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NLRB Amends Standard Backpay Remedy Procedures to Ensure Proper Social Security Earnings Allocation and Reporting
Practical Law Legal Update w-029-6443 (Approx. 4 pages)
NLRB Amends Standard Backpay Remedy Procedures to Ensure Proper Social Security Earnings Allocation and Reporting
by Practical Law Labor & Employment
| Law stated as of 06 May 2021 • USA (National/Federal) |
In Cascades Containerboard Packaging-Niagara, the National Labor Relations Board (NLRB) held that in unfair labor practice (ULP) cases where backpay is awarded, employers must provide the NLRB W-2 forms with the required backpay-allocation reports.
On February 9, 2021, in Cascades Containerboard Packaging-Niagara, the panel (Board) heading the NLRB's judicial functions modified the standard procedures applied in unfair labor practice (ULP) cases where it orders employers to provide backpay to make employees whole. The Board now will require the employer to submit to the Regional Director a copy of the corresponding W-2 forms and the required backpay-allocation report for each backpay recipient. This additional information is intended to assist the NLRB in calculating the retroactive allocation of earnings and to ensure the Social Security Administration has accurate and consistent information needed for calculating Social Security benefits based on credited earnings. (370 N.L.R.B. No. 76 (Feb. 9, 2021).)
The requirement announced in Cascades Containerboard Packaging-Niagara applies to all pending and future cases before the Board. Employers should be aware that these new compliance obligations apply whenever backpay is awarded to remedy ULPs.
UPDATE
On May 6, 2021, the Board invited briefs in this case addressing whether and how the Board should:
- Impose a deadline for the filing of W-2 forms of each backpay recipient.
- Modify filing of backpay reports under in AdvoServ of New Jersey, Inc. (363 N.L.R.B. 1324 (2016)).