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Texas Businesses Lose Bid to Challenge Ambush Election Rule; Union Election Petitions on the Rise

Submitted by Firm:
Cross, Gunter, Witherspoon & Galchus, P.C.
Firm Contacts:
Abtin Mehdizadegan, J. Bruce Cross, Misty Wilson Borkowski
Article Type:
Legal Update
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On June 1, 2015, a Texas federal court ruled against the Associated Builders and Contractors of Texas and other plaintiffs who were challenging the National Labor Relations Board's ambush election rule, which significantly shortens the period of time that employers and employees have to prepare for a union election after receiving an election petition. The business group-plaintiffs claimed that the NLRB's rule violated the Administrative Procedure and National Labor Relations Acts, but the Texas Court ruled that the plaintiffs failed to show how the rule violated either Act.  

Since the final rule went into effect on April 14, union election petitions have risen 32 percent, according to an NLRB spokeswoman.

While this ruling is limited to businesses in Texas, it follows President Obama's veto of Congress' joint resolution to block the NLRB's ambush election rule in April. These actions indicate that the ambush election rule will proceed as implemented.

Another pending lawsuit challenging the ambush election rule was filed by the U.S. Chamber of Commerce, National Association of Manufacturers and Manufacturers' Center for Legal Action, which remains pending in the District of Columbia.  

In the meantime, employers should remain vigilant and prepare for the continuing onslaught against nonunion employers.