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NLRB Ruling re: Private University Labor Update

Client Alert

Private University Labor Update

Graduate students employed by private universities are permitted to unionize under federal law.

On Tuesday, August 23, 2016, the National Labor Relations Board (“NLRB” or “Board”) issued a 3-1 decision in Columbia University that student assistants working a private colleges and universities are statutory employees covered by the National Labor Relations Act. The decision reverses the NLRB’s decision in Brown University 342 NLRB 483.

The NLRB had long held that students who teach at private universities were not employees. In 2000, a Democrat laden Board altered the NLRB’s principle in New York University, 332 NLRB 1205 (NYU) when it held that graduate assistants were employees. In 2004, a Republican led Board in Brown University reconsidered NYU and concluded that the 25-year precedent was correct, and that NYU should be overruled.

The NLRB has swung back to a Democrat majority. That majority reversed Brown University saying it “deprived an entire category of workers of the protections of the Act without a convincing justification.”

What does it mean for Private Universities?

The authority to define the term “employee” rests primarily with the NLRB absent an exception within the National Labor Relations Act. For as long as the Board maintains a Democrat majority, graduate assistants will be employees under the NLRA and eligible for all collective bargaining rights.

Being recognized as “employees” gives graduate students the right to organize and collectively bargain the terms and conditions of employment. The main terms and conditions will likely be wages/stipends, health coverage (including family coverage), hours of work, holidays, and paid/unpaid leaves of absence.

The main concern that private university employers may face is an overreaching organizational campaign. All graduate students are not equal, and an employer can challenge the appropriateness of a collective bargaining unit under a “community of interest” evaluation. In determining the community of interest, the similarity in hours, wages, benefits, skills, supervision, terms of employment are the most indicative of mutual interest.

For additional information, please contact the Labor and Employment team.  John N. Childs at (330) 253-1946, Jeffrey C. Miller, at (216) 287-5265.


CHANGING TIDES: Summary and Effects of Burnett et. al. v. National Ass’n of Realtors, et. al.

In April 2019, a class-action Complaint was filed in federal court for the Western District Court for Missouri arguing that the traditional payment agreements employed by many across the United States amounted to conspiracy resulting in the artificial increase in brokerage commissions. Plaintiffs, a class-action group comprised of sellers, argued that they paid excessive brokerage commissions upon the sale of their home as a result of the customary payment structure where Sellers agree to pay the full commission on the sale of their property, with Seller’s agent notating the portion of commission they are willing to pay to a Buyer’s agent at closing on the MLS or other similar system.

The Ohio Board of Pharmacy’s Latest Batch of Rules: What Providers Should Know

The Ohio Board of Pharmacy released several new rules and proposed amendments to existing rules over the past month that will significantly impact pharmacy operations. Topics range from updates to the Terminal Distributor of Dangerous Drugs license to mobile clinics to mandatory rest breaks for pharmacists of outpatient pharmacies. A summary of the proposed changes is below, along with instructions for commenting on the rules. Your BMD healthcare attorney can help write comment letters and submit the comments on your behalf as well.

Employee or Independent Contractor? New Guidance Issued by the Department of Labor

On January 9, 2024, the U.S. Department of Labor (DOL) issued its long-awaited final rule — effective March 11, 2024 — revising its prior interpretation of worker classifications under the federal Fair Labor Standards Act (FLSA). The new final rule rescinds the standard previously established in 2021, in turn, shifting the analysis of whether a worker is an employee (versus an independent contractor) of a business from a more streamlined “economic reality” test to a more complex “totality of the circumstances” standard.

Increased Medicaid Rates to Take Effect This Month for Ohio Providers

As required by House Bill 33, Ohio’s 2024-2025 operating budget bill, reimbursement rates paid by the Ohio Department of Medicaid will increase for a wide range of providers starting on January 1, 2024.

Corporate Transparency Act Update

The Corporate Transparency Act (“CTA”), with an effective date of January 1, 2024, is set to impose strict reporting guidelines on business owners throughout the country. The following provides a brief update on two aspects of the CTA ahead of its effectiveness next week.