NLRB Makes Employers Liable For Damages For Direct and Foreseeable Harms

The National Labor Relations Board (NLRB) recently ruled that employers are liable for compensatory damages in unfair labor practices case. This means employers are now liable for direct and foreseeable harms if they break the law.  Previously, employees could only recover the loss of earnings and benefits. Now, victims of unfair labor practices may recover for other financial costs, such as out-of-pocket medical expenses, credit card debt, or other costs that are a direct or foreseeable result of the unfair labor practices. 

This new rule about compensatory damages for unfair labor practices benefits workers in several ways:

1. Increased compensation: Now workers who have been affected by unfair labor practices can receive full financial compensation to help make up for their losses. Lost wages and benefits are frequently just the beginning of the losses employees incur when employers break the law.

2. Incentive for employers to comply with labor laws: The new rule provides an incentive for employers to comply with the National Labor Relations Act. This can help to deter employers from engaging in such practices, which can benefit workers by creating a more positive and equitable workplace, or at least a place where they are not punished for getting together with coworkers to discuss working conditions.

3. Recognition of the harm caused by unfair labor practices: The new rule recognizes that unfair labor practices can cause severe harm to workers beyond lost wages and benefits, and it provides a mechanism for compensating workers for that harm. This recognition is important because it helps to validate the experiences of workers who have been affected by such practices and it helps to ensure that workers are made whole for their losses.

4. Encourages workers to report unfair labor practices: The new rule can encourage workers to report unfair labor practices, because they know that they may be entitled to compensatory damages if they are affected. This can help to increase awareness of such practices and to ensure that they are addressed, which can benefit workers by creating a safer and more equitable workplace.

5. Promotes fairness in the workplace: The new rule promotes fairness in the workplace by ensuring that workers who are affected by unfair labor practices are compensated for their losses. This can help to create a more just and equitable workplace. Employees are entitled to engage in action with coworkers to discuss working conditions and bring their concerns to managment. Employers will hopefully become more aware that there will be costly consequences of retaliating against employees who do so.

If you think your employer has violated the National Labor Relations Act, contact an employee-side employment attorney in your state to discuss your rights. If you have a union and you think your employer has violated the law, talk to your union leadership about bringing an unfair labor practices claim.


Overall, the National Labor Relations Board's new rule about compensatory damages for unfair labor practices benefits workers by increasing compensation, providing an incentive for employers to comply with labor laws, recognizing the harm caused by unfair labor practices, encouraging workers to report such practices, and promoting fairness in the workplace. By providing workers with greater protections and increased compensation, the new rule helps to create a more positive and equitable workplace for all.