PRECEDENTIAL

UNITED STATES COURT OF APPEALS

FOR THE THIRD CIRCUIT

______________

No s

. 2 0

- 2 1 2 0 & 2 0

- 2 2 3 3

E A S T B R U N S W I C K E U R O P E A N W A X C E N T E R

, L L C

v.

N A T I O N A L L A B O R R E L A T I O N S B O A R D

East Brunswick European Wax Center, LLC

,

Petitioner i n N o

. 2 0

- 2 1 2

N a t i o n a l L a b o r R e l a t i o n s B o a r d

,

P e t i t i o n e r in N o

. 2 0

- 2 2 3 3

______________

On Application for Enforcement and Cross

- Petition for

Review of an Order of the Nat ion al Labor Relations Board

(NLRB

- 1 No. 2 2

- CA

- 1 7 8 6 4 6 )

______________

Argued Oct ober 2 6 , 20 2 1

BEFORE: G R E E N A W A Y

, J R

. , P H I P P S

, a n d COWEN

,

Circuit Judges

(Fi led: January 1 1 , 2022 )

______________2 C a r m e n M

. F i n e g a n

L a w O f f i c e o f G e r a r d C

. V i n c e

1 0 4 0 A m b o y A v e n u e

E d i s o n

, N J 0 8 8 3 7

D a v i d J a s i n s k i ( a r g u e d )

3 r d F l o o r

2 H a n c e A v e n u e

T i n t o n F a l l s

, N J 0 7 7 2 4

Attorneys for Petitioner in No s

. 2 0

- 2 1 2 0 a n d R e s p o n d e n t

i n 2 0

- 2 2 3 3

Jennifer A. Abruzzo, General Counsel

J u l i e B

. B r o i d o

D a v i d H a b e n s t r e i t

D a v i d A

. S e i d ( a r g u e d )

N a t i o n a l L a b o r R e l a t i o n s B o a r d

1 0 1 5 H a l f S t r e e t

, S

. E

. W a s h i n g t o n

, D C 2 0 0 0 3

Attorneys for R e s p o n d e n t in N o s

. 2 0

- 2 1 2 0 a n d P e t i t i o n e r

i n 2 0

- 2 2 3 3

______________

OPINION OF THE COURT

______________

COWEN

, Circuit Judge

.3 E a s t B r u n s w i c k E u r o p e a n W a x C e n t e r

, L L C

( “ E B E W C ” ) petitioned f

o r r e v i e w o f t h e decision a n d o r d e r o f

t h e N a t i o n a l L a b o r R e l a t i o n s B o a r d ( “ B o a r d ” )

. T h e B o a r d

, i n

t u r n

, c r o s s

- a p p l i e d f

o r e n f o r c e m e n t o f i t s o r d e r

. I n i t s d e c i s i o n

a n d o r d e r

, t h e Board g r a n t e d t h e G e n e r a l C o u n s e l ’ s m o t i o n f o r

d e f a u l t j u d g m e n t because E B E W C h a d d e f a u l t e d o n t h e t e r m s

o f t h e s e t t l e m e n t a g r e e m e n t ( “ S e t t l e m e n t A g r e e m e n t ” ) b y

f a i l i n g t o “ f

u l l y c o m p l y ” w i t h t h e S e t t l e m e n t A g r e e m e n t ’ s

“ E l e c t r o n i c N o t i f

i c a t i o n ” p r o v i s i o n r e q u i r i n g E B E W C t o t e x t

t h e r e q u i s i t e n o t i c e t o i t s e m p l o y e e s ( “ N o t i c e ” )

. P u r s u a n t t o t h e

S e t t l e m e n t A g r e e m e n t

, t h e B o a r d t h e n f o u n d t h a t t h e a l l e g a t i o n s

s e t f o r t h i n t h e r e i s s u e d c o m p l a i n t w e r e t r u e

, m a d e f i n d i n g s o f

f a c t a n d c o n c l u s i o n s o f l a w c o n s i s t e n t w i t h t h e p l e a d i n g ’ s

a l l e g a t i o n s

, a n d g r a n t e d t h e G e n e r a l C o u n s e l ’ s r e q u e s t f o r a

“ f u l l r e m e d y ” f

o r t h e v i o l a t i o n s t h e Board f o u n d

.

H o w e v e r

, t h e Board t o o k s u c h d r a s t i c a c t i o n e v e n t h o u g h

E B E W C h a d p u r p o r t e d l y “ d e f a u l t e d ” o n t h e t e r m s o f t h e

S e t t l e m e n t A g r e e m e n t m e r e l y b y s e n d i n g t h e r e q u i s i t e N o t i c e t o

i t s e m p l o y e e s b y e

- m a i l i n s t e a d o f b y t e x t m e s s a g e

. T h e

S e t t l e m e n t A g r e e m e n t d i d e x p l i c i t l y p r o v i d e f o r t h e N o t i c e t o b e

s e n t b y t e x t

. B u t t h e r e i s n o i n d i c a t i o n t h a t t e x t i n g a s o p p o s e d

t o s o m e o t h e r m e t h o d o f e l e c t r o n i c c o m m u n i c a t i o n ( s u c h a s e

m a i l i n g ) h a d a n y r e a l s i g n i f i c a n c e t o E B E W C

, i t s e m

p l o y e e s

, o r

t h e B o a r d i t s e l f

— a n d E B E W C o t

h e r w i s e f u l l y c o m p l i e d w i t h i t s

o t h e r o b l i g a t i o n s u n d e r t h e S e t t l e m e n t A g r e e m e n t

. B e c a u s e t h e

a g e n c y o v e r r e a c h e d a n d a c t e d p u n i t i v e l y

, w e w i l l g r a n t

E B E W C ’ s p e t i t i o n f

o r r e v i e w a n d w i l l d e n y t h e B o a r d ’ s

a p p l i c a t i o n f

o r e n f o r c e m e n t

.

I

.

T h i s p r o c e e d i n g a r i s e s o u t o f c h a r g e s o f u n f a i r l a b o r

p r a c t i c e s f

i l e d b y a f

o r m e r E B E W C e m p l o y e e named K e l l i e4 M e a g a n Z a m b r a n o

. E B E W C o p e r a t e s a b e a u t y a n d w a x i n g

s a l o n i n E a s t B r u n s w i c k

, N e w J e r s e y

. O n N o v e m b e r 3 0

, 2 0 1 6

,

t h e G e n e r a l C o u n s e l i s s u e d a c o m p l a i n t a l l e g i n g t h a t E B E W C

h a d v i o l a t e d S e c t i o n 8 ( a ) ( 1 ) a n d ( 3 ) o f t h e N a t i o n a l L a b o r

R e l a t i o n s A c t ( “ N L R A ” )

, 2 9 U

. S

. C

. § 1 5 8 ( a ) ( 1 ) a n d ( 3 )

, b y

i m p l y i n g t h a t e m p l o y e e s w o u l d b e d i s c h a r g e d i f t h e y e n g a g e d i n

u n i o n o r p r o t e c t e d c o n c e r t e d a c t i v i t y

, s o l i c i t i n g e m p l o y e e

a s s i s t a n c e i n a s c e r t a i n i n g t h e u n i o n a n d p r o t e c t e d activities a n d

s u p p o r t o f t h e i r c o

- w o r k e r s

, i s s u i n g a h a n d b o o k r u l e s u b j e c t i n g

e m p l o y e e s t o d i s c i p l i n e f o r g o s s i p i n g o r c o m p l a i n i n g a b o u t

E B E W C ’ s r u l e s o r p r o c e d u r e s

, p r o h i b i t i n g e m p l o y e e d i s c u s s i o n

o f o n g o i n g i n t e r n a l i n v e s t i g a t i o n s

, d i s c h a r g i n g Z a m b r a n o f o r

e n g a g i n g i n c o n c e r t e d e m p l o y e e activiti e s i n c l u d i n g d i s c u s s i o n

a n d t e x t i n g w i t h h e r c o

- w o r k e r s r e g a r d i n g t h e t e r m s a n d

c o n d i t i o n s o f e m p l o y m e n t

, a n d i s s u i n g a f i n a l w r i t t e n w a r n i n g

t o e m p l o y e e L i z S i e b o l d

. 1 T h e c o m p l a i n t s o u g h t a n o r d e r

requiring

, among other things

, E B E W C t o r e a d a n d p o s t a

r e m e d i a l n o t i c e

. I n t h e r e m e d y s e c t i o n

, t h e p l e a d i n g a l s o s t a t e d

t h a t

, “ s i n c e R e s p o n d e n t c o m m u n i c a t e s w i t h i t s e m p l o y e e s b y

t e x t m e s s a g e

, t h e G e n e r a l C o u n s e l s e e k s a n O r d e r r equiring t h a t

R e s p o n d e n t s e n d t h e n o t i c e t o e m p l o y e e s t o i t s e m p l o y e e s b y

t e x t m e s s a g e

, s u c h t e x t t o c o n t a i n a n e x p l a n a t i o n o f t h e n o t i c e a s

d i r e c t e d b y t h e B o a r d

. ” ( A 2 1

. )

O n D e c e m b e r 1 9

, 2 0 1 6

, E B E W C s i g n e d a n i n f o r m a l

s e t t l e m e n t ag reemen t

, w h i c h Z a m b r a n o h a d s i g n e d o n

N o v e m b e r 3 0

, 2 0 1 6 a n d t h e R e g i o n a l D i r e c t o r t h e n a p p r o v e d o n

J a n u a r y 3

, 2 0 1 7

. A s t h e B o a r d o b s e r v e d i n i t s d e c i s i o n

, E B E W C a g r e e d t o :

1 While the complaint, Settlement Agreement, and other

documents spell her name “ Siebold

, ” her employment records

spe ll it “ Sebold. ”5 (1 ) post at its facility the appropriate Board no tice

for 60 days ; (2) s end the not ice by text message to

all emplo yees w ho work at the facility; (3) read,

or have a Board Age nt read, the noti ce; (4)

c omply with all t h e term s and provi sion s of th e

notice, including rescinding hand book ru les

pro hibiting t alk ing or complaining a bout wag es

, hours, and working co nd itions or th e

Respondent ’ s rules, policies, a nd /or procedures

and re scin ding the fina l warning issu ed to Liz

Siebold; (5) make Kelli e Zambr a no whole by

paying her $ 20,000 in backpay and interest; (6 )

remove from its files all ref ere nces to Zambrano ’ s

dis ch arge

, a n d in f

o rm Zambrano in writing that it

ha d been done ; and (7) noti fy the Region al

Director i n writing what steps the Responden t had

t aken to comply with the settlement.

E

, B r u n s w i c k E u r o p e a n W a x C t r

. , 3 6 9 N L R B N o

. 7 7

, 2 0 2 0 W L

2 4 7 6 6 6 9

, a t * 1 ( M a y 1 3

, 2 0 2 0 )

. T h e S e t t l e m e n t A g r e e m e n t a l s o

i n c l u d e d a “ N o n

- A d m i s s i o n C l a u s e

. ” ( A 2 4 ( “ B y e n t e r i n g i n t o

t h i s S e t t l e m e n t A g r e e m e n t

, t h e C h a r g e d P a r t y d o e s n o t a d m i t

t h a t i t h a s v i o l a t e d t h e N a t i o n a l L a b o r R e l a t i o n s A c t

. ” )

. ) But i t

w a s a l s o a g r e e d as to t h e “ S C O P E OF THE A G R E E M E N T ”

t h a t t h e S e t t l e m e n t A g r e e m e n t “ s e t t l e s o n l y t h e a l l e g a t i o n s i n

t h e a b o v e

- c a p t i o n e d c a s e ( s ) ” ( i n c l u d i n g a l l t h e a l l e g a t i o n s

c o v e r e d b y t h e a t t a c h e d N o t i c e m a d e p a r t o f t h e S e t t l e m e n t

A g r e e m e n t ) “ a n d d o e s n o t s e t t l e a n y o t h e r c a s e ( s ) o r m a t t e r s

. ”

( A 2 4

- A 2 5 ( “ I t d o e s n o t p r e v e n t p e r s o n s f r o m f i l i n g c h a r g e s

, t

h e

G e n e r a l C o u n s e l f

r o m p r o s e c u t i n g c o m p l a i n t s

, o r t h e B o a r d a n d

t h e c o u r t s f

r o m f i n d i n g v i o l a t i o n s w i t h r e s p e c t t o m a t t e r s t h a t

h a p p e n e d b e f

o r e t h i s A g r e e m e n t w a s a p p r o v e d r e g a r d l e s s o f

w h e t h e r G e n e r a l C o u n s e l k n e w o f t h o s e m a t t e r s o r c o u l d h a v e6 e a s i l y f o u n d t h e m o u t

. T h e G e n e r a l C o u n s e l r e s e r v e s t h e r i g h t

t o u s e t h e e v i d e n c e o b t a i n e d i n t h e i n v e s t i g a t i o n a n d p r o s e c u t i o n

o f t h e a b o v e

- c a p t i o n e d c a s e ( s ) f o r a n y r e l e v a n t p u r p o s e i n t h e

l i t i g a t i o n o f t h i s o r a n y o t h e r c a s e ( s )

, a n d a j u d g e

, t h e B o a r d a n d

t h e c o u r t s m a y m a k e f

i n d i n g s o f f

a c t a n d / o r c o n c l u s i o n s o f l a w

w i t h r e s p e c t t o s a i d e v i d e n c e

. ” )

. )

T h e S e t t l e m e n t A g r e e m e n t s e t f o r t h t h e f

o l l o w i n g

r e q u i r e m e n t g o v e r n i n g e l e c t r o n i c n o t i f i c a t i o n :

ELECT R ONIC NOTICE.

— The Charged Part y

will send a c opy of the signed Notice in English

and i n additiona l languages if the Reg ional

Director decides that it is ap propria te to do so , by

text to all employees who work at th e faci lity

l ocated at [ a d d r e s s ] . The mess a ge of the text

transmitted with the Notice will state: “ We are

dis tributing the A tta c hed Notice to Employees to

you p ursuant to a Settlement A greement approved

by the Regional Directo r of Region 22 of the

Na tional Labo r Relations Board in Case(s) 22

-

CA

- 1 7 8646. ” The Charged Party will forward a

copy of that text, with al l of the recipi ent s ’ phone

numbers , t o the Re gion ’ s Compliance Officer at

[ e

- m a i l a d d r e s s ]

.

(A 24.) U n d e r t h e heading “ PAY MENT OF WAGES AND

B ENEFITS

, ” i t was agreed that : “ W ithin 14 days from

approval of this agreement, t he Charged Party wil l make who le

the employee(s) na m ed below by payment t o each of t hem of

the amount opp osite each name . The C harged Party wil l make

appr o priate withholdings for each n amed employee. No

w ithholding s sh o u ld be made f rom the interest portion of the

back pay. Kellie Zambrano $20,000.00 ” ( I d

. ) I n t h e7 “ N O T I F I C A T I O N O F C O M P L I A N C E ” p r o v i s i o n

, t h e

p a r t i e s t o t h e S e t t l e m e n t A g r e e m e n t a g r e e d t h a t t h e y “ w i l l

n o t i f y t h e R e g i o n a l D i r e c t o r i n w r i t i n g w h a t s t e p s t h e C h a r g e d

P a r t y h a s t a k e n t o c o m p l y w i t h t h e A g r e e m e n t

. ” ( A 2 5

. ) “ T h i s

n o t i f i c a t i o n s h a l l b e g i v e n w i t h i n 5 d a y s

, a n d a g a i n a f t e r 6 0

d a y s

, f r o m t h e d a t e o f t h e a p p r o v a l o f t h i s A g r e e m e n t

, ” a n d

“ [ n ] o f u r t h e r a c t i o n s h a l l b e t a k e n i n t h e a b o v e c a

p t i o n e d c a s e ( s )

p r o v i d e d t h a t t h e C h a r g e d P a r t y c o m p l i e s w i t h t h e t e r m s a n d

c o n d i t i o n s o f t h i s S e t t l e m e n t A g r e e m e n t a n d N o t i c e

. ” ( I d

. )

F u r t h e r m o r e

, t h e S e t t l e m e n t A g r e e m e n t i n c l u d e d a

s p e c i f i c p r o v i s i o n a d d r e s s i n g “ P E R F O R M A N C E ” :

P erforma nce by the Ch arged Party wit h the terms

and provisions of th is Agreement sh all comm ence

immediately after the Agree ment is appr oved by

the Regional D irector

, or if the Ch arging Party

does not enter into this Agreement

, performance

shall c ommenc e imm ediatel y upon receip t by the

Charge d Party of notice that no review has been

reque sted or that the General Counsel has

sus tained the R egional Director

.

T he Charged Party agrees that in case of non

c ompliance with any o f the terms of this

Settlem ent A greeme nt by the Charged P arty

, and

after 14 days ’ notice from the Region al Director

of the Nati onal Labor Relations Board of su ch

non

- compl iance without remedy b y the Cha rged

Party, the Regional Director will issue a

Complaint that includes the allega tions cover ed

by the Notice to Employees , as i dentified above

in the Scope of Agreement section , as well as

filing and service of th e charge (s)

, commerce8 facts nece ss ary to es tablish Bo ar d jurisdiction

, labor organization status, appropriate bargaining

uni t (if appli cable) , and any oth er allegations t he

General Counsel woul d ordina rily plead to

es tablish the unfair labor practices. Th ereafter,

th e General Counsel ma y file a Mo ti on for

Def ault Judgment with the Board on the

allegations of the Complaint. Th e Cha rged P arty

u nderstands an d agree s t hat a l l of the allegations

of the Com plaint will be d eemed a dmitted and

that it will have wa ived its rig ht to file an Answer

t o such Co mplaint. Th e only issue that the

Charged Party may raise before the Board will b e

whe ther i t defa ulted on the term s of th is

S e ttlement Agreement. The Genera l Counsel

may see k, and t he Board may impose, a full

re medy for eac h unfair labor pract ic e identif ied in

the N otice to Employees . T he Board may then,

without necessity of trial o r any other proce eding

, find a ll allegations o f the Co mplaint to be true

and m ake findings of fact a nd conclusions of law

consistent with those allegations adverse to the

Char ged Party on all issues raised by the

pleadings. The Board may then issue an Ord er

pr ovidin g a fu ll remedy for the violations found

as i s appropriate to reme d y such violations. Th e

parties f urther agree that a U .S. Court of Appeals

Judgment ma y be entere d enforcing the Board

Order ex par te, aft er service or attempted service

upon Cha rged Party at t he last address provided

to th e General Counsel.9 ( A25

. )

I n a J a n u a r y 6

, 2 0 1 7 l e t t e r

, t h e R e g i o n 2 2 c o m p l i a n c e

o f f i c e r s u m m a r i z e d E B E W C ’ s o b l i g a t i o n s u n d e r t h e Settlement

A g r e e m e n t

, s p e c i f

i c a l l y t h a t i t m u s t p o s t t h e e n c l o s e d N o t i c e t o

E m p l o y e e s

, r e a d t h e N o t i c e t o E m p l o y e e s i n t h e p r e s e n c e o f a

B o a r d a g e n t

, s e n d a c o p y o f t h e s i g n e d N o t i c e “ b y t e x t ” t o a l l

e m p l o y e e s w h o w o r k a t t h e f a c i l i t y

, a n d c o m p l e t e a n d r e t u r n t h e

e n c l o s e d c e r t i f

i c a t i o n o f c o m p l i a n c e f

o r m s ( w i t h t h e f

i r s t p a r t

d u e J a n u a r y 2 0

, 2 0 1 7 a n d t h e s e c o n d p a r t d u e b y F e b r u a r y 6

, 2 0 1 7 )

. T h e c o m p l i a n c e o f f i c e r a l s o i n d i c a t e d t h a t t h e t e r m s o f

t h e S e t t l e m e n t A g r e e m e n t a n d N o t i c e s h o u l d b e r e a d c a r e f u l l y

b e c a u s e E B E W C w a s “ e x p e c t e d t o c o m p l y w i t h a l l s u c h

p r o v i s i o n s

. ” ( A 4 5 ( “ I f y o u h a v e a n y q u e s t i o n s o r i f I c a n a s s i s t

y o u

, p l e a s e l e t m e k n o w

. ” )

. ) “ S p e c i f i c a l l y

, t h e S e t t l e m e n t

A g r e e m e n t r e q u i r e s ” E B E W C t o m a k e Z a m b r a n o w h o l e b y

payment i n t h e a m o u n t o f $ 2 0

, 0 0 0

. 0 0 ( n o l a t e r t h a n J a n u a r y 1 7

, 2 0 1 7 )

. ( I d

. )

B y l e t t e r d a t e d F e b r u a r y 1

, 2 0 1 7

, t h e c o m p l i a n c e o f f i c e r

r e m i n d e d E B E W C o f i t s o b l i g a t i o n s :

A s y o u a r e a w a r e

, t h e t e r m s o f t h e A g r e e m e n t

r e q u i r e

, a m o n g o t h e r t h i n g s

, t h a t y o u r c l i e n t

, E u r o p e a n W a x C e n t e r o f E a s t B r u n s w i c k

, p o s t a

n o t i c e t o e m p l o y e e s f

o r 6 0 d a y s

, r e a d t h e n o t i c e

a l o u d t o e m p l o y e e s i n t h e p r e s e n c e o f a B o a r d

a g e n t

, d i s t r i b u t e t h e n o t i c e e l e c t r o n i c a l l y t o

e m p l o y e e s

, p a y K e l l i e Z a m b r a n o a t o t a l o f

$ 2 0

, 0 0 0 i n t h e m e t h o d d e s c r i b e d i n m y J a n u a r y 6

, 2 0 1 7 o p e n i n g c o m p l i a n c e l e t t e r t o y o u

, a n d

r e m o v e f r o m i t s f

i l e s a n y r e f

e r e n c e t o M s

. Z a m b r a n o ’ s d i s c h a r g e a n d n o t i f y h e r i n w r i t i n g

t h a t t h i s h a s b e e n d o n e a n d t h a t t h e d i s c h a r g e w i l l10 n o t b e u s e d a g a i n s t h e r i n a n y w a y

. . [ s i c ]

A d d i t i o n a l l y

, t h e E m p l o y e r i s r e q u i r e d t o

c o m p l e t e a n d r e t u r n t o m e t h e C e r t i f i c a t i o n o f

C o m p l i a n c e

, P a r t O n e a n d P a r t T w o f o r m s

, a l o n g

w i t h a s i g n e d a n d d a t e d c o p y o f t h e n o t i c e

. T o

d a t e

, t h e R e g i o n h a s r e c e i v e d n o n e o f t h e r e q u i r e d

i t e m s f r o m t h e E m p l o y e r o r a n y i n d i c a t i o n t h a t

t h e E m p l o y e r i n t e n d s t o c o m p l y w i t h t h e

S e t t l e m e n t A g r e e m e n t

.

( A 5 1

. ) E B E W C w a s a d v i s e d t h a t i t m u s t c o m p l y w i t h t h e

p r o v i s i o n s o f t h e S e t t l e m e n t A g r e e m e n t and a r r a n g e a d a t e f o r

t h e c o m p l i a n c e o f

f i c e r t o v i s i t i t s f

a c i l i t y f o r t h e n o t i c e r e a d i n g

“ t o t a k e p l a c e n o l a t e r t h a n “ F e b r u a r y 1 5

, 2 0 1 7

. ” ( I d

. )

“ A b s e n t r e c e i p t o f t h e b a c kp a y a n d t h e a b o v e

- d e s c r i b e d a c t i o n s

b y t h i s d a t e

, a n d w i t h o u t f u r t h e r n o t i c e t o y o u

, I w i l l

r e c o m m e n d t o t h e R e g i o n a l D i r e c t o r t h a t h e r e v o k e t h e

S e t t l e m e n t A g r e e m e n t

. ” ( I d

. )

O n M a r c h 2 0

, 2 0 1 7

, t h e c o m p l i a n c e o f f i c e r

a c k n o w l e d g e d b y e

- m a i l r e c e i p t o f t h e b a c k p a y a n d i n t e r e s t

c h e c k f o r Z a m b r a n o a n d s t a t e d t h a t

, g i v e n t h i s r e c e i p t

, t h e

R e g i o n a l D i r e c t o r w a s r e l u c t a n t l y w i l l i n g t o g i v e E B E W C two

more weeks ( i

. e

. , b y A p r i l 4

, 2 0 1 7 ) t o c o m p l y w i t h t h e

S e t t l e m e n t A g r e e m e n t ’ s r e m a i n i n g p r o v i s i o n s

. A c c o r d i n g t o

t h i s e

- m a i l

, t h o s e o u t s t a n d i n g i t e m s w e r e : ( 1 ) p o s t i n g o f t h e

N o t i c e ; ( 2 ) r e a d i n g o f t h e N o t i c e a l o u d t o t h e e m p l o y e e s ; ( 3 )

c o m p l e t i n g a n d r e t u r n i n g t h e c e r t i f i c a t i o n o f c o m p l i a n c e f

o r m s ;

a n d ( 4 ) p u r g i n g Z a m b r a n o ’ s p e r s o n n e l f i l e o f a n y r e f

e r e n c e t o

h e r d i s c h a r g e ( a n d n o t i f

y i n g Z a m b r a n o i n w r i t i n g t h a t t h i s w a s

d o n e a n d t h a t h e r d i s c h a r g e w o u l d n o t b e u s e d a g a i n s t h e r )

. A c c o r d i n g t o t h e e

- m a i l

, n o f u r t h e r e x t e n s i o n s o f t i m e w o u l d b e

g r a n t e d

. I n a f

o l l o w

- u p e

- m a i l d a t e d t h e s a m e d a y

, t h e11 c o m p l i a n c e o f

f i c e r a d d e d t h e r e q u i r e m e n t t h a t S i e b o l d ’ s w r i t t e n

d i s c i p l i n e b e p u r g e d f

r o m h e r p e r s o n n e l f

i l e ( w i t h w r i t t e n

c o n f i r m a t i o n t o t h e R e g i o n t h a t t h i s s t e p w a s c o m p l e t e d )

.

O n M a y 9

, 2 0 1 7

, a c o m p l i a n c e a s s i s t a n t i d e n t i f i e d b y e

m a i l t h e o u t s t a n d i n g i t e m s r e q u i r e d “ t o c o m p l y w i t h t h e

[ r e m a i n i n g ] p r o v i s i o n s o f t h e S e t t l e m e n t A g r e e m e n t

. ” ( A 9 0

. )

T h e s e w e r e p o s t i n g o f t h e N o t i c e

, r e a d i n g o f t h e N o t i c e a l o u d t o

e m p l o y e e s

, s u b m i s s i o n o f t h e certification o f c o m p l i a n c e f o r m s

,

a n d p u r g i n g Z a m b r a n o ’ s p e r s o n n e l f i l e o f a l l r e f

e r e n c e s t o h e r

d i s c h a r g e ( with w r i t t e n c o n f i r m a t i o n t o t h e R e g i o n t h a t t h i s w a s

d o n e )

.

O n J u n e 1 2

, 2 0 1 7

, t h e R e g i o n ’ s c o m p l i a n c e o f f i c e r r e a d

t h e N o t i c e t o t h e e m p l o y e e s a t t h e f a c i l i t y

. I n a n e

- m a i l d a t e d

J u n e 1 9

, 2 0 1 7

, t h e c o m p l i a n c e o f f i c e r s t a t e d

, a m o n g o t h e r

t h i n g s

, t h a t :

T h e r e a r e r e m a i n i n g i t e m s t h a t m u s t b e

c o m p l e t e d b y t h e e n d o f t h i s w e e k b y t h e

E m p l o y e r :

1

. T h e n o t i c e t o e m p l o y e e s m u s t b e s e n t v i a t e x t

t o a l l w a x a s s o c i a t e s a n d g e n e r a l s e r v i c e

a s s o c i a t e s a n d t h e t e x t m u s t s a y “ W e a r e

d i s t r i b u t i n g t h e a t t a c h e d N o t i c e t o E m p l o y e e s t o

y o u p u r s u a n t t o a S e t t l e m e n t A g r e e m e n t a p p r o v e d

b y t h e R e g i o n a l D i r e c t o r o f R e g i o n 2 2 o f t h e

N a t i o n a l L a b o r R e l a t i o n s B o a r d ” w i t h t h e n o t i c e

a t t a c h e d

.

( A 5 7

. ) S h e a l s o a s k e d E B E W C t o r e s c i n d S i e b o l d ’ s f i n a l

w a r n i n g

, r e m o v e r e f

e r e n c e s t o Z a m b r a n o ’ s d i s c h a r g e f r o m i t s

f i l e s ( a n d i n f

o r m Z a m b r a n o o f t h i s a c t i o n )

, a n d c o m p l e t e a n d12 r e t u r n t h e r e l e v a n t f

o r m s b y J u n e 2 3

, 2 0 1 7

. A c c o r d i n g t o t h e

c o m p l i a n c e o f

f i c e r

, “ [ t ] h e E m p l o y e r s i g n e d t h i s s e t t l e m e n t

a g r e e m e n t o n D e c e m b e r 1 9

, 2 0 1 6 a n d h a s b e e n g i v e n a

g e n e r o u s a m o u n t o f t i m e t o c o m p l y w i t h t h e t e r m s

. ” ( A 5 8

. )

S h e w a r n e d t h a t “ [ t ] h e R e g i o n w i l l h a v e n o c h o i c e b u t t o m o v e

f o r w a r d w i t h s e e k i n g a d e f a u l t j u d g m e n t i f t h e s e r e m a i n i n g

p r o v i s i o n s o f t h e s e t t l e m e n t h a v e n o t b e e n c o m p l e t e d b y t

h e e n d

o f t h i s w e e k

. ” ( I d

. )

O n J u l y 3 1

, 2 0 1 8

, t h e R e g i o n a l D i r e c t o r r e i s s u e d t h e

c o m p l a i n t

. I n a d d i t i o n t o s e t t i n g f o r t h t h e a l l e g a t i o n s o f u n f a i r

l a b o r p r a c t i c e s i n c l u d e d i n t h e o r i g i n a l c o m p l a i n t

, t h e r e i s s u e d

c o m p l a i n t a l l e g e d t h a t E B E W C h a d f a i l e d t o f u l l y c o m p l y w i t h

a l l o f t h e t e r m s o f t h e S e t t l e m e n t A g r e e m e n t b y :

1

. F a i l i n g t o r e m o v e f r o m i t s f i l e s r e f e r e n c e

t o Z a m b r a n o ’ s d i s c h a r g e a n d notifying h e r

i t h a s d o n e s o

.

2

. F a i l i n g t o r e s c i n d L i z S i e b o l d ’ s f i n a l

w a r n i n g

.

3

. F a i l i n g t o t e x t t h e N o t i c e t o i t s e m p l o y e e s ;

a n d

4

. F a i l i n g t o r e t u r n t h e r e q u i r e d C e r t i f i c a t i o n

o f C o m p l i a n c e f

o r m s t o t h e R e g i o n t o

d o c u m e n t t h e s t e p s R e s p o n d e n t t o o k t o

comply w i t h t h e S e t t l e m e n t A g r e e m e n t

.

( A 2 9

. ) A s p a r t o f t h e r e m e d y f o r t h e a l l e g e d u n f

a i r l a b o r

p r a c t i c e s

, “ a n d s i n c e R e s p o n d e n t c o m m u n i c a t e s w i t h i t s

e m p l o y e e s b y t e x t m e s s a g e

, t h e G e n e r a l C o u n s e l s e e k s a n O r d e r

r e q u i r i n g t h a t R e s p o n d e n t s e n d t h e n o t i c e t o e m p l o y e e s t o i t s13 e m p l o y e e s b y t e x t m e s s a g e

, s u c h t e x t t o c o n t a i n a n e x p l a n a t i o n

o f t h e n o t i c e a s d i r e c t e d b y t h e B o a r d

. ” ( A 3 4

. )

T h e G e n e r a l C o u n s e l a l s o f i l e d o n t h e s a m e d a y a m o t i o n

f o r d e f a u l t j u d g m e n t

, a s k i n g t h e B o a r d t o i s s u e a d e c i s i o n a n d

o r d e r a g a i n s t E B E W C c o n t a i n i n g f i n d i n g s o f f

a c t a n d

conclusion s o f l a w b a s e d o n t h e a l l e g a t i o n s o f t h e r e i s s u e d

c o m p l a i n t

, a n d “ o r d e r i n g [ E B E W C ] t o f u l l y r e m e d y t h e u n f

a i r

l a b o r p r a c t i c e s f

o u n d

, a n d g r a n t i n g s u c h o t h e r

, f u r t h e r r e l i e f a s

m a y b e p r o p e r i n t h e c i r c u m s t a n c e s

. ” ( A 3 6

. ) A f t e r

s u m m a r i z i n g t h e h i s t o r y o f t h i s p r o c e e d i n g a n d s p e c i f i c a l l y

a d d r e s s i n g h o w E B E W C h a d f a i l e d t o c o m p l y w i t h t h e t e r m s o f

t h e S e t t l e m e n t A g r e e m e n t

, t h e G e n e r a l C o u n s e l a l l e g e d t h a t

“ t h e S e t t l e m e n t A g r e e m e n t p r o v i d e s t h a t i n t h e e v e n t o f n o n

c o m p l i a n c e

, t h e B o a r d m a y i s s u e a n o r d e r p r o v i d i n g a f u l l

r e m e d y f o r t h e v i o l a t i o n s f

o u n d a s i s a

p p r o p r i a t e t o r e m e d y s u c h

v i o l a t i o n s a n d t h a t a U

. S

. C o u r t o f A p p e a l s J u d g m e n t m a y b e

e n t e r e d e n f

o r c i n g t h e B o a r d o r d e r

. ” ( A 4 0

. ) “ A s a r e s u l t o f

R e s p o n d e n t ’ s d e f

a u l t

, t h e G e n e r a l C o u n s e l s e e k s a n O r d e r

r e q u i r i n g R e s p o n d e n t t o f u l f i l l a l l o f i t s r e m a i n i n g u n d e r t a k i n g s

i n t h e J a n u a r y 3

, 2 0 1 7 S e t t l e m e n t A g r e e m e n t

. ” ( I d

. ) T h e

G e n e r a l C o u n s e l t h e r e b y m o v e d t h a t t h e B o a r d f i n d t h a t : ( 1 )

E B E W C h a d w a i v e d i t s r i g h t t o f i l e a n a n s w e r t o t h e r e i s s u e d

c o m p l a i n t u n d e r t h e t e r m s o f t h e S e t t l e m e n t A g r e e m e n t

, t h a t a l l

a l l e g a t i o n s o f t h e r e i s s u e d c o m p l a i n t b e d e e m e d t o b e t r u e

, a n d

t h a t n o h e a r i n g w a s n e c e s s a r y ; ( 2 ) f i n d t h a t E B E W C h a d

v i o l a t e d S e c t i o n 8 ( a ) ( 1 ) a n d ( 3 ) a s a l l e g e d i n t h e r e i s s u e d

c o m p l a i n t ; ( 3 ) i s s u e a d e c i s i o n a n d o r d e r c o n t a i n i n g f i n d i n g s o f

f a c t a n d c o n c l u s i o n s o f l a w b a s e d o n ( a n d i n a c c o r d a n c e w i t h )

t h e r e i s s u e d c o m p l a i n t ’ s a l l e g a t i o n s “ a n d p r o v i d e a f u l l r e m e d y

f o r t h e u n f a i r l a b o r p r a c t i c e s a l l e g e d ”; a n d ( 4 ) “ [ g ] r a n t a n y s u c h

o t h e r

, f u r t h e r

, a n d d i f

f e r e n t r e l i e f a s m a y b e a p p r o p r i a t e a n d

p r o p e r t o r e m e d y t h e a l l e g a t i o n s i n t h e r e i s s u e d C o m p l a i n t

. ”14 ( A 4 0

. )

O n A u g u s t 3

, 2 0 1 8

, t h e m a t t e r w a s t r a n s f e r r e d t o t h e

B o a r d

, a n d t h e B o a r d i s s u e d a n o t i c e t o s h o w c a u s e w h y t h e

G e n e r a l C o u n s e l ’ s m o t i o n s h o u l d n o t b e g r a n t e d

.

O n A u g u s t 1 6

, 2 0 1 8

, c o u n s e l f o r E B E W C s e n t t h e

G e n e r a l C o u n s e l ’ s a t t o r n e y a l e t t e r e x p l a i n i n g t h a t h e r c l i e n t h a d

c o m p l i e d w i t h i t s o b l i g a t i o n s u n d e r t h e S e t t l e m e n t A g r e e m e n t :

Kindly find enclosed the Competed [ s i c ]

Complia nce Forms (Par t On e an d Two) with

attac hed : Ex hibit “ A ” ( copy of e

- ma il

com municatio n sent to all employees with

Notices pur suant to the S ettlement Ag reement) ;

E xhibit “ B ” (c opy of e

- mail confirming Mana ger,

Sh ani Guadalupe ’ s reading of the Notice on Apri l

7, 2017); Ex hibi t “ C ” (e

- mail communi cation s

confirmin g Ms. Ficke ’ s [ s i c ] Notice Re ading at

European Wax Center on June 12, 2017) ; Exhibi t

“ D ” (copy of the check issu ed to Ms. Zambrano

on February 7, 20 17 and mailed to the NLRB on

March 6, 2017); and Exh ibit “ E ” (copy of th e

re cent correspondence s en t to Ms. Za mb ra no

confi r ming expung eme nt of fi le per Settleme nt

Agreement in Februar y 2017)

.

( A 7 1

. ) C o u n s e l a l s o i n d i c a t e d t h a t

, as to t h e r e s c i s s i o n o f

S i e b o l d ’ s f

i n a l w a r n i n g

, S i e b o l d h a d v o l u n t a r i l y t e r m i n a t e d h e r

e m p l o y m e n t ( h e r l a s t d a y w a s J u l y 2 9

, 2 0 1 6 ) a n d a l l r e f e r e n c e

t o t h e f i n a l w a r n i n g w a s r e m o v e d f r o m h e r f i l e ( a c o p y o f w h i c h

w a s e n c l o s e d a s E x h i b i t F )

. “ I t i s m y u n d e r s t a n d i n g t h a t t h e

e n c l o s e d c o n f

i r m s t h a t E u r o p e a n W a x C e n t e r o f E a s t B r u n s w i c k

i s f u l l y c o m p l i a n t w i t h i t s o b l i g a t i o n s u n d e r t h e t e r m s o f t h e15 S e t t l e m e n t A g r e e m e n t i n t h i s m a t t e r

. K i n d l y c o n f i r m t h a t t h e

p e n d i n g N o t i c e t o S h o w C a u s e w i l l b e w i t h d r a w n a n d n o f

u r t h e r

s t e p s a r e r e q u i r e d o n b e h a l f o f o u r c l i e n t

. ” ( I d

. )

The f i r s t p a r t o f t h e a t t a c h e d cer tificat i o n of c ompliance

f o rm s contai ned a n “ Ele ctro nic Distrib ution ” section stating

that : “ T he signed and dated Not ice to Employees i n the above

ca ptioned matter was distributed el ectronically on (date) . . . by

the following means

. (Stat e means of dist ri bution and attach

pr oof. ).

. . ” (A 72.) In ha nd writing, a da te was provided (A p ril

7, 2017) , and E B E W C stated: “ S E E C O P Y O F E M A I L

W I T H F O U R ( 4 ) A T T A C H E D D O C U M E N T S

A T T A C H E D H E R E T O A S E X H I B I T ‘ A

. ’ ” ( Id. )

I n t u r n

, E x h i b i t A i n c l u d e d a n e

- m a i l d a t e d A p r i l 7

, 2 0 1 7

f r o m E B E W C t o i t s e m p l o y e e s e n t i t l e d “ M e e t i n g N o t e s 4 / 7 / 1 7

. ”

( A 7 6

. ) T h e “ T o p i c s d i s c u s s e d ” l i s t e d t h e f o l l o w i n g i t e m :

“ E v e r y b o d y p l e a s e f

o l l o w m e i n t o t h e c a l l c e n t e r t o r e a d

i m p o r t a n t d o c u m e n t s a n d a l s o s e e a t t a c h m e n t

. A n y q u e s t i o n s

,

p l e a s e c o m e t o m e

. ” ( A 7 7

. ) T h e N o t i c e was t h e n a t t a c h e d t o

t h e e

- m a i l

.

O n A u g u s t 1 7

, 2 0 1 8

, E B E W C f i l e d i t s o p p o s i t i o n t o t h e

r e i s s u e d c o m p l a i n t

, m o t i o n f o r d e f a u l t j u d g m e n t a n d i s s u a n c e o f

d e c i s i o n a n d o r d e r

, a n d t h e n o t i c e t o s h o w c a u s e

. I n s u p p o r t o f

i t s o p p o s i t i o n

, i t “ a v e r s t h a t t h e a l l e g e d d e f i c i e n c i e s w e r e a l l

a d d r e s s e d a n d c o m p l i e d w i t h a s s e t f o r t h i n t h e r e c e n t

s u b m i s s i o n s t o [ t h e a t t o r n e y f o r the G e n e r a l C o u n s e l ]

. ” ( A 6 6

. )

A c o p y o f t h e A u g u s t 1 6

, 2 0 1 8 l e t t e r a n d i t s e x h i b i t s w e r e

a t t a c h e d t o t h e o p p o s i t i o n

. E B E W C t h e r e b y r e q u e s t e d t h a t t h e

B o a r d d e n y t h e r e l i e f r e q u e s t e d

, f i n d t h a t i t h a d f

u l l y s a t i s f i e d

t h e t e r m s a n d c o n d i t i o n s o f t h e S e t t l e m e n t A g r e e m e n t

, a n d e n t e r

a f i n a l d i s m i s s a l i n t h i s c a s e

.16 O n M a y 1 3

, 2 0 2 0

, a t h r e e

- m e m b e r p a n e l o f t h e B o a r d

i s s u e d i t s d e c i s i o n a n d o r d e r

. First

, i t r e n d e r e d t h e f o l l o w i n g

“ R u l i n g o n M o t i o n f

o r D e f a u l t J u d g m e n t ” :

In its response to the Notice to S h ow

Cau se, the Respondent contends th at the Moti on

for Default Judgment should be denied a nd the

reissued compl aint should be dis mis sed b ecause

the d ocuments a ttached t o its response to the

Notice to Show Cause

, which consist of copies of

co mpleted compliance for ms , an email

communication to employee s, a copy of an e mail

stating that Manag er Sh ania G uadalupe read t he

notice on April 7, 2017 , email com m unication

confirmin g the compliance officer ’ s reading o f

the no tice on June 12, 2017, a copy of the check

issued t o Zambrano , a copy of the corr espondence

sent to Zambrano confirming expungement of the

d ischarge from h er personnel recor d, and a copy

o f Si e bold ’ s fil e with al l refe rences to the final

written wa

rning sh e received remov ed , show “ tha t

the alleged deficien cies were all addressed and

co mplied with

. ”

Although the Respondent asserts that it has

complied with t he settlement agre eme nt, th e

Resp onden t has not establish ed tha t it has sent the

notice to em ployee s by text message to

employees

. As noted above, the nonco mpliance

provision in the settlement agreement provides

that “ [t]he only i ssue that the Charged Par ty may

raise before t he Boa rd wil l be whether it defaul te d

on t he terms of this Settlement Ag reemen t. ” As17 desc ribed

, the Responde nt has not shown that it

has fully complied with tha t agreement. The

settlement agreement further provide s that “ [t]he

B oard ma y then , without nec essity of tr ia l o r any

othe r proce ed ing, f

ind all allegations of the

Com plaint t o be true and ma ke findings o f fact

and conclusions of law consistent with those

allegations adverse to the Charged Party on all

issues raised by the plead ings. ” Th erefore,

be cause the Re spond ent h as no t establi shed t hat it

complied with all of th e term s of the settlemen t

agreemen t, we find that Responden t has failed to

raise any mate rial issue of fact warranting a

hearing. [ Footnote 1: The Respondent als o has

not established that it has resc inded the handbook

rules prohibiting talking or complai ning a bo ut

wages, hours, and working conditions or the

Resp ondent ’ s rules, p olicies, and/ or procedures.

However, the Region has not cited this as a basis

for defa ult , eithe r in its Mo tion f or Def ault

Judgm ent o r its com munica tions with the

Respondent, and there fo re we do n ot rel y on it

here. ]

Accordingly , we gra nt the General

Counsel ’ s Motio n for Default J u dgment and find,

pursuant to the non

- co mpliance provision o f the

sett lement agre ement set fo rth a bove, tha t all of

t he al l egations in the reissued compl aint a r e true.

[Footnot e 2: See U

- B ee, Ltd. , 315 NLRB 667

(1994). ]18 E B E W C

, 2 0 2 0 W L 2 4 7 6 6 6 9

, a t * 3

. B a s e d o n t h i s d e f a u l t

, t h e

B o a r d t h e n m a d e f

i n d i n g s o f f

a c t a n d c o n c l u s i o n s o f law on t h e

u n d e r l y i n g u n f

a i r l a b o r p r a c t i c e s a l l e g e d i n t h e r e i s s u e d

c o m p l a i n t

.

“ Havin g found that the Respondent has en gaged i n

certain unfair labor practices, a nd in accordance wit h the

General Counsel ’ s request for a ‘ full remedy ’ for the violations

found, we s hall order the Respo ndent to cease and desi st an d to

ta ke cert ain affi rmative action desig ned to effectuate the p ol icies

of the Act. ” I d

. a t * 5

. In a fo otnote, the Board added that, “ [t]o

the extent that the Respondent has alre ady complied with some

of t he ordered remedie s

, it shall not b e req uired to do so aga in. ”

I d

. a t * 5 n

. 3 ( citing Able B l d g

. Maint

. , 36 7 NLRB No. 134

, 2 0 1 9 W L 2 1 7 6 6 7 1 ( M a y 1 6

, 2019) ( “ ordering r espondent to,

inter alia, make a discrimin a tee whole ‘ to the ex tent that the

Respondents h ave not alr eady done so. ’ ” ) )

.

T h e B o a r d o r d e r e d E B E W C to ceas e and desist from the

unfair labor practices and from

, in any like or rela ted manner

, int er ferin g with, restraining , or coercing emplo yees i n the

exercise of their ri ghts

. I t a l s o d i r e c t e d E B E W C to resci nd the

p o licies the Boar d found unlawf ul, to expu n ge from its files any

dis cipline against employee Seibold an d any reference to

Zambrano ’ s dis charge and to notify them of those actions , and

to offe r Zambrano ful l rein st atement to her fo rmer job and make

h er whole for any loss of earnings or o ther benefi t s (including

backpay with intere st, se arch

- for

- work and inte r im employment

exp enses with inte rest, and compensation for any adverse tax

consequences for receiving a lum p

- su m backpay award)

. T h e

B o a r d f u r t h e r n o t e d t h a t

, “ a lthough Zambrano waive d

re instatem ent for the purposes of the set tlement , we shall order

it as part of a full remedy for her u nlawful discharge

. ” I d

. a t * 519 n

. 4

. A d d i t i o n a l l y

, “ [ b ] ecause it is unclear whether the total

amount s et forth in the sett lement agreemen t constitutes a full

make

- whole reme dy, we leave to complia nce a determination of

the proper amount due to Z ambrano. ” I d

. a t * 5 n

. 5 ; see also i d

.

a t * 5 n

. 6 ( rejecting Ge nera l Coun sel ’ s request for reasonable

consequentia l damages b ecause is s ue (which was not briefed)

would involve a change in Board l aw an d B o a r d wa s unp repared

to deviate from its current remedial practice at thi s time). T h e

o r d e r

, i n t u r n

, require d E B E W C t o p o s t t h e r e m e d i a l n o t i c e

, distribute it by text message, a nd have i t r ead at an em ployee

meeting. “ [ S] ince the Respondent communicates w ith it s

em p loyees by text message, we shall require the Responde nt to

send the notice to its employees by text message. See, e.g

. , Pacific Green Trucking , Inc.

, [ 368 NLR B No. 1 4

, 2 0 1 9 W L

2 7 1 5 4 2 5 ( J u n e 2 7

, 2019) ]

. ” I d

. a t * 6

. F i n a l l y

, E B E W C had to

certify c o m p l i a n c e w i t h i t s o b l i g a t i o n s

.

I I

.

T h e B o a r d h a d j u r i s d i c t i o n o v e r t h i s p r o c e e d i n g p u r s u a n t

t o 2 9 U

. S

. C

. § 1 6 0 ( a )

. W e h a v e j u r i s d i c t i o n o v e r t h e p e t i t i o n f

o r

r e v i e w a n d t h e a p p l i c a t i o n f o r e n f o r c e m e n t u n d e r 2 9 U

. S

. C

. §

1 6 0 ( e ) a n d ( f

)

.

A c c o r d i n g t o t h e B o a r d

, w e r e v i e w i t s d e c i s i o n t o g r a n t

d e f a u l t m o t i o n s f

o r a b u s e o f discretion

. F o r i t s p a r t

, E B E W C

a s s e r t s t h a t w e r e v i e w t h e B o a r d ’ s l e ga l d e c i s i o n s d e n o v o

. H o w e v e r

, E B E W C p o i n t s t o t h i s C o u r t ’ s r u l i n g i n L i v i n g s t o n

P o w d e r e d M e t a l s

, I n c

. v

. N L R B

, 6 6 9 F

. 2 d 1 3 3 ( 3 d C i r

. 1 9 8 2 )

, i n s u p p o r t o f i t s a r g u m e n t t h a t t h e B o a r d e r r e d i n i t s

i n t e r p r e t a t i o n o f t h e S e t t l e m e n t A g r e e m e n t

. L i v i n g s t o n

P o w d e r e d M e t a l s i n v o l v e d t h e B o a r d ’ s e n t r y o f a default w h e r e

t h e e m p l o y e r ’ s a n s w e r t o t h e c o m p l a i n t w a s m a i l e d o n t h e d u e

d a t e a n d r e c e i v e d s e v e r a l d a y s l a t e r

. I d

. a t 1 3 3

. “ B e c a u s e t h e20 a n s w e r a l l e g e s d e f

e n s e s t h a t d e s e r v e e v a l u a t i o n b y t h e a g e n c y

, l a t e f i l i n g w o u l d n o t h a v e d e l a y e d a h e a r i n g

, a n d

, b e c a u s e o t h e r

e q u i t i e s w e r e p r e s e n t

, w e c o n c l u d e t h a t t h e B o a r d a b u s e d i t s

d i s c r e t i o n i n r e f

u s i n g t o a c c e p t t h e a n s w e r

. ” I d

. a t 1 3 3

- 3 4

.

“ A l t h o u g h t h e B o a r d ’ s a c t i o n w a s n o m i n a l l y a s u m m a r y

j u d g m e n t

, i t w a s i n r e a l i t y a d e f a u l t

. ” I d

. a t 1 3 6

. W e

e m p h a s i z e d t h a t

, “ i n a d e f a u l t c a s e

, m o r e e x a c t i n g j u d i c i a l

s c r u t i n y i s i n o r d e r

. ” I d

. “ I n a s u m m a r y j u d g m e n t p r o c e e d i n g

,

t h e r e i s n o d i s p u t e a b o u t t h e r e l e v a n t f a c t s

. I n a d e f

a u l t

, h o w e v e r

, t h e d e f

e n d a n t ’ s c o n t e n t i o n s a r e n o t c o n s i d e r e d

, b u t

r a t h e r t h e e x p a r t e a l l e g a t i o n s o f t h e a d v e r s a r y a r e a c c e p t e d a s

t r u e

. ” I d

. A c c o r d i n g l y

, “ [ t ] h e p o s s i b i l i t y t h a t a n i n j u s t i c e m a y

o c c u r i s m u c h m o r e l i k e l y i n t h o s e c i r c u m s t a n c e s s i n c e t h e

c o n t r o v e r s i e s a r e d e c i d e d u p o n a p r o c e d u r a l t e c h n i c a l i t y i n s t e a d

o f a r u l i n g o n t h e m e r i t s

. ” I d

. ( f u r t h e r r e l y i n g o n s t a n d a r d f o r

o p e n i n g d i s t r i c t c o u r t d e f a u l t j u d g m e n t s ) ; s e e a l s o

, e

. g

. , i d

. a t

1 3 7 ( “ I n s u m m a r y

, t h e a n s w e r m a i l e d o n t h e l a s t d a y o f t h e

d e s i g n a t e d p e r i o d s e t o u t a meritor ious d e f e n s e t o v e r y s e r i o u s

c h a r g e s

, a n d permi ssio n t o f i l e i t w o u l d n o t h a v e d e l a y e d t h e

previousl y s c h e d u l e d h e a r i n g

. W e h o l d

, t h e r e f o r e

, t h a t t h e

c i r c u m s t a n c e s h e r e c o n s t i t u t e g o o d c a u s e t o a l l o w t h e p l e a d i n g

t o b e f i l e d

. ” )

. A s E B E W C r e c o g n i z e d : “ [ T ] h i s C o u r t s t a t e d

,

‘ t h e r e a r e i n s t a n c e s w h e r e w o o d e n a n d u n r e a s o n i n g insi stence

u p o n t e c h n i c a l p r o c e d u r a l r u l e s r e s u l t s

, n o t i n p r o p e r d i s p o s i t i o n

o f a c a u s e

, b u t i n i n

j u s t i c e

. F a i l u r e t o t a k e r e m e d i a l m e a s u r e s

w h e n s u c h i n c i d e n t s o c c u r c o n s t i t ut e s a n a b u s e o f d i s c r e t i o n

. ’ ”

( P e t i t i o n e r ’ s B r i e f a t 1 7 ( q u o t i n g L i v i n g s t o n P o w d e r e d M e t a l

, 6 6 9 F

. 2 d a t 1 3 7 )

. )

S e c t i o n 1 0 ( c ) o f t h e N L R A a u t h o r i z e s t h e B o a r d

, u p o n

f i n d i n g t h e e x i s t e n c e o f u n f a i r l a b o r p r a c t i c e s

, t o o r d e r t h e

v i o l a t o r “ t o c e a s e a n d d e s i s t ” f r o m t h e v i o l a t i o n s f

o u n d a n d

“ t a k e s u c h a f

f i r m a t i v e a c t i o n

. . . a s w i l l e f f e c t u a t e t h e p o l i c i e s21 o f [ t h e A c t ]

. ” 2 9 U

. S

. C

. § 1 6 0 ( c )

. T he s t a t u t e v e s t s i n t h e

B o a r d “ t h e p r i m a r y responsi bility a n d b r o a d d i s c r e t i o n t o d e v i s e

r e m e d i e s t h a t e f

f e c t u a t e t h e p o l i c i e s o f t h e A c t

, s u b j e c t o n l y t o

l i m i t e d j u d i c i a l r e v i e w

. ” S u r e

- T a n

, I n c

. v

. N L R B

, 4 6 7 U

. S

. 8 8 3

, 8 9 8

- 9 9 ( 1 9 8 4 ) ; s e e a l s o

, e

. g

. , S t

. J o h n ’ s G e n

. H o s p

. o f

A l l e g h e n y

- A D R C t r

. v

. N L R B

, 8 2 5 F

. 2 d 7 4 0

, 7 4 6 ( 3 d C i r

. 1 9 8 7 ) ( s t a t i n g t h a t B o a r d h a s b r o a d d i s c r e t i o n a r y p o w e r t o

f a s h i o n r e m e d i e s f

o r u n f a i r l a b o r p r a c t i c e s s u b

j e c t t o lim ited

r e v i e w )

. But t h e B o a r d ’ s a u t h o r i t y i s t h e r e b y l i m i t e d t o

r e m e d i a l a c t i o n s a n d d o e s n o t e x t e n d t o p u n i t i v e m e a s u r e s

. T h e

N L R A ’s “ p u r p o s e i s t h e ‘ p r o t e c t i o n o f e m p l o y e e s a n d t h e

r e d r e s s o f t h e i r g r i e v a n c e s

. . . a f t e r t h e e m p l o y e e s h a v e b e e n

m a d e w h o l e

. ’ ” Q u i c k v

. N L R B

, 2 4 5 F

. 3 d 2 3 1

, 2 5 4

- 5 5 ( 3 d C i r

. 2 0 0 1 ) ( q u o t i n g R e p u b l i c S t e e l C o r p

. v

. N L R B

, 3 1 1 U

. S

. 7

, 1 1

( 1 9 4 0 ) )

. “ A c c o r d i n g l y

, i t h a s l o n g b e e n r e c o g n i z e d t h a t t h e

N L R B ’ s ‘ p o w e r t o c o m m a n d a f f i r m a t i v e a c t i o n i s r e m e d i a l

, n o t

p u n i t i v e

. ’ ” I d

. a t 2 5 5 ( q u o t i n g R e p u b l i c S t e e l

, 3 1 1 U

. S

. a t 1 2 )

.

A s t h e S u p r e m e C o u r t e x p l a i n e d i n 1 9 4 0

, “ [ t ] h e A c t i s

e s s e n t i a l l y r e m e d i a l ” a n d a c c o r d i n g l y d o e s n o t s e t f o r t h a p e n a l

o r p u n i t i v e s c h e m e p r e s c r i b i n g f i n e s a n d p e n a l t i e s f

o r violating

p u b l i c r i g h t s

. R e p u b l i c S t e e l

, 3 1 1 U

. S

. a t 1 0

. “ W e d o n o t t h i n k

t h a t C o n g r e s s i n t e n d e d t o v e s t i n t h e B o a r d a v i r t u a l l y u n l i m i t e d

d i s c r e t i o n t o d e v i s e p u n i t i v e m e a s u r e s

, a n d t h u s t o p r e s c r i b e

p e n a l t i e s o r f

i n e s w h i c h t h e B o a r d m a y t h i n k w o u l d effectuate

t h e p o l i c i e s o f t h e A c t

. ” I d

. a t 1 1

. “ [ T h e B o a r d ’ s ] ‘ a u t h o r i t y t o

o r d e r a f f i r m a t i v e a c t i o n d o e s n o t g o s o f a r a s t o c o n f

e r a

p u n i t i v e j u r i s d i c t i o n e n a b l i n g t h e B o a r d t o i n f l i c t u p o n t h e

e m p l o y e r a n y p e n a l t y i t m a y c h o o s e b e c a u s e h e i s e n g a g e d i n

u n f a i r l a b o r p r a c t i c e s

, e v e n t h o u g h t h e B o a r d b e o f t h e o p i n i o n

t h a t t h e p o l i c i e s o f t h e A c t m i g h t b e e f f e c t u a t e d b y s u c h a n

o r d e r

. ’ ” I d

. a t 1 1

- 1 2

.22 W e e x e r c i s e p l e n a r y r e v i e w o v e r q u e s t i o n s o f l a w

, d e f e r r i n g t o t h e B o a r d o n i n t e r p r e t a t i o n o f l a b o r m a t t e r s

. S e e

,

e

. g

. , A t l

. L i m o u s i n e

, I n c

. v

. N L R B

, 2 4 3 F

. 3 d 7 1 1

, 7 1 5 ( 3 d C i r

. 2 0 0 1 )

. In any event, d e f a u l t o r c o m p l i a n c e w i t h a s e t t l e m e n t

a g r e e m e n t d o e s n o t i m p l i c a t e a u n i q u e l y l a b o r

- r e l a t e d q u e s t i o n

,

a n d w e a c c o r d i n g l y s e e n o n e e d t o d e f e r t o t h e B o a r d w i t h

r e s p e c t t o s u c h i s s u e s

.

I I I

.

E B E W C raises s everal o v e r l a p p i n g a r g u m e n t s f o r w h y

t h i s C o u r t s h o u l d g r a n t r e l i e f f r o m t h e B o a r d ’ s d e c i s i o n a n d

o r d e r

. A t t a c k i n g t h e B o a r d f o r t a k i n g “ a s l e d g e h a m m e r t o a n

a g r e e m e n t w h e r e a c h i s e l w o u l d h a v e s u f f i c e d i f P e t i t i o n e r h a d

b r e a c h e d ( w h i c h i t d i d n o t )

, ” i t a s k s u s t o r e v i e w “ [ w ] h e t h e r

P e t i t i o n e r s u b s t a n t i a l l y c o m p l i e d w i t h t h e t e r m s o f t h e

S e t t l e m e n t A g r e e m e n t ” a n d “ [ w ] h e t h e r t h e B o a r d ’ s r e m e d y

e x c e e d e d i t s a u t h o r i t y a n d w a s p u n i t i v e

. ” ( P e t i t i o n e r ’ s B r i e f a t

3

. ) A c c o r d i n g t o E B E W C

, i t s u b s t a n t i a l l y c o m p l i e d w i t h t h e

S e t t l e m e n t A g r e e m e n t

, a n d “ t h e B o a r d ’ s d e c i s i o n i s

u n r e a s o n a b l e

, u n f

a i r

, a n d p u n i t i v e

. ” ( I d

. a t 2 4 ( e m p h a s i s

o m i t t e d )

. ) W e a g r e e t h a t t h e B o a r d o v e r r e a c h e d a n d a c t e d i n a

p u n i t i v e f a s h i o n i n t h i s m a t t e r

.

A

. S e c t i o n 1 0 ( e )

W e m u s t f

i r s t a d d r e s s a t h r e s h o l d i s s u e

— w h e t h e r

E B E W C a d e q u a t e l y r a i s e d i t s o b j e c t i o n s b e f

o r e t h e B o a r d a s

r e q u i r e d b y S e c t i o n 1 0 ( e ) o f t h e N L R A

. A c c o r d i n g t o t h e

B o a r d

, t h e o n l y i s s u e E B E W C p u r p o r t e d l y r a i s e d b e f o r e t h e

B o a r d

— w h i c h w a s t h e o n l y i s s u e i t c o u l d h a v e r a i s e d under t he

S e t t l e m e n t A g r e e m e n t

— w a s t h e c l a i m t o h a v e f u l l y c o m p l i e d

w i t h t h e S e t t l e m e n t A g r e e m e n t

. T h e B o a r d c o n t e n d s t h a t “ o n

r e v i e w t h e C o m p a n y b e l a t e d l y c h a l l e n g e s t h e B o a r d ’ s O r d e r o n23 n e w l y m i n t e d g r o u n d s

— m o s t o f whic h i t i s p r e c l u d e d f r o m

r a i s i n g b y t h e n o n c o m p l i a n c e p r o v i s i o n s o f t h e Agreement

i t s e l f

, a n d a l l o f w h i c h i t f a i l e d t o r a i s e b e f

o r e t h e B o a r d

. ”

( R e s p o n d e n t ’ s B r i e f a t 2 3 ( f o o t n o t e o m i t t e d )

. ) W h i l e E B E W C

c o u l d h a v e m o r e c l e a r l y r a i s e d i t s o b j e c t i o n s

, w e c o n c l u d e t h a t

i t a d e q u a t e l y p r e s e n t e d i t s ( o v e r l a p p i n g ) o b j e c t i o n s o f

s u b s t a n t i a l c o m p l i a n c e

, disproportionate f o r f e i t u r e

, a n d

p u n i t i v e n e s s b e f

o r e t h e B o a r d

.

S e c t i o n 1 0 ( e ) o f t h e A c t p r o v i d e s t h a t “ [ n ] o o b j e c t i o n

t h a t h a s n o t b e e n u r g e d b e f o r e t h e B o a r d

. . . s h a l l b e c o n s i d e r e d

b y t h e c o u r t

, u n l e s s t h e f

a i l u r e o r n e g l e c t t o u r g e s u c h o b j e c t i o n

s h a l l b e e x c u s e d b e c a u s e o f e x t r a o r d i n a r y c i r c u m s t a n c e s

. ” 2 9

U

. S

. C

. § 1 6 0 ( e )

. “ A p p l i c a t i o n o f S e c t i o n 1 0 ( e ) i s m a n d a t o r y

,

n o t d i s c r e t i o n a r y

. ” O l d w i c k M a t e r i a l s

, I n c

. v

. N L R B

, 7 3 2 F

. 2 d

3 3 9

, 3 4 1 ( 3 d C i r

. 1 9 8 4 ) ( q u o t i n g N L R B v

. O c h o a F e r t i l i z e r

C o r p

. , 3 6 8 U

. S

. 3 1 8

, 3 2 2 ( 1 9 6 1 ) )

. “ I n M a r s h a l l F i e l d

, t h e C o u r t

d e c l a r e d t h a t § 1 0 ( e ) e x p r e s s e s ‘ t h e s a l u t a r y p o l i c y * * * o f

a f f o r d i n g t h e B o a r d o p p o r t u n i t y t o c o n s i d e r o n t h e m e r i t s

q u e s t i o n s t o b e u r g e d u p o n r e v i e w o f i t s o r d e r

. ’ ” N L R B v

. I n t ’ l

U n i o n o f O p e r a t i n g E n g ’ r s

, L o c a l 6 6

, 3 5 7 F

. 2 d 8 4 1

, 8 4 4 ( 3 d

C i r

. 1 9 6 6 ) ( q u o t i n g M a r s h a l l F i e l d & C o

. v

. N L R B

, 3 1 8 U

. S

. 2 5 3

, 2 5 6 ( 1 9 4 3 ) )

. T h i s p o l i c y i s d e s i g n e d “ t o g i v e f u l l

r e c o g n i t i o n t o t h e ‘ f

u n c t i o n o f t h e L a b o r B o a r d a s o n e o f t h o s e

a g e n c i e s p r e s u m a b l y e q u i p p e d o r i n f o r m e d b y e x p e r i e n c e t o

d e a l w i t h a s p e c i a l i z e d f i e l d o f k n o w l e d g e

, w h o s e f i n d i n g s

w i t h i n t h a t f

i e l d c a r r y t h e a u t h o r i t y o f a n e x p e r t n e s s w h i c h

c o u r t s d o n o t p o s s e s s

. ’ ” I d

. ( q u o t i n g U n i v

. C a m e r a C o r p

. v

. N L R B

, 3 4 0 U

. S

. 4 7 4

, 4 8 8 ( 1 9 5 1 ) ) ; s e e a l s o

, e

. g

. , L o c a l 9 0 0

, I n t ’ l U n i o n o f E l e c

. , R a d i o a n d M a c h

. W o r k e r s v

. N L R B

, 7 2 7

F

. 2 d 1 1 8 4

, 1 1 9 1 ( D

. C

. C i r

. 1 9 8 4 ) ( s t a t i n g t h a t S e c t i o n 1 0 ( e )

s e r v e s n o t i c e f

u n c t i o n e nsuring t h a t t h e B o a r d h a s o p p o r t u n i t y

t o r e s o l v e a l l i s s u e s p r o p e r l y w i t h i n i t s j u r i s d i c t i o n a n d24 a d j u d i c a t o r y e f

f i c i e n c y b y i n s u r i n g a g a i n s t repetitive j u d i c i a l

a p p e a l s ) ; L i v i n g s t o n P o w d e r e d M e t a l

, 6 6 9 F

. 2 d a t 1 3 6 ( “ S e c t i o n

1 0 ( e ) i s i n t e n d e d t o p r e v e n t a l i t i g a n t f r o m r a i s i n g a m a t t e r i n

t h e c o u r t s w h i c h h a d n e v e r b e e n p r e s e n t e d t o t h e B o a r d f o r i t s

c o n s i d e r a t i o n

— a c i r c u m s t a n c e n o t p r e s e n t i n t h i s c a s e

. T h e

c o m p a n y d i d b r i n g t h e m a t t e r t o t h e B o a r d ’ s a t t e n t i o n s o t h a t i t

h a d t h e o p p o r t u n i t y t o r u l e o n t h e q u e s t i o n

. A c c o r d i n g l y

, t h e

s t a t u t o r y p u r p o s e h a s b e e n s e r v e d a n d w e r e j e c t t h e B o a r d ’ s

c o n t e n t i o n t h a t s 1 0 ( e ) b a r s o u r r e v i e w h e r e

. ” )

.

“ T h e c r u c i a l q u e s t i o n i n a s e c t i o n 1 6 0 ( e ) a n a l y s i s i s

w h e t h e r t h e B o a r d ‘ “ r e c e i v e d a d e q u a t e n o t i c e o f t h e b a s i s f o r

t h e o b j e c t i o n

. ” ’ ” N L R B v

. F e d E x F r e i g h t

, I n c

. , 8 3 2 F

. 3 d 4 3 2

, 4 3 7 ( 3 d C i r

. 2 0 1 6 ) ( q u o t i n g F e d E x F r e i g h t

, I n c

. v

. N L R B

, 8 1 6

F

. 3 d 5 1 5

, 5 2 1 ( 8 t h C i r

. 2 0 1 6 ) )

. W e a r e s a t i s f i e d t h a t t h e B o a r d

r e c e i v e d a d e q u a t e n o t i c e o f t h e b a s i s o f E B E W C ’ s o b j e c t i o n s

. U n l i k e i n t h e c a s e l a w c i t e d b y t h e B o a r d

, t h e p a r t y i n t h i s

p r o c e e d i n g d i d n o t s i m p l y f a i l t o f i l e

, among other things

, a n y

a n s w e r

, r e s p o n s e t o a s u m m a r y j u d g m e n t m o t i o n

, o b j e c t i o n s t o

t h e A d m i n i s t r a t i v e L a w J u d g e ’ s f i n d i n g s o f f

a c t a n d c o n c l u s i o n s

o f l a w

, o r m o t i o n f

o r r e c o n s i d e r a t i o n

. S e e

, e

. g

. , W o e l k e &

R o m e r o F r a m i n g

, I n c

. v

. N L R B

, 4 5 6 U

. S

. 6 4 5

, 6 6 5

- 6 6 ( 1 9 8 2 )

( s t a t i n g t h a t i s s u e d e c i d e d b y B o a r d w a s n o t r a i s e d b y e i t h e r

G e n e r a l C o u n s e l o r b y e m p l o y e r b u t t h a t r e s p o n d e n t c o u l d h a v e

o b j e c t e d t o d e c i s i o n i n p e t i t i o n f o r r e c o n s i d e r a t i o n o r r e h e a r i n g ) ;

O l d w i c k M a t e r i a l s

, 7 3 2 F

. 2 d a t 3 4 1 ( “ T h u s

, t h i s r e c o r d i s

d e v o i d o f a n y e v i d e n c e i n d i c a t i n g t h a t p e t i t i o n e r e v e r f i l e d a n y

a n s w e r t o t h e a m e n d e d c o m p l a i n t

, a n y r e s p o n s e t o t h e m o t i o n

f o r s u m m a r y j u d g m e n t

, a n y o b j e c t i o n t o t h e B o a r d ’ s o r d e r

, o r

a n y r e q u e s t f

o r r e c o n s i d e r a t i o n ; i n s t e a d o f p u r s u i n g a n y o f t h e

o p t i o n s a v a i l a b l e

, p e t i t i o n e r f i l e d f o r r e v i e w b y t h i s c o u r t

. ” ) ;

I n t ’ l U n i o n o f O p e r a t i n g E n g ’ r s

, 3 5 7 F

. 2 d a t 8 4 7 ( “ W e t h e r e f o r e

c o n c l u d e t h a t r e s p o n d e n t l o s t t h e r i g h t t o c o m p l a i n o f e r r o r s i n25 t h e T r i a l E x a m i n e r ’ s d e c i s i o n w h e n i t f a i l e d t o f i l e e x c e p t i o n s

w i t h t h e B o a r d

. ” )

.

O n t h e c o n t r a r y

, E B E W C d i d f i l e w i t h t h e B o a r d t h e

“ O p p o s i t i o n o f E u r o p e a n W a x C e n t e r o f E a s t B r u n s w i c k t o : ( I )

T h e R e i s s u e d C o m p l a i n t ; ( I I ) G e n e r a l C o u n s e l ’ s M o t i o n f o r

D e f a u l t J u d g m e n t a n d I s s u a n c e o f D e c i s i o n a n d O r d e r ; a n d ( I I I )

I n R e s p o n s e t o t h e A u g u s t 3

, 2 0 1 8 O r d e r T r a n s f e r r i n g

P r o c e e d i n g t o t h e B o a r d a n d N o t i c e t o S h o w C a u s e

. ” ( A 6 6

( e m p h a s i s o m i t t e d )

. ) I n t h i s f i l i n g

, i t e x p r e s s l y o p p o s e d t h e

r e i s s u e d c o m p l a i n t

, m o t i o n f o r d e f a u l t j u d g m e n t

, a n d n o t i c e t o

s h o w c a u s e “ a n d i n s u p p o r t t h e r e f o r e a v e r s t h a t t h e a l l e g e d

d e f i c i e n c i e s w e r e a l l a d d r e s s e d a n d c o m p l i e d w i t h a s s e t f o r t h i n

t h e r e c e n t s u b m i s s i o n s t o [ t h e G e n e r a l C o u n s e l ’ s a t t o r n e y ]

a t t a c h e d h e r e t o a s E x h i b i t 1

. ” ( I d

. )

E B E W C s p e c i f

i c a l l y a s k e d t h e B o a r d t o d e n y t h e r e l i e f

r e q u e s t e d b y t h e G e n e r a l C o u n s e l

, f i n d t h a t i t h a d f

u l l y s a t i s f i e d

t h e t e r m s a n d c o n d i t i o n s o f t h e S e t t l e m en t A g r e e m e n t

, a n d e n t e r

a f i n a l d i s m i s s a l i n t h i s m a t t e r

. T h e l e t t e r i t s c o u n s e l h a d s e n t t o

t h e G e n e r a l C o u n se l ’ s a t t o r n e y

, a c o m p l e t e d c e r t i f i c a t i o n o f

c o m p l i a n c e confirming t hat t h e “ N o t i c e t o E m p l o y e e s ” w a s e

m a i l e d t o e m p l o y e e s o n A p r i l 7

, 2 0 1 7 ( A 7 2 )

, a n d a “ c o p y o f e

m a i l c o m m u n i c a t i o n s e n t t o a l l e m p l o y e e s w i t h N o t i c e s

p u r s u a n t t o t h e S e t t l e m e n t A g r e e m e n t ” w e r e a l l i n c l u d e d a s p a r t

o f t h e a t t a c h e d e x h i b i t ( A 7 1 )

. I n h e r l e t t e r

, E B E W C ’ s a t t o r n e y

a s s e r t e d th a t t h e e n c l o s e d d o c u m e n t a t i o n c o n f i r m e d t h a t i t w a s

f u l l y c o m p l i a n t w i t h i t s o b l i g a t i o n s u n d e r t h e t e r m s o f t h e

S e t t l e m e n t A greement

, a n d s h e a s k e d f o r c o n f i r m a t i o n t h a t t h e

n o t i c e t o s h o w c a u s e w o u l d b e w i t h d r a w n a n d n o f u r t h e r a c t i o n s

w o u l d b e r e q u i r e d o n t h e p a r t o f h i s c l i e n t

. T h e B o a r d

, i n t u r n

,

a c k n o w l e d g e d t h a t E B E W C a r g u e d i n i t s r e s p o n s e t o t h e n o t i c e

t o s h o w c a u s e t h a t t h e d e f a u l t m o t i o n s h o u l d b e d e n i e d a n d t h e26 r e i s s u e d c o m p l i a n t s h o u l d b e d i s m i s s e d b e c a u s e t h e d o c u m e n t s

a t t a c h e d t o i t s r e s p o n s e c o n s i s t i n g o f ( a m o n g o t h e r t h i n g s ) t h e

c o m p l e t e d c o m p l i a n c e f

o r m s a n d a n e

- m a i l c o m m u n i c a t i o n t o

e m p l o y e e s “ s h o w ‘ t h a t t h e a l l e g e d d e f i c i e n c i e s w e r e a l l

a d d r e s s e d a n d c o m p l i e d w i t h

. ’ ” E B E W C

, 2 0 2 0 W L 2 4 7 6 6 6 9

,

a t * 3

.

A d m i t t e d l y

, E B E W C ’ s s u b m i s s i o n s t o t h e B o a r d a r g u e d

t h a t i t h a d f

u l l y p e r f o r m e d i t s o b l i g a t i o n s u n d e r t h e S e t t l e m e n t

A g r e e m e n t a n d d i d n ot e x p l i c i t l y r e f e r t o t h e c o n c e p t s o f

s u b s t a n t i a l c o m p l i a n c e

, di sproportionate f o r f e i t u r e

, o r

p u n i t i v e n e s s

. B u t w e a r e s a t i s f i e d t h a t s u b s t a n t i a l c o m p l i a n c e o r

p e r f o r m a n c e a s w e l l a s t h e r e l a t e d c o n c e p t s o f p u n i t i v e n e s s a n d

disproportion ate f

o r f e i t u r e w e r e e s s e n t i a l l y c o m p o n e n t s o f i t s

a r g u m e n t t o t h e B o a r d a s w e l l a s t h e c o n c e p t o f “ d e f a u l t ” f o r

p u r p o s e s o f t h e S e t t l e m e n t A g r e e m e n t a n d w h a t E B E W C c o u l d

r a i s e b e f o r e t h e B o a r d

. A c c o r d i n g t o E B E W C

, “ [ t ] o t h e e x t e n t

t h e B o a r d c l a i m s i t d i d n o t h a v e n o t i c e t h a t P e t i t i o n e r b e l i e v e d

e

- m a i l i n g w a s s u f

f i c i e n t i n c o n

j u n c t i o n w i t h a l l t h e o t h e r a c t s i t

t o o k a n d t h e B o a r d ’ s a c t i o n s a n d t h a t t h e m a t t e r s h o u l d b e

c l o s e d w i t h o u t a n y f

u r t h e r r e m e d y

, t h o s e a r g u m e n t s a r e

e n c o m p a s s e d b y t h e a f

o r e m e n t i o n e d o b

j e c t i o n i t s e l f a s w e l l a s

t h e c o n t e n t o f t h e c o r r e s p o n d i n g e x h i b i t s

. ” ( P e t i t i o n e r ’ s R e p l y

B r i e f a t 1 3

. ) A f

t e r a l l

, i t i s u n d i s p u t e d t h a t t h e S e t t l e m e n t

A g r e e m e n t prov ided f

o r t h e N o t i c e t o b e s e n t b y t e x t b u t t h a t t h e

N o t i c e w a s a c t u a l l y s e n t b y e

- m a i l

. Y e t E B E W C c l e a r l y

i n d i c a t e d t o t h e B o a r d t h a t i t s a c t i o n s s u f f i c e d t o j u s t i f

y t h e

d e n i a l o f t h e r e l i e f r e q u e s t e d b y t h e G e n e r a l C o u n s e l a n d a f i n a l

d i s m i s s a l o f t h e p r o c e e d i n g i t s e l f

. P u t a n o t h e r w a y

, “ [ s ] i n c e

P e t i t i o n e r d i d n o t c o n t e n d t h a t i t s e n t t h e t e x t

, t h e f a c t t h a t i t

b e l i e v e d t h a t i t n e v e r t h e l e s s w a s i n c o m p l i a n c e m o r e t h a n

a d e q u a t e l y p u t s t h e B o a r d o n n o t i c e t h a t i t b e l i e v e d i t h a d d o n e

e n o u g h t o b e c o n s i d e r e d i n c o m p l i a n c e w h e t h e r o r n o t the u s e o f27 t h e p h r a s e ‘ s u b s t a n t i a l c o m p l i a n c e ’ w a s u s e d

. ” ( I d

. a t 1 4 ( c i t i n g

F e d E x F r e i g h t

, 8 3 2 F

. 3 d 4 3 2 )

. ) O u r c o n c l u s i o n i s a l s o

c o n s i s t e n t w i t h t h e e s t a b l i s h e d p r i n c i p l e t h a t

, “ i n a d e f a u l t c a s e

,

m o r e e x a c t i n g j u d i c i a l s c r u t i n y i s i n o r d e r ” b e c a u s e “ t h e

d e f e n d a n t ’ s c o n t e n t i o n s a r e n o t c o n s i d e r e d

, b u t r a t h e r t h e e x

p a r t e a l l e g a t i o n s o f t h e a d v e r s a r y a r e a c c e p t e d a s t r u e

, ” a n d

,

a c c o r d i n g l y

, “ [ t ] h e p o s s i b i l i t y t h a t a n i n j u s t i c e m a y o c c u r i s

m u c h m o r e l i k e l y i n t h o s e c i r c u m s t a n c e s s i n c e t h e c o n t r o v e r s i e s

a r e d e c i d e d u p o n a p r o c e d u r a l t e c h n i c a l i t y i n s t e a d o f a r u l i n g o n

t h e m e r i t s

. ” 2 L i v i n g s t o n P o w d e r e d M e t a l

, 6 6 9 F

. 2 d a t 1 3 6

.

B

. T h e M e r i t s

T u r n i n g t o t h e m e r i t s

, t h e B o a r d c o n t e n d s t h a t t h e

S e t t l e m e n t A g r e e m e n t ’ s p l a i n l a n g u a g e s e t f o r t h s p e c i f

i c

c o n s e q u e n c e s f

o r E B E W C ’ s f

a i l u r e t o c o m p l y w i t h a n y o f i t s

t e r m s

, i n c l u d i n g r e i s s u a n c e o f t h e c o m p l a i n t

, t h e f i l i n g o f a

m o t i o n f o r d e f a u l t j u d g m e n t

, a n d t h e g r a n t o f a f u l l r e m e d y f

o r

t h e a l l e g a t i o n s i n t h e c o m p l a i n t ( w h i c h w o u l d b e d e e m e d t o b e

t r u e )

. A d m i t t e d l y

, t h e S e t t l e m e n t A g r e e m e n t d i d s p e c i f i c a l l y

s t a t e t h a t “ [ t ] h e C h a r g e d P a r t y a g r e e s t h a t i n c a s e o f n o n

c o m p l i a n c e w i t h a n y o

f t h e t e r m s o f t h i s S e t t l e m e n t A g r e e m e n t

2 I n t u r n

, w e n o t e t h a t t h e B o a r d ’ s o w n po siti o n h e r e d o e s

s e e m t o b e “ c i r c u i t o u s ” ( Petitioner ’ s Reply Bri ef a t 1 0

( e m p h a s i s o m i t t e d ) .) O n t h e o n e h a n d

, i t i n s i s t s t h a t

, “ [ b ] e f o r e

t h e B o a r d

, t h e C o m p a n y r a i s e d t h e o n l y i s s u e p e r m i t t e d b y t h e

A g r e e m e n t i t h a d v o l u n t a r i l y s i g n e d : i t c l a i m e d t o h a v e f u l l y

c o m p l i e d w i t h t h e A g r e e m e n t

. ” ( R e s p o n d e n t ’ s B r i e f a t 2 2

( c i t i n g E B E W C

, 2 0 2 0 W L 2 4 7 6 6 6 9

, a t * 1

- * 3 )

. ) O n t h e o t h e r

h a n d

, t h e B o a r d t a k e s E B E W C t o t a s k f o r f a i l i n g t o r a i s e t h e

i s s u e s b e f o r e the B o a r d s e t f

o r t h i n i t s a p p e l l a t e b r i e f

i n g ( i s s u e s

t h e B o a r d i n s i s t s t h a t E B E W C c o u l d n o t h a v e r a is e d i n t h e f i r s t

p l a c e )

.28 b y t h e C h a r g e d P a r t y

, a n d a f t e r 1 4 d a y s ’ n o t i c e f

r o m t h e

R e g i o n a l D i r e c t o r

. . . o f s u c h n o n

- c o m p l i a n c e w i t h o u t r e m e d y

b y t h e C h a r g e d P a r t y

, t h e R e g i o n a l D i r e c t o r w i l l i s s u e a

C o m p l a i n t

. ” ( A 2 5 ( e m p h a s i s a d d e d )

. ) “ I f

. . . t h e a g r e e m e n t

m a k e s f u l l p e r f o r m a n c e a c o n d i t i o n

, s u b s t a n t i a l p e r f o r m a n c e i s

n o t s u f f i c i e n t a n d i f r e l i e f i s t o b e h a d u n d e r the c o n t r a c t

, i t m u s t

b e t h r o u g h e x c u s e o f t h e n o n

- o c c u r r e n c e o f t h e c o n d i t i o n t o

a v o i d f o r f e i t u r e

. ” R e s t a t e m e n t ( S e c o n d ) o f C o n t r a c t s § 2 3 7

c m t

. d ( c i t i n g R e s t a t e m e n t ( S e c o n d ) o f C o n t r a c t s § 2 2 9 a n d

i l l u s

. 1 )

. A c c o r d i n g l y

, “ [ t ] o t h e e x t e n t t h a t t h e n o n

- o c c u r r e n c e

o f a c o n d i t i o n w o u l d c a u s e disproportionat e f o r f e i t u r e

, a c o u r t

m a y e x c u s e t h e n o n

- o c c u r re n c e o f t h a t c o n d i t i o n u n l e s s i t s

o c c u r r e n c e w a s a m a t e r i a l p a r t o f t h e a g r e e d e x c h a n g e

. ”

R e s t a t e m e n t ( S e c o n d ) o f C o n t r a c t s § 2 2 9

. “ U n d e r t h e p r e s e n t

S e c t i o n a c o u r t m a y

, i n a p p r o p r i a t e c i r c u m s t a n c e s

, e x c u s e t h e

n o n

- occurren c e o f a c o n d i t i o n s o l e l y o n t h e b a s i s o f t h e

f o r f e i t u r e t h a t w o u l d o t h e r w i s e r e s u l t

. ” I d

. c m t

. a

. A c c o r d i n g t o

the R e s t a t e m e n t

, “ [ t ] h e r u l e s t a t e d i n t h e p r e s e n t S e c t i o n i s

, o f

n e c e s s i t y

, a f

l e x i b l e o n e

, a n d i t s a p p l i c a t i o n i s w i t h i n t h e s o u n d

d i s c r e t i o n o f t h e c o u r t

. ” I d

. c m t

. b

. “ I n d e t e r m i n i n g w h e t h e r t h e

f o r f e i t u r e i s ‘ d i s p r o p o r t i o n a t e

, ’ a c o u r t m u s t w e i g h t h e e x t e n t o f

t h e f o r f e i t u r e b y t h e oblige e a g a i n s t t h e i m p o r t a n c e t o t h e

o b l i g o r o f t h e r i s k f

r o m w h i c h h e s o u g h t t o b e p r o t e c t e d a n d t h e

d e g r e e t o w h i c h t h a t p r o t e c t i o n w i l l b e l o s t i f t h e n o n

o c c u r r e n c e o f t h e c o n d i ti o n i s e x c u s e d t o t h e e x t e n t r e q u i r e d t o

p r e v e n t f o r f e i t u r e

. ” I d

. I n t u r n

, “ [ t ] h e r u l e o f t h i s S e c t i o n

a p p l i e s o n l y w h e r e o c c u r r e n c e o f t h e c o n d i t i o n w a s n o t a

m a t e r i a l p a r t o f t h e a g r e e d e x c h a n g e

. ” I d

. c m t

. c

. U n d e r t h e

R e s t a t e m e n t

, “ [ a ] c o u r t m a y

, o f c o u r s e

, i g n o r e t r i f l i n g

d e p a r t u r e s

. ” I d

.

E x e r c i s i n g t h e s c r u t i n y n e c e s s a r y t o e n s u r e t h a t i n j u s t i c e

d o e s n o t a r i s e o u t o f t h i s d e f a u l t p r o c e e d i n g

, s e e L i v i n g s t o n29 P o w d e r e d M e t a l

, 6 6 9 F

. 2 d a t 1 3 6

, w e a r e satisfied t h a t t h e

o c c u r r e n c e o f t h e c o n d i t i o n w a s m a n i f e s t l y n o t a m a t e r i a l p a

r t o f

t h e a g r e e d e x c h a n g e a n d t h a t t h e “ f o r f e i t u r e ” i s c l e a r l y

d isproportionate

. I n s h o r t

, t h e r e i s n o i n d i c a t i o n t h a t t e x t i n g a s

o p p o s e d t o s o m e o t h e r m e t h o d o f e l e c t r o n i c c o m m u n i c a t i o n

( s u c h a s e

- m a i l i n g ) h a d a n y r e a l s i g n i f i c a n c e t o E B E W C

, i t s

e m p l o y e e s

, o r t h e B o a r d i t s e l f

. I n a d d i t i o n

, E B E W C o t h e r w i s e

f u l l y c o m p l i e d w i t h i t s o t h e r o b l i g a t i o n s u n d e r t h e S e t t l e m e n t

A g r e e m e n t

.

W e a g r e e w i t h t h e B o a r d t h a t “ n o t i c e

- d i s t r i b u t i o n ” “ h a s

b e e n a n e s s e n t i a l e l e m e n t o f t h e B o a r d ’ s r e m e d i e s f o r u n f a i r

l a b o r p r a c t i c e s s i n c e t h e e a r l i e s t c a s e s u n d e r t h e A c t

. ” J

. P i c i n i

F l o o r i n g

, 3 5 6 N L R B 1 1

, 1 2 ( 2 0 1 0 ) ( c i t i n g P a

. G r e y h o u n d L i n e s

, I n c

. , 1 N L R B 1

, 5 2 ( 1 9 3 5 )

, e n f o r c e m e n t d e n i e d i n r e l e v a n t p a r t

, 9 1 F

. 2 d 1 7 8 ( 3 d C i r

. 1 9 3 7 )

, r e v ’ d

, 3 0 3 U

. S

. 2 6 1 ( 1 9 3 8 ) )

. S u c h

notic es serve several i m p o r t a n t f u n c t i o n s

, i n c l u d i n g

c o u n t e r a c t i n g t h e e f

f e c t o f u n f a i r l a b o r p r a c t i c e s o n e m p l o y e e s

b y n o t i f y i n g t h e m o f t h e i r r i g h t s a n d t h e B o a r d ’ s r o l e i n

p r o t e c t i n g t h e e x e r c i s e o f t h o s e r i g h t s

, i n f o r m i n g t h e e m

p l o y e e s

o f s t e p s t o b e t a k e n t o r e m e d y v i o l a t i o n s a n d p r o v i d e a s s u r a n c e s

t h a t f u t u r e v i o l a t i o n s w i l l n o t o c c u r

, a n d d e t e r r i n g f u t u r e

v i o l a t i o n s

. S e e

, e

. g

. , i d

. F u r t h e r m o r e

, a s t h e B o a r d

a c k n o w l e d g e s i n i t s a p p e l l a t e b r i e f

, “ w h e n t h e B o a r d r e q u i r e s a

c h a r g e d p a r t y t o e l e c t r o n i c a l l y d i s t r i b u t e t h e n o t i c e t h r o u g h i t s

c u s t o m a r y m e a n s o f c o m m u n i c a t i n g w i t h e m p l o y e e s

, i t

s e p a r a t e s t h e t y p e o f e l e c t r o n i c c o m m u n i c a t i o n i n t o s p e c i f i c

c a t e g o r i e s

, s u c h a s t e x t

, e m a i l

, i n t r a n e t

, a n d i n t e r n e t

. ”

( R e s p o n d e n t ’ s B r i e f a t 2 8 ( c i t i n g P a c

. G r e e n T r u c k i n g

, 2 0 1 9

W L 2 7 1 5 4 2 5

, a t * 2 ; D i s h N e t w o r k C o r p

. , 3 6 6 N L R B N o

. 1 1 9

, 2 0 1 8 W L 3 2 0 9 0 9 6

, a t * 6 ( J u n e 2 8

, 2 0 1 8 )

, r e v i e w g r a n t e d a n d

enforceme nt d e n i e d i n p a r t o n o t h e r g r o u n d s b y D i s h N e t w o r k

C o r p

. v

. N L R B

, 9 5 3 F

. 3 d 3 7 0 ( 5 t h C i r

. 2 0 2 0 ) )

. )30 T h e r e i s n o i n d i c a t i o n t h a t t e x t i n g ( a s o p p o s e d t o o t h e r

m e a n s o f e l e c t r o n i c c o m m u n i c a t i o n l i k e e

- m a i l i n g ) h a d a n y r e a l

s i g n i f i c a n c e t o E B E W C

, i t s e m p l o y e e s

, o r t h e B o a r d i t s e l f

. I n

t h e d e c i si o n s c i t e d b y t h e B o a r d

, t h e e m p l o y e r w a s o r d e r e d t o

p r o v i d e n o t i c e b y a p a r t i c u l a r e l e c t r o n i c m e a n s i f i t c u s t o m a r i l

y

c o m m u n i c a t e d w i t h i t s e m p l o y e e s b y s u c h m e a n s

. S e e P a c

. G r e e n T r u c k i n g

, 2 0 1 9 W L 2 7 1 5 4 2 5

, a t * 2 ( “ I n a d d i t i o n t o

p h y s i c a l p o s t i n g o f p a p e r n o t i c e s

, n o t i c e s s h a l l b e d i s t r i b u te d

e l e c t r o n i c a l l y

, s u c h a s b y t e x t m e s s a g e

, e m ai l

, p o s t i n g o n a n

i n t r a n e t o r a n i n t e r n e t s i t e

, an d / o r o t h e r e l e c t r o n i c m e a n s

, i f t he

Re s p o n d e n t c u s t o m a r i l y c o m m u n i c a t e s wi t h i t s em p l o y e e s b y

s u c h m e a n s

. ” ) ; D i s h N e t w o r k

, 2 0 1 8 W L 3 2 0 9 0 9 6

, a t * 6 ( “ D i s h

s h a l l a l s o d i s t r i b u t e r e m e d i a l n o t i c e s e l e c t r o n i c a l l y v i a t e x t

m e s s a g e

, e m a i l

, i n t

r a n e t

, i n t e r n e t

, o r o t

h e r a p p r o p r i a t e e l e c t

r o n i c

m e a n s t o i t s e m p l o y e e s

, i n a d d i t i o n t o t h e t r a d i t i o n a l p h y s i c a l

p o s t i n g o f p a p e r n o t i c e s

, i f i t c u s t o m a r i l y c o m m u n i c a t e s w i t h

w o r k e r s i n t h i s m a n n e r

. ” ( c i t i n g J

. P i c i n i F l o o r i n g

, 3 5 6 N L R B

1 1 ) )

. But E B E W C d i d n o t a g r e e t h a t i t “ c u s t o m a r i l y ”

c o m m u n i c a t e d w i t h i t s e m p l o y e e s b y t e x t

. M o r e b r o a d l y

, t h e

S e t t l e m e n t A g r e e m e n t d i d n o t p r o v i d e a n y e x p l i c i t r e a s o n f o r

w h y t h is p articular m e a n s o f e l e c t r o n i c c o m m u n i c a t i o n s w a s

s p e c i f i e d

. T h e r e

- i s s u e d c o m p l a i n t a s w e l l a s t h e o r i g i n a l

p l e a d i n g d i d s t a t e ( a s p a r t o f t h e i r r e m e d y s e c t i o n s ) t h a t

E B E W C c o m m u n i c a t e s w i t h i t s e m p l o y e e s b y t e x t

. W h e n t h e

B o a r d i n v o k e d E B E W C ’ s a g r e e m e n t t h a t a l l o f t h e a l l e g a t i o n s

o f t h e r e i s s u e d c o m p l a i n t w o u l d b e d e e m e d a d m i t t e d

,

c o m m u n i c a t i n g w i t h i t s e m p l o y e e s b y t e x t w a s t h e r e f o r e n o t

a m o n g a l l e g a t i o n s t h a t c o u l d b e d e e m e d a d m i t t e d

. E B E W C s t i l l

a l s o h a d t h e r i g h t t o r a i s e t h e t h r e s h o l d i s s u e o f d e f a u l t u n d e r t

h e

S e t t l e m e nt A g r e e m e n t

, a n d

, i n a n y e v e n t

, n e i t h e r t h e r e i s s u e d

n o r t h e o r i g i n a l c o m p l a i n t a c t u a l l y a l l e g e d t h a t i t “ c u s t o m a r i l y ”

c o m m u n i c a t e s v i a t e x t

. O n t h e c o n t r a r y

, t h e r e i s e v i d e n c e i n t h e

r e c o r d i n d i c a t i n g t h a t E B E W C c o m m u n i c a t e s w i t h i t s31 e m p l o y e e s b y e

- m a i l

, i n c l u d i n g t h e A p r i l 7

, 2 0 1 7 e

- m a i l

s u m m a r i z i n g t h e s t a f

f m e e t i n g h e l d t h e s a m e d a y ( a t w h i c h t h e

N o t i c e w a s r e a d o u t t o t h e e m p l o y e e s ) a n d a t t a c h i n g t h e N o t i c e

i t s e l f

. I n d e e d

, Z a m b r a n o h e r s e l f p r e f e r r e d b e i n g n o t i f

i e d b y e

m a i l ( i d e n t i f

y i n g t h i s m e c h a n i s m a s t h e b e s t w a y t o c o n t a c t h e r

o n h e r t i m e

- o f

f r e q u e s t f

o r m s )

. 3

Nor has the agency c o n s i s t e n t l y t r e a t e d “ t e x t i n g ” a s

e s s e n t i a l o r e v e n a l l t h a t i m p o r t a n t

. W h i l e t h e i n i t i a l J a n u a r y 6

, 2 0 1 7 c o r r e s p o n d e n c e f

r o m t h e c o m p l i a n c e o f

f i c e r d i d r e f

e r e n c e

t e x t i n g

, h e r s u b s e q u e n t F e b r u a r y 1

, 2 0 1 7 l e t t e r m e r e l y s t a t e d

t h a t t h e t e r m s o f t h e S e t t l e m e n t A g r e e m e n t r e q u i r e d E B E W C t o

“ d i s t r i b u t e [ t h e N o t i c e ] e l e c t r o n i c a l l y t o e m p l o y e e s ” w i t h o u t

s p e c i f y i n g t h e s p e c i f

i c m e a n s t o b e u s e d

. ( A 5 1

. ) I n f a c t

, t h e

c o m p l i a n c e o f

f i c e r ’ s M a r c h 2 0

, 2 0 1 7 e

- m a i l s d i d n o t m e n t i o n

e l e c t r o n i c n o t i f

i c a t i o n

— i n a n y f

o r m a t

— a t a l l

. 4 S i m i l a r l y

, t h e e

m a i l f r o m t h e c o m p l i a n c e a s s i s t a n t d a t e d M a y 9

, 2 0 1 7 d i d n o t

r e f e r e n c e c o m m u n i c a t i n g b y e l e c t r o n i c m e a n s a s a n o u t s t a n d i n g

i t e m u n d e r t h e S e t t l e m e n t A g r e e m e n t

. B y “ d i s t r i b u t [ i n g ] t h e

N o t i c e e l e c t r o n i c a l l y t o e m p l o y e e s ” i n A p r i l 2 0 1 7

, E B E W C d i d

m o r e t h a n e n o u g h t o c o m p l y w i t h i t s c o n t r a c t u a l o b l i g a t i o n s

b a s e d o n t h e s t a t e m e n t s m a d e b y t h e a g e n c y ’ s o w n c o m p l i a n c e

3 At oral argument, counsel for the Board assert ed that

there was a r eason that the Settlement Agreem ent specified

texting

. B ecause he did not participate in the negotiat ion

pr ocess, he ackn owledged th at he did n ot know th e actual

reason

.

4 We note that the B oard ’ s decision and order (evidently

copying from the reissu ed comp laint) incorrectly stated t hat the

March 20, 201 7 e

- mail from the compliance offi cer “ noted that

the Respondent

. . . failed to

. . . text t he notice. ” EBEWC

, 2020

WL 24 7 666 9, at * 2

.32 p e r s o n n e l

.

M o r e b r o a d l y

, E B E W C

— together with d i s t r i b u t i n g t h e

N o t i c e e l e c t r o n i c a l l y

—u l t i m a t e l y c o m p l i e d w i t h i t s o t h e r

c o n t r a c t u a l o b l i g a t i o n s u n d e r t h e S e t t l e m e n t A g r e e m e n t

, i n c l u d i n g t h e o t h e r n o t i c e r e q u i r e m e n t s

. I t m a d e Z a m b r a n o

“ w h o l e b y p a y i n g h e r $ 2 0

, 0 0 0 i n b a c kp a y a n d i n t e r e s t

, ”

E B E W C

, 2 0 2 0 W L 2 4 7 6 6 6 9

, a t * 1

, r e s c i n d e d t h e f i n a l w a r n i n g

i s s u e d t o S i e b o l d

, a n d r e m o v e d f r o m i t s f i l e s a l l r e f

e r e n c e s t o

Z a m b r a n o ’ s d i s c h a r g e ( a n d i n f o r m e d h e r i n w r i t i n g t h i s a c t i o n

h a d b e e n d o n e )

. As fo r the N o t i c e i t s e l f

, i t w a s p h y s i c a l l y

p o s t e d o n s i t e

. T h e N o t i c e w a s a l s o r e a d o u t l o u d a t t w o

d i f f e r e n t s t a f f m e e t i n g s

— first a t t h e A p r i l 7

, 2 0 1 7 m e e t i n g b y

E B E W C ’ s m a n a g e r a n d t h e n o n J u n e 1 2

, 2 0 1 7 b y t h e

c o m p l i a n c e o f

f i c e r

. F i n a l l y

, E B E W C n o t i f i e d t h e R e g i o n a l

D i r e c t o r i n w r i t i n g o f t h e s t e p s i t h a d t a k e n t o c o m p l y wi th t h e

S e t t l e m e n t A g r e e m e n t

. 5

5 Arguing that it acted well within its discre tion by

granting the motion for defa ult judg ment, t h e Board turns for

sup port to Outokumpu Stainless USA, LLC , 3 6 5 N LRB No.

12 7 , 2017 WL 39534 03 ( Sept. 7

, 2017)

, en fo rced

, 77 3 F. App ’ x

5 31 (11 th Cir. 20 19)

, and Stagetech Productions, LLC

, 35 8

NLRB No. 116 , 2012 WL 3 8 39414 ( Aug. 31, 20 12 ). However,

Outo kump u Stainless USA considered whether to grant default

ju dgment on the grounds that “ the Resp ondent brea ched the

se ttlement a gr eement by pos ting, next to the Board ’ s remedial

notice, a side letter that detracted from the effectiveness of the

n otice. ” Ou tokum pu Stainless USA , 2017 WL 3 95 3 403, at *1

. I n Stagetec h Prod uctions , the General C o un sel s ought defau lt

judgme nt on the co nt ested grou nds that the employ er had failed

to comply with the terms of the informal settlement agree ment

by establishing and maintai ning a discrimina tory hiring33 G i v e n t h e s e c i r c u m s t a n c e s

, w e d e t e r m i n e t h a t t h e B o a r d

e r r e d i n g r a n t i n g t h e r e q u e s t f o r d e f a u l t

. I n a d d i t i o n

, w e

d e t e r m i n e t h a t t h e B o a r d ’ s a c t i o n i n i m p o s i n g a f u l l r e m e d y

a f t e r e n t e r i n g d e f

a u l t w a s p u n i t i v e a n d t

h e r e b y i n c o n s i s t e n t w i t h

i t s o b l i g a t i o n s u n d e r t h e N L R A

. A c c o r d i n g t o t h e B o a r d

, i t

p r o p e r l y e x e r c i s e d i t s b r o a d r e m e d i a l d i s c r e t i o n b y i ssuin g i t s

“ s t a n d a r d m a k e

- w h o l e r e l i e f ” b a s e d o n t h e l a n g u a g e o f t h e

S e t t l e m e n t A g r e e m e n t

, t h e G e n e r a l C o u n s e l ’ s r e q u e s t f o r a f u l l

r e m e d y

, a n d t h e t y p e o f u n d e r l y i n g l a b o r l a w v i o l a t i o n s f

o u n d i n

t h i s c a s e

. ( R e s p o n d e n t ’ s B r i e f a t 3 6

. ) H o w e v e r

, t h e B o a r d

t h e r e b y e x c e e d e d t h e s c o p e o f i t s e x p a n s i v e y e t s t i l l n o n

p u n i t i v e a u t h o r i t y b y o r d e r i n g E B E W C t o o f f e r Z a m b r a n o

r e i n s t a t e m e n t e v e n t h o u g h t h e N o t i c e d i s s e m i n a t e d p u r s u a n t t o

t h e S e t t l e m e n t A g r e e m e n t s t a t e d t h a t s h e h a d d e c l i n e d

i m m e d i a t e a n d f

u l l reinsta tement t o h e r f o r m e r j o b o r t o a

s u b s t a n t i a l l y e q u i v a l e n t p o s i t i o n

. T h e B o ar d l i k e w i s e w e n t t o o

f a r b y o r d e r i n g E B E W C t o m a k e Z a m b r a n o w h o l e f o r a n y l o s s

o f e a r n i n g s o r o t h e r b e n e f i t s ( i n c l u d i n g b a c kp a y w i t h i n t e r e s t )

d e s p i t e t h e f

a c t t h a t S e t t l e m e n t A g r e e m e n t a s w e l l a s t h e

J a n u a r y 6

, 2 0 1 7 l e t t e r i n d i c a t e d t h a t t h e p a y m e n t o f $ 2 0

, 0 0 0

list /syste m and failing a nd refus ing to call or return e mploy ees

to thei r norm al wo rk fre quen cy

. Stagetech Prod s. , 20 12 WL

3 8 3 9414 , at * 2

.

In its decision, t he B oard observed that “ the Respondent

a lso has not established that it has re scinded the hand book rules

prohi biting t alking or comp laining about wag es, h ours , and

w orking cond itions or the Responden t ’ s ru les , poli cies, and/or

procedures, ” but it added that “ the Region has not cited this as a

ba sis for default , either in its Motion for Defa ult Judgment or its

comm unicatio ns with the Res pondent, and the refor e we do not

rely on it here. ” E BEWC , 202 0 WL 2 4766 69, at * 3 n.1.34 ( w h i c h w a s m a d e b y E B E W C ) w o u l d s u f f i c e t o m a k e h e r

w h o l e

.

T h e B o a r d t o o k s u c h d r a s t i c s t e p s w h e r e t h e o n l y a l l e g e d

“ d e f a u l t ” i n t h i s p r o c e e d i n g w a s E B E W C e

- m a i l i n g rather than

texting t h e N o t i c e t o e m p l o y e e s with o u t a n y i n d i c a t i o n t h a t t h e

u s e o f t h i s d i f

f e r e n t e l e c t r o n i c c o m m u n i c a t i o n s m e c h a n i s m

a f f e c t e d t h e e m p l o y e e s t h e m s e l v e s i n a n y w a y

. O n t h e c o n t r a r y

,

t h e e m p l o y e e s w e r e m ad e w h o l e

, a n d E B E W C ’ s s t a f f w a s

n o t i f i e d o f t h e i r r i g h t s b o t h a t t w o s e p a r a t e m e e t i n g s w h e r e t h e

N o t i c e w a s r e a d o u t l o u d a n d b y r e c e i v i n g t h e N o t i c e b y e

- m a i l

( a n d t h e N o t i c e w a s a l s o p h y s i c a l l y p o s t e d a t t h e f a cility )

. S e e

,

e

. g

. , Q u i c k

, 2 4 5 F

. 3 d a t 2 5 4 ( s t a t i n g t h a t p u r p o s e o f N L R A i s

p r o t e c t i o n o f e m p l o y e e s a n d r e d r e s s o f t h ei r g r i e v a n c e s )

. A t

b e s t

, t h e B o a r d a c t e d t o p u n i s h E B E W C f or i t s h y p e r

- t e c h n i c a l

a n d r e l a t i v el y ins i g n i f

i c a n t v i o l a t i o n o f t h e S e t t l e m e n t

A g r e e m e n t

, f

o r “ r e pe a te d l y mis s [ i n g ] t

h e R e gi o n ’ s d e a dl i n e s f

o r

f u l l c om p l i a n c e ” d es p i t e “ t h e R e g i o n ’ s a d m o n i t i o n s t h a t i t s

c o n t i n u e d f

a i l u r e t o f u l l y c o m p l y w o u ld l e a d ” t o r e i s s u a n c e o f

t h e c o m p l a i n t a n d a m o t i o n f o r d e f a u l t j u d g m e n t ( R e s p o n d e n t ’ s

B r i e f a t 1 8 )

, a n d f

o r i t s u l t i m a t e l y “ b e l a t e d c o m p l i a n c e w i t h

o t h e r t e r m s o f t h e A g r e e m e n t ” ( i d

. a t 2 7 ( e m p h a s i s o m i t t e d ) )

. A c c o r d i n g l y

, w e c a n n o t a l l o w t he B o a r d ’ s p u n i t i v e a c t i o n s t o

s t a n d

. 6 S e e

, e

. g

. , R e p u b l i c S t e e l

, 3 1 1 U

. S

. a t 1 1

- 1 2 ( “ [ T h e

6 The decisions cited by the Board in support o f its “ ful l

remedy ” approach involved more than mer e ly technical and

otherwise harmless viola tions of the Settlement Agreement. See

Qaw asmi Trading Inc

. , 369 NLRB No. 89 , 2 020 WL 30 6537 0,

at * 2 ( May 27, 2020) (failure to comply with any of the terms of

settlement ag reement); Able B l dg

. Main t.

, 2019 WL 217 6671,

at * 2 ( “ According to the uncontroverted allegati ons in the

motion for default j u dgme nt, th e Res pondents ha ve failed to35 B o a r d ’ s ] ‘ a u t h o r i t y t o o r d e r a f f i r m a t i v e a c t i o n d o e s n o t g o s o f a r

a s t o c o n f e r a p u n i t i v e j u r i s d i c t i o n e n a b l i n g t h e B o a r d t o i n f l i c t

u p o n t h e e m p l o y e r a n y p e n a l t y i t m a y c h o o s e b e c a u s e h e i s

e n g a g e d i n u n f

a i r l a b o r p r a c t i c e s

, e v e n t h o u g h t h e B o a r d b e o f

t h e o p i n i o n t h a t t h e p o l i c i e s o f t h e A c t m i g h t b e e f f e c t u a t e d b y

s u c h a n o r d e r

. ’ ” )

.

I V

.

F o r t h e f o r e g o i n g r e a s o n s

, w e w i l l g r a n t E B E W C ’ s

p e t i t i o n f o r r e v i e w a n d w i l l d e n y t h e B o a r d ’ s a p p l i c a t i o n f o r

e n f o r c e m e n t

.

comply with the terms of the settlement agree ment ” ( i.e

., “ the

notice posting/mailing requirement and the submission of

complian ce documentatio n ” ) ; L. J. Logistics, Inc.

, 339 NLRB

729, 7 30 ( 2003) ( “ According to the un c ontr overte d all eg ations

in the Motio n for Summa ry J udgment, the Respondents have

failed to co mply with the settlement agreement by failing to

remit the ag reed

- upon backpa y amount due Christopher

C harnot ” )

.