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In a stunning defeat for the Obama Administration, in early July 2014, the United States Supreme Court, in NLRB v. Noel Canning, ruled unanimously that “recess appointments” the President made to the National Labor Relations Board in January 2012, when it lacked a quorum to act, were constitutionally invalid. This decision effectively voids a broad range of controversial NLRB decisions – ranging from restrictions on employment class action waivers to employer regulation of social media policies, which impact unionized and union-free employers alike – and will provide employers with ammunition to legally contest other actions taken in recent years by the NLRB, its General Counsel and its Regional Offices.

Presently, the best practice is to follow further action taken in the NLRB and the District Courts regarding decisions of the NLRB since January 2012 and act accordingly. The NLRB’s decisions regarding employment class action waivers and social media policies are no longer binding.