The Third Circuit ruled that the National Labor Relations Board overreached and acted punitively. The General Counsel issued a complaint alleging that East Brunswick European Wax Center (“EBEWC”) violated Section 8(a)(1) and (3) of the National Labor Relations Act (“NLRA”). EBEWC signed a Settlement Agreement three weeks later. Subsequently, the General Counsel moved for default judgment, alleging that EBEWC had defaulted on the Settlement Agreement terms by failing to comply with its Electronic Notification provision requiring EBEWC to text notice to its employees. The Board granted the General Counsel’s request for a full remedy for the violations the Board found. The Third Circuit granted EBEWC’s petition for review. The Court found that the Board’s was action was drastic since “EBEWC had purportedly defaulted on the terms of the Settlement Agreement merely by sending the requisite notice to its employees by e-mail instead of by text message.” Therefore, the Board “overreached and acted in a punitive fashion.”
