When President Donald Trump was sworn into office earlier this month, labor law experts expected him to fire the Biden-appointed general counsel of the National Labor Relations Board, Jennifer Abruzzo.
But the president also removed Democratic NLRB member Gwynne Wilcox, an unexpected move that legal experts doubt the legality of, according to HR Dive. Wilcox’s dismissal, while likely to be challenged, leaves a board with too few members for a quorum — thus prohibiting it from issuing new rulings and decisions.
“The NLRB has been completely removed of all power and authority,” said Travis Gemoets, an attorney and labor employment specialist within Jeffer Mangels’ Global Hospitality Group, in an interview with Hotel Dive.
The surprising move underscores that, while changes to the NLRB are anticipated with the new presidential administration, what exactly those changes will be remains uncertain. Hotel Dive spoke with labor law attorneys about what the Trump administration’s actions mean for the labor laws that impact the hospitality industry the most.
An outsized impact
For the hospitality industry, the NLRB’s disruption is “particularly concerning” because “labor relations and compliance play a critical role in day-to-day operations,” Lara Shortz, leader of the labor and employment group at law firm Michelman & Robinson, told Hotel Dive. “This paralysis puts thousands of pending cases in limbo.”
Hospitality employers that are navigating union organizing efforts, unfair labor practice claims and other labor-related disputes will now have to deal with “prolonged delays” for regulatory decisions, Shortz added.
“While the inability to bring enforcement actions may provide temporary relief from federal oversight, it also increases uncertainty and the risk of inconsistent labor practices across jurisdictions,” she said.
“The question is: Under a Trump board, will there be some pro-management decisions that are as powerful as the pro-union decisions were under Biden?”
Travis Gemoets
attorney, Jeffer Mangels’ Global Hospitality Group
Gemoets also said the stalling of NLRB work impacts the hotel industry more than most, because there’s “a much higher percentage” of union workers than in many other private sector industries.
Some 8% of workers in the accommodations sector are represented by a union, according to the Bureau of Labor Statistics’ latest union membership report, released Tuesday.
An ‘unprecedented’ move
Gemoets, like others who watch the NLRB’s moves, was shocked by Wilcox’s dismissal.
“I think this surprised even those who [expected Trump to] push the envelope,” he said. “For him to simply summarily dismiss Ms. Wilcox is certainly unprecedented,” adding that it is “certainly a violation of law.”
While Gemoets believes it likely that Wilcox will be reinstated, he noted that it’s too soon to say when. Until then, the board is essentially kneecapped — unable, even, to change the Biden-era decisions that Trump is expected to reverse.
The result is something hoteliers had not expected under a second Trump administration, Gemoets noted: rulings made by the union-friendly, Biden-appointed board still stand, for now.
A swinging pendulum
Because NLRB members are appointed by presidential administrations, Gemoets described the board’s policy shifts over the past years as like a “pendulum.” And Shortz noted that back-and-forth on NLRB decisions “happens with virtually every change of administration.”
When the NLRB is able to establish a quorum again — either by Wilcox’s reinstatement or Trump’s appointment of further members — both attorneys expect it to swing back to a more pro-management position.
“After Biden won, I don't think we expected how far it would swing back [to be] very pro-employee, pro-union,” said Gemoets. “The question is: Under a Trump board, will there be some pro-management decisions that are as powerful as the pro-union decisions were under Biden?”
Shortz said one policy likely to change back to its Trump-era standard is the joint employer rule, limiting franchisor liability for labor violations at locations owned by franchisees.
“For hotel brands and franchisees, this would significantly shift labor relations,” she said, by “reducing franchisor involvement in disputes but also limiting worker protections and potentially altering union bargaining strategies.”
Gemoets said he believes the Biden-era NLRB’s decision in the Cemex Construction Materials case will also be reversed. The decision mandated that any employer found to have committed an unfair labor practice while employees are seeking a union election will receive an order to bargain.
He also predicts that captive audience meetings — wherein employers require employees to attend a meeting where management presents reasons why they shouldn’t organize — will be legalized once more.
“We’re going to be operating under a very pro-management National Labor Relations Board,” he said.
The NLRB did not immediately respond to a Hotel Dive request for comment.
One piece of the puzzle
The NLRB, however, is just one of many government agencies with the ability to impact hospitality labor. Shortz said Wilcox’s dismissal “signals a broader shift in federal labor policy.”
Shortz pointed to executive orders that have targeted DEI programs and workplace protections for LGBTQ+ employees. Trump also dismissed Democrats from the U.S. Equal Employment Opportunity Commission, according to HR Dive.
Meanwhile, changes are also taking place at the Department of Labor, where Trump-appointed Lori Chavez-DeRemer has taken over as secretary. The American Hotel & Lodging Association endorsed her appointment.
While much is still in flux, Shortz recommended that while hospitality employers can “anticipate further policy changes,” they should “use caution” for now, particularly when implementing changes to their labor strategies.
“It’s going to be an interesting year,” said Gemoets.
