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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.


Corporate Transparency Act to be Re-evaluated

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Ohio Recovery Housing Operators Beware: House Bill 58 Seeks to Make Major Changes

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January 2025 Notice of Proposed Rulemaking Brings Notable Changes to HIPAA Security Rule

In January 2025, the U.S. Department of Health and Human Services proposed amendments to the HIPAA Security Rule, aiming to enhance cybersecurity for covered entities (CEs) and business associates (BAs). Key changes include mandatory compliance audits, workforce training, vulnerability scans, and risk assessments. Comments on the proposed rule are due by March 7, 2025.

Corporate Transparency Act Effective Again

The federal judiciary has issued multiple rulings on the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. Previously, enforcement was halted nationwide due to litigation in Smith v. U.S. Department of the Treasury. However, on February 18th, the court lifted the stay, reinstating the CTA’s reporting requirements. Non-exempt entities now have until March 21, 2025, to comply. Businesses should act promptly to avoid civil penalties of $591 per day and potential criminal liability.

Status Update: Physician Noncompete Agreements in Ohio

Noncompete agreements remain enforceable in Ohio if they meet specific legal requirements. While the AMA and FTC have challenged these restrictions, courts continue to uphold reasonable noncompete provisions for physicians. Recent cases, like MetroHealth System v. Khandelwal, highlight how courts may modify overly restrictive agreements to balance employer interests with patient care. With ongoing legal challenges to the FTC’s proposed ban, Ohio physicians should consult a healthcare attorney before signing or challenging a noncompete agreement.