NLRB Ruling: New Jersey Hotel Violated Labor Law
As reported by Bloomberg Law News, the National Labor Relations Board (NLRB) has upheld a ruling that a New Jersey based hotel violated labor law. The NLRB found support for a 2024 administrative law judge decision that found that Fairfield Parsippany, LLC broke federal labor law when it failed to bargain with a union and refused to hire workers who engaged in union activity. Here, our New Jersey employment lawyer provides a more comprehensive overview of the ruling and the relevant law.
Key Issues: Successorship and Union Recognition
The NLRB’s decision involved JSK Parsippany, LLC and Fairfield Parsippany, LLC. These companies were the operators of a Fairfield Inn & Suites by Marriott in Parsippany, New Jersey. The Board decision was issued on June 4th, 2026. There were two key legal issues in the case:
- Union recognition regulations; and
- The extent of successor liability.
The NLRB reviewed whether Fairfield Parsippany became a “successor” employer after taking over hotel operations from JSK. Under federal labor law, a successor employer may have a duty to recognize and bargain with an incumbent union when there is substantial continuity in operations and a majority of the new employer’s workforce comes from the predecessor’s workforce.
Why it Matters: Employer Refusal to Bargain May Violate Federal Labor Law
The National Labor Relations Act (NLRA) requires an employer to bargain in good faith with the representative chosen by employees. Section 8(a)(5) prohibits refusal to bargain, while Section 8(a)(1) prohibits interference with employees’ Section 7 rights to organize, assist a union, and bargain collectively. This case included allegations that the hotel refused to bargain, repudiated or modified contract obligations, made unilateral changes, and engaged in coercive conduct.
Legal Principle: The technical point is that a successor employer is not always bound to every substantive term of a predecessor’s collective bargaining agreement. However, once the duty to bargain attaches, the employer generally may not unilaterally change mandatory subjects of bargaining, such as wages, hours, benefits, subcontracting, and other terms and conditions of employment, without notice and an opportunity to bargain.
Refusing to Hire Union Supporters Can Be Unlawful Discrimination
The ruling also addressed alleged discrimination against workers who supported the union. Section 8(a)(3) of the NLRA prohibits discrimination in hiring, tenure, or employment terms that effectively discourages union membership. The record showed that six pro-union workers were not initially retained when Fairfield took over, while nine other bargaining-unit employees continued working. Those six workers were later hired after the union invoked New Jersey’s Hotel Worker Retention Statute, but they were terminated again months later.
Call Our New Jersey Labor Lawyer Today
At Poulos LoPiccolo PC, our New Jersey labor law attorney has the experience you can rely on. If you have any questions about labor law, please do not hesitate to contact us today to set up a completely confidential, no obligation initial consultation. With an office in Monmouth County, we provide labor and employment services statewide in New Jersey.
Source:
news.bloomberglaw.com/daily-labor-report/nlrb-upholds-ruling-new-jersey-hotel-company-broke-labor-law
