Fairness for Small Business and Employees Act of 1998

Summary: TABLE OF CONTENTS: 
     Title I:  Truth in Employment 
     Title II:  Fair Hearing 
     Title III:  Justice on Time 
     Title IV:  Attorneys Fees 
Fairness for Small Business and Employees Act of 1998 - 
Title I: Truth in Employment
 - Amends the National Labor Relations Act (NLRA) to provide that nothing in specified prohibitions against unfair labor practices by employers shall be construed as requiring an employer to employ any person who is not a bona fide employee applicant, in that such person seeks or has sought employment with the employer with the primary purpose of furthering another employment or agency status. 
(Sec. 103) Declares that this title shall not affect the rights and responsibilities under NLRA of any employee who is or was a bona fide employee applicant, including the right to:  (1) self-organization; (2) form, join, or assist labor organizations; (3) bargain collectively through representatives of their own choosing; and (4) engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. 
Title II:  Fair Hearing
 - Directs the National Labor Relations Board (NLRB) to provide for a hearing upon due notice to determine the appropriateness of the bargaining unit, if a petition for an election requests to certify a unit which includes the employees employed at one or more facilities of a multi-facility employer, and in the absence of an agreement by the parties regarding the appropriateness of the bargaining unit at issue.  Requires the NLRB, in making such determination, to consider functional integration, centralized control, common skills, functions and working conditions, permanent and temporary employee interchange, geographical separation, local autonomy, the number of employees, bargaining history, and other factors it considers appropriate. 
Title III:  Justice on Time
 - Requires the NLRB to state its findings of fact and to issue and serve corrective orders, including reinstatement of an employee with or without backpay, or issue an order dismissing the complaint, within 365 days after the filing of a charge of unfair labor practice involving an unlawful discharge, except in cases of extreme complexity.  Directs the NLRB to report annually to specified congressional committees on any cases pending for more than one year, including an explanation of the factors contributing to such a delay, and recommendations for prompt resolution of such cases. 
Title IV:  Attorneys Fees
 - Provides for awards of attorney's fees and costs in administrative or court proceedings involving the NLRB, without regard to whether the NLRB's position was substantially justified or special circumstances make an award unjust, if the prevailing parties are employers or labor organizations with no more than 100 employees and a net worth of no more than $1.4 million at the time the adversary adjudication was initiated.

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    Section 10(m) of the National Labor Relations Act is amended by 
adding at the end the following new sentence: ``Whenever a complaint is 
issued as provided in subsection (b) upon a charge that any person has 
engaged in or is engaging in an unfair labor practice within the 
meaning of subsection (a)(3) or (b)(2) of section 8 involving an 
unlawful discharge, the Board shall state its findings of fact and 
issue and cause to be served on such person an order requiring such 
person to cease and desist from such unfair labor practice and to take 
such affirmative action, including reinstatement of an employee with or 
without backpay, as will effectuate the policies of this Act, or shall 
state its findings of fact and issue an order dismissing the said 
complaint, not later than 365 days after the filing of the unfair labor 
practice charge with the Board except in cases of extreme complexity. 
The Board shall submit a report annually to the Committee on Education 
and the Workforce of the House of Representatives and the Committee on 
Labor and Human Resources of the Senate regarding any cases pending for 
more than 1 year, including an explanation of the factors contributing 
to such a delay and recommendations for prompt resolution of such 
cases.''.

SEC. 304. REGULATIONS.

    The Board may issue such regulations as are necessary to carry out 
the purposes of this title.

                        TITLE IV--ATTORNEYS FEES

SEC. 401. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds as follows:
            (1) Certain small businesses and labor organizations are at 
        a great disadvantage in terms of expertise and resources when 
        facing actions brought by the National Labor Relations Board.
            (2) The attempt to ``level the playing field'' for small 
        businesses and labor organizations by means of the Equal Access 
        to Justice Act has proven ineffective and has been 
        underutilized by these small entities in their actions before 
        the National Labor Relations Board.
            (3) The greater expertise and resources of the National 
        Labor Relations Board as compared with those of small 
        businesses and labor organizations necessitate a standard that 
        awards fees and costs to certain small entities when they 
        prevail against the National Labor Relations Board.
    (b) Purpose.--It is the purpose of this title--
            (1) to ensure that certain small businesses and labor 
        organizations will not be deterred from seeking review of, or 
        defending against, actions brought against them by the National 
        Labor Relations Board because of the expense involved in 
        securing vindication of their rights;
            (2) to reduce the disparity in resources and expertise 
        between certain small businesses and labor organizations and 
        the National Labor Relations Board; and
            (3) to make the National Labor Relations Board more 
        accountable for its enforcement actions against certain small 
        businesses and labor organizations by awarding fees and costs 
        to these entities when they prevail against the National Labor 
        Relations Board.

SEC. 402. AMENDMENT TO NATIONAL LABOR RELATIONS ACT.

    The National Labor Relations Act (29 U.S.C. 151 and following) is 
amended by adding at the end the following new section:

                 ``awards of attorneys' fees and costs

    ``Sec. 20. (a) Administrative Proceedings.--An employer who, or a 
labor organization that--
            ``(1) is the prevailing party in an adversary adjudication 
        conducted by the Board under this or any other Act, and
            ``(2) had not more than 100 employees and a net worth of 
        not more than $1,400,000 at the time the adversary adjudication 
        was initiated,
shall be awarded fees and other expenses as a prevailing party under 
section 504 of title 5, United States Code, in accordance with the 
provisions of that section, but without regard to whether the position 
of the Board was substantially justified or special circumstances make 
an award unjust. For purposes of this subsection, the term `adversary 
adjudication' has the meaning given that term in section 504(b)(1)(C) 
of title 5, United States Code.
    ``(b) Court Proceedings.--An employer who, or a labor organization 
that--
            ``(1) is the prevailing party in a civil action, including 
        proceedings for judicial review of agency action by the Board, 
        brought by or against the Board, and
            ``(2) had not more than 100 employees and a net worth of 
        not more than $1,400,000 at the time the civil action was 
        filed,
 shall be awarded fees and other expenses as a prevailing party under 
section 2412(d) of title 28, United States Code, in accordance with the 
provisions of that section, but without regard to whether the position 
of the United States was substantially justified or special 
circumstances make an award unjust. Any appeal of a determination of 
fees pursuant to subsection (a) or this subsection shall be determined 
without regard to whether the position of the United States was 
substantially justified or special circumstances make an award 
unjust.''.

SEC. 403. APPLICABILITY.

    (a) Agency Proceedings.--Subsection (a) of section 20 of the 
National Labor Relations Act, as added by section 402 of this Act, 
applies to agency proceedings commenced on or after the date of the 
enactment of this Act.
    (b) Court Proceedings.--Subsection (b) of section 20 of the 
National Labor Relations Act, as added by section 402 of this Act, 
applies to civil actions commenced on or after the date of the 
enactment of this Act.

            Passed the House of Representatives March 26, 1998.

            Attest:

                                                                 Clerk.