Board to award
remedies it deems fit to effectuate policies of the Act. See Phelps Dodge,
313 U.S. at 194 (“Because the relation of remedy to policy is peculiarly
a matter for administrative competence, courts must not enter the
allowable area of the Board’s discretion and must guard against the
danger of sliding unconsciously from the narrow confines of law into the
more spacious domain of policy.”).
INT’L UNION OF OPERATING ENGINEERS V. NLRB 43
“damages received . . . on account of personal injuries.”
Burke, 504 U.S. at 230 (alteration in original) (quoting
26 U.S.C. § 104(a)(2)). To qualify for exclusion from gross
income under the IRC, the respondents had to show that
Title VII redressed a tort-like personal injury. Id. at 237.
The Supreme Court observed “one of the hallmarks of
traditional tort liability is the availability of a broad range of
damages” that are unavailable in both Title VII and NLRA
contexts. Id. at 235. Under tort law, one may be awarded
sums “larger than the amount necessary to reimburse actual
monetary loss sustained or even anticipated by the plaintiff,”
as well as those amounts redressing “intangible elements of
injury that are ‘deemed important, even though not
pecuniary in [their] immediate consequence[s].’” Id.
(alterations in original) (emphases added) (quoting D.
Dobbs, Law of Remedies 136 (1973)). Thryv does not
provide such relief. After all, relief under either the NLRA
or “Title VII focuses on ‘legal injuries of an economic
character[.]’” Id. at 239 (quoting Albemarle Paper,
422 U.S. at 418); see also Golden State Bottling Co. v.
NLRB, 414 U.S. 168, 188 (1973) (“[A]n order requiring
reinstatement and backpay is aimed at ‘restoring the
economic status quo that would have obtained but for the
company’s wrongful refusal to reinstate . . . .’” (quoting
NLRB v. J.H. Rutter-Rex Mfg. Co., 396 U.S. 258, 263
(1969))).
As the partial dissent points out, the Supreme Court in
Burke also observed that Title VII “restor[es] victims,
through backpay awards and injunctive relief, to the wage
and employment positions they would have occupied absent
the unlawful discrimination[,]” but not for nonpecuniary
harms, including “other traditional harms associated with
personal injury, such as pain and suffering, emotional
44 INT’L UNION OF OPERATING ENGINEERS V. NLRB
distress, harm to reputation, or other consequential damages
(e.g., a ruined credit rating).” Burke, 504 U.S. at 239
(emphasis added) (citation omitted). Macy’s argues that
these “express limitations in Burke apply with equal force to
Section 10(c) of the Act,” because Title VII’s backpay
provision was expressly modeled on the NLRA’s. See
Pollard v. E.I. du Pont de Nemours & Co., 532 U.S. 843,
848–49 (2001) (noting that Title VII’s backpay provision,
42 U.S.C. § 2000e-5(g)(1), “closely tracked the language”
of the Act’s backpay provision, 29 U.S.C. § 160(c), which
gives courts “guidance as to the proper meaning of the same
language”). Even if we accept this comparison, the Board’s
make-whole relief is consistent with both Title VII’s, which
it need not follow in this context, and the NLRA’s, which it
must. For example, “Congress directed the thrust of
[Title VII] to the consequences of employment practices,”
Albemarle Paper, 422 U.S. at 422 (emphasis added)
(quoting Griggs v. Duke Power Co., 401 U.S. 424, 432
(1971)), with a “clear purpose . . . to bring an end to the
proscribed discriminatory practices and to make whole, in a
pecuniary fashion, those who have suffered by it,” Bowe v.
Colgate-Palmolive Co., 416 F.2d 711, 720 (7th Cir. 1969)
(emphases added), as amended on denial of reh’g (Oct. 29,
1969). Similarly, under the NLRA, the Board’s “power to
command affirmative action is remedial, not punitive, and is
to be exercised in aid of the Board’s authority to restrain
violations and as a means of removing or avoiding the
consequences of violation where those consequences are of
a kind to thwart the purposes of the Act.” Consol. Edison
Co. of N.Y. v. NLRB, 305 U.S. 197, 236 (1938) (emphasis
added); see also Albemarle Paper, 422 U.S. at 417–18 (“If
employers faced only the prospect of an injunctive order,
they would have little incentive to shun practices of dubious
INT’L UNION OF OPERATING ENGINEERS V. NLRB 45
legality. It is the reasonably certain prospect of a backpay
award that provides the spur or catalyst which causes
employers and unions to self-examine and to self-evaluate
their employment practices . . . .” (cleaned up)); Thryv,
372 N.L.R.B. No. 22, slip op. at 11 (articulating similar
principles).
Moreover, the Board acknowledged that it “will not issue
remedial orders for harms which are unquantifiable,
speculative, or nonspecific.” Thryv, 372 N.L.R.B. No. 22,
slip op. at 12 (emphasis added) (citing Nortech Waste,
336 N.L.R.B. 554, 554 n.2 (2001)). In Thryv, the Board
addressed that any make-whole relief comprised of direct or
foreseeable pecuniary harms will be fully litigated in a later
compliance proceeding. See id. at 11–12. The NLRB
General Counsel will have to prove whether any such relief
is “not speculative,” and that it is “specific and easily
ascertained.” Nortech Waste, 336 N.L.R.B. at 554 n.2. We
conclude that a remedial framework that “specifically
leav[es] to the compliance stage of the proceeding the
question of whether the employees incurred” direct or
foreseeable pecuniary harms “attributable” to the
Company’s unlawful lockout, id., is not a clear abuse of
discretion here. In other words, any later pecuniary order
“must be sufficiently tailored to expunge only the actual, and
not merely speculative, consequences of the unfair labor
practices.” Sure-Tan, 467 U.S. at 900 (citation omitted));
Phelps Dodge, 313 U.S. at 198 (“[O]nly actual losses should
be made good[.]”).
Under the NLRA, Congress’s grant of remedial power
entrusts the Board to make “workers whole for losses
suffered on account of an unfair labor practice . . . .” Strong,
393 U.S. at 359 (quoting Phelps Dodge, 313 U.S. at 197);
see also id. (“Back pay is one of the simpler and more
46 INT’L UNION OF OPERATING ENGINEERS V. NLRB
explicitly authorized remedies utilized to attain this end.”
(emphasis added)). We conclude that the Board’s
framework for compensation “for any other direct or
foreseeable pecuniary harms incurred as a result of the
unlawful lockout, including reasonable search-for-work and
interim employment expenses,” is within the Board’s broad
discretion of what “can fairly be said to effectuate the
policies of the Act,” Va. Elec., 319 U.S. at 540, by restoring
“the situation, as nearly as possible, to that which would
have occurred but for the violation,” Kallmann, 640 F.2d at
1103 (citing Phelps Dodge, 313 U.S. at 194). The Board’s
“order clearly falls within the general purpose of making the
employees whole, and thus restoring the economic status
quo that would have obtained but for” the Company’s
unlawful lockout. J.H. Rutter-Rex Mfg., 396 U.S. at 263.
“Imposing such remedies, designed to respond directly to an
unfair labor practice, falls squarely within the heartland of
the NLRB’s delegated powers.” Ampersand, 43 F.4th at
1238 (cleaned up). Accordingly, on the record as a whole,
“we have no reason to find that the Board’s decision to
change its remedial framework is ‘a patent attempt to
achieve ends other than those which can fairly be said to
effectuate the policies of the Act.’” King Soopers, 859 F.3d
at 39 (quoting Fibreboard Paper, 379 U.S. at 216).
Therefore, to the extent that Macy’s challenges the
Board’s revised make-whole remedial framework, 15 we
deny its Petition for Review.
15
As discussed, any remedies it does order must be equitable, specific,
and only make “actual losses … good.” Phelps Dodge, 313 U.S. at
198. Macy’s can also raise its forfeited or waived arguments in the
subsequent compliance proceeding.
INT’L UNION OF OPERATING ENGINEERS V. NLRB 47
D. The Circumstances Here Disclosed
The partial dissent contends that the Board’s “actions
were arbitrary and capricious and unsupported by the
record.” Partial Dissent at 55. However, applying the law
as it is, not as what the partial dissent wishes it to be, reveals
that they were simply not. See Danielson v. Inslee,
945 F.3d 1096, 1103 (9th Cir. 2019); see also Dayton v.
Peck, Stow & Wilcox Co., 739 F.2d 690, 694 (1st Cir. 1984).
Our task is to “evaluate the entire record and uphold the
NLRB if a reasonable jury could have reached the same
conclusion, even if we would justifiably have made a
different choice under de novo review.” Int’l All. of
Theatrical Stage Emps., Loc. 15 v. NLRB, 957 F.3d 1006,
1013 (9th Cir. 2020) (emphasizing the standard of review)
(cleaned up). For example, while it is possible to infer that
the Company’s lockout could have been informed by
“enormous logistical difficulties,” Partial Dissent at 83, the
weighing of such evidence belongs to the Board, which “has
special expertise in drawing inferences of credibility and
unlawful motive, and [whose] determinations are entitled to
judicial deference,” Kava Holdings, 85 F.4th at 486 (cleaned
up). Here, substantial evidence supports the Board’s
consideration and conclusion of the credibility and value of
such evidence. See Int’l All. of Theatrical Stage Emps.,
957 F.3d at 1013 (“Evidence is substantial when a
reasonable mind might accept it as adequate to support a
conclusion—even if it is possible to draw a contrary
conclusion from the evidence.” (cleaned up)); see also
29 U.S.C. § 160(e) (“The findings of the Board with respect
to questions of fact if supported by substantial evidence on
the record considered as a whole shall be conclusive.”
(emphasis added)); Starbucks, --- F.4th ----,
2024 WL 5231549, at *6 n.2 (noting that a judge on the
48 INT’L UNION OF OPERATING ENGINEERS V. NLRB
panel doubted the NLRB’s factual conclusions, but he
recognized that because there is “more than a scintilla” of
evidence to support the NLRB’s “contrary conclusions,” the
court is “bound by the substantial evidence standard of
review,” so it is barred from “explor[ing] the other ways of
reading [the] record” (citation omitted)).
Similarly, while the partial dissent raises potentially
significant points about the scope of make-whole relief
under Thryv, Macy’s neither properly challenged Thryv’s
retroactivity or the Seventh Amendment’s application to this
case nor showed “extraordinary circumstances” to warrant
consideration of these issues. See supra notes 8, 10; see also
29 U.S.C. § 160(e); Legacy Health Sys., 662 F.3d at 1127;
cf. Starbucks, --- F.4th ----, 2024 WL 5231549, at *12
(holding that the employer’s “statutory interpretation and
Seventh Amendment challenges were not forfeited”). More
critically, the Board has yet to order specific forms of relief,
including those the partial dissent lambasts as “virtually
unlimited.” See Partial Dissent at 61. Such costs could be
beyond the Board’s remedial authority. See id. (listing
examples including “day care costs, specialty tool costs,
utility disconnection/reconnection fees, relocation/moving
costs, legal representation costs in eviction proceedings, and
expenses resulting from a change in immigration status”).
Only actual “losses suffered on account of an unfair labor
practice … should be made good.” Phelps Dodge, 313 U.S.
at 197–98. And, indeed, the Board must still establish, in a
later proceeding, how any make-whole relief it seeks is
equitable or “sufficiently tailored to the actual, compensable
injuries suffered” by the employees in this case. Sure-Tan,
467 U.S. at 901.
It also bears repeating that “[i]n fashioning an
appropriate remedy to address the substantial unfair labor
INT’L UNION OF OPERATING ENGINEERS V. NLRB 49
practices in this case, the Board was acting at the ‘zenith’ of
its discretion.” Fallbrook Hosp. Corp. v. NLRB,
785 F.3d 729, 738 (D.C. Cir. 2015) (quoting Niagara
Mohawk Power Corp. v. Fed. Power Comm’n,
379 F.2d 153, 159 (D.C. Cir. 1967)); accord 29 U.S.C.
§ 160(c) (authorizing the NLRB “to take such affirmative
action . . . as will effectuate the policies” of the Act).
Additionally, there has simply been “no showing that the
Board’s order restoring the status quo ante to insure
meaningful bargaining is not well designed to promote the
policies of the Act. Nor is there evidence which would
justify disturbing the Board’s conclusion that the order
would not impose an undue or unfair burden on the
Company.” Fibreboard Paper, 379 U.S. at 216. There has
also been no meaningful showing that as a result of an unfair
labor practice any make-whole relief in this case “exceed[s]
what the employer unlawfully withheld[,]” or is not “closely
tied to the equitable remedy of backpay.” Starbucks,
--- F.4th ----, 2024 WL 5231549, at *11–12; see also supra
note 13; accord Partial Dissent at 52.
One final note: the amended dissent claims that our
original opinion “accepted” the Board’s supposed “power
grab wholesale” and that we now attempt to “narrow the
Board’s authority to order relief in [this] amended opinion.”
Partial Dissent at 49. But nowhere in the plain text of our
original, or even amended, opinion did we provide such
maximalist language, and the dissent is unable to point to
any. Our amendments merely reiterate, perhaps to the point
of redundancy, that we are unable to permit or prohibit any
specific forms of relief at this stage. Such determinations
must await the forthcoming compliance proceeding, where
Macy’s can raise the arguments the dissent urges us to
consider now, despite strict procedural bars that preclude us
50 INT’L UNION OF OPERATING ENGINEERS V. NLRB
from doing so. We only applied the law as it is, compelled
by decades of precedent, not as what we wish, predict, or
think it to be.
In sum, we “decide[d] only the case before us and
sustain[ed] the power of the Board” to tailor remedies that
“effectuate the statutory purpose” behind the National Labor
Relations Act “under the circumstances here disclosed.”
Va. Elec., 319 U.S. at 543, 545 (emphasis added); see also
Intalco Aluminum Corp. v. NLRB, 417 F.2d 36, 42 n.17
(9th Cir. 1969) (acknowledging that in Virginia Electric, the
Supreme Court found that it “need not examine the various
situations in those cases ‘or consider hypothetical
possibilities’” (quoting Va. Elec., 319 U.S. at 545)); NLRB
v. Reed & Prince Mfg. Co., 118 F.2d 874, 891 (1st Cir.
1941) (“We therefore think that under the circumstances
here disclosed the broader prohibition as appears in . . . the
Board’s order is within the discretion of the Board and
should be enforced.” (emphasis added)), cert. denied,
313 U.S. 595 (1941).
IV. CONCLUSION
We have considered the Union’s and the Company’s
remaining arguments and find them unpersuasive. For the
foregoing reasons, we DENY both the Union’s and the
Company’s Petitions for Review, and we GRANT the
Board’s Cross-Application for Enforcement of its final
Order.
PETITIONS FOR REVIEW DENIED;
CROSS-APPLICATION FOR ENFORCEMENT
GRANTED; ORDER ENFORCED.
INT’L UNION OF OPERATING ENGINEERS V. NLRB 51
BUMATAY, Circuit Judge, dissenting in part:
This case involves the fallout from a lengthy labor
dispute between Macy’s and the International Union of
Operating Engineers, Local 39 (“Union”), which represents
some of the retailer’s engineers and craftsmen. After
extensive negotiations over a new collective bargaining
agreement, Macy’s gave the Union its best and final offer.
The Union rejected that offer and went on strike. During the
three-month strike, Macy’s accused Union members of
harassing its customers and employees and sabotaging its
facilities. The Union then made a surprise unconditional
offer to return to work—shortly before the close of business
on a Friday evening. Macy’s pleaded for time to respond to
the offer, but the Union refused. So when the Union
members showed up for work on Monday—the next
workday—Macy’s did not let them start working and locked
them out. Two days later, Macy’s gave the Union a new
proposal to end the dispute and lockout. The Union again
rejected Macy’s offer, and the two sides never reached an
agreement.
Enter the National Labor Relations Board. The Board’s
in-house prosecutor charged Macy’s with an “unfair labor
practice.” After a hearing, a Board Administrative Law
Judge (“ALJ”) systematically rejected each of Macy’s
defenses and found that Macy’s violated the National Labor
Relations Act (“Act”) because it waited a whole two days
before it gave a new offer to the Union. As punishment, the
ALJ ordered Macy’s to make the Union members whole for
any losses of pay and benefits that they may have suffered
because of the lockout. Macy’s, Inc., 372 NLRB No. 42, at
21 (2023). On review, the Board agreed with the ALJ that
Macy’s violated the Act. But it rejected the ALJ’s remedy
52 INT’L UNION OF OPERATING ENGINEERS V. NLRB
because it didn’t go far enough. Instead, the Board ordered
Macy’s to “also compensate the employees for any other
direct or foreseeable pecuniary harms incurred as a result of
the unlawful lockout . . . regardless of whether these
expenses exceed interim earnings.” Id. at 1 n.2 (emphasis
added). And because the Union and Macy’s still haven’t
come to an agreement, Macy’s must compensate the Union’s
members for ongoing harms accumulating to this day—more
than four years since the lockout.
But the Board has no authority to order this type of
monetary relief. Until three years ago, the Board had never
claimed the authority to award consequential damages, like
the ones ordered against Macy’s. See Thryv, Inc., 372 NLRB
No. 22 (2022), overruled on different grounds, Thryv, Inc. v.
NLRB, 102 F.4th 727 (5th Cir. 2024). Indeed, the Act
restricts the Board to ordering only “back pay” and
“affirmative action . . . as will effectuate the policies of” the
Act. See 29 U.S.C. § 160(c). Somehow, the Board has
transformed this limited statutory grant into something that
covers credit card debt, withdrawals from retirement
accounts, car loans, mortgage payments, childcare,
immigration expenses, and medical expenses. See, e.g.,
Thryv, Inc., 372 NLRB No. 22, at 9. Never mind that
granting the Board this authority would violate the Seventh
Amendment. We create a needless circuit split in affirming
the Board’s power grab. See NLRB v. Starbucks Corp., 125
F.4th 78, 97 (3d. Cir. 2024) (“While the Board can certainly
award some monetary relief to the employees, that relief
cannot exceed what the employer unlawfully withheld.”).
At first, the majority accepted this power grab wholesale.
See Int’l Union of Operating Engineers, Stationary
Engineers, Local 39 v. NLRB, 127 F.4th 58, 67 (9th Cir.
2025). Now, even the majority recognizes that the Board’s
INT’L UNION OF OPERATING ENGINEERS V. NLRB 53
assertion of power is too sweeping and seeks to narrow the
Board’s authority to order relief in its amended opinion.
Unfortunately, the majority doesn’t go far enough. While
the majority now tries to limit the Board to remedies that are
“equitable,” Am. Maj. Op. at 40, it still leaves the door open
for the Board to order foreseeable damages that are
untethered from the law. The Board has already ordered that
Macy’s “shall . . . compensate the employees for any other
direct or foreseeable pecuniary harms incurred as a result of
the unlawful lockout, including reasonable search-for-work
and interim employment expenses, if any, regardless of
whether these expenses exceed interim earnings.” See
Macy’s, Inc., 372 NLRB No. 42 at 1 n.2. And the majority
offers no guidance on how to fashion “equitable” foreseeable
damages. Sure, the majority takes some of the most
egregious costs that the Board seeks to impose off the table,
such as “day care costs, specialty tool costs, utility
disconnection/reconnection fees, relocation/moving costs,
legal representation costs in eviction proceedings, and
expenses resulting from a change in immigration status.”
See Am. Maj. Op. 48 (simplified). But that leaves the Board
with a wide array of costs it may impose under Thryv, such
as “out-of-pocket medical expenses,” “credit card debt,”
“other costs . . . to make ends meet,” “interest and late fees
on credit cards,” “early withdrawal[ penalties] from . . .
retirement account[s],” “[car] loan or mortgage payments,”
and “transportation or childcare costs.” 372 NLRB No. at
*15. And slapping the label that those foreseeable damages
be “equitable” doesn’t cure the statutory violation here.
That’s because foreseeable or consequential damages are
fundamentally at odds with “equitable relief.” See Mertens
v. Hewitt Associates, 508 U.S. 248, 256-57 (1993)
(“‘equitable relief’ can also refer to those categories of relief
54 INT’L UNION OF OPERATING ENGINEERS V. NLRB
that were typically available in equity (such as injunction,
mandamus and restitution, but not compensatory
damages)”) (second emphasis added). Simply, under this
statute, the equitable relief available to employees is limited
to back pay and reinstatement.
And given the legal nature of foreseeable or
consequential damages, blessing the Board’s authority to
impose these remedies would implicate the Seventh
Amendment’s right to a jury trial. U.S. Const. amend. VII.
This concern is heightened by the similarity between the
injury the Board seeks to remedy and the common-law tort
of wrongful termination. See SEC v. Jarkesy, 603 U.S. 109,
125 (2024). The majority would dispense with any concerns
about the legal nature of the Board’s remedial scheme by
declaring that the Board’s foreseeable-damages regime
“vindicates a public right.” See Am. Maj. Op. at 38. As an
alarming result—despite “declin[ing] to entertain” Macy’s
Seventh Amendment objection, see Am. Maj. Op. at 35
n.10—the majority’s dicta would seemingly foreclose any
Seventh Amendment challenge to the Board’s authority to
impose consequential or foreseeable pecuniary damages.
The majority just asserts that, so long as imposing
foreseeable damages would further “industrial peace,” we
apparently need not worry the relief takes a legal—not an
equitable—form. See id. at 40 (simplified). But the
majority’s vision of the public rights exception is much too
broad. The Court has reminded us that this exception is only
an exception. Jarkesy, 603 U.S. at 131. So “[e]ven with
respect to matters that arguably fall within the scope of the
‘public rights’ doctrine, the presumption is in favor of
Article III courts.” Id. at 132 (simplified). The limited
“public rights” exceptions recognized by the Court are based
on “centuries-old,” “background legal principles.” Id. at
INT’L UNION OF OPERATING ENGINEERS V. NLRB 55
131. And in Jarkesy, the Court refused to expand the list to
include administrative adjudications over conduct that
resembles “common law fraud.” Id. at 134. Thus, courts
should be reluctant to expand the exception beyond the
enumerated historical categories, especially those claims
with common law analogues and involving legal remedies.
See id. at 136.
The better course would have been to follow the Third
Circuit’s lead and nip this claim of expansive authority in the
bud.
And we never should have gotten this far. The Board’s
actions were arbitrary and capricious and unsupported by the
record. See Valley Hosp. Med. Ctr., Inc. v. NLRB, 100 F.4th
994, 1002 (9th Cir. 2024) (noting the standard of review
under 5 U.S.C. § 706(2)(A)). The Board wrongly concluded
that Macy’s needed to have a detailed proposal on the table
within one working day of the Union’s offer of return to
justify its lockout. This rule is as novel as it is unrealistic. It
contradicts both Ninth Circuit precedent and the Board’s
own precedent. The Board also ignored evidence that the
lockout could have been justified as defensive given Macy’s
reasonable concerns of sabotage and misconduct.
While I agree with denying the Union’s petition for
review, I respectfully dissent from the denial of Macy’s
petition for review and from the grant of the Board’s
application for enforcement.
56 INT’L UNION OF OPERATING ENGINEERS V. NLRB
I.
The Board Lacks Authority to Order Foreseeable or
Consequential Damages
A.
The Board is a limited-authority agency with a limited
purpose and limited enforcement mechanisms. “The Board
is not a court; it is not even a labor court; it is an
administrative agency charged by Congress with the
enforcement and administration of the federal labor laws.”
Shepard v. NLRB, 459 U.S. 344, 351 (1983). Simply, the
Board is not in the business of the “adjudication of private
rights.” Phelps Dodge Corp. v. NLRB, 313 U.S. 177, 193
(1941) (simplified). Its only function is to “safeguard[] and
encourage[] the right of self-organization.” Id. Thus, the
Board was not established to award “full compensatory
damages for injuries caused by wrongful conduct.” Int’l
Union, United Auto., Aircraft & Agr. Implement Workers of
Am. (UAW-CIO) v. Russell, 356 U.S. 634, 642–43 (1958).
Instead, its authority to order relief is “merely incidental to
the primary purpose of Congress to stop and to prevent
unfair labor practices.” Shepard, 459 U.S. at 352. Given
this, the Board can’t award consequential or foreseeable
damages, which go beyond compensatory damages and
include damages for harms that do not flow directly from an
unfair labor practice. See Black’s Law Dictionary (12th ed.
2024) (defining “consequential damages” as those that “do
not flow directly and immediately from an injurious act but
that result indirectly from the act”).
Despite its limited authority, the Board has assumed
powers to award not only compensatory damages but all
foreseeable damages—a species of consequential damages.
In Thryv, the Board concluded that a company violated the
INT’L UNION OF OPERATING ENGINEERS V. NLRB 57
Act by unilaterally laying off six union employees and
refusing to comply with the union’s information requests.
372 NLRB No. 22, at 3–4. Rather than apply its standard
remedy to the case, the Board expanded its authority to
award monetary relief. The Board concluded “that in all
cases in which [its] standard remedy would include an order
for make-whole relief, the Board will expressly order that
the respondent compensate affected employees for all direct
or foreseeable pecuniary harms suffered as a result of the
respondent’s unfair labor practice.” Id. at 13 (emphasis
added). The Board then defined “direct harms” as monetary
losses that are the direct result of an unfair labor practice. Id.
In contrast, it defined “foreseeable harms” as “those which
the [employer] knew or should have known would be likely
to result from its violation of the Act, regardless of its
intentions.” Id. The Board has never included such broad,
indirect harm as part of its make-whole remedy. See id. at
18 (Kaplan & Ring, dissenting in part).
So what’s covered by “direct or foreseeable harm”?
Quite a lot, it turns out. While the Board declined “to
enumerate all the pecuniary harms that may be considered
direct or foreseeable in the myriad of unfair labor practices
that come before us[,]” they made clear it’s very expansive.
Id. at 12. The Board explained that foreseeable harms
include indirect costs, “such as out-of-pocket medical
expenses, credit card debt, or other costs simply in order to
make ends meet.” Id. at 9. The Board also made clear that
“penalties” related to “early withdrawals from [a] retirement
account,” “loan or mortgage payments,” and “transportation
or childcare costs” could all be fair game. Id. And this list
didn’t even represent the “limits of the Board’s statutory
remedial authority,” it’s only the “minimum” for make-
whole relief. Id. at 7 n.10 (emphasis added). The Board’s
58 INT’L UNION OF OPERATING ENGINEERS V. NLRB
General Counsel added even more costs to the list:
unreimbursed tuition payments, job search costs, day care
costs, specialty tool costs, utility disconnection/reconnection
fees, relocation/moving costs, legal representation costs in
eviction proceedings, and expenses resulting from a change
in immigration status. Office of the General Counsel
Memorandum GC 24-04, Securing Full Remedies for All
Victims of Unlawful Conduct (Apr. 8, 2024). 1 So now
everything is on the table under the Board’s newly claimed
authority—the only limit is the Board’s imagination.
Of course, the Board denied that these broad remedies
make up “consequential damages.” But that’s hard to
believe given that the Board specifically invited briefing on
whether it should adopt consequential damages as part of its
make-whole remedy in that very case. Thryv, Inc., 372
NLRB No. 22, at 6 n.8, 8. Indeed, the Board’s Chairman has
labeled as “consequential damages” harms such as late fees
on credit cards, penalties for early withdrawals from
retirement accounts, and the loss of a vehicle or home if an
employee is unable to make loan or mortgage payments. See
Voorhees Care & Rehab. Ctr., 371 NLRB No. 22, 4 n.14
(2021). Perhaps recognizing its overreach, the Board
pretends its adoption of a “foreseeable damages” standard is
something different than consequential damages. Yet the
only distinction the Board draws between the two is
observing that “consequential damages” is “a term of art
used to refer to a specific type of legal damages awarded in
other areas of the law.” Thryv, Inc., 372 NLRB No. 22, at 8.
Yes, it’s a term of art for tort and contracts law, but the Board
can’t simply put lipstick on the pig and call it “foreseeable
damages.” That doesn’t change its legal nature—it’s still
1
Available at https://perma.cc/P8CN-HZBS.
INT’L UNION OF OPERATING ENGINEERS V. NLRB 59
consequential damages no matter how it’s spun. And, as the
Board admits, consequential damages are a remedy for
private rights—not the sort of thing that the Board may
vindicate.
The Board’s remedy proved to be too much for its entire
membership to stomach. Two members dissented. They
explained that the Board’s new remedial standard “would
permit recovery for any losses indirectly caused by an unfair
labor practice, regardless of how long the chain of causation
may stretch from unfair labor practice to loss, whenever the
loss is found to be foreseeable.” Id. at 16 (Kaplan & Ring,
dissenting in part). They warned that “this standard opens
the door to awards of speculative damages that go beyond
the Board’s remedial authority.” Id. First, they noted that
“‘foreseeability’ is a central element of tort law” and that
“[a]ny attempt to address tort claims in a Board proceeding
obviously runs headlong into the Seventh Amendment’s
guarantee of the right to have such claims tried before a
jury.” Id. at 18–19. Second, the dissent observed that the
Board’s foreseeable damages remedy “go[es] well beyond
tort law,” because the remedy wasn’t even limited by
proximate cause. Id. at 19. So, to the dissenting members,
the Board’s newly minted power is even greater than the
power to award consequential damages.
B.
The Board exceeded its authority in ordering Macy’s to
pay foreseeable or consequential damages. First, nothing in
the text of the Act authorizes such expansive authority for
the Board. Second, reading the Act to grant these broad
remedies, as the dissenting Board members noted, puts the
Board in conflict with the Seventh Amendment.
60 INT’L UNION OF OPERATING ENGINEERS V. NLRB
1.
Let’s start with the Board’s statutory authority to fashion
remedies for unfair labor practices. To remedy an unfair
labor practice, Congress granted the Board authority to:
[I]ssue and cause to be served on . . . [a]
person [who committed the unfair labor
practice] an order requiring such person to
cease and desist from such unfair labor
practice, and to take such affirmative action
including reinstatement of employees with or
without back pay, as will effectuate the
policies of this subchapter.
29 U.S.C. § 160(c). Thus, in all cases, the Board’s remedial
authority must further the policies of the Act, which are to:
[E]liminate the causes of certain substantial
obstructions to the free flow of commerce
and to mitigate and eliminate these
obstructions when they have occurred by
encouraging the practice and procedure of
collective bargaining and by protecting the
exercise by workers of full freedom of
association, self-organization, and
designation of representatives of their own
choosing, for the purpose of negotiating the
terms and conditions of their employment or
other mutual aid or protection.
29 U.S.C. § 151.
While an admittedly broad policy statement, it only
provides for vindication of public rights—not of private
INT’L UNION OF OPERATING ENGINEERS V. NLRB 61
rights, which consequential damages are designed to
remedy. Consistent with that understanding, the Supreme
Court recognized long ago that the Board’s functions are
“narrowly restricted to the protection and enforcement of
public rights” and that it thus has no role to play in the
“adjudication of private rights.” Nat’l Licorice Co. v. NLRB,
309 U.S. 350, 362–63 (1940). So even with the Board’s
power to fashion affirmative acts to carry out federal labor
policies, it can’t order relief that is “a patent attempt to
achieve ends other than those which can fairly be said to
effectuate the policies of the Act.” Va. Elec. & Power Co.
v. NLRB, 319 U.S. 533, 540 (1943). For example, the Board
isn’t vested with “a virtually unlimited discretion to devise
punitive measures” and it can’t “prescribe penalties or fines
which the Board may think would effectuate the policies of
the Act.” Republic Steel Corp. v. NLRB, 311 U.S. 7, 11
(1940). As Judge Learned Hand said long ago, “[t]he
‘affirmative action’ which the section contemplates must be
remedial, and not punitive or disciplinary . . . and the order,
qua payments, must therefore be confined to restitution for
the wrong done, however widely that should be conceived.”
NLRB v. Leviton Mfg. Co., 111 F.2d 619, 621 (2d Cir. 1940).
Thus, the Board’s authority begins and ends with the
enforcement of public rights—its role is not to vindicate the
private rights of aggrieved employees.
Even so, the Board expressly sought to vindicate private
rights in its Thryv decision. In adopting its consequential
damages or foreseeable harm regime, its goal was to
“rectify[] the harms actually incurred by the victims of unfair
labor practices.” Thryv, Inc., 372 NLRB No. 22, at 11. In
justifying the broad remedy, the Board noted the need to
assist “wrongfully-terminated employees [who] may incur
‘expenses for transportation, room, and board’” related to
62 INT’L UNION OF OPERATING ENGINEERS V. NLRB
their termination. Id. at 7 (simplified) (emphasis added).
This is no different than vindicating the private right against
wrongful termination, which falls outside the Act’s statutory
policies.
The Board also acknowledged its new remedy has a
compensatory—rather than restitutionary—purpose:
“making employees whole should include, at least,
compensating them for direct or foreseeable pecuniary
harms resulting from the [employer’s] unfair labor practice.”
Id. at 8 (emphasis added). And the Board reads “foreseeable
harms” as broadly as possible—it includes medical
expenses, credit card debts and fees, car payments, mortgage
payments, childcare costs, and transportation costs. See id.
at 9. These rectify individualized private harms at law. As
the Court has said, “one of the hallmarks of traditional tort
liability is the availability of a broad range of damages to
compensate the plaintiff ‘fairly for injuries caused by the
violation of his legal rights.’” United States v. Burke, 504
U.S. 229, 235 (1992) (simplified). All this shows that the
Board’s make-whole remedy goes far beyond
“effectuat[ing] the policies” of the Act. See 29 U.S.C. §
160(c). Instead, it vindicates private rights. And the Act
“limits the Board’s remedial authority to equitable, not legal,
relief.” Starbucks Corp., 125 F.4th at 95.
Besides violating the policies of the Act, the Board’s new
remedy also violates the text of the Act. The Board can issue
a “cease and desist” order and instruct the “reinstatement of
employees with or without back pay.” 29 U.S.C. § 160(c).
None of these express grants of power encompass the award
of foreseeable or consequential damages. Under the Board’s
“cease and desist” authority, it may enjoin “future conduct”
that would violate the Act. See NLRB v. C.E. Wylie Const.
Co., 934 F.2d 234, 237 (9th Cir. 1991). Yet injunctive power
INT’L UNION OF OPERATING ENGINEERS V. NLRB 63
doesn’t authorize the award of the damages it seeks now.
And the power to authorize “back pay” doesn’t provide the
Board with the ability to award consequential damages. In
this context, “back pay” means pay that is unpaid but due.
See A Dictionary of Modern American Usage at 17 (1935)
(defining “back pay” as an “arrears of a pay”); Webster’s
Collegiate Dictionary at 59 (1936) (defining “arrears” as
“that which is unpaid but due”). Together, the Act
authorizes the Board to remedy violations of unfair labor
practices by restoring wages and employment positions that
employees would have otherwise received in the absence of
unfair labor practices. But such injunctive relief and back
pay awards don’t provide the textual hook for the expansive
remedy sought here.
However broadly it’s possible to read the Board’s
remedial authority, Congress confirmed its narrow powers
through its Taft–Hartley amendments. See Labor
Management Relations Act of 1947, Pub. L. No. 80-101,
101, 61 Stat. 136, 147. In 1947, Congress amended § 160(c)
and precluded the Board from awarding remedies to an
employee “who had been discharged because of
misconduct.” See Fibreboard Paper Products Corp. v.
NLRB, 379 U.S. 203, 217 (1964). After the amendment,
§ 160(c) then said,
No order of the Board shall require the
reinstatement of any individual as an
employee who has been suspended or
discharged, or the payment to him of any back
64 INT’L UNION OF OPERATING ENGINEERS V. NLRB
pay, if such individual was suspended or
discharged for cause.
29 U.S.C. § 160(c) (emphasis added). Through this
amendment, Congress expressly set the universe of the
Board’s remedial power to grant monetary relief for
aggrieved employees—it’s limited to reinstatement and back
pay. If Congress intended the Board to have broader power
to direct monetary relief, such as ordering foreseeable or
consequential damages, it would have said so in this
provision. Otherwise, the Board would be precluded from
awarding back pay when the employee commits misconduct,
but it may still grant the same employee foreseeable or
consequential damages. This reading makes little sense.
Our duty is to interpret the law “as a symmetrical and
coherent regulatory scheme” and “fit, if possible, all parts
into an harmonious whole.” FDA v. Brown & Williamson
Tobacco Corp., 529 U.S. 120, 133 (2000) (simplified). The
best reading of § 160(c) then cabins the Board’s remedial
measures over employees and forecloses the Board from
ordering consequential or foreseeable damages. So while
the Board may have discretion to devise remedies to further
the Act, when ordering relief for individual employees, it’s
limited to reinstatement and back pay. This flows from the
Board’s narrow design to remedy only public rights.
The Board dismisses this textual restraint on its powers.
It does so by misreading Fibreboard Paper Products. In that
case, the Board ordered a company to resume certain
business operations, to reinstate terminated employees with
back pay, and to bargain with the union. 379 U.S. at 209. It
was argued in that case that the Board’s order violated
§ 160(c)’s prohibition against reinstatement and back pay for
employees “discharged for cause.” Id. at 217. As mentioned
INT’L UNION OF OPERATING ENGINEERS V. NLRB 65
earlier, the Court determined that the provision precluded the
Board from “reinstating an individual who had been
discharged because of misconduct.” Id. (emphasis added).
But the Court observed that the provision did not “curtail the
Board’s power in fashioning remedies when the loss of
employment stems directly from an unfair labor practice as
in the case at hand.” Id. (emphasis added). The Board takes
this language to green-light the award of consequential
damages. But it did nothing of the sort. Instead, with these
sentences, the Court distinguished between employees fired
because of misconduct and employees fired because of
unfair labor practices. The Court simply reinforced the
straightforward reading of the text—while the Taft–Hartley
amendment implicated the former, it had nothing to do with
the latter. Nowhere did the Court say that the Board could
disregard the obvious textual limitations on remediating
employees.
If there were any doubts as to the limits of the Board’s
authority, the Court laid them to rest in Burke. In that case,
the Supreme Court analyzed the remedies available under
Title VII—an employee anti-discrimination statute. See
Burke, 504 U.S. at 237–38 (analyzing 42 U.S.C. § 2000e–
2(a)(1)). Title VII is important here because its “remedial
scheme was expressly modeled on the backpay provision of
the National Labor Relations Act.” Id. at 240 n.10. Indeed,
Title VII’s remedial provision will look familiar. It’s nearly
identical to the Act’s:
[T]he court may enjoin the respondent from
engaging in such unlawful employment
practice, and order such affirmative action as
may be appropriate, which may include, but
is not limited to, reinstatement or hiring of
66 INT’L UNION OF OPERATING ENGINEERS V. NLRB
employees, with or without back pay . . . or
any other equitable relief as the court deems
appropriate.
42 U.S.C. § 2000e–5(g)(1).
Given their ties and similar language, we should follow
the Court’s reading of Title VII. The Court said, “Title VII
does not allow awards for compensatory or punitive
damages; instead, it limits available remedies to backpay,
injunctions, and other equitable relief.” Burke, 504 U.S. at
238. We should also follow how the Court defined the scope
of Title VII’s remedy: it “consists of restoring victims,
through backpay awards and injunctive relief, to the wage
and employment positions they would have occupied absent
the unlawful discrimination.” Id. at 239. Title VII doesn’t
permit the compensation of a “plaintiff for any of the other
traditional harms associated with personal injury, such as
pain and suffering, emotional distress, harm to reputation, or
other consequential damages (e.g., a ruined credit rating).”
Id. Indeed, “[n]othing in this remedial scheme purports to”
do so. Id. In the Court’s view, Title VII’s limited remedies
stood in contrast “to those available under traditional tort
law.” Id. at 240.
So let’s recap. Title VII and the Act have similar
purposes (the protection of employees), a similar remedial
design, and similar textual language. And the Supreme
Court has definitively established the remedies available
under Title VII. The obvious response is to give the Act a
similar reading. It’s baffling that the Board argues
otherwise.
But there’s more evidence of this commonsense reading.
In the Civil Rights Act of 1991, Congress amended Title VII
INT’L UNION OF OPERATING ENGINEERS V. NLRB 67
to expressly add “compensatory and punitive damages” to
its remedial scheme. See Pub. L. No. 102-166, 105 Stat.
1071; 42 U.S.C. § 1981a. If such damages were already
available under the Title VII’s original language, then
Congress wouldn’t have needed to act. Given their
similarities, if Title VII required amendment to allow
compensatory and punitive damages, logic dictates that the
Act likewise would need amendment before granting the
Board authority to order consequential or foreseeable
damages.
***
Thus, the Board exceeded its authority under § 160(c) in
devising its newfound foreseeable-damages remedy.
2.
Even though § 160(c) is clear on its face, the Seventh
Amendment commands that we resolve any ambiguity by
rejecting the Board’s claim of broad authority to order
consequential or foreseeable damages. The Seventh
Amendment guarantees the right to trial by jury “[i]n Suits
at common law.” U.S. Const. amend. VII. If administrative
agencies, like the Board, seek to impose damages on a party
that resemble those available in “Suits at common law,” then
the party must receive a jury trial. Issuing broad
consequential damages—a tort remedy—thus implicates the
Seventh Amendment. The dissenting Board members saw
this danger clearly in opposing the Board’s power grab. See
Thryv, Inc., 372 NLRB No. 22, at 16 (“We further observe
that the Board faces potential Seventh Amendment issues if
it strays into areas more akin to tort remedies.”) (Kaplan and
Ring, dissenting in part). So even if the Board’s statutory
authorities here are “susceptible of multiple interpretations,”
we should “shun an interpretation that raises serious
68 INT’L UNION OF OPERATING ENGINEERS V. NLRB
constitutional doubts and instead . . . adopt an alternative that
avoids those problems.” Jennings v. Rodriguez, 583 U.S.
281, 286 (2018).
The Supreme Court recently explained the scope of the
Seventh Amendment. See Jarkesy, 603 U.S. 109. The Court
first reiterated that the right to a jury trial is “of such
importance and occupies so firm a place in our history and
jurisprudence that any seeming curtailment of the right has
always been and should be scrutinized with the utmost care.”
Id. at 121 (simplified). The Court then concluded that the
term, “Suits at common law,” contrasted with cases in equity
and admiralty. Id. at 122. The right to jury trial, then,
applies to all suits “which are not of equity or admiralty
jurisdiction, whatever may be the peculiar form which they
may assume.” Id. (simplified). And it doesn’t matter
whether the claim is born of statute. The constitutional
guarantee also encompasses statutory claims that are “legal
in nature.” Id. (simplified). And to determine whether a
claim is “legal in nature,” the Court directed that we consider
both “the cause of action and the remedy it provides.” Id. at
122–23. In the end, however, the remedy is the “more
important consideration” in determining whether the
Seventh Amendment applies. Id. at 123 (simplified).
Indeed, in many cases, consideration of the remedy should
be “all but dispositive.” Id. But even when the Seventh
Amendment applies, an exception exists. Id. at 127. Under
the “public rights” exception, “Congress may assign [a]
matter for decision to an agency without a jury, consistent
with the Seventh Amendment.” Id.
Jarkesy gives us some takeaways. First, it doesn’t matter
who brings the claims or how they are labeled. The Seventh
Amendment applies even to administrative agencies and
even if they call the claim something other than a “legal
INT’L UNION OF OPERATING ENGINEERS V. NLRB 69
claim.” See id. at 121–24. Second, we look at both the
nature of the claim and the remedies the agency seeks. And
the remedy alone may be enough to invoke the Seventh
Amendment. See id. at 123–24. Third, we must consider if
the public rights exception would still allow the
administrative adjudication to go forward. See id. at 127.
Given these principles, reading § 160(c) to authorize the
Board to award consequential or foreseeable damages would
raise serious constitutional doubt under the Seventh
Amendment.
First, consider the remedies the Board seeks to impose—
arguably the most important concern. Recall, under its
make-whole authority, the Board believes that it may make
employers pay for any foreseeable pecuniary harm that
employees experience because of an unfair labor practice.
This includes such attenuated harms as babysitting fees,
credit card late fees, car payments, and attorneys’ fees to sue
landlords. But all this exceeds the purely equitable remedies
that the Board may order.
Without question, the Board has the equitable powers to
restore employees to the status quo through monetary relief.
See NLRB v. Jones & Laughlin Steel Corp., 301 U.S. 1, 48
(1937) (the Board may order a monetary recovery as “an
incident to equitable relief”). But the Board’s authority to
order payments “must . . . be confined to restitution for the
wrong done.” Leviton Mfg. Co., 111 F.2d at 621. It has no
authority to award money damages as a tort remedy. See
Jarkesy, 603 U.S. at 123 (“[M]oney damages are the
prototypical common law remedy”); Teamsters v. Terry, 494
U.S. 558, 570 (1990) (“Generally, an action for money
damages was ‘the traditional form of relief offered in the
courts of law.’”) (simplified).
70 INT’L UNION OF OPERATING ENGINEERS V. NLRB
To be sure, sometimes equitable restitution and money
damages can look the same. In some cases, they can even
lead to the same dollar award against a party. See Dan B.
Dobbs, 1 Dobbs Law of Remedies 280 (2d. ed. 1993). Even
so, they are distinct. And this distinction is significant:
[T]hey are often triggered by different
situations and always measured by a different
yardstick. Damages always begins with the
aim of compensation for the plaintiff . . . .
Restitution, in contrast, begins with the aim
of preventing unjust enrichment of the
defendant. To measure damages, courts look
at the plaintiff’s loss or injury. To measure
restitution, courts look at the defendant’s gain
or benefit.
Id. In other words, what distinguishes ordinary money
damages at law from “equitable restitution and other
monetary remedies available in equity” is that for money
damages “the question is what has the owner lost, not what
has the taker gained.” City of Monterey v. Del Monte Dunes
at Monterey, Ltd., 526 U.S. 687, 710 (1999) (simplified).
And so, as a corollary, the question for equitable remedies is
only the unjust gain of the taker or employer—not the loss
to the owner or employee.
Explaining the difference between equitable monetary
relief and monetary damages should illuminate the problem
here. The Board wants to measure monetary relief from the
perspective of the employee’s loss—not the employer’s
gain. The Board’s foreseeable-damages regime asks: What
did the employee lose? What fees did the employee incur
because of the unfair labor practice? What opportunities did
INT’L UNION OF OPERATING ENGINEERS V. NLRB 71
the employee forgo because of the proscribed conduct? But
this would be inappropriate under equity. Equitable relief
should ask only what the employer has unjustly gained.
When employers withhold pay from employees based on
unlawful employment actions, employers unjustly keep the
employees’ wages and so equitable relief equates to back
pay—exactly as contemplated by § 160(c). On the other
hand, the award of broad foreseeable damages goes beyond
equitable restitution and crosses into the tort remedy of
money damages.
Indeed, given how far-reaching the Board views
foreseeable damages—encompassing any indirect harm no
matter how remote from the unfair labor practice—these
awards are nearly indistinguishable from punitive damages,
which only courts of law may impose. See Jarkesy, 603 U.S.
at 123–25. As the dissenting members noted, the Board’s
new consequential-damages regime isn’t even limited by the
requirement of “proximate cause”—which makes the
Board’s remedy “go well beyond tort law.” Thryv, Inc., 372
NLRB No. 22, at 19 (Kaplan and Ring, dissenting in part).
By awarding damages for harms that are not directly or
proximately caused by unfair labor practices, we move from
mere compensation to granting a windfall to aggrieved
employees. And when “compensatory damages exceed pure
compensation,” they may become “punitive.” See Dobbs,
Law of Remedies 455.
True, the Board tries to get around this conclusion by
denying any punitive motive for its new remedy. But let’s
look at what the Board said. The Board claimed the remedy
wouldn’t be punitive because it applied to all cases, rather
than just to extraordinary ones. Thryv, Inc., 372 NLRB No.
22, at 17. Yet the Board conceded that “if we were to issue
this make-whole relief only to address the most deplorable
72 INT’L UNION OF OPERATING ENGINEERS V. NLRB
or flagrant violations of the Act, these remedies run the risk
of becoming punitive rather than restorative.” Id. In other
words, the Board acknowledges the punitive nature of its
expansive foreseeable-harm remedy but understands that
applying it selectively would make it blatantly punitive,
which it knows it can’t do. But a punitive measure is still
punitive even if it applies across the board.
Thus, based on the remedies alone, the Board’s
imposition of foreseeable damages would implicate the
Seventh Amendment—giving us every reason to avoid
reading § 160(c) so broadly.
Second, the “close relationship” between the Board’s
efforts to block unfair labor practices and the common-law
tort of wrongful termination supports reading the Board’s
remedial powers narrowly. See Jarkesy, 603 U.S. at 125.
Take this case. The Board asserts that Macy’s violated the
Act by locking out employees without clearly and fully
informing them of the conditions for their reinstatement—
effectively terminating them. See Macy’s, Inc., 372 NLRB
No. 42, at 20. But California, where most of the Macy’s
stores were located, recognizes a tort cause of action for
wrongful terminations that violate public policy. See Freund
v. Nycomed Amersham, 347 F.3d 752, 758 (9th Cir. 2003)
(requiring that the public policy “inures to the benefit of the
public rather than serving merely the interests of the
individual” (simplified)); see also American Law of Torts §
34:83 (2024) (observing that the tort of wrongful termination
exists when an (1) “employee was discharged by his or her
employer” and (2) “the employer breached a contract or
committed a tort in connection with the employee’s
termination.”). And the wrongful-termination tort has a
historical pedigree tracing back to the English common law.
See American Law of Torts § 34.85; see also 1 William
INT’L UNION OF OPERATING ENGINEERS V. NLRB 73
Blackstone, Commentaries *413 (“[N]o master can put away
his servant, or servant leave his master, either before or at
the end of his term, without a quarter’s warning; unless upon
reasonable cause to be allowed by a justice of the peace[.]”).
Consider the individualized assessments necessary to
prove the foreseeable harms for each employee. As the
Board admitted, “aggrieved employees will . . . have to
submit evidence to substantiate pecuniary harms for which
they seek reimbursement” before the Board’s ALJs. Thryv,
Inc., 372 NLRB No. 22, at 11. What then distinguishes
these Board proceedings from individualized tort claims in
federal or state court? Not much.
Thus, both the Board’s actions and wrongful-termination
tort “target the same basic conduct,” Jarkesy 603 U.S. at
125,—preventing wrongdoing in the employment context.
See also Lewis v. Whirlpool Corp., 630 F.3d 484, 487–89
(6th Cir. 2011) (noting the overlap between wrongful-
termination claims and the Board’s jurisdiction). Indeed, the
Board’s jurisdiction so overlaps with the wrongful-
termination tort that it may preempt federal or state tort
actions. See San Diego Bldg. Trades Council v. Garmon,
359 U.S. 236, 245 (1959); Platt v. Jack Cooper Transp., Co.,
959 F.2d 91, 94 (8th Cir. 1992); Lewis, 630 F.3d at 487.
While not necessarily a perfect overlap, no “precise[]
analog[ue]” is necessary under the Seventh Amendment.
Tull v. United States, 481 U.S. 412, 421 (1987). Rather, the
jury right “extends to statutory claims unknown to the
common law, so long as the claims can be said to sound
basically in tort, and [they] seek legal relief.” Monterey, 526
U.S. at 709 (simplified). So the basic “legal” nature of the
claim here supports rejecting the Board’s expansive
remedial powers.
74 INT’L UNION OF OPERATING ENGINEERS V. NLRB
Finally, the public rights exception doesn’t justify the
Board’s broad assertion of remedial powers. The Court has
reminded us that this exception is only an exception.
Jarkesy, 603 U.S. at 131. After all, “[i]t has no textual basis
in the Constitution.” Id. So “[e]ven with respect to matters
that arguably fall within the scope of the ‘public rights’
doctrine, the presumption is in favor of Article III courts.”
Id. at 132 (simplified). Thus, we don’t focus on whether an
action “originate[s] in a newly fashioned regulatory
scheme.” Id. at 133 (simplified). Rather, “what matters is
the substance of the action, not where Congress has assigned
it.” Id. at 134.
And the Court has made clear that the public rights
exception must remain a narrow one. When the Court has
recognized a “public rights” exception, it is based on
“centuries-old,” “background legal principles.” Id. at 131.
Indeed, the Court has only recognized a few categories of
administrative adjudications that fall within the exception:
the collection of revenue; customs law; immigration law;
relations with Indian tribes; the administration of public
lands; and the granting of public benefits, such as payments
to veterans, pensions, and patent rights. Id. at 129–30. On
their face, these categories have little resemblance to
traditional legal claims—they all involve interests that
would not exist without the federal government. In contrast,
in Jarkesy, the Court refused to expand the list to include
administrative adjudications over conduct that resembles
“common law fraud.” Id. at 134. Thus, courts should be
reluctant to expand the exception beyond the enumerated
historical categories.
The Board’s new make-whole remedy is identical to
traditional legal-claim remedies vindicating private rights
and doesn’t fit within the public-rights exception. The
INT’L UNION OF OPERATING ENGINEERS V. NLRB 75
Board’s remedy goes beyond defending the public interest
in federal labor policy and instead targets “the wrong done
the individual employee,” which falls outside the Board’s
authority when fashioning unfair labor practice remedies.
Vaca v. Sipes, 386 U.S. 171, 182 n.8 (1967). So the award
of consequential or foreseeable damages bears little relation
to public rights, and the Board cannot escape this conclusion
by merely calling it a “make-whole” or “equitable” remedy.
See Jarkesy v. SEC, 34 F.4th 446, 457 (5th Cir. 2022)
(“Congress cannot change the nature of a right, thereby
circumventing the Seventh Amendment, by simply giving
the keys to the SEC to do the vindicating.”). However
appropriate a consequential-damages regime may be in the
labor context, when an administrative agency strays into the
realm of legal remedies, that’s a matter for Article III courts
not administrative tribunals.
And the Board is wrong to contend that the Court settled
the Seventh Amendment question back in the 1930s. In
Jones & Laughlin Steel Corporation, the Court concluded
that the Seventh Amendment didn’t preclude the Board from
ordering the “payment of wages for the time lost by the
discharge”—in other words, back pay. 301 U.S. at 48. The
Amendment wasn’t implicated, the Court said, because the
ordered back pay was “incident to equitable relief,” even
though the same “damages might have been recovered in an
action at law.” Id. Key to the Court’s opinion, then, was
that back pay was a form of equitable relief. Indeed, the
Court has emphasized the equitable nature of the back-pay
remedy. See Albemarle Paper Co. v. Moody, 422 U.S. 405,
415–418 (1975) (characterizing back pay awarded against
employers under Title VII as equitable). Here, however, the
Board seeks far greater remedial authorities. It doesn’t just
seek damages “incident to equitable relief,” but it seeks
76 INT’L UNION OF OPERATING ENGINEERS V. NLRB
consequential or foreseeable damages associated with a
“[s]uit at common law.” So Jones & Laughlin isn’t the end
of the analysis when the Board imposes remedies far beyond
back pay. Based on precedent since the 1930s, the Board’s
award of consequential damages would contravene the
Seventh Amendment’s right to a jury trial.
To be clear, the Seventh Amendment doesn’t invalidate
all Board remedial authorities to direct monetary relief. As
limited by § 160(c)’s express authority to order “back pay,”
the Board may act consistently with the Seventh
Amendment. But when the Board strays from the text and
seeks extra-statutory authorities, like the power to direct
consequential or foreseeable damages, then the Seventh
Amendment has something to say. We thus must read
§ 160(c) as precluding the type of monetary relief the Board
seeks here. See Jennings, 583 U.S. at 286.
II.
The Board’s Merits Decision Was Wrong
Even worse, we didn’t need to reach the remedy issue at
all. Instead, the Board’s decision to conclude that Macy’s
committed an unfair labor practice was arbitrary and
capricious and unsupported by the evidence. The Board
concluded that Macy’s committed an unfair labor practice
under § 8(a)(1) and (3) of the Act by not reinstating the
Union members after their offer to return to work and by
locking them out without informing them of the terms to end
the lockout. Macy’s, Inc., 372 NLRB No. 42, at 20. But this
conflicts with the Act for two reasons. First, the Board was
wrong to conclude that Macy’s offensive lockout was
“inherently destructive” because it took two-business days
to communicate its offer to end the lockout. Second, the
INT’L UNION OF OPERATING ENGINEERS V. NLRB 77
Board overlooked some key facts in deciding that Macy’s
actions were not a proper defensive lockout.
Section 8(a)(1) and (3) of the Act “make it an unfair labor
practice for an employer ‘by discrimination in regard to hire
or tenure of employment or any term or condition of
employment to encourage or discourage membership in any
labor organization.’” Fresh Fruit & Vegetable Workers Loc.
1096 v. NLRB, 539 F.3d 1089, 1096 (9th Cir. 2008) (quoting
29 U.S.C. § 158(a)(1), (3)). To find a violation of these
provisions, “the relevant inquiry is whether or not the
employer’s action likely discouraged union membership and
was motivated by anti-union animus.” Id. So usually,
evidence of discriminatory conduct and discriminatory
intent are necessary. But this isn’t always the case.
Sometimes conduct is so “inherently destructive,” that
“improper motive” can be inferred. Id.
We’ve described the framework for analyzing
“inherently destructive” conduct as this:
If employer conduct is “inherently
destructive,” the Board may find an improper
motive regardless of evidence of a legitimate
business justification . . . . If, on the other
hand, “the adverse effect of the
discriminatory conduct on employee rights is
‘comparatively slight,’” and the employer
establishes a legitimate and substantial
business justification for its actions, there is
78 INT’L UNION OF OPERATING ENGINEERS V. NLRB
no violation of the Act without a finding of
an actual anti-union motivation.
Id. (citing NLRB v. Great Dane Trailers, Inc., 388 U.S. 26,
33 (1967)). Both the Board and Macy’s agree that this Great
Dane framework governs this case.
Establishing “inherently destructive” conduct is a high
bar. It requires conduct that “carries with it an inference of
unlawful intention so compelling that it is justifiable to
disbelieve the employer’s protestations of innocent
purpose.” Am. Ship Bldg. Co. v. NLRB, 380 U.S. 300, 311–
12 (1965) (emphasis added). The conduct must have “far
reaching effects which would hinder future bargaining” and
“creat[e] visible and continuing obstacles to the future
exercise of employee rights.” Portland Willamette Co. v.
NLRB, 534 F.2d 1331, 1334 (9th Cir. 1976) (emphasis
added). In other words, the conduct must have “the natural
tendency . . . to severely ‘discourage union membership
while serving no significant employer interest.’” Fresh
Fruit & Vegetable Workers Loc., 539 F.3d at 1097 (quoting
Am. Ship Building, 380 U.S. at 312) (emphasis added).
Thus, the effect of the conduct must be more than temporary
or slight. It must significantly alter the bargaining
relationship. In sum, there must be “no question that the
employees were being punished for their union activities.”
Id. (emphasis added).
The Board hasn’t met that standard here.
A.
There’s nothing inherently problematic with the use of
lockouts. Am. Ship Bldg., 380 U.S. at 308–313. Proper
offensive lockouts may occur when an employer locks out
employees “in support of legitimate bargaining demands.”
INT’L UNION OF OPERATING ENGINEERS V. NLRB 79
Boehringer Ingelheim Vetmedica, Inc., 350 NLRB 678, 679
(2007). The Board never found that Macy’s had anti-union
animus in initiating its lockout and so the Board must show
that Macy’s actions were “inherently destructive” to support
its charge. But all the facts reveal that the delay in providing
a new proposal at the time of the lockout had no “far
reaching,” “continuing,” or “sever[e]” effect on collective
bargaining. To the contrary, the lockout served a legitimate
economic purpose.
Let’s recap the facts from 2020:
• On August 31, Macy’s gives its best and final offer to
the Union.
• On September 4, the Union’s members begin to strike.
• On October 8, Macy’s informs the Union that its best
and final offer will expire on October 15.
• On October 15, Macy’s best and final offer expires.
• On November 25, the Union presents a counter
proposal to Macy’s.
• On December 4, Macy’s rejects the Union’s counter
proposal. That Friday evening, the Union
unconditionally offers to return to work “immediately”
in an email sent after hours on the East Coast. Macy’s
asks the Union to hold off on returning to work and
promises to respond by the close of business on
Monday. The Union asks if “this mean[s] you are
locking them out till Monday?”
• On December 5–6, Macy’s reiterates its request for
time to respond, noting the “administrative, logistical,
and economic” challenges of reinstating employees on
80 INT’L UNION OF OPERATING ENGINEERS V. NLRB
short notice. The Union refuses to accommodate
Macy’s and declares that its members will return to
work unless they’re locked out. Macy’s again asks for
time because “[t]hey have been out for 90+ days, and
to think you can just flip a switch and have them back
is not possible.”
• On December 7, Macy’s notifies the Union it will not
reinstate its members “until there is an agreement in
place,” which is “in support of [its] bargaining
position.” Macy’s proposes dates for new bargaining
sessions, including a date on December 10.
• On December 10, Macy’s presents a new collective
bargaining agreement proposal to the Union.
So the Union demanded to return to work within one
business day on a Friday evening. Macy’s reasonably asked
the Union to hold off on returning to work while it figured
out its position over the weekend. On Monday, Macy’s told
the Union that it was locking out the Union members in
support of its bargaining position and notes that a new
bargaining agreement must be reached before reinstatement.
Two days later, Macy’s and the Union were back at the
bargaining table with Macy’s presenting a new proposal.
The Board decided that this two-day delay in informing the
Union of its latest offer was an unfair labor practice. Indeed,
the Board held that Macy’s failure to communicate a new
offer by Monday morning (one business day) was an unfair
labor practice. See Macy’s, Inc., 372 NLRB No. 42, at 20
(“the lockout was unlawful at its inception, on December
7”). But this is not even close to meeting the exacting
standard of “inherently destructive” conduct.
INT’L UNION OF OPERATING ENGINEERS V. NLRB 81
We’ve already been skeptical of the need to immediately
reinstate employees after an offer to return to work. In Fresh
Fruit & Vegetable Workers Local, after a strike and 14-year
long lockout, an employer offered to reinstate striking Union
workers but delayed reinstatement for one month. 539 F.3d
at 1093–94. The employer justified the delay by the need for
the employees to give notice to their existing employers and
to allow for a particular manager to train the returning
employees. Id. at 1094. The Board thought that this delay
was inherently destructive and ordered back pay. Id. at
1094–95. We rejected the Board’s conclusion. Id. at 1096.
We explained that the one-month delay after a 14-year
lockout did not meet the high bar for “inherently destructive”
conduct. Id. at 1097. Given the “short” reinstatement delay
“relative to the lockout period,” we concluded the delay
couldn’t be viewed as “punishment for a protected activity.”
Id. “After a fourteen-year lockout,” we said, “a delay of a
few more weeks prior to reinstatement does not necessarily
express anti-union animus beyond that expressed by the
lockout itself.” Id. (emphasis added). Rather, the delay
would be understood as the time “necessary and normal to
accomplish reinstatement,” not as an attempt to “obstruct or
discourage employees from exercising their statutory
rights.” Id. Thus, we reversed the Board’s conclusion of a
violation of the Act. See id. at 1100.
As in Fresh Fruit, the Board didn’t consider the totality
of the circumstances before concluding that Macy’s
committed an unfair labor practice. The Board ruled that the
lack of an immediate, clear, and complete proposal to the
Union within one business day of the offer to return
constituted “inherently destructive” conduct. But that’s
wrong. After the Union engaged in a three-month strike,
rejected Macy’s final offer, and then sought to jam Macy’s
82 INT’L UNION OF OPERATING ENGINEERS V. NLRB
with a Friday night return-to-work offer, Macy’s taking a
mere two business days to formulate and communicate a
new, detailed offer can’t be viewed as anti-union animus.
Given the relatively short period in which Macy’s developed
a new offer after the months-long strike, nothing shows that
the minor delay in communicating its latest offer after the
lockout was necessarily made to punish the Union for its
protected activity or was necessarily an attempt to obstruct
or discourage the employees’ union activity. Instead, the 48-
hour delay could be viewed as the “necessary and normal”
time to figure out Macy’s response to the Union’s
unexpected return-to-work offer and to draw up a new
proposal. See id. at 1097. Without any evidence of anti-
union animus, the Board hasn’t shown how the short delay
here had more than a “comparatively slight” impact on the
Union under Great Dane Trailers, 388 U.S. at 33.
Establishing a hard-and-fast rule that an employer must
provide a “timely, clear, and complete offer” before
engaging in an offensive lockout within one-business day
was arbitrary and capricious. See Macy’s, Inc., 372 NLRB
No. 42, at 1.
Indeed, labor disputes often involve complex
circumstances that can’t be resolved on the short fuse that
the Board requires here. Under the Board’s arbitrary rule,
Macy’s could have only responded two ways to the Union’s
Friday-night offer: (1) immediately reinstate the workers
and lose its bargaining position after the three-month strike,
or (2) institute the offensive lockout but come up with a new
offer essentially overnight. Nothing in the Act requires these
grim choices.
Well, couldn’t Macy’s have immediately revived its final
offer to comply with these rules? Yes, but that would defeat
the purpose of the “best and final” offer as a bargaining
INT’L UNION OF OPERATING ENGINEERS V. NLRB 83
tactic. Now, a union can decide whether an offer is a best
and final one or not. All a union must do to resurrect an
expired offer is make an unconditional offer to return to
work on short notice before a weekend.
But, what’s wrong with forcing Macy’s to reinstate the
employees by Monday morning? First, this ignores the
enormous logistical difficulties with returning dozens of
striking employees to work over a weekend. Second, this
would also weaken Macy’s bargaining position by
decreasing the need for an agreement. Unless an employer
shows anti-union animus, the Act doesn’t permit the Board
to force a one-sided solution in a labor dispute.
And nothing in the Board’s precedent supports its
draconian ruling here. Start with Dayton Newspapers. In
that case, an employer locked out several delivery drivers
after a one-day strike. In re Dayton Newspapers, Inc., 339
NLRB 650, 650 (2003). Negotiations and the lockout
continued for months. But, on December 23, the union made
an unconditional offer to return to work. Id. at 651. Four
days later, the employer rejected the offer and
communicated that the union had to accept several “changed
circumstances,” including unspecified “operational
changes.” Id. The next day, the union agreed to the
“changed circumstances,” although it noted that the
“operational changes” condition may need further
negotiations. Id. More than a month later, on February 4,
the employer nonetheless rejected the union’s offer,
suggesting that the union hadn’t accepted all the conditions
of reinstatement. Id. at 652. The Board concluded that the
employer engaged in an unfair labor practice in not
reinstating the locked-out drivers because the employer
failed to “clearly and fully set forth” the conditions of
reinstatement. Id. at 656. In particular, the demand for
84 INT’L UNION OF OPERATING ENGINEERS V. NLRB
acceptance of “operational changes” was “unclear and
changing” and became a “moving target.” Id. Under these
conditions, the union couldn’t “intelligently evaluate its
position and obtain reinstatement.” Id.
The differences between Dayton Newspapers and this
case are glaring. First off, notice that the negotiations over
reinstating the drivers took place over weeks—not days or
hours, as here. The Board never criticized the employer for
taking too long to communicate its condition of
reinstatement—it criticized the employer for not being clear
on the conditions themselves. See id. at 656–58. In contrast,
the Board here held that Macy’s failure to communicate a
new offer by Monday morning—one business day later—
was an unfair labor practice. See Macy’s, Inc., 372 NLRB
No. 42, at 20. So the Board is punishing Macy’s for taking
a total of 48 hours more to communicate its newest offer to
end the lockout.
Indeed, Board precedent requires parties to afford each
other fair time to evaluate and respond to offers. In Alden
Leeds, the Board concluded that giving a union “only one
working day’s notice, in which to evaluate and understand
[employer’s] uncertain, ambiguous, and confusing offer,
vote on it and accept it, is clearly insufficient and not the
‘timely’ notice required by Board precedent.” 357 NLRB
84, 95 (2011). So the Board violates its own precedent to
reach its desired outcome. If that’s not arbitrary and
capricious, nothing is. We then just give the Board a blank
check to do what it wants in the labor context.
B.
As if it weren’t enough, the Board gives us one final
reason to deny the Board’s petition. Macy’s argues that it
had good-faith concerns about the Union’s actions during the
INT’L UNION OF OPERATING ENGINEERS V. NLRB 85
strike that justified a defensive lockout. According to
Macy’s, strikers orally abused its employees, attacked its
customers, flouted COVID safety protocols, caused a
sewage backup by blocking a drain outside its San Francisco
store, and sabotaged its facilities. It was especially
concerned about having the employees return to work given
the upcoming holiday season, which accounts for much of
the company’s profits. See Macy’s, Inc., 372 NLRB No. 42,
at 20. The Board rejected Macy’s defensive lockout
justification because it believed that the defensive lockout
concern was simply a pretext to pressure the Union to accept
the company’s offer. But that conclusion was arbitrary and
capricious and unsupported by the record.
To justify a defensive lockout, an employer need only be
“reasonably concerned” about the employees’ actions. See
Sociedad Espanola de Auxilio Mutuo y Beneficiencia, 342
NLRB 458, 462 (2004). This is a relatively low bar. While
we must defer to the Board’s factual findings if they are
supported by substantial evidence, we have a duty to correct
when the “administrative agency has made an error of law.”
NLRB v. Enter. Ass’n of Steam, Hot Water, Hydraulic
Sprinkler, Pneumatic Tube, Ice Mach. and Gen. Pipefitters
of N.Y., 429 U.S. 507, 522 n.9 (1977). Here, neither the ALJ
nor the Board cited the “reasonably concerned” standard and
only looked at whether Macy’s proved the incidents of
misconduct by Union members. But that’s not the legal
standard to justify a defensive lockout. All that’s necessary
is that Macy’s show that it was “reasonably concerned”
about the misconducted. Thus, we should have remanded on
this basis alone. See id.
Moreover, as Macy’s raised to the Board, the ALJ
glossed over all the evidence of Macy’s “good faith” belief
that the striking employees engaged in misconduct or
86 INT’L UNION OF OPERATING ENGINEERS V. NLRB
sabotage. Despite our deference to factual findings, the ALJ
and the Board can’t ignore significant evidence contrary to
its position. See Universal Camera Corp. v. NLRB, 340 U.S.
474, 488 (1951) (“The substantiality of evidence must take
into account whatever in the record fairly detracts from its
weight.”); Lakeland Health Care Assocs., LLC v. NLRB, 696
F.3d 1332, 1335 (11th Cir. 2012) (noting the Board “cannot
ignore relevant evidence that detracts from its findings”
(simplified)).
Neither the ALJ nor the Board considered the fact that,
before the lockout, Macy’s twice sought injunctive relief in
state court against the Union. On November 20, Macy’s
filed a motion for a preliminary injunction alleging causes of
action against the Union for nuisance, trespass, false
imprisonment, assault, battery, and intentional interference
with prospective economic relations. Before the lockout, the
state court denied the request without prejudice because
Macy’s had not yet proven irreparable harm. But the state
court did not appear to rule on the facts of Macy’s allegation.
By going to state court on the very same concerns as raised
for the defensive lockout, Macy’s showed it was “reasonably
concerned” with the Union members’ actions. Indeed, filing
for a false or bad-faith injunction would have subjected
Macy’s to judicial sanctions. Yet the ALJ and the Board
never said why this evidence wasn’t sufficient to prove
Macy’s defensive reasons. By not accounting for these
significant facts, the ALJ and the Board acted arbitrarily,
capriciously, and without support.
III.
Let’s recap the Board’s extraordinary actions here. After
a lengthy and acrimonious strike, the Union made an
unconditional offer to return to work—expecting to be
INT’L UNION OF OPERATING ENGINEERS V. NLRB 87
accommodated within one business day. On the next
workday, Macy’s responded that it was locking out the
striking employees in support of its bargaining position.
True, Macy’s didn’t have an offer on the table then, but that’s
not unexpected given that the Union had rejected its best and
final offer. In any case, Macy’s put together a new offer two
days later. Despite these efforts, the Board determined that
Macy’s committed an unfair labor practice. If this wasn’t
unusual enough, the Board then imposed extraordinary
damages—making Macy’s pay for “all direct or foreseeable
harms” that occurred to the employees since the lockout.
Until recently, the Board never claimed the authority to order
consequential damages as here. And the Board ignores the
obvious statutory and constitutional roadblocks to this newly
claimed authority. The majority largely ignores these
concerns and just proclaims that we must defer to the Board
because it is at the “zenith” of its discretion. That’s
incorrect. The law and the Constitution are supreme here—
not the bureaucrats of the Board. We should not have
condoned this government overreach.
I respectfully dissent.
88 INT’L UNION OF OPERATING ENGINEERS V. NLRB
R. NELSON, Circuit Judge, with whom CALLAHAN,
IKUTA, LEE, BUMATAY, and VANDYKE, Circuit
Judges, join, dissenting from the denial of rehearing en banc:
The panel majority erred in affirming the NLRB’s
unprecedented award of consequential Thryv damages,
which are unauthorized by statute and forbidden by the
Seventh Amendment. Their decision conflicts with every
other circuit court and judge to have considered this
question. Because these errors will have serious long-term
implications, we should have reheard this case en banc to
correct them. I respectfully dissent.
I
A
This case arose from a lengthy labor dispute between
Macy’s Inc. and the International Union of Operating
Engineers, Local 39 (Union), which represents some of
Macy’s engineers and craftsmen. Macy’s and the Union had
a collective bargaining agreement which covered sixty to
seventy employees. The most recent bargaining agreement
ended on August 31, 2020. After two months and twelve
bargaining sessions, Macy’s presented the Union with its
final offer on August 31. The Union rejected the offer and
went on a three-month strike accompanied by a picketing
offensive at Macy’s flagship San Francisco location.
The day before Thanksgiving, a month after the final
offer expired, the Union sent a new proposal. Macy’s
rejected this proposal on Friday, December 4. That same
afternoon, just before the close of business, the Union made
“an unconditional offer to return our members to work
immediately.” On Sunday, December 6, the Union refused
to give Macy’s an extension until Monday to reassess before
INT’L UNION OF OPERATING ENGINEERS V. NLRB 89
reinstating the employees. On Monday, Union members
showed up to work and were turned away (as Macy’s had
conveyed would happen). The parties agreed to meet three
days later, when Macy’s presented the Union with a new
offer. The parties negotiated but could not agree to terms.
Five years later, the Union members remain locked out.
The Administrative Law Judge (ALJ) found that Macy’s
committed an unfair business practice by locking out Union
members after the Union sent its Friday afternoon offer to
return to work and refused to wait until Monday for a
response. The ALJ ordered Macy’s to make the Union
members whole. Macys, Inc., 372 NLRB No. 42, at 23
(2023). Macy’s appealed the ALJ’s determination to the
National Labor Relations Board (NLRB).
The NLRB affirmed the ALJ’s decision on the merits but
rejected the ALJ’s remedy because it didn’t go far enough.
The Board “amended the make-whole remedy and modified
the judge’s recommended order to provide” consequential
damages called a Thryv remedy. Id. at 1 n.2. This remedy
extends to all foreseeable pecuniary harms of an unfair labor
practice, including, but not limited to, search-for-work
expenses, out-of-pocket medical expenses, credit card debt,
transportation, childcare costs, “other costs simply in order
to make ends meet,” and anything else the Board can think
of. Thryv, Inc., 372 NLRB No. 22, at 15 (2022), order
vacated in part, 102 F.4th 727 (5th Cir. 2024). So Macy’s
became liable for any inconvenience Union members faced
from being unemployed for five years and counting.
B
The panel majority affirmed the NLRB. Int’l Union of
Operating Eng’rs, Stationary Eng’rs, Loc. 39 v. NLRB, 127
90 INT’L UNION OF OPERATING ENGINEERS V. NLRB
F.4th 58, 68 (9th Cir. 2025); Amended Opinion at 9. 1 It
created a novel and legally dubious rule to uphold the merits
of the NLRB’s unfair labor practice finding. And it split
with the Third Circuit to uphold the Thryv remedy.
The panel majority acknowledged that to succeed on the
merits, the Union had to show that Macy’s actions were
“inherently destructive.” Am. Op. at 20 (discussing the
framework laid out in NLRB v. Great Dane Trailers, Inc.,
388 U.S. 26, 33–34 (1967)). But rather than apply that
framework, the majority adopted a per se rule that any
lockout unaccompanied by a concrete bargaining proposal is
inherently destructive. Id. at 21.
The panel majority also erred in its analysis of Thryv
remedies. Macy’s challenged the remedies on several
grounds, including that they were not statutorily authorized
and violated the Seventh Amendment right to a jury trial.
The majority held that the statutory and constitutional
challenges had not been administratively exhausted, and that
the constitutional challenge had been forfeited. See id. at 35
n.10. But the majority then addressed the merits of both
these issues, making incorrect legal conclusions on issues it
should not have reached.
The panel majority held that the NLRB was statutorily
authorized to grant Thryv remedies. 2 This conflicts with
1
After an en banc vote was requested, the panel majority amended its
opinion, filed concurrently with the Order Denying Rehearing En Banc.
2
The panel majority held that Macy’s “neither properly challenged
Thryv’s retroactivity or the Seventh Amendment’s application to this
case.” Am. Op. at 48. In a nearly identical posture, the Tenth Circuit
refused to address the merits of the same statutory challenge. See 3484,
Inc. v. NLRB, 137 F.4th 1093, 1115–16 (10th Cir. 2025) (finding
INT’L UNION OF OPERATING ENGINEERS V. NLRB 91
NLRB v. Starbucks Corp., 125 F.4th 78 (3d Cir. 2024). See
Am. Op. at 39 n.12. Unlike the Third Circuit, the panel
majority held that the NLRB’s order of compensation for
“foreseeable pecuniary harms incurred as a result of the
unlawful lockout” does not exceed the Board’s authority
under the National Labor Relations Act (NLRA). Id. at 46.
The panel majority also concluded that Thryv remedies
“vindicate[] a public right,” id. at 38, functionally deciding
the key Seventh Amendment issue that was forfeited. See
Stern v. Marshall, 564 U.S. 462, 488–89 (2011) (“[T]here
are matters, involving public rights, which may be presented
in such form that the judicial power is capable of acting on
them, and which are susceptible of judicial determination,
but which congress may or may not bring within the
cognizance of the courts of the United States” (quoting
Murray’s Lessee v. Hoboken Land & Improvement Co., 59
U.S. 272, 284 (1856)).
Judge Bumatay dissented. On the unfair labor practice
claim, he explained that the facts did not support an
inherently destructive finding, the cases the NLRB relied on
were materially distinguishable, and the NLRB ignored our
precedent in Fresh Fruit & Vegetable Workers Loc. 1096 v.
NLRB, 539 F.3d 1089, 1097 (9th Cir. 2008). Amended
Dissent at 80–84. He also highlighted that the majority
created a circuit split when it found Thryv remedies within
the NLRB’s statutory authority. Id. at 52–53. He posited
that these remedies are consequential damages, meaning
they constitute legal relief outside the Board’s remedial
challenge to Thryv remedy unexhausted and not addressing statutory
argument because “the Board ha[d] merely stated a general proposition”
when it ordered Thryv remedies and employer could later challenge “any
remedy ultimately imposed”).
92 INT’L UNION OF OPERATING ENGINEERS V. NLRB
discretion. Id. at 54–55. He noted that Thryv remedies
diverge from Supreme Court precedent interpreting nearly
identical statutory language addressing a remedial scheme
modeled after the NLRA. Id. at 65–66 (discussing United
States v. Burke, 504 U.S. 229, 237–40, 240 n.10 (1992)).
Judge Bumatay also explained that under SEC v. Jarkesy,
603 U.S. 109 (2024), Macy’s was entitled to a Seventh
Amendment jury trial because Thryv remedies are a punitive
or consequential legal remedy. Am. Dissent at 67–76. And
an unfair labor practice claim is closely related to the
common-law tort of wrongful termination. See Jarkesy, 603
U.S. at 125. Judge Bumatay also concluded that Thryv
remedies do not vindicate a public right. Am. Dissent at 61–
62.
II
The panel majority erred on three crucial questions.
First, the NLRB’s finding of unfair labor practices conflicts
with Supreme Court and circuit precedent. Moreover,
contrary to the panel majority’s conclusion, the NLRB’s
imposition of consequential Thryv damages is neither
authorized under the NLRA nor permissible under the
Seventh Amendment. Every Court of Appeals judge to
consider the Thryv remedies—other than the panel
majority—has reached the correct conclusion. We created a
circuit split for no reason.
A
The NLRB’s merits decision summarily affirming the
ALJ on the unfair labor practice claim conflicts with Great
Dane, 388 U.S. at 34, and our precedent in Fresh Fruit, 539
F.3d at 1097. The panel majority overlooked the case-by-
case assessment an inherently destructive finding requires.
INT’L UNION OF OPERATING ENGINEERS V. NLRB 93
See Fresh Fruit, 539 F.3d at 1097; see also Loc. 15, Int’l
Bhd. of Elec. Workers, AFL-CIO v. NLRB, 429 F.3d 651,
656–61 (7th Cir. 2005); Loc. 702, Int’l Bhd. of Elec.
Workers, AFL-CIO v. NLRB, 215 F.3d 11, 16–17 (D.C.
Cir. 2000); see also In re Dayton Newspapers, Inc., 339
NLRB 650, 664 (2003), aff’d in part, rev’d in part, Dayton
Newspapers, Inc. v. NLRB, 402 F.3d 651 (6th Cir. 2005).
Consider the facts. Macy’s offered a counterproposal three
workdays after an unexpected offer to return to work and two
days after announcing a lockout after a three-month strike.
This does not fit the “inherently destructive” standard. See
Am. Dissent at 77–78. The panel majority’s holding to the
contrary departs from that analysis and should have been
reversed en banc.
B
As to the remedies, the panel majority approved the
NLRB’s imposition of Thryv remedies to make the Union
members whole. Thryv remedies represent an extraordinary
power grab. The NLRA does not authorize the NLRB to
issue them, they conflict with the Seventh Amendment, and
no judge but those on the panel majority have blessed them.
1
“The powers of the Board as well as the restrictions upon
it must be drawn from § 10(c)” of the NLRA. Phelps Dodge
Corp. v. NLRB, 313 U.S. 177, 187–88 (1941). Section 10(c)
confines the NLRB’s remedial authority to “order[s]
requiring such person to cease and desist from such unfair
labor practice, and to take such affirmative action including
reinstatement of employees with or without back pay, as will
effectuate the policies of” the NLRA. 29 U.S.C. § 160(c).
The NLRB’s remedial discretion “is expressly limited by the
requirement that its orders ‘effectuate the policies’” of the
94 INT’L UNION OF OPERATING ENGINEERS V. NLRB
NLRA. Sure-Tan, Inc. v. NLRB, 467 U.S. 883, 900 (1984)
(quotation omitted). “Congress did not establish a general
scheme authorizing the Board to award full compensatory
damages for injuries caused by wrongful conduct.” UAW v.
Russell, 356 U.S. 634, 643 (1958).
The NLRB lacks discretion to impose a remedy that
“veers from remedial to punitive.” 3484, Inc. v. NLRB, 137
F.4th 1093, 1122 (10th Cir. 2025) (Eid, J., concurring in part
and dissenting in part) (quotation omitted). Even back pay—
relief directly authorized by the NLRA—must be
“sufficiently tailored to expunge only the actual, and not
merely the speculative, consequences of the unfair labor
practice.” Sure-Tan, 467 U.S. at 900. Remedies may only
compensate employees for “actual losses.” Phelps Dodge,
313 U.S. at 198.
And the Board’s remedial authority is confined to
equitable, not legal relief. Section 10(c) authorizes only two
forms of relief: (1) orders to “cease and desist” unfair labor
practices and (2) “affirmative action including reinstatement
of employees with or without back pay.” 29 U.S.C. § 160(c).
Cease and desist authority and the authority to order
affirmative action sound in equity (as shown by the
examples of reinstatement and reinstatement with back pay).
“[T]he right to restore to a man employment which was
wrongfully denied [to] him” is a form of “equitable relief.”
Phelps Dodge, 313 U.S. at 188. And backpay is also “an
equitable remedy, a form of restitution.” Curtis v. Loether,
415 U.S. 189, 197 (1974); see also NLRB v. Jones &
Laughlin Steel Corp., 301 U.S. 1, 48 (1937) (“[P]ayment of
wages for the time lost by the discharge . . . is an incident to
equitable relief”).
INT’L UNION OF OPERATING ENGINEERS V. NLRB 95
Section 10(c)’s remedies are all equitable in nature. That
the NLRA “‘empowers the Board to order entities to cease
and desist and to take affirmative action’—without
authorizing any other type of remedy—indicates that the
statute only grants the Board the authority to order equitable
remedies.” 3484, 137 F.4th at 1122 (Eid, J., concurring in
part and dissenting in part) (cleaned up).
Until recently, the NLRB respected these boundaries.
The NLRB held that it “does not award tort remedies,” and
that “[a]ny recompense awarded a discriminatee is not for [ ]
injuries suffered, but rather a necessary remedy to vindicate
the purposes of the Act.” Freeman Decorating Co., 288
NLRB No. 139, at 1 n.2 (1988). And where it granted
monetary relief exceeding back pay, that relief was “closely
tied to the equitable remedy of backpay” and was thus
distinct from consequential or compensatory relief.
Starbucks, 125 F.4th at 96 (collecting examples of monetary
relief that “fell under the umbrella of a backpay award”).
These too were therefore “an incident to equitable relief.”
Jones & Laughlin, 301 U.S. at 48; see Russell, 356 U.S. at
645 (back pay “may incident[al]ly provide some
compensatory relief” but does not “constitute an exclusive
pattern of money damages for private injuries”). Thus, for
decades, the NLRB only ordered equitable relief and
monetary relief intertwined with back pay, not foreseeable
consequential damages more appropriate in tort actions.
Things abruptly changed in 2022. See generally Thryv,
372 NLRB No. 22. In Thryv, the NLRB granted itself the
power to issue compensatory or consequential damages. 3
3
Implicitly recognizing that this is beyond its authority, the NLRB in
Thryv goes to great lengths to deny that this is what it is doing. 372
96 INT’L UNION OF OPERATING ENGINEERS V. NLRB
According to the NLRB, it is the Board’s obligation to make
sure employees are “fully compensated” for “pecuniary
harms” that were “direct or foreseeable consequences of [an]
unfair labor practice.” Id. at 15. From now on, “in all cases
in which [its] standard remedy would include an order for
make-whole relief, the Board will expressly order that the
respondent compensate affected employees for all direct or
foreseeable pecuniary harms suffered as a result of the
respondent’s unfair labor practice.” Id. at 9 (emphasis in
original).
The only limit to what falls under the NLRB’s
description is its imagination. The NLRB declined to
“enumerate all the pecuniary harms that may be considered
direct or foreseeable.” Id. at 20. But these could extend to
“significant financial costs, such as out-of-pocket medical
expenses, credit card debt, or other costs simply in order to
make ends meet.” Id. at 15. So too “penalties” for “early
withdrawals from [a] retirement account,” “loan or mortgage
payments,” and “transportation or childcare costs.” Id. And
“[t]he Board’s General Counsel added even more costs to the
list: unreimbursed tuition payments, job search costs, day
care costs, specialty tool costs, utility
disconnection/reconnection fees, relocation/moving costs,
legal representation costs in eviction proceedings, and
NLRB No. 22, at 13–14 (distinguishing “foreseeable damages” from
“consequential damages” because the latter is a “term of art.”). But
calling a Thryv remedy “foreseeable damages” “doesn’t change its legal
nature—it’s still consequential damages no matter how it’s spun.” Am.
Dissent at 58–59. And the Union recognized the NLRB’s remedy for
what it was, arguing below that “[t]he remedy should require the
payment of consequential damages for all the employees who were
locked out.” (emphasis added).
INT’L UNION OF OPERATING ENGINEERS V. NLRB 97
expenses resulting from a change in immigration status.”
Am. Dissent at 57–58 (citation omitted).
Thryv remedies are not business as usual at the NLRB.
Even the Union admits that Thryv is “one of the most
controversial decisions of the Biden Board.” The NLRB
itself was split on the issue. Two Board members dissented
when the Board sanctioned Thryv remedies. They correctly
explained that Thryv remedies “would permit recovery for
any losses indirectly caused by an unfair labor practice,
regardless of how long the chain of causation may stretch
from unfair labor practice to loss, whenever the loss is found
to be foreseeable.” Thryv, 372 NLRB No. 22, at 25 (Kaplan
& Ring, concurring in part and dissenting in part). Doing so,
the dissenters noted, “opens the door to awards of
speculative damages that go beyond the Board’s remedial
authority.” Id.
Thryv remedies are legal, not equitable. They are money
damages, “the prototypical common law remedy.” Jarkesy,
603 U.S. at 123; Am. Dissent at 71 (explaining how Thryv
remedies are punitive damages). While some equitable
remedies—restitution, disgorgement, and back pay—require
money to change hands, Thryv damages are uniquely legal.
See, e.g., Starbucks, 125 F.4th at 96 (discussing Virginia
Elec. & Power Co. v. NLRB, 319 U.S. 533, 540–41 (1943)).
Thryv damages measure “what has the owner lost, not what
has the taker gained.” City of Monterey v. Del Monte Dunes
at Monterey, Ltd., 526 U.S. 687, 710 (1999) (quotation
omitted) (distinguishing money damages at law from
“equitable restitution and other monetary remedies available
in equity”). Thryv remedies thus fall outside the NLRB’s
statutory authority. See Starbucks, 125 F.4th at 94.
98 INT’L UNION OF OPERATING ENGINEERS V. NLRB
The panel majority, by affirming Thyrv remedies, allows
the NLRB to award quintessential tort remedies. See
Damages, Black’s Law Dictionary (12th ed. 2024) (defining
“common-law damages” as “[a] court-ordered monetary
award intended to return an injured party, as nearly as
possible, to the position that party occupied before suffering
harm”). Worse, as the dissenting NLRB members warned,
Thryv remedies “go well beyond tort law” because they are
not limited by proximate cause—just foreseeability. Thryv,
372 NLRB No. 22, at 27. Through Thryv remedies, the
NLRB has granted itself power greater than courts of law,
effectively adjudicating private disputes, despite the
statutory restrictions on its authority to do so.
2
Basic principles of statutory interpretation show that
Thryv remedies exceed the NLRB’s statutory authority.
Thryv remedies make little textual sense. The purported
textual hook for Thryv’s wide-ranging consequential
damages is § 160(c), which allows the NLRB to order “such
affirmative action including reinstatement of employees
with or without back pay.” 29 U.S.C. § 160(c). But “back
pay” means pay unpaid but due. Am. Dissent at 63 (citing
dictionary defining “back pay” at or near passage of the
NLRA). The text does not support the NLRB’s assertion
that it can order consequential damages.
And through the Taft-Hartley amendments, Congress
made clear that the monetary remuneration available was
limited to back pay, and not consequential damages. See
Labor Management Relations Act of 1947, Pub. L. No. 80-
101, 101, 61 Stat. 136, 147. After the amendment, § 160(c)
reads, “No order of the Board shall require the reinstatement
of any individual as an employee who has been suspended
INT’L UNION OF OPERATING ENGINEERS V. NLRB 99
or discharged, or the payment to him of any back pay, if such
individual was suspended or discharged for cause.” § 160(c)
(emphasis added). Under the panel majority’s reading, such
an employee could still receive consequential damages,
which were lurking in the background as an available
remedy until Thryv brought them out of the shadows. That
is an atextual and absurd result.
Congress did not give the NLRB such expansive
remedial power. Congress knows how to grant agencies the
power to impose legal remedies. See 42 U.S.C. § 3613(c)(1)
(allowing courts to award “actual and punitive damages” for
Fair Housing Act violations); 29 U.S.C.
§ 2617(a)(1)(A)(i)(II) (in some cases, allowing recovery for
“any actual monetary losses sustained by the employee as a
direct result of” a Family and Medical Leave Act violation,
including “the cost of providing care”); see also Burke, 504
U.S. at 240 (comparing remedial schemes under Title VII
and other acts to understand scope of remedy). And it
declined to grant the NLRB this power.
Finally, Supreme Court precedent raises serious doubts
about the legitimacy of Thryv remedies. In Burke, the
Supreme Court addressed Title VII’s nearly identical
language, which empowered a court to “order such
affirmative action as may be appropriate, which may
include, but is not limited to, reinstatement or hiring of
employees, with or without back pay.” 504 U.S. at 238
(quoting 42 U.S.C. § 2000e-5(g)(1)). The Court noted that
Title VII’s “remedial scheme was expressly modeled on the
backpay provision of the National Labor Relations Act.” Id.
at 240 n.10. Despite this scheme also having a “make
whole” function, like the NLRA, Albemarle Paper Co. v.
Moody, 422 U.S. 405, 419–20 (1975), the Court found that
Title VII’s remedial provision did not “recompense Title VII
100 INT’L UNION OF OPERATING ENGINEERS V. NLRB
plaintiffs for anything beyond the wages properly due [to]
them,” including for “any of the other traditional harms
associated with personal injury, such as pain and suffering,
emotional distress, harm to reputation, or other
consequential damages (e.g., a ruined credit rating),” Burke,
504 U.S. at 239–41.
The panel majority ignores what Burke represents—that
the Supreme Court has construed nearly identical language
to bar relief analogous to Thryv remedies. Under Burke,
Title VII and the NLRA do not support consequential
(personalized) damages, such as “a ruined credit rating.” Id.
at 239. The panel majority posits that both Title VII and the
NLRA allow for “make whole” relief. Am. Op. at 43–45
(quoting Bowe v. Colgate-Palmolive Co., 416 F.2d 711, 720
(7th Cir. 1969)). But just as in Title VII, the NLRA must be
construed to be limited to “backpay awards and injunctive
relief, to the wage and employment positions they would
have occupied absent the unlawful” actions. Burke, 504 U.S.
at 239.
And Thryv remedies have not fared well in the circuit
courts. The Fifth Circuit vacated and remanded Thryv itself.
102 F.4th at 737. The Fifth Circuit disagreed with Thryv on
the merits, so it didn’t address the remedy. Id. But it
described the remedy as “a novel, consequential-damages-
like labor law remedy.” Id.
The Tenth Circuit concluded similarly. See 3484, 137
F.4th 1093. While the Tenth Circuit found that an
employer’s challenge to the Thryv remedy was not
administratively exhausted, one judge addressed the remedy.
See id. at 1121–27 (Eid, J., concurring in part and dissenting
in part). In her view, the Thryv remedy “exceeds the Board’s
statutory authority under the NLRA” for many reasons,
INT’L UNION OF OPERATING ENGINEERS V. NLRB 101
including that the remedies “look[] like something out of a
torts treatise” and “fit[] squarely within the bedrock
definition of compensatory and consequential damages.” Id.
at 1125–27.
In Starbucks, the Third Circuit held that the NLRB’s
ordering of compensation for “foreseeable pecuniary harms
incurred as a result of the unlawful adverse actions . . .
exceeds the Board’s authority under the NLRA.” 125 F.4th
at 94. On the other hand, the panel majority holds that the
NLRB’s ordering of compensation for “foreseeable
pecuniary harms incurred as a result of the unlawful lockout”
does not exceed the Board’s authority under the NLRA. Am.
Op. at 46. The panel majority’s holding creates a circuit split
with the Third Circuit.
The panel majority downplays the split, suggesting that
any make-whole relief must be equitable in nature. Id. at 39
n.12. But it misses the mark as to the key difference causing
the circuit split—whether compensation for foreseeable
pecuniary harm is equitable. The Third Circuit, posed with
the same question, correctly held that compensation for
foreseeable pecuniary harm was not equitable. Starbucks,
125 F.4th at 97. The majority incorrectly held that it was.
Am. Op. at 38–42.
Every circuit judge—other than the panel majority—to
address the NLRB’s authority to impose Thryv remedies has
suggested or held that such remedies are beyond the NLRB’s
statutory authority. See Am. Op. at 48 (panel majority
admitting that “the partial dissent raises potentially
significant points about the scope of make-whole relief
under Thryv”). Thryv remedies are legal damages outside
the scope of the NLRB’s statutory authority. See Starbucks,
125 F.4th at 94; 3484, 137 F.4th at 1127 (Eid, J., concurring
102 INT’L UNION OF OPERATING ENGINEERS V. NLRB
in part and dissenting in part) (finding Thryv remedies
outside scope of the NLRA “avoids the many untold
constitutional concerns”).
We should have reheard this case en banc and followed
the Third Circuit’s holding that the NLRB is not authorized
to order compensation for foreseeable pecuniary harm
untethered from the equitable relief of backpay. Instead, we
are left with an opinion unsupported by the text of the
NLRA.
C
Thryv and the panel majority also run roughshod over
Macy’s Seventh Amendment rights. If there was any doubt
regarding the scope of the NLRB’s remedial authority, the
NLRA should be construed to avoid constitutional infirmity.
The panel majority’s authorization of Thryv remedies raises
serious constitutional concerns.
Under the Seventh Amendment, “the right of trial by jury
shall be preserved” “[i]n Suits at common law.” U.S. Const.
amend. VII. Jarkesy governs how we analyze the Seventh
Amendment’s command. 603 U.S. at 121–27. In Jarkesy,
the Court held that the right to a jury trial applies to all suits
“which are not of equity or admiralty jurisdiction, whatever
may be the peculiar form which they may assume.” Id. at
122 (quotation omitted). If an action is legal in nature, the
Seventh Amendment applies. There’s one exception: if the
claim vindicates a “public right.” Id. at 120.
To determine whether the suit is legal in nature, we
consider both “the cause of action and the remedy it
provides.” Id. at 123. The remedy is “the ‘more important’
consideration.” Id. (quoting Tull v. United States, 481
U.S. 412, 421 (1987)). Whether a claim “is statutory in
INT’L UNION OF OPERATING ENGINEERS V. NLRB 103
nature is immaterial to this analysis.” Id. at 122 (citing Tull,
481 U.S. at 414–15). As shown above, Thryv remedies are
legal in nature. See supra § II.B.1. They are consequential
money damages and the Seventh Amendment guarantees
Macy’s the right to a jury trial before they may be awarded.
“The close relationship between” an unfair labor practice
and common law causes of action “confirm[]” that suits for
Thyrv remedies are suits at common law for purposes of the
Seventh Amendment. Jarkesy, 603 U.S. at 125. The nature
of the remedy is independently sufficient to implicate the
Seventh Amendment. See id. at 123 (nature of remedy “the
‘more important’ consideration” and “all but dispositive”
(quotation omitted)). But four things about unfair labor
practice claims establish that this remedy is quintessentially
legal: (1) California recognizes “a tort cause of action for
wrongful terminations that violate public policy,”
(2) wrongful termination is itself a tort with “a historical
pedigree tracing back to the English common law,” (3) “the
individualized assessments necessary to prove the
foreseeable harm for each employee” reflect the tortious
nature of the claim, and (4) wrongful termination and the
NLRB’s jurisdiction “so overlap[] . . . that it may preempt
federal or state tort actions.” Am. Dissent at 72–73
(quotations omitted). Thus, unless the public rights
exception applies, the panel majority’s Thryv remedy
violates the Seventh Amendment.
And the public rights exception does not apply. Under
Jarkesy, the public rights exception is just that—an
exception. See 603 U.S. at 131. Courts must pay “close
attention to the basis for each asserted application of the
doctrine,” otherwise “the exception would swallow the
rule.” Id. In fact, “even with respect to matters that arguably
fall within the scope of the ‘public rights’ doctrine, the
104 INT’L UNION OF OPERATING ENGINEERS V. NLRB
presumption is in favor of Article III courts.” Id. at 132
(cleaned up and quotation omitted).
Nor does the NLRB’s newfound power to levy
consequential damages against individuals reflect any of the
reasons why the Court found the public rights exception
implicated in the past. Id. at 128–32 (discussing the reasons
for past public rights exceptions). Those reasons included
“unbroken tradition—long predating the founding,”
Congress’s “plenary power over immigration,” and areas of
law where “political branches had traditionally held
exclusive power.” Id. at 128–30 (citing Murray’s Lessee v.
Hoboken Land & Improvement Co., 59 U.S. 272 (1856),
Oceanic Steam Navigation Co. v. Stranahan, 214 U.S. 320
(1909), and Ex parte Bakelite Corp., 279 U.S. 438 (1929)).
Add to these “other historic categories of adjudications [that]
fall within the exception, including relations with Indian
tribes, the administration of public lands, and the granting of
public benefits such as payments to veterans, pensions, and
patent rights.” Id. at 130 (citations omitted). The political
branches have never held exclusive control over the
adjudication of legal disputes. The panel majority’s Thryv
damages holding thus contravenes Jarkesy because these
damages do not vindicate a public right.
Jarkesy confirms that a private right is implicated here.
Jarkesy deemed it enough that the matter was “from [its]
nature subject to ‘a suit at common law’” and that the suits
were not “inseparable” from the relevant statutory regime.
Id. at 133–34 (quotation omitted).
The same is true of the consequential damages that the
panel majority blessed. As discussed, both the cause of
action and remedy echo the common law. And the remedy
allocates the cost of an allegedly wrongful act from the
INT’L UNION OF OPERATING ENGINEERS V. NLRB 105
individual employees to Macy’s, making the employees
“whole.” Thryv remedies, like the make-whole relief
approved by the panel majority, fall outside the exception.
That the remedy is severable from the merits proceeding
emphasizes this conclusion. Determining whether one’s
personal pecuniary harms were foreseeable consequences of
a defendant’s actions and remedying those harms is
historically rooted in law, not equity. See Hadley v.
Baxendale, 9 Exch. 341, 156 Eng. Rep. 145 (1854)
(assessing foreseeability of damages for failing to deliver
crank shaft to mill per contract); see also Thryv, 372 NLRB
No. 22, at 27 (Kaplan & Ring, concurring in part and
dissenting in part) (“‘[F]oreseeability’ is a central element of
tort law” and “[a]ny attempt to address tort claims in a Board
proceeding obviously runs headlong into the Seventh
Amendment’s guarantee of the right to have such claims
tried before a jury.”). This remedy is “made of ‘the stuff of
the traditional actions at common law tried by the courts at
Westminster.’” Jarkesy, 603 U.S. at 128 (quotation
omitted).
The panel majority did not need to reach this merits
decision. On the one hand, they claim that because Macy’s
forfeited its Seventh Amendment claim, they decline “to
entertain this argument.” Am. Op. at 35 n.10. But on the
other, they hold that Thryv remedies “vindicate[] a public
right,” id. at 38, which necessarily implicates the merits of
the Seventh Amendment argument. It is infirm to decide the
merits of a forfeited argument and then decide the merits
wrongly.
Nor are the NLRB’s remedial proceedings inseparable
from the NLRA’s regulatory scheme. The compliance
hearings over damages, Thryv, 372 NLRB No. 22, at 18, are
neither “highly interdependent” nor “require coordination”
106 INT’L UNION OF OPERATING ENGINEERS V. NLRB
with the merits proceeding, Jarkesy, 603 U.S. at 133.
Liability for unfair labor practices can be found in one
proceeding. Employers can “challenge . . . direct or
foreseeable damages” and employees can “submit evidence
to substantiate pecuniary harms for which they seek
reimbursement” in “the compliance hearing.” Thryv, 372
NLRB No. 22, at 18. The NLRB already splits merits and
compliance proceedings, and the Seventh Amendment
requires that Macy’s have the option of trying the latter
before a jury.
The panel majority deprives Macy’s of its Seventh
Amendment right to a jury trial. It found that any pecuniary
damages seeking to make employees whole are an “incident”
to equitable relief and therefore outside the scope of the
Seventh Amendment. Am. Op. at 37 n.11 (quoting Jones &
Laughlin, 301 U.S. at 48). By blessing the NLRB’s actions,
the panel majority undermines a right our Founders
considered “the very palladium of free government.” THE
FEDERALIST No. 83 (Alexander Hamilton).
Jones & Laughlin cannot bear the weight the panel
majority placed on it. See Am. Dissent at 75–76. There, the
Court addressed an employer’s challenge to an NLRB order
requiring reinstatement and back pay—a remedy directly
authorized by the statute. That back pay was “incident to
equitable relief[.]” Jones & Laughlin, 301 U.S. at 48. The
Court has since emphasized the equitable nature of back pay,
supra § II.B.1; see also Albemarle Paper, 422 U.S. at 416–
17 (“district courts enjoy[] the ‘historic power of equity’ to
award lost wages” under Fair Labor Standards Act
(quotation omitted)). The panel majority erroneously
extended Jones & Laughlin and held that any pecuniary
renumeration the NLRB orders is outside the Seventh
Amendment if aimed to make an employee whole.
INT’L UNION OF OPERATING ENGINEERS V. NLRB 107
Under Jarkesy, the panel majority’s approval of a broad
exemption from the Seventh Amendment cannot stand. The
remedial proceedings are highly individualized and can
sensibly proceed separately without depriving Macy’s of its
Seventh Amendment rights and without threatening the
statutory framework within which the NLRB operates.
Thryv remedies do not vindicate a public right; the panel
majority wrongfully denied Macy’s its Seventh Amendment
right to a jury.
III
The majority opinion is wrong. It has created an
unnecessary circuit split by blessing the NLRB with
unprecedented power beyond its statutory authority. It also
undermines the Seventh Amendment right to a jury. The
jury trial is “the glory of the English Law” and “every
encroachment upon it” should be “watched with great
jealousy.” Jarkesy, 603 U.S. at 121–22 (quotations omitted).
Because I refuse to condone such an encroachment, I
respectfully dissent.
Plain English Summary
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT INTERNATIONAL UNION OF No.
Key Points
01FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT INTERNATIONAL UNION OF No.
02STATIONARY ENGINEERS, 20-CA-270047 LOCAL 39, ORDER AND Petitioner, AMENDED v.
03OPINION NATIONAL LABOR RELATIONS BOARD, Respondent, ---------------------------------------- MACY’S INC., Intervenor.
04NATIONAL LABOR RELATIONS BOARD, 2 INT’L UNION OF OPERATING ENGINEERS V.
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FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT INTERNATIONAL UNION OF No.
FlawCheck shows no negative treatment for National Labor Relations Board v. MacY's Inc. in the current circuit citation data.
This case was decided on October 21, 2025.
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