NLRB Establishes New Rule In Successor Labor Relations

The National Labor Relations Board has overturned an important precedent regarding the employment obligations of successor companies. In Pressroom Cleaners, Inc., the Board held that a successor employer must reinstate all terms and conditions of the previous employer until it reaches an agreement or impasse with the union. Formerly the company could limit its liability by showing that if it had negotiated at the time of the takeover, it would not have agreed to the terms of the predecessor’s contract.