Daily Compounding of Interest on Backpay and other Monetary Awards

OFFICE OF THE GENERAL COUNSEL

TO: All Regional Directors, Officers-in-Charge, and Resident Officers

FROM: Leonard R. Page, General Counsel

SUBJECT: Daily Compounding of Interest on Backpay and Other Monetary Awards

Under current practice the Board's remedial orders do not provide for the compounding of interest on monetary awards. As a

result, discriminatees are often deprived of a true "make whole" remedy, particularly where the payment of backpay is delayed

for extended periods of time. Moreover, the current practice operates as a significant disincentive to the early settlement of

cases, thereby impeding the Agency's ability to better effectuate the policies of the Act.

In recognition of this problem, the General Counsel, beginning in 1989, sought the adoption in a number of cases presented to

the Board of a policy pursuant to which interest on backpay and other monetary awards would be compounded on a daily

basis. In response, the Board issued a decision stating that it was "taking the matter under advisement." See Alaska Pulp Corp.,

300 NLRB 232, n.4 (1990).

Subsequently, the Board published in the Federal Register a Notice of proposed rulemaking soliciting comments, inter alia, on

the proposed implementation of a rule under which all interest awarded on backpay and other monetary awards would be

compounded daily.

Following review of the comments received in response to the Notice of proposed rulemaking, the Board has determined that it

would prefer to consider this matter further in the context of an actual case or cases, rather than through rulemaking.

Accordingly, the General Counsel will, in the context of the cases identified herein, request that the Board reconsider its

practice of awarding only simple interest on backpay and other monetary remedies and recommend that such interest be

compounded on a daily basis

that it

would prefer to consider this matter further in the context of an actual case or cases, rather than through rulemaking.

Accordingly, the General Counsel will, in the context of the cases identified herein, request that the Board reconsider its

practice of awarding only simple interest on backpay and other monetary remedies and recommend that such interest be

compounded on a daily basis. The attached cases were selected as a result of a recent survey conducted by the Division of

Operations-Management and include cases pending before the Board for exceptions or cross-exceptions and cases scheduled

for trial before an ALJ.

A model "Supplemental Brief in Support of Compounding Interest" to be filed in all cases noted in the attachment is also

included. (Permission to exceed page

limitations should be sought as required). For the sake of clarity, it should be made noted that compounding of interest is not in

the nature of a special remedy but will be sought in all cases involving a monetary remedy should the Board accept this

principle. It is not presently being sought in all cases simply as an exercise of prosecutorial discretion and to avoid

overburdening the Board.

Those Regions with selected cases scheduled for trial should proceed by orally notifying the respondent, followed by written

confirmation of such notice. Where time permits, outstanding complaints should be amended to plead a backpay or other

monetary remedy which will include interest compounded daily. Regional Directors are asked to notify the Division of Advice

and the Contempt Litigation and Compliance Branch immediately upon settlement of any cases selected.

Any questions should be addressed to the Division of Advice.

/s/

L. R. P.

Attachments (2)

MEMORANDUM GC 00-05

July 20, 2000

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GC Memo 00-05 - Daily Compounding of Interest on Backpay and Other Monetary Awards

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ompliance Branch immediately upon settlement of any cases selected.

Any questions should be addressed to the Division of Advice.

/s/

L. R. P.

Attachments (2)

MEMORANDUM GC 00-05

July 20, 2000

Page 1 of 2

GC Memo 00-05 - Daily Compounding of Interest on Backpay and Other Monetary Awards

4/11/2011

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cc: NLRBU

MEMORANDUM GC 00-05

LIST OF SELECTED CASES

Case Name Case No. Status

Sun Company, Inc. 4-CA-27772 7/18 Trial

USF Logistics,Inc. 4-CA-28907 10/3 Trial

Carmic Mfg.,Inc. 4-CA-28803 10/6 Trial

Herre Bros., Inc. 5-CA-27807 ALJD issued

Indiana Hospital, Inc. 6-CA-30840 ALJD issued

Accurate Wire Harness 9-CA-36910,37007 ALJD pending

North Alabama Electric Coop 10-CA-31948 7/29 Trial

American Water Heater Co. 10-CA-32081 7/29 Trial

Southwest Community 13-CA-38382 7/26 Trial

Consolidated Stores 15-CA-15359 8/8 Trial

Commercial Erectors, Inc. 17-CA-20046 ALJD issued

South Coast Refuse 21-CA- ALJD issued

Powers Lake Construction 30-CA-14926 7/24 Trial

Industrial Heat Transfer 30-CA-14984 9/11 Trial

Hartford Care Center 30-CA-14981 10/10 Trial

Pacific Rock 36-CA-8669 8/8 Trial

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