Home/Case Law/Ninth Circuit/National Labor Relations Board v. North Mountain Foothills Apartments, LLC
FlawCheck Citator
Check how courts have cited this case. Use our free citator for the most current treatment.
No. 10712460
United States Court of Appeals for the Ninth Circuit
National Labor Relations Board v. North Mountain Foothills Apartments, LLC
No. 10712460 · Decided October 28, 2025
No. 10712460·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 28, 2025
Citation
No. 10712460
Disposition
See opinion text.
Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
NATIONAL LABOR RELATIONS No. 24-2223
BOARD
National Labor
Relations Board
Petitioner,
v. NLRB No.
28-CA-286885
NORTH MOUNTAIN FOOTHILLS
OPINION
APARTMENTS,
Respondent.
On Petition for Application for Enforcement of an Order of
the National Labor Relations Board
Argued and Submitted July 11, 2025
San Francisco, CA
Filed October 28, 2025
Before: Holly A. Thomas and Ana de Alba, Circuit Judges,
and Jed S. Rakoff, District Judge. *
Opinion by Judge Rakoff
*
The Honorable Jed S. Rakoff, United States District Judge for the
Southern District of New York, sitting by designation.
2 NLRB V. N. MOUNTAIN FOODHILLS APARTMENTS, LLC
SUMMARY **
Labor Law
The panel granted an application by the National Labor
Relations Board (“NLRB”) for enforcement of its order
finding that North American Foothills Apartments
(“NMFA”) violated Section 8(a)(1) of the National Labor
Relations Act.
The panel held that it had jurisdiction to adjudicate
NMFA’s unexhausted constitutional challenges to the
NLRB, which it did not raise before the NLRB.
First, NMFA challenged a statutory provision—
providing that an administrative law judge (“ALJ”) could be
removed “only for just cause,” as determined by the Merit
Systems Protection Board—on the ground that the provision
violates Article II, which it argued vests the sole removal
power over agency “officers” (such as the ALJ who initially
rendered the order appealed from here) in the President. The
President never sought to remove the ALJ who issued the
order here. The panel held that so long as an agency officer
was validly appointed (which NMFA did not contest as to
this ALJ), retrospective relief based on an unconstitutional
removal provision is available only where the provision
inflicts compensable harm. The panel held that even if it
assumed arguendo that the NLRB’s for-cause protections
were invalid, NMFA’s failure to show harm precluded
retrospective relief.
**
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
NLRB V. N. MOUNTAIN FOOTHILLS APARTMENTS, LLC 3
Second, NMFA argued that the NLRB’s adjudication
scheme violated the Seventh Amendment by denying
employers the right to a jury trial. The Supreme Court has
squarely held that an NLRB unfair practice proceeding is not
a “suit at common law” for purposes of the Seventh
Amendment. The panel held that employers are not entitled
to jury trials in cases involving Thryv v., Inc. v. International
Brotherhood of Electrical Workers, Local 1269, 372 NLRB
No. 22 (2022), remedies. Accordingly, the panel concluded
that the Seventh Amendment was not implicated.
Third, NMFA argued that the combined investigatory
and adjudicatory functions of the NLRB were inconsistent
with separation of power principles such that the NLRB’s
decision violated NMFA’s Fifth Amendment right to due
process. The panel held that the combination of
investigative and judicial functions within an agency does
not, of itself, violate due process. NMFA did not argue that
the NLRB confers both investigative and adjudicatory
powers on a single individual within the agency, nor could
it. NMFA also failed to demonstrate that either the NLRB’s
ALJs or its Board members had an unconstitutional potential
for bias, such that the presumption of honesty and integrity
should not apply to them. Accordingly, the panel rejected
NMFA’s due process challenge.
Turning to the merits, the panel held that NMFA had
forfeited three of the NLRB’s four findings that NMFA
violated Section 8(a)(1) of the National Labor Relations
Act.
As to the NLRB’s finding that NMFA discharged an
employee for engaging in actual or perceived concerted
activities, the panel applied the test set forth in Wright Line,
251 NLRB 1083 (1980), and concluded that the NLRB’s
4 NLRB V. N. MOUNTAIN FOODHILLS APARTMENTS, LLC
finding that NMFA violated Section 8(a)(1) by discharging
the employee for engaging in actual or perceived protected
activities was supported by substantial evidence.
COUNSEL
Kent J. Coupe (argued), Attorney; Amy H. Ginn,
Supervising Attorney; David Habenstreit, Assistant General
Counsel; Ruth E. Burdick, Deputy Associate General
Counsel; Peter S. Ohr, Deputy General Counsel; Jennifer A.
Abruzzo, General Counsel; National Labor Relations Board,
Washington, D.C.; for Petitioner.
Jeffrey W. Toppel (argued), Bianchi & Brandt, Scottsdale,
Arizona; Edmundo P. Robaina, Yen Pilch Robaina & Kresin
PLC, Phoenix, Arizona; for Respondent.
Maneesh Sharma and Matthew Ginsburg, AFL-CIO,
Washington, D.C., for Amicus Curiae American Federation
of Labor-Congress of Industrial Organizations.
NLRB V. N. MOUNTAIN FOOTHILLS APARTMENTS, LLC 5
OPINION
RAKOFF, District Judge:
Respondent North Mountain Foothills Apartments
(“NMFA”) appeals the finding by the National Labor
Relations Board (“NLRB”) that NMFA violated Section
8(a)(1) of the National Labor Relations Act (“NLRA” or
“the Act”). For the first time on appeal, NMFA raises
multiple constitutional challenges to the NLRB’s functions
and structure, including challenges to the NLRB’s for-cause
removal protections, adjudication scheme, and combined
investigatory and adjudicatory powers. NMFA also
challenges the NLRB’s decision on the merits. For the
reasons explained below, we reject these arguments and
grant the NLRB’s application for enforcement.
I.
Carrie Matteson and Michael Gareau own NMFA, which
rents and manages apartments, including the 194-unit North
Mountain Foothills Apartment Complex (“the Complex”) in
Phoenix, Arizona. During the period giving rise to this
litigation, Matteson served as NMFA’s operations manager,
Noemi Soto served as the property manager, and Lisa
Stearns served as the assistant property manager. Together,
Matteson, Soto, and Stearns supervised various maintenance
technicians, including James Cosgrove, Jose Diaz, Dwayne
Mims, Joe Scott, Tyler Spence, and “Cassidy.” 1
During the summer of 2021, Phoenix suffered a
heatwave. Due to an outdated HVAC system, the Complex
experienced a significant increase in the number of work
1
As the Board explains in its decision, Cassidy’s last name is unknown.
6 NLRB V. N. MOUNTAIN FOODHILLS APARTMENTS, LLC
orders, leading NMFA to advertise for an “Apartment
Maintenance Technician/General Laborer/Handyman.”
Jasper Press applied for the position. Matteson was
impressed by his experience working with HVAC systems
and offered him the job. She then emailed him to inform him
that he would be paid $25 per hour and receive access to a
three-bedroom apartment in the Complex in lieu of a bonus.
In the email, she stated that the apartment was “a monthly
$1500 investment from the company,” so NMFA “would be
looking for high performance, reliable/dependable/quality
work and skills that contribute to increased [return on
investment] over the course of the year.”
On August 10, Press began working at the Complex.
That day, he was assigned to complete a work order with
Diaz. While he and Diaz were working on the order, Press
mentioned to Diaz that there was a large backlog of work
orders, but that the “challenge” was “worth it because [he]
was being paid $25 an hour” and “had a $1,500 [monthly]
housing subsidy.” Press also commented on the “dilapidated
condition” of the Complex, including the “infestation of
cockroaches” and “constant leaks from aging equipment.”
While Press and Diaz completed the work order, the tenant
who had placed the order informed them that she had already
had to move from a different unit in the Complex due to
cockroaches. Press responded that NMFA would “work on
correcting the issue.” Later that same day, Press was
working with Cassidy on a different assignment and
similarly told her that he was up to the “challenge” of
completing the numerous work orders because of his hourly
wage and housing subsidy. He also told Cassidy that he
thought the Complex was in “poor condition,” which “made
working there difficult.”
NLRB V. N. MOUNTAIN FOOTHILLS APARTMENTS, LLC 7
Press also discussed his hourly rate and housing subsidy
with two additional workers, Scott and Cosgrove. Cosgrove
proceeded to tell Mims that Press had mentioned his
compensation package, which Mims later reported to Soto.
Although NMFA did not have a policy that prohibited
workers from discussing their wages, Mims believed that
Press should not have been discussing his compensation with
others. On Press’s second day of work, August 11, Diaz,
Mims, and Scott had to complete work orders that were
originally assigned to Press. Diaz then told Soto that Press
had failed to complete his assignments that day.
On the morning of August 12, Matteson approached
Press by the mailboxes outside the Complex’s leasing office.
According to Press, Matteson appeared “upset” because she
was “talking faster than normal” and her voice was “higher
than normal.” Matteson asked Press whether he knew
anything about why the other workers knew how much he
was earning. Press falsely said that he did not know how the
other workers learned this information, but that it was
possible that someone had overheard him talking to his wife
on the phone. Matteson told Press that they would have
another discussion about the issue and walked away.
A few hours later, Press met with Matteson and Soto for
a closed-door meeting, which he secretly recorded. Matteson
began the meeting by telling Press that she had heard that
other employees knew about his hourly rate and housing
benefit. Over the course of the conversation, she stated that
this was making her “life really tough,” that it had become
“just this red-hot issue,” that Press had created a “crisis
situation,” that she now had a “hornets’ nest to deal with,”
and that she had to “figure out damage control on [her] end.”
She stated that she had heard that Press did not want to live
in the Complex because of pests, which Press dismissed as
8 NLRB V. N. MOUNTAIN FOODHILLS APARTMENTS, LLC
an exaggeration. Matteson told Press that “this [was] a really
bad kick-off” and that she was not sure that their working
relationship could be fixed because the “trust and
confidentiality” had “already [been] chiseled away at.”
When Press stated that he was “very sorry that everybody
[knew] how much [he was] being paid,” Matteson
responded, “So am I.” Matteson then forbade Press from
discussing pest control issues with residents and stated that
“[his] work conditions [were] nobody’s business but [his]
except for that now everyone [was] aware of them.” Finally,
Matteson stated that although camaraderie was an important
part of the job, “this whole situation [had] not built
camaraderie at all.” When Press asked Matteson whether
“[t]his situation” referred to the other workers “knowing
[his] wage,” Soto responded, “[a]nd [your] housing and all
that other stuff,” and indicated that Press’s discussions with
the other workers had “backfired, really bad.”
On August 13, Press’s fourth day at NMFA, Press
worked his entire shift without incident. That evening, after
close of business, Soto called Press and informed him that
he was being discharged for failing to complete his work
orders. After Press disputed that he had not completed his
work orders, the conversation ended.
II.
Based on the foregoing facts, Press filed a complaint
with his regional office of the NLRB alleging that NMFA
had engaged in unfair labor practices. After an evidentiary
hearing before an administrative law judge (“ALJ”), the
NLRB found that NMFA had violated Section 8(a)(1) of the
NLRA by (1) interrogating Press about his discussions about
his compensation with other workers at the Complex,
(2) “orally promulgat[ing] an overly broad and
NLRB V. N. MOUNTAIN FOOTHILLS APARTMENTS, LLC 9
discriminatory directive prohibiting [Press] from
discussing” his compensation with other workers at the
Complex and “prohibiting him [from] discussing pest
control issues with third parties,” (3) “threaten[ing] [Press]
with unspecified reprisals if he continued to engage in
protected activities,” and (4) “discharg[ing] Press for
engaging in actual or perceived protected activities.”
Based on those findings, the NLRB, by order dated
February 21, 2024, ordered NMFA to cease and desist from
engaging in all four violations with respect to Press and from
“interfering with, restraining, or coercing” other employees
in their “exercise of the rights guaranteed them by [the
NLRA]” in any similar or related manner. The order also
required NMFA to offer to reinstate Press within fourteen
days, make Press whole for any loss of earnings or benefits,
compensate Press for any adverse tax consequences of a
lump sum backpay, remove any reference to Press’s
discharge from its files, and post a remedial notice.
On appeal, NMFA challenges the NLRB’s order on four
grounds. Three of these grounds, involving constitutional
challenges to the NLRB’s structure and function, were never
raised below. Specifically, NMFA argues that the NLRB’s
for-cause removal protections violate Article II of the U.S.
Constitution, that its adjudication scheme violates the
Seventh Amendment right to a jury trial, and that its
combined investigatory and adjudicatory powers are
inconsistent with the separation of powers and therefore
violate the Fifth Amendment right to due process. As a
fourth ground, NMFA argues that the Board’s findings were
not supported by substantial evidence.
In its answering brief, the NLRB opposed these
arguments on multiple grounds, one of which it subsequently
10 NLRB V. N. MOUNTAIN FOODHILLS APARTMENTS, LLC
withdrew. The NLRB first argued that we lack jurisdiction
to hear NMFA’s constitutional claims because NMFA failed
to raise them before the NLRB. The NLRB also initially
argued that, in any event, each and all of NMFA’s
constitutional claims failed on the merits. Finally, on the
merits of the Board’s order, the NLRB argued that NMFA
had abandoned or forfeited various challenges to its findings
and that NMFA’s preserved challenges failed because the
NLRB’s findings were supported by substantial evidence.
For all of these reasons, the NLRB asked that we reject
NMFA’s arguments and enter a judgment enforcing its
order.
Five months later, however, on February 21, 2025, the
NLRB filed a 28(j) letter “notif[ying] the Court that it no
longer presses the argument in its brief regarding the
constitutionality of the removal protections for NLRB Board
members and administrative law judges.” Letter from Ruth
E. Burdick, Deputy Assoc. Gen. Couns., NLRB to Molly C.
Dwyer, Clerk of the Ct. for the U. S. Ct. of Appeals for the
Ninth Cir. 1 (Feb. 21, 2025) (hereinafter “February Letter”).
That letter is consistent with the current administration’s
position that the NLRB’s for-cause removal protections do
in fact violate Article II. See Application to Stay the
Judgments at 12, Trump v. Wilcox, No. 24A966 (filed Apr.
1, 2025) (“[T]his Court’s precedents establish that Article II
empowers the President to remove, at will, members of
multimember boards that wield substantial executive power,
such as the NLRB . . . .”). Both parties now agree that if the
issue is properly before us, the NLRB’s for-cause removal
protections should be deemed to violate Article II. The
NLRB argues, however, that those statutory removal
provisions are not properly before us and that, if they were,
NLRB V. N. MOUNTAIN FOOTHILLS APARTMENTS, LLC 11
such challenges would fail because NMFA has not met the
causal-harm requirement. February Letter at 1.
III.
We review questions of jurisdiction and of constitutional
law de novo. Decker Coal Co. v. Pehringer, 8 F.4th 1123,
1129 (9th Cir. 2021). If we reach the merits of the Board’s
decision, we “must uphold a Board decision when
substantial evidence supports its findings of fact and when
the agency applies the law correctly.” 2 United Nurses Ass’ns
of Cal. v. NLRB, 871 F.3d 767, 777 (9th Cir. 2017).
A.
We first consider whether we have jurisdiction to
adjudicate NMFA’s constitutional challenges to the NLRB.
Section 10(e) of the NLRA provides that “[n]o 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.” 29 U.S.C. § 160(e). NMFA
argues that its constitutional challenges, which it did not
raise before the NLRB, qualify as “extraordinary
circumstances,” so that we nevertheless have jurisdiction to
consider them. The NLRB disagrees, and two of our sister
circuits are divided on this issue. See Noel Canning v. NLRB,
705 F.3d 490, 497 (D.C. Cir. 2013) (exercising jurisdiction
over an extraordinary circumstances exception in an
unexhausted constitutional challenge to the NLRB’s
authority); NLRB v. RELCO Locomotives, Inc., 734 F.3d
764, 796–98 (8th Cir. 2013) (reaching the opposite
conclusion in the same context).
2
Unless otherwise indicated, all quotations omit internal alterations,
brackets, citations, ellipses, quotations, and quotation marks.
12 NLRB V. N. MOUNTAIN FOODHILLS APARTMENTS, LLC
Though we have not specifically considered this
question before, we receive considerable guidance from our
previous decisions. In Reid v. Engen, for instance, we held
that we “may decide an issue not raised in an agency action
if the agency lacked either the power or the jurisdiction to
decide it.” 765 F.2d 1457, 1461 (9th Cir. 1985). “This
situation,” we explained, “is typified by challenges to the
constitutionality of a statute or challenges to the
constitutionality of a regulation promulgated by the agency.”
Id.; see also Marathon Oil Co. v. United States, 807 F.2d
759, 768 (9th Cir. 1986) (explaining that we may consider
issues that “implicate[] the constitutionality of a statute or
regulation where the agency does not have power to correct
a claimed grievance”). Indeed, as the Supreme Court itself
stated in Califano v. Sanders, “Constitutional questions
obviously are unsuited to resolution in administrative
hearing procedures and, therefore, access to the courts is
essential to the decision of such questions.” 430 U.S. 99, 109
(1977). “[W]hen constitutional questions are in issue, the
availability of judicial review is presumed . . . .” Id.
Allowing courts to review unexhausted constitutional
claims concerning an agency’s enabling statute makes good
sense. As the Supreme Court recently observed in Carr v.
Saul, echoing our reasoning in Reid, “agency adjudications
are generally ill suited to address structural constitutional
challenges, which usually fall outside the adjudicators’ areas
of technical expertise.” 593 U.S. 83, 92 (2021); see also
Thunder Basin Coal Co. v. Reich, 510 U.S. 200, 215 (1994)
(“[A]djudication of the constitutionality of congressional
enactments has generally been thought beyond the
jurisdiction of administrative agencies.”). The Supreme
Court also emphasized that it had “consistently recognized a
futility exception to exhaustion requirements.” Carr, 593
NLRB V. N. MOUNTAIN FOOTHILLS APARTMENTS, LLC 13
U.S. at 93. As that exception itself recognizes, it “makes
little sense to require litigants to present claims to
adjudicators who are powerless to grant the relief
requested,” as such a “vain exercise” will “rarely protect
administrative agency authority or promote judicial
efficiency.” Id.
The NLRB’s limited arguments to the contrary are
unpersuasive. The agency argues that “[t]he text of Section
10(e) makes no exception for constitutional claims” and that
both we and the Supreme Court “have therefore consistently
recognized that Section 10(e) applies with equal force when
a party attempts to raise new constitutional arguments.”
However, each of the cases that the NLRB cites where
plaintiffs were prohibited from raising constitutional
arguments in judicial proceedings that they had not
exhausted before the agency involved an unexhausted
challenge to an agency’s decision, not an unexhausted
constitutional challenge to the workings of the agency itself.
See, e.g., Int’l Ladies’ Garment Workers’ Union v. Quality
Mfg. Co., 420 U.S. 276, 281 n.3 (1975) (due process claim);
NLRB v. G.W. Thomas Drayage & Rigging Co., 206 F.2d
857, 860–61 (9th Cir. 1953) (First Amendment claim). In
another case cited by NLRB, moreover, the Court found that
“extraordinary circumstances” warranted considering the
unexhausted claim. See Sure-Tan, Inc. v. NLRB, 467 U.S.
883, 896 n.7 (1984) (First Amendment claim).
We therefore conclude that we have jurisdiction to
consider NMFA’s constitutional challenges.
B.
We turn now to NMFA’s constitutional challenges. The
first such challenge is to the statutory provision that an ALJ
(such as the one who initially rendered the order appealed
14 NLRB V. N. MOUNTAIN FOODHILLS APARTMENTS, LLC
from here) can be removed “only for good cause,” as
determined by the Merit Systems Protection Board. 5 U.S.C.
§ 7521. The NMFA contends that this provision violates
Article II, which it argues vests the sole removal power over
agency “officers” like this ALJ in the President. However,
the Supreme Court has traditionally recognized two
exceptions to that rule: (1) “principal officers” in
multimember expert bodies that perform “quasi[-]legislative
or quasi[-]judicial” functions, Humphrey’s Ex’r v. United
States, 295 U.S. 602, 628–29 (1935); and (2) “inferior
officer[s],” Morrison v. Olson, 487 U.S. 654, 689–93 (1988).
The Supreme Court recently granted a stay of an order
enjoining the President from removing an NLRB member.
See Trump v. Wilcox, No. 24A966 (May 22, 2025). And,
while this issue is still pending before the Supreme Court,
and Humphrey’s Executor remains good law, the NLRB, in
the letter to this Court on February 21, 2025, effectively
withdrew its opposition to the NMFA’s argument that the
“for cause” provision is unconstitutional.
However, the NLRB went on in the Letter to mention its
alternative argument that the supposed unconstitutionality of
the “for cause” provision was irrelevant in an absence of
harm. Put another way, a federal court does not sit to decide
abstract disputes that have no impact on the case at hand. See
Richardson v. McChesney, 218 U.S. 487, 492 (1910).
Specifically, the President never sought to remove the ALJ
who issued the order here. So long as an agency’s officers
are validly appointed (which NMFA does not contest as to
this ALJ), retrospective relief based on an unconstitutional
removal provision is available only where the provision
“inflict[s] compensable harm.” Collins v. Yellen, 594 U.S.
220, 259 (2021); see also CFPB v. CashCall, Inc., 35 F.4th
734, 742 (9th Cir. 2022) (“[A]t a minimum, the party
NLRB V. N. MOUNTAIN FOOTHILLS APARTMENTS, LLC 15
challenging an agency’s past actions must . . . show how the
unconstitutional removal provision actually harmed the
party.”). To satisfy the harm requirement, a party must
demonstrate that the challenged action or decision was taken
by an officer the President sought to but could not remove,
or that the removal provision otherwise affected or
influenced the challenged action or decision. See CashCall,
Inc., 35 F.4th at 743; see also Collins, 594 U.S. at 259–60
(discussing the harm requirement).
Despite the NLRB’s continued reliance on this
requirement, NMFA does not discuss the harm requirement
in its briefing, much less demonstrate that it is satisfied in
this case. Therefore, its for-cause removal challenge
necessarily fails on the merits. That is, even if we assume
arguendo that NLRB’s for-cause protections are invalid,
NMFA’s failure to show the slightest harm precludes
retrospective relief.
We next turn to NMFA’s argument that the NLRB’s
adjudication scheme violates the Seventh Amendment by
denying employers the right to a jury trial.
The Seventh Amendment provides that “[i]n Suits at
common law, where the value in controversy shall exceed
twenty dollars, the right of trial by jury shall be preserved.”
U.S. Const., amend. VII. To determine whether an action is
one “at common law,” or otherwise, courts consider whether
the action is akin to an action that would have traditionally
been brought before a court of law or a court of equity and
whether the remedies sought are legal or equitable in nature.
See SEC v. Jarkesy, 603 U.S. 109, 122–23 (2024). However,
because some causes of action sound in both law and equity,
the primary nature of the remedy is the “more important
consideration.” Id. at 123.
16 NLRB V. N. MOUNTAIN FOODHILLS APARTMENTS, LLC
The Supreme Court has squarely held that an NLRB
unfair practice proceeding is not a “suit at common law” for
purposes of the Seventh Amendment. In NLRB v. Jones &
Laughlin Steel Corp., the Supreme Court considered a
Seventh Amendment challenge to the NLRB’s adjudication
scheme. 301 U.S. 1, 25 (1937). Applying the two-part test
outlined above, the Supreme Court reasoned that an NLRB
unfair practice proceeding was “one unknown to the
common law” because it was “a statutory proceeding” and
that “[r]einstatement of the employee and payment for time
lost” were “remedies appropriate to its enforcement,” so that
any “contention under the Seventh Amendment [was]
without merit.” Id. at 48–49. In subsequent decisions
concerning the constitutionality of other adjudication
schemes, the Supreme Court has continued to cite Jones as a
case concerning an adjudicatory proceeding that does not
implicate the Seventh Amendment. See Jarkesy, 603 U.S. at
137–38 (quoting Atlas Roofing Co. v. Occupational Safety
& Health Rev. Comm’n, 430 U.S. 442, 453 (1977)).
NMFA nevertheless argues that the NLRB’s
adjudication scheme violates the Seventh Amendment based
on the NLRB’s recent recognition of so-called “Thryv
remedies.” In Thryv, Inc. and International Brotherhood of
Electrical Workers, Local 1269, the Board clarified that
make-whole relief may address “all direct or foreseeable
pecuniary harms” that “employees suffer as a result of [an
employer’s] unfair labor practice.” 372 NLRB No. 22, at *1
(2022). “Direct harms” refer to harms “in which an
employee’s loss was the direct result of the [employer’s]
illegal conduct,” while “foreseeable harms” refer to harms
which the employer “knew or should have known would be
likely to result from its violation of the Act, regardless of its
intentions.” Id. at 20. NMFA suggests that those remedies
NLRB V. N. MOUNTAIN FOOTHILLS APARTMENTS, LLC 17
“sound in tort” and are “clearly compensatory damages,” so
that it was entitled to a jury trial under the Seventh
Amendment in this case.
After briefing concluded in this case, we decided a
different case concerning Thryv remedies that, while not
controlling on the jury trial question, nevertheless
foreshadowed our decision here. In Macy’s, Inc. v. NLRB,
we were tasked with determining whether the NLRB had
“improperly authorize[d] itself to award full compensatory
damages” in Thryv by awarding damages “for purportedly
foreseeable financial harms.” No. 23-150, slip op. at 36 (9th
Cir. Oct. 21, 2025). In concluding that the NLRB had not
exceeded its authority, we clarified that Thryv remedies are
“designed solely to restore the status quo” and are therefore
“equitable in nature.” Id. at 37 n.11. As we explained,
“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.” Id.
For reasons not relevant here, we ultimately “decline[d]
to entertain” the issue of whether employers were entitled to
jury trials in cases involving Thryv remedies. Id. at 35 n.10.
With that issue now squarely before us, we answer no.
As we held in Macy’s, Thryv remedies are equitable in
nature. In Jarkesy, the Supreme Court held that “monetary
relief can be legal or equitable.” 603 U.S. at 123. The
determinative question is whether the remedy “is designed
to punish or deter the wrongdoer, or, on the other hand,
solely to restore the status quo.” Id. Because the relevant
factors in Jarkesy “tie[d] the availability of civil penalties to
the perceived need to punish the defendant rather than to
18 NLRB V. N. MOUNTAIN FOODHILLS APARTMENTS, LLC
restore the victim,” the Court held that those remedies were
legal, rather than equitable in nature. Id. at 123–24.
Here, however, there can be no doubt that Thryv
remedies are intended to restore the status quo. The Board
specifically explained that this remedy “do[es] not punish
bad actors, but rather implement[s] 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, Inc.,
372 NLRB No. 22, at *17 (2022), enforcement denied on
other grounds, 102 F.4th 727 (5th Cir. 2024). Accordingly,
the Seventh Amendment is not implicated.
We turn finally to NMFA’s argument that the combined
investigatory and adjudicatory functions of the NLRB are
inconsistent with separation of power principles such that the
NLRB’s decision violated NMFA’s Fifth Amendment right
to due process. Like NMFA’s Seventh Amendment
challenge, this argument fails on the merits.
Both we and the Supreme Court have long held that
“[t]he combination of investigative and judicial functions
within an agency does not, of itself, violate due process.”
United States v. Litton Indus., Inc., 462 F.2d 14, 16 (9th Cir.
1972) (citing FTC v. Cement Inst., 333 U.S. 683, 700–02
(1948)); see also Hirsh v. Justices of the Sup. Ct. of Cal., 67
F.3d 708, 714 (9th Cir. 1995). Rather, in determining
whether an agency’s functions give rise to a due process
violation, we consider whether a single individual is tasked
with performing both investigatory and adjudicatory
functions and “whether the average judge in the
adjudicator’s position is likely to be neutral, or whether there
is an unconstitutional potential for bias.” William Jefferson
& Co. v. Bd. of Assessment & Appeals, 695 F.3d 960, 964
NLRB V. N. MOUNTAIN FOOTHILLS APARTMENTS, LLC 19
(9th Cir. 2012). Moreover, to prevail on a due process
challenge sounding in the separation of powers, the
challenger must “overcome a presumption of honesty and
integrity in those serving as adjudicators.” Id.
NMFA has not demonstrated that the NLRB runs afoul
of either criterion. To start, NMFA has not argued that the
NLRB confers both investigative and adjudicatory powers
on a single individual within the agency. Nor could it. While
the General Counsel supervises the NLRB’s investigatory
function, the Board is responsible for performing its
adjudicatory function. See 29 U.S.C. § 153(d). We
recognized this division of authority in NLRB v. Aaron Bros.
Corp., in which we summarily rejected a claim that the
NLRB’s regional directors impermissibly exercised both
investigative and adjudicative functions. 563 F.2d 409, 413
(9th Cir. 1977) (per curiam) (“It is this combination of
responsibilities which the Company argues denied it Due
Process. The claim is not well founded.”). As the Supreme
Court and the D.C. Circuit have explicitly recognized, “[t]his
bifurcated structure reflects the intent of the Congress ‘to
differentiate between the General Counsel’s and the Board’s
final authority along a prosecutorial versus adjudicative
line.’” NLRB v. Fed. Lab. Rels. Auth., 613 F.3d 275, 278
(D.C. Cir. 2010) (quoting NLRB v. United Food & Com.
Workers Union, Local 23, 484 U.S. 112, 124 (1987)).
NMFA has also failed to demonstrate that either the
NLRB’s ALJs or its Board members have an
“unconstitutional potential for bias,” such that the
“presumption of honesty and integrity” should not apply to
them. William Jefferson & Co., 695 F.3d at 964. Indeed, in
its briefing, NMFA does not even argue, much less
demonstrate, that ALJs and Board members exhibit “actual
bias” or that any “pecuniary or personal interest” that they
20 NLRB V. N. MOUNTAIN FOODHILLS APARTMENTS, LLC
might have in the outcome of the proceedings over which
they preside creates even an “appearance of partiality that
violates due process.” Stivers v. Pierce, 71 F.3d 732, 741
(9th Cir. 1995) (emphasis removed). We thus reject this
further challenge to the constitutionality of the NLRB’s
structure.
C.
Finally, NMFA challenges the NLRB’s decision on the
merits. The NLRB found that NMFA had violated Section
8(a)(1) of the NLRA by (1) “interrogat[ing] Press about
discussing his wages,” (2) “orally promulgat[ing] an overly
broad and discriminatory directive prohibiting [Press] from
discussing his wages and housing subsidy with other
employees and prohibiting him [from] discussing pest
control issues with third parties,” (3) “threaten[ing] [Press]
with unspecified reprisals if he continued to engage in
protected activities,” and (4) “discharg[ing] Press for
engaging in actual or perceived protected activities.”
Three of the four findings are not properly before us.
Below, NMFA failed to raise any contention regarding
whether there was substantial evidence that it had repeatedly
questioned Press about discussing his wages, so it has
forfeited any argument on this appeal as to that finding. See
NLRB v. IBEW, Local 952, 758 F.2d 436, 439–40 (9th Cir.
1985). Although in its pleadings below, NMFA briefly
complained of the NLRB’s findings that it promulgated
overly broad and discriminatory directives and threatened
Press, it did not meaningfully develop those arguments, let
alone claim they were unsupported by substantial evidence,
so they are similarly forfeited. See In re Pena, 974 F.3d 934,
940 n.3 (9th Cir. 2020). The NLRB is therefore entitled to
summary enforcement of its first three findings.
NLRB V. N. MOUNTAIN FOOTHILLS APARTMENTS, LLC 21
All that remains is the NLRB’s finding that NMFA
discharged Press for engaging in actual or perceived
concerted activities. To determine whether an employer
violated Section 8(a)(1), we consider whether substantial
evidence supports the Board’s application of the Wright Line
test. See Wright Line, 251 NLRB 1083 (1980). “Under
Wright Line, the General Counsel must make a showing
sufficient to support the inference that protected conduct was
a motivating factor in the employer’s decision.” United
Nurses Ass’ns, 871 F.3d at 778. The Board may then “infer
a discriminatory motive from direct or circumstantial
evidence.” Id. If the Board finds that an employer had an
unlawful motive, then the burden shifts to the employer to
demonstrate that “it would have taken the challenged action
even in the absence of the protected activity.” Healthcare
Emps. Union v. NLRB, 463 F.3d 909, 923 (9th Cir. 2006).
“An employer cannot prove this affirmative defense where
its asserted reasons for a discharge are found to be
pretextual.” United Nurses Ass’ns, 871 F.3d at 779.
At the outset, the parties dispute whether Press engaged
in protected activity by discussing his compensation with
other workers. For employee activity to be protected under
the NLRA, it must be both concerted (i.e., done with or on
behalf of other employees) and done for mutual aid or
protection (i.e., done with the intention of improving the
terms and conditions of their employment). See NLRB v.
Mike Yurosek & Son, Inc., 53 F.3d 261, 264–66 (9th Cir.
1995). Although we have not previously held that discussing
compensation qualifies as protected activity, the NLRB has
long recognized as much. See, e.g., Triana Industries, Inc.,
245 NLRB No. 161, at *1 (1979) (explaining that the NLRA
“encompasses the right of employees to ascertain what wage
rates are paid by their employer” because “wages are a vital
22 NLRB V. N. MOUNTAIN FOODHILLS APARTMENTS, LLC
term and condition of employment”); see also Eastex, Inc. v.
NLRB, 437 U.S. 556, 569 (1978) (“Few topics are of such
immediate concern to employees as the level of their
wages.”). We agree with the NLRB. Here, Press spoke with
other employees about his compensation in response to the
challenging working conditions they all faced, and—based
on Matteson’s references to a “crisis situation,” a “hornets’
nest,” and “damage control”—those discussions appear to
have sparked conversation among other workers about their
own compensation. So it seems apparent both that discussing
compensation qualifies as a protected activity and that the
NLRB’s determination that Press was engaged in such
activity was supported by substantial evidence.
The NLRB’s subsequent finding that NMFA was aware
of that activity and that the conduct served as a motivating
factor in NMFA’s decision to terminate Press was also
supported by substantial evidence. On Press’s third day at
the Complex, Matteson told Press that his decision to discuss
his compensation with the other workers was “making [her]
life really tough” and was “just this red-hot issue.” When
Press stated that he was “very sorry” that the other workers
knew how much he was being paid, Matteson responded
“[s]o am I.” Finally, Matteson told Press that his discussions
with the other workers about his compensation had “not built
camaraderie at all,” and Soto emphasized that these
discussions had “backfired, really bad.” In light of
Matteson’s statements in that meeting, the ALJ had a
substantial basis to conclude that Press’s protected activity
played a meaningful role in NMFA’s decision to discharge
him the following day.
The burden therefore shifts to NMFA to demonstrate that
it would have discharged Press when it did regardless of his
protected activity. NMFA argues that the discharge decision
NLRB V. N. MOUNTAIN FOOTHILLS APARTMENTS, LLC 23
was based on Press’s work performance and that it had
similarly discharged other workers shortly after their first
day because they were unable to complete work projects.
However, neither Matteson nor Soto raised the issue of
Press’s work performance during their closed-door meeting
with him the day before he was discharged. Instead,
Matteson and Soto repeatedly referenced and expressed
frustration about Press’s compensation-related discussions
with the other workers. Moreover, NMFA’s claim that it has
discharged other new hires under similar conditions is based
on vague and conclusory testimony by Gareau, Mims, and
Scott, only one of whom, Mims, provided the name (and
only the first name) of a new hire who had been so
discharged.
Under these circumstances, the NLRB’s finding that
NMFA violated Section 8(a)(1) by discharging Press for
engaging in actual or perceived protected activities was
supported by substantial evidence. Accordingly, we grant
NMFA’s application for enforcement.
* * *
For the reasons stated above, the NLRB’s application for
enforcement of its order dated February 21, 2024 is
GRANTED.
Plain English Summary
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT NATIONAL LABOR RELATIONS No.
Key Points
01FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT NATIONAL LABOR RELATIONS No.
0228-CA-286885 NORTH MOUNTAIN FOOTHILLS OPINION APARTMENTS, Respondent.
03On Petition for Application for Enforcement of an Order of the National Labor Relations Board Argued and Submitted July 11, 2025 San Francisco, CA Filed October 28, 2025 Before: Holly A.
04Rakoff, United States District Judge for the Southern District of New York, sitting by designation.
Frequently Asked Questions
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT NATIONAL LABOR RELATIONS No.
FlawCheck shows no negative treatment for National Labor Relations Board v. North Mountain Foothills Apartments, LLC in the current circuit citation data.
This case was decided on October 28, 2025.
Use the citation No. 10712460 and verify it against the official reporter before filing.