Opinion

Temple University Hospital v. NLRB

  • 39 F.4th 743
Court
Court of Appeals for the D.C. Circuit
Filed
Jul 8, 2022
Status
Published
Cited by
1 cases
Authority
More cited than 48.3%

The opinion

United States Court of Appeals

FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued February 15, 2022 Decided July 8, 2022

No. 21-1111

TEMPLE UNIVERSITY HOSPITAL, INC.,

PETITIONER/CROSS-RESPONDENT

v.

NATIONAL LABOR RELATIONS BOARD,

RESPONDENT/CROSS-PETITIONER

TEMPLE ALLIED PROFESSIONALS, PENNSYLVANIA

ASSOCIATION OF STAFF NURSES AND ALLIED PROFESSIONALS,

INTERVENOR

Consolidated with 21-1124

On Petition for Review and Cross-Application

for Enforcement of an Order

of the National Labor Relations Board

Shannon D. Farmer argued the cause for petitioner/cross-

respondent. With her on the briefs were Meredith Swartz

Dante and Rebecca A. Leaf.

Eric Weitz, Attorney, National Labor Relations Board,

argued the cause for respondent/cross-petitioner. With him on

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the brief were Jennifer A. Abruzzo, General Counsel, Ruth E.

Burdick, Deputy Associate General Counsel, David S.

Habenstreit, Assistant General Counsel, and Kira Dellinger

Vol, Supervisory Attorney.

Jonathan Walters argued the cause for intervenor Temple

Allied Professionals, Pennsylvania Association of Staff Nurses

and Allied Professionals in support of respondent/cross-

petitioner. Claiborne S. Newlin entered an appearance.

Before: SRINIVASAN, Chief Judge, HENDERSON and

JACKSON, Circuit Judges.

Opinion for the Court filed by Chief Judge SRINIVASAN.

SRINIVASAN, Chief Judge: For more than four decades,

labor relations between Temple University Hospital and the

professional and technical employees working there occurred

under the jurisdiction of the Pennsylvania Labor Relations

Board. In 2015, however, the labor union representing those

employees petitioned the National Labor Relations Board to

exercise jurisdiction over its relationship with the Hospital.

Over the Hospital’s objections, the NLRB granted the petition,

asserted jurisdiction, and certified the union as the

representative of an expanded unit of employees.

Dissatisfied with that result, the Hospital refused to

bargain with the union and eventually filed a petition for review

in this court. Although the Hospital raised several arguments,

we considered only one: its contention that the union was

judicially estopped from invoking the NLRB’s jurisdiction

because the union had previously insisted that the NLRB in fact

Circuit Judge, now Justice, Jackson was a member of the panel

at the time the case was argued but did not participate in the opinion.

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lacked jurisdiction. Siding with the Hospital, we held that the

NLRB had misapplied the relevant judicial-estoppel analysis

and remanded for further proceedings. See Temple Univ.

Hosp., Inc. v. NLRB, 929 F.3d 729, 735–37 (D.C. Cir. 2019).

On remand, the NLRB again asserted jurisdiction over the

Hospital after determining that principles of judicial estoppel

are inapplicable. The Hospital continues to resist that result,

and it renews the additional arguments we had no occasion to

address in 2019. Because the Hospital identifies no error in the

NLRB’s decision, we deny the petition for review and grant the

Board’s cross-application for enforcement.

I.

A.

The National Labor Relations Act, 29 U.S.C. § 151 et seq.,

guarantees employees the right “to bargain collectively through

representatives of their own choosing.” 29 U.S.C. § 157.

Section 8 of the Act bars employers from engaging in a host of

unfair labor practices. Among them, an employer may not

“refuse to bargain collectively with the representatives of his

employees.” Id. § 158(a)(5). Although the NLRA defines

“employer” broadly, the statute specifically exempts “any State

or political subdivision thereof.” Id. § 152(2).

Under Section 9 of the Act, a labor organization or group

of employees may file a petition with the National Labor

Relations Board (NLRB or Board) alleging that a substantial

number of employees wish to be represented for collective

bargaining and that their employer has declined to recognize

their representative. Id. § 159(c)(1)(A). Upon the filing of a

petition, the Board must decide “the unit appropriate for the

purposes of collective bargaining.” Id. § 159(b). A

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representative becomes the exclusive representative of

employees in a particular collective-bargaining unit upon a

majority vote of the relevant employees and the Board’s

certification of the results. Id. § 159(a)–(c).

The Board has provided specific instruction concerning

the appropriate composition of bargaining units in the health

care setting since 1989, when it promulgated what has become

known as the Health Care Rule. See 29 C.F.R. § 103.30; Am.

Hosp. Ass’n v. NLRB, 499 U.S. 606, 608, 615–17 (1991).

Applicable to acute-care hospitals, the Health Care Rule sets

out eight units as the “only appropriate units” for purposes of

representation petitions filed under the NLRA. 29 C.F.R.

§ 103.30(a). Although units not described in the Health Care

Rule are deemed nonconforming, id. § 103.30(f)(5), the Rule

provides that combinations of the enumerated units may be

appropriate and excepts preexisting nonconforming units from

its requirements, id. § 103.30(a).

The Board, of course, is not the only labor relations

authority in the country. Although the Board retains exclusive

jurisdiction over activities “arguably subject” to the NLRA,

state labor boards administer and enforce their own labor laws

against entities outside the Board’s jurisdiction. San Diego

Bldg. Trades Council v. Garmon, 359 U.S. 236, 244–46 (1959).

Occasionally, the Board will exercise jurisdiction over a

particular bargaining relationship previously under the

supervision of a state agency. In such circumstances, the Board

generally extends “comity” to the state agency’s elections and

certifications, “provided that the state proceedings reflect the

true desires of the affected employees, election irregularities

are not involved, and there has been no substantial deviation

from due process requirements.” Allegheny Gen. Hosp., 230

N.L.R.B. 954, 955 (1977). When it extends comity, the Board

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accords the “same effect to the elections and certifications of

responsible state government agencies” as its own. Id.

B.

Our 2019 opinion in this case sets out the relevant factual

background, see Temple Univ. Hosp., 929 F.3d at 731–33, but

we recount the key points here. Temple University Hospital is

an acute-care hospital located in Philadelphia, Pennsylvania.

Acquired in 1910 by Temple University—a state-related

university also based in Philadelphia—the Hospital initially

functioned as an unincorporated division of the University.

That changed in 1995, when the Hospital became a distinct

nonprofit corporation. The sole shareholder of that corporation

is Temple University Health System, a holding company the

University created for its healthcare-related assets. As an

independent corporate entity, the Hospital generally conducts

its own collective bargaining and handles personnel decisions

for non-executive employees. But the University and the

Hospital nonetheless retain a number of close operational and

budgetary ties.

In 2005, the Temple Allied Professionals, Pennsylvania

Association of Staff Nurses and Allied Professionals (the

Union) filed a petition with the Pennsylvania Labor Relations

Board (PLRB) to represent a previously certified bargaining

unit of professional and technical employees—a unit that a

different union had represented since the 1970s. In the ensuing

proceedings, both the Union and the Hospital contended—over

the then-incumbent union’s opposition—that the PLRB, rather

than the NLRB, properly had jurisdiction over the Hospital.

The PLRB agreed, and the Union prevailed in the subsequent

election. It has represented the unit ever since.

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Ten years later, in 2015, the Union petitioned the NLRB

to assert jurisdiction over its relationship with the Hospital,

notwithstanding the Union’s repeated prior invocations of the

PLRB’s authority. The specific basis for the Union’s petition

was its desire to add two classifications of unrepresented

Hospital employees—professional medical interpreters and

transplant financial coordinators, comprising a total of eleven

individuals—to the existing professional-technical bargaining

unit. The petition asked the NLRB to conduct an election in

which the petitioned-for employees would vote on whether to

join the existing unit.

The Hospital mounted several defenses. First, it

contended that the Union should be judicially estopped from

invoking the Board’s jurisdiction because of the Union’s prior

representations that the PLRB, not the NLRB, had jurisdiction

over the Hospital. Second, it maintained that the Hospital was

a “political subdivision” of Pennsylvania and therefore exempt

from the Board’s jurisdiction. See 29 U.S.C. § 152(2). Third,

it argued that the Board should decline to exercise its

jurisdiction on account of the close ties between the Hospital

and the University. Finally, it submitted that the Board should

not extend comity to the PLRB’s certification of the

professional-technical unit.

An Acting Regional Director of the NLRB ruled in favor

of the Union. Rejecting each of the Hospital’s arguments, he

asserted jurisdiction over the Hospital and extended comity to

the PLRB’s certification of the professional-technical unit.

The Union won the ensuing election among the petitioned-for

interpreters and financial coordinators, and the Acting

Regional Director certified it as the exclusive collective-

bargaining representative of the newly expanded professional-

technical unit.

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The Board affirmed the Acting Regional Director’s

decision. Seeking to contest the validity of the Board’s

certification of the Union, the Hospital refused to bargain with

the Union. The Union filed an unfair-labor-practice charge

with the Board, which found that the Hospital had violated the

NLRA. The Hospital then lodged a petition for review in this

court.

Although the Hospital briefed each of the four primary

arguments it had pressed before the Board, we reached only its

first contention concerning judicial estoppel. We agreed with

the Hospital that the Board had misapplied the judicial-estoppel

analysis prescribed by the Supreme Court. Temple Univ.

Hosp., 929 F.3d at 735–36 (citing New Hampshire v. Maine,

532 U.S. 742, 750–52 (2001)). We remanded the case for

further proceedings.

On remand, the Board again declined to estop the Union

from invoking its jurisdiction. But its path to that result was

different. Instead of assuming the availability of judicial

estoppel in Board proceedings and nonetheless declining to

apply it based on a balancing of the relevant factors, the Board

this time concluded that judicial estoppel “is not available in

proceedings . . . where the Board’s jurisdiction is in issue,”

such that the doctrine’s application “could compel the Board to

surrender its jurisdiction.” Supplemental Decision and Order

at 1–2, J.A. 169–70. With judicial estoppel off the table, the

Board reaffirmed its prior determination that the Hospital’s

refusal to bargain with the Union violated the NLRA. Id. at 4,

J.A. 172.

The Hospital once again petitions for review, and the

Board cross-applies for enforcement of its order. The Union

has intervened in support of the Board’s decision.

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II.

The Hospital contends that the Board improperly asserted

jurisdiction over this dispute and erroneously extended comity

to the PLRB’s prior certification of the professional-technical

bargaining unit. A court “must uphold the judgment of the

Board unless its findings are unsupported by substantial

evidence, or it acted arbitrarily or otherwise erred in applying

established law to the facts of the case.” Novato Healthcare

Ctr. v. NLRB, 916 F.3d 1095, 1100 (D.C. Cir. 2019). We find

no error in the Board’s decision.

A.

The Hospital first argues that the doctrine of judicial

estoppel should have foreclosed the Union’s attempt to invoke

the Board’s jurisdiction. Judicial estoppel generally “prevents

a party from asserting a claim in a legal proceeding that is

inconsistent with a claim taken by that party in a previous

proceeding.” New Hampshire, 532 U.S. at 749 (quoting 18

Moore’s Federal Practice § 134.30 (3d ed. 2000)). According

to the Hospital, the Union’s prior insistence that the PLRB—

and not the NLRB—properly had jurisdiction over the Hospital

should estop the Union from reversing course in this case.

Whether a nonjudicial tribunal such as the Board “may

itself invoke judicial estoppel appears to be an issue of first

impression.” Temple Univ. Hosp., 929 F.3d at 734. But we

need not consider that question here, for the Board did not

resolve it. Instead, the Board made a threshold determination

that, while judicial estoppel might be available in certain Board

proceedings, the doctrine is unavailable when its

“application . . . could compel the Board to surrender its

jurisdiction.” Supplemental Decision and Order at 2, J.A. 170.

That is, the Board concluded that a party cannot rely on judicial

9

estoppel to prevent the Board from entertaining a matter that

would otherwise fall within its statutory authority.

As judicial estoppel is an “equitable doctrine” invoked by

a tribunal “at its discretion,” New Hampshire, 532 U.S. at 750

(citation omitted), we review the Board’s “decision . . . not to

invoke[] judicial estoppel for abuse of discretion.” Temple

Univ. Hosp., 929 F.3d at 734. In doing so, we confine our

review to the adequacy of the reasons articulated in the Board’s

order. Erie Brush & Mfg. Corp. v. NLRB, 700 F.3d 17, 23

(D.C. Cir. 2012). The Board did not abuse its discretion in

determining that judicial estoppel is unavailable in cases in

which the Board’s jurisdiction is at issue.

The Board centrally grounded that conclusion in “[f]ederal

labor policy,” which, to the Board, “weighs heavily against

allowing judicial estoppel to be used as a ground to limit [its]

jurisdiction.” Supplemental Decision and Order at 3, J.A. 171.

The Board located the relevant pro-enforcement policy in

Section 10(a) of the NLRA. See 29 U.S.C. § 160(a). That

provision “empower[s]” the Board “to prevent any person from

engaging in any unfair labor practice (listed in [Section 8] of

[the Act]) affecting commerce,” a power that “shall not be

affected by any other means of adjustment or prevention that

has been or may be established by agreement, law, or

otherwise.” Id.

The Board reasoned that, if judicial estoppel were to apply

here, the PLRB would have jurisdiction over all representation

petitions and unfair-labor-practice charges brought by the

Union against the Hospital and could issue rulings the Board

would have no power to review. The Board declined to

establish a doctrine under which “the power Congress endowed

[the Board] with in Section 10(a) could be surrendered to the

parties and the history of their petition-filing and litigation

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choices over time.” Supplemental Decision and Order at 4,

J.A. 172. “Even assuming Section 10(a) would permit this,”

the Board explained, “the federal policy embodied in that

statutory provision convinces us that we ought not do so.” Id.

The Board permissibly concluded that Congress’s broad

conferral of statutory authority to prevent “any person” from

committing “any unfair labor practice” affecting commerce—

notwithstanding the existence of “any other” law—militated

against enabling judicial estoppel to prevent the Board from

exercising its authority in cases in which it could otherwise act.

29 U.S.C. § 160(a) (emphases added). The Board “has the

primary responsibility for developing and applying national

labor policy.” NLRB v. Curtin Matheson Sci., Inc., 494 U.S.

775, 786 (1990). And we cannot say that the Board abused its

discretion in determining that “plac[ing] [its] jurisdictional

powers in the hands of litigants” would be at odds with

Congress’s broad empowerment of the Board to enforce the

NLRA in cases satisfying the Act’s jurisdictional prerequisites.

Supplemental Decision and Order at 3, J.A. 171; cf.

Hammontree v. NLRB, 925 F.2d 1486, 1491–92 (D.C. Cir.

1991) (construing Section 10(a)’s “affirmative grant of

authority to the Board” as providing that “no one other than the

Board shall diminish the Board’s authority over [unfair-labor-

practice] claims”); NLRB v. Reliance Fuel Oil Corp., 371 U.S.

224, 226 (1963) (“This Court has consistently declared that in

passing the [NLRA], Congress intended to and did vest in the

Board the fullest jurisdictional breadth constitutionally

permissible under the Commerce Clause.”).

The Hospital points out that the Board’s jurisdiction is

discretionary and not mandatory. The Board, though,

recognized as much, acknowledging that it “does not always

exercise the power Congress granted it in Section 10(a).”

Supplemental Decision and Order at 4, J.A. 172. The fact that

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the Board may at times decline to exercise its jurisdiction is by

no means inconsistent with its choice to avoid a regime in

which the petition-filing practices of private parties—rather

than the Board’s own discretionary decisions—could prevent

it from hearing a dispute it would otherwise entertain.

In addition to its reliance on federal labor policy, the Board

also considered judicial precedent and its own decisions. As

for the former, the Board observed that “federal courts have

generally declined to apply judicial estoppel to create or defeat

jurisdiction.” Id. at 3, J.A. 171 (citing City of Colton v. Am.

Promotional Events, Inc.-West, 614 F.3d 998, 1006 n.6 (9th

Cir. 2010); Whiting v. Krassner, 391 F.3d 540, 544 (3d Cir.

2004); Da Silva v. Kinsho Int’l Corp., 229 F.3d 358, 361 (2d

Cir. 2000)). As for its own precedent, the Board relied on two

decisions in which it asserted jurisdiction over bargaining

relationships notwithstanding the parties’ historically

inconsistent positions on whether jurisdiction in fact existed.

Id. at 4, J.A. 172 (citing Wyndham West at Garden City, 307

N.L.R.B. 136 (1992) (advisory opinion); We Transport, Inc.,

215 N.L.R.B. 497 (1974)).

The Hospital is correct that neither judicial nor

administrative precedent compelled the Board to conclude that

litigants cannot use judicial estoppel as a means of limiting the

Board’s jurisdiction. But the Board did not suggest otherwise.

It instead considered nonbinding judicial precedent only as a

“preliminar[y]” matter, and it acknowledged that court

decisions did not uniformly point in one direction. Id. at 3, J.A.

171 (citing Sexual Minorities Uganda v. Lively, 899 F.3d 24,

34 (1st Cir. 2018)). And with regard to its own precedent, it

recognized that the applicability of judicial estoppel in Board

proceedings is an issue it “has not squarely addressed.” Id. at

2, J.A. 170. At bottom, the Board permissibly reasoned that

judicial and administrative precedent generally reinforced its

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policy-driven decision to make judicial estoppel unavailable in

the circumstances of this case.

Contrary to the Hospital’s contention, the Board did not

flout this court’s 2019 decision in this case. There, we

remanded in part “for the Board to determine in the first

instance whether judicial estoppel is available in NLRB

proceedings.” Temple Univ. Hosp., 929 F.3d at 737. The

Board could save that broader question for another day and

determine that, even assuming judicial estoppel may be

available in some proceedings, it cannot be used to defeat the

Board’s jurisdiction.

B.

The Hospital next challenges the Board’s determination

that the Hospital is not a political subdivision of Pennsylvania

exempt from the NLRB’s jurisdiction. We see no basis to set

aside the Board’s conclusion.

Section 8 of the NLRA enumerates unfair labor practices

that an “employer” may not perform, 29 U.S.C. § 158(a), and

the Act defines “employer” to exclude “any State or political

subdivision thereof,” id. § 152(2). Although the statute does

not further define “political subdivision,” the Supreme Court

has upheld the Board’s construction of the term to mean an

entity that is either “(1) created directly by the state, so as to

constitute [a] department[] or administrative arm[] of the

government, or (2) administered by individuals who are

responsible to public officials or to the general electorate.”

NLRB v. Nat. Gas Util. Dist. of Hawkins Cty., 402 U.S. 600,

604–05 (1971). An entity satisfying either prong of that test is

not a statutory “employer” and falls outside the Board’s

jurisdiction. Midwest Div.-MMC, LLC v. NLRB, 867 F.3d

1288, 1296 (D.C. Cir. 2017).

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All agree that the Hospital was not “created directly by the

state.” Hawkins Cty., 402 U.S. at 604. The sole question, then,

is whether the Hospital is “administered by individuals who are

responsible to public officials or to the general electorate.” Id.

at 604–05. Under that prong of the Hawkins County test, “the

pertinent question is ‘whether a majority of the individuals who

administer the entity . . . are appointed by and subject to

removal by public officials.’” Midwest Div.-MMC, 867 F.3d

at 1297 (alteration in original) (quoting Pilsen Wellness Ctr.,

359 N.L.R.B. 626, 628 (2013)). In Midwest Division-MMC,

the employer (also an acute-care hospital) offered no evidence

that the members of the relevant peer review committee (the

entity in question) were either appointed or removable by

public officials. In those circumstances, the Board reasonably

determined that the hospital committee did not qualify as an

exempt political subdivision. Id.

The same reasoning controls here. As the Acting Regional

Director explained, “no government entity has the authority to

appoint or remove a Hospital board member, and no member

of the board . . . is a government official or works for a

government entity.” Regional Director’s Decision and

Direction of Election at 14, J.A. 82. The Hospital’s board

members, rather, are “subject solely to private appointment and

removal.” Id. Because a majority of the Hospital’s board

members are neither appointed by nor subject to removal by

public officials (indeed, none are), the Hospital is not

“administered by individuals who are responsible to public

officials or to the general electorate.” Hawkins Cty., 402 U.S.

at 604–05.

Invoking a non-precedential advice memorandum issued

by the NLRB’s General Counsel, the Hospital points to

additional factors purportedly establishing that it is an exempt

14

political subdivision. As the Board explained, however,

“[w]here an examination of the appointment-and-removal

method yields a clear answer to whether an entity is

administered by individuals who are responsible to public

officials or to the general electorate, the Board’s analysis

properly ends.” Order Granting Review in Part at 2 n.2, J.A.

147 (quotation marks omitted) (quoting Pa. Virtual Charter

Sch., 364 N.L.R.B. No. 87, at *13 (2016)). The Hospital does

not challenge that controlling standard—a standard that this

court and numerous others have consistently applied. See, e.g.,

Midwest Div.-MMC, 867 F.3d at 1297; Voices for Int’l Bus. &

Educ., Inc. v. NLRB, 905 F.3d 770, 776–77 (5th Cir. 2018)

(collecting cases); cf. Yukon-Kuskokwim Health Corp. v.

NLRB, 234 F.3d 714, 717 (D.C. Cir. 2000) (“[T]he Board has

long and reasonably preferred bright line rules in order to avoid

disputes over its jurisdiction.”). The Board thus reasonably

determined that the Hospital does not qualify as a political

subdivision of Pennsylvania.

C.

The Hospital next contends that, insofar as the Board had

jurisdiction, the Board should have declined to exercise it. It is

true that the Board may properly decline to exercise

jurisdiction if it concludes that “the policies of the [NLRA]

would not be effectuated by its assertion of jurisdiction.”

NLRB v. Denver Bldg. & Constr. Trades Council, 341 U.S.

675, 684 (1951); accord Temple Univ. Hosp., 929 F.3d at 732

n.*. That decision, though, is inherently a discretionary one.

While the Board may not act arbitrarily or cause an employer

unfair and substantial prejudice, its discretionary determination

to assert jurisdiction is otherwise “essentially unreviewable.”

Hum. Dev. Ass’n v. NLRB, 937 F.2d 657, 661 (D.C. Cir. 1991)

(quoting NLRB v. Kemmerer Vill., Inc., 907 F.2d 661, 663–64

(7th Cir. 1990)). Indeed, we have long emphasized “the broad

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scope of the Board’s discretion in determining whether an

abstention from jurisdiction is likely to promote the objectives

of the Act.” Herbert Harvey, Inc. v. NLRB, 424 F.2d 770, 782

(D.C. Cir. 1969). “[I]n the absence of extraordinary

circumstances whether jurisdiction should be exercised is for

the Board, not the courts, to determine.” Id. at 783 (quoting

NLRB v. WGOK, Inc., 384 F.2d 500, 502 (5th Cir. 1967)).

The Hospital nonetheless contends that the Board abused

its discretion by exercising jurisdiction in this case. The

Hospital emphasizes its close ties to the University, over which

the Board a half-century ago declined to assert jurisdiction in

light of the University’s “unique relationship” with

Pennsylvania. See Temple Univ., 194 N.L.R.B. 1160, 1161

(1972). As the Board explained, however, its more recent

practice has been to “assert jurisdiction over an employer,

despite its close ties with an exempt government entity, as long

as it meets the definition of employer set out in Section 2(2) of

the Act and the applicable monetary jurisdictional standards.”

Decision on Review and Order at 2, J.A. 149 (citing Mgmt.

Training Corp., 317 N.L.R.B. 1355, 1358 (1995)). The Board

reasonably found both criteria satisfied, explaining that the

Hospital “possesses sufficient control over its employees’

terms and conditions of employment” and that there was “no

dispute that the [Hospital] meets the Board’s monetary

jurisdictional standards.” Id.

The Board also permissibly rejected the Hospital’s claim

that asserting jurisdiction would substantially prejudice the

Hospital by disrupting existing bargaining relationships under

Pennsylvania law. As the Board reasonably determined, “[t]he

stable bargaining relationship has been between the [Hospital]

and Union, not between the [Hospital] and the PLRB.” Id. at

3, J.A. 150 (quoting MCAR, Inc., 333 N.L.R.B. 1098, 1104

(2001)). The Board explained that it has repeatedly exercised

16

jurisdiction even when a state agency such as the PLRB had

previously asserted jurisdiction. Id. And the Board reasonably

declined to consider the Union’s purpose for invoking the

Board’s jurisdiction, as well as the Hospital’s offers to add the

petitioned-for employees to the existing bargaining unit under

Pennsylvania law. While the Board could have afforded

greater weight to such considerations, its decision not to do so

evinces no abuse of discretion.

D.

The Hospital’s final contention is that the Board

erroneously extended comity to the PLRB’s previous

certification of the professional-technical bargaining unit. The

Board, the Hospital maintains, should not have accorded the

“same effect to the elections and certifications of” the PLRB as

the Board’s own, Allegheny Gen. Hosp., 230 N.L.R.B. at 955,

but rather should have required a new representation petition,

held a federally administered election, and itself certified the

bargaining unit upon a majority vote of the relevant employees.

The Hospital contends that extending comity was

improper for two reasons: (i) the PLRB-certified unit is

inconsistent with the Board’s Health Care Rule; and (ii) the

Board arbitrarily departed from its own precedent. Neither

argument has merit.

1.

Under the Board’s Health Care Rule, two of the eight

permissible bargaining units in acute-care hospitals are “[a]ll

professionals except for registered nurses and physicians” and

“[a]ll technical employees.” 29 C.F.R. § 103.30(a)(3)–(4).

Any deviating unit is nonconforming—except that, as relevant

here, the Rule allows both combinations of the eight units and

17

nonconforming units that existed at the time of the Rule’s

promulgation in 1989. Id. § 103.30(a), (f)(5). In this case, the

Board determined that both of those exceptions applied.

Specifically, the PLRB-certified unit was a “combination of

two of the eight specified units”—i.e., professionals and

technical employees. Decision on Review and Order at 4, J.A.

151. Alternatively, “even assuming the unit is non-

conforming, it was and still is an ‘existing non-conforming

unit[]’” within the meaning of the Rule because the unit was

originally certified by the PLRB in 1975 and its composition

“has largely remained the same” in the years since. Id. (quoting

29 C.F.R. § 103.30(a)).

We sustain the Board’s decision on that latter ground,

which the Board made clear was an independent basis for its

order. “We accord the Board an especially wide degree of

discretion on questions of representation.” Rush Univ. Med.

Ctr. v. NLRB, 833 F.3d 202, 206 (D.C. Cir. 2016) (quotation

marks and citation omitted). The Board acted within its

discretion in determining that the professional-technical

bargaining unit was an “existing” unit at the time of the Health

Care Rule’s promulgation.

The Hospital correctly points out that the unit has changed

in some respects since its original certification by the PLRB in

1975. But the Board reasonably determined that the changes

did not cause the unit to run afoul of the Rule. While the unit

had a different collective-bargaining representative in 1975, the

Board permissibly found that the mere change in representation

did not divest the unit of its existing nonconforming status.

Decision on Review and Order at 4, J.A. 151; see Crittenton

Hosp., 328 N.L.R.B. 879, 880 (1999). As for adjustments in

the unit’s scope, the Board reasonably determined that a unit

whose composition “has largely remained the same” over the

past half-century retains its identity as an existing

18

nonconforming unit. Decision on Review and Order at 4, J.A.

151. This court has previously upheld the Board’s

understanding that the mere addition of new employees to a

preexisting nonconforming unit does not instantly require the

expanded unit to comply with the Health Care Rule’s strictures.

See Rush Univ. Med. Ctr., 833 F.3d at 204, 207–09. And to the

extent the 1975-certified unit contained some employee groups

that are no longer part of the unit, the unit still represents

professional and technical employees at the Hospital.

2.

The Hospital contends that the Board’s extension of

comity in this case constituted an arbitrary departure from its

decision in Summer’s Living Systems, Inc., 332 N.L.R.B. 275

(2000). In that proceeding, the Board declined to extend

comity to a unit certified by a state board that lacked

jurisdiction at the time it issued the certification. According to

the Hospital, if the Union is correct that the Board has

jurisdiction over the Hospital, then the Board also had

jurisdiction in 2006, meaning that the PLRB lacked jurisdiction

at the time it most recently certified the unit. Under Summer’s

Living Systems, the Hospital maintains, the Board could not

extend comity to the PLRB’s purportedly invalid certification.

The Board, however, adequately accounted for Summer’s

Living Systems and reasonably distinguished that decision. In

Summer’s Living Systems, the Board considered whether to

extend comity to a series of certifications issued by a Michigan

state labor agency. As Summer’s Living Systems explained, the

Michigan Court of Appeals later determined that the state

agency’s jurisdiction to issue the relevant certifications had

been preempted by the Board’s jurisdiction. In those

circumstances, the Board declined to extend comity to the

19

preempted state certifications. Summer’s Living Sys., 332

N.L.R.B. at 276–77 & n.7, 286.

The Board thus explained here that Summer’s Living

Systems, unlike this case, involved an “intervening state court

case” holding that the “state’s jurisdiction over various units of

employees was pre-empted by the Board’s jurisdiction.”

Decision on Review and Order at 4–5 n.7, J.A. 151–52. In light

of those contrasting circumstances, the Board reasonably

determined that Summer’s Living Systems “does not control”

this case. Id. Comity to a state agency’s determination, after

all, is a doctrine aimed at respecting not only the preferences of

employees and employers, but also the administrative

processes giving rise to the state agency’s decision. See

Allegheny Gen. Hosp., 230 N.L.R.B. at 955. The Board could

permissibly grant comity here while withholding it in

circumstances in which a state court deems the state labor

agency to have lacked jurisdiction to issue the certifications to

which comity might otherwise extend.

* * * * *

For the foregoing reasons, we deny the petition for review

and grant the Board’s cross-application for enforcement of its

order.

So ordered.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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