Dallas Tax Attorney Joe B. Garza discusses the NLRB - Solomon fight, and what this means for the private sector's opinion of president Obama.

1.  NLRB Fight Adds to List of Business Community’s Concerns about Obama
NLRB Fight Adds to List of Business Community’s Concerns about Obama
By: Joe B. Garza
September 2013
Businesses, especially small businesses, have had their share of complaints about the
Obama administration’s policies. The administration’s Patient Protection and Affordable Care
Act of 2010 imposes a complex regulatory scheme on businesses, and the Equal Employment
Opportunity Commission has cautioned businesses against automatically disqualifying job
applicants with a criminal history. The recent actions of Lafe Solomon, the Acting General
Counsel of the National Labor Relations Board (NLRB), will undoubtedly reinforce criticism of
the Obama administration from the business community.
Businesses Skeptical of Solomon
Businesses already viewed Solomon with skepticism because of his harsh actions against
Boeing in 2011, when the airplane manufacturing company tried to transfer work from a
unionized plant in Washington to a non-unionized plant in South Carolina. Although he was
appointed Acting General Counsel of the NLRB by President Obama in 2010, Solomon was
never confirmed due to vigorous Republican opposition.
Some workers at Cablevision, Inc., a cable and internet services company, have accused
the company of illegal acts in its attempts to prevent workers from joining the Communications
Workers of American, a labor union. The NLRB filed two unfair labor complaints against
Cablevision in April. Cablevision objected to these complaints on the ground that two courts
have recently ruled that the NLRB as constituted is acting without the required quorum in that
two of the current three board members were not properly appointed by President Obama.
(Although the NLRB usually has five members, it currently has only three due to political

2.  NLRB Fight Adds to List of Business Community’s Concerns about Obama
disputes over the nominees for the other two positions). Both the D.C. Court of Appeals and the
U.S. Supreme Court denied Cablevision’s request to stay the proceedings.
Solomon to Scrutinize Businesses
In a letter to Cablevision that became public, Solomon makes clear that he believes his
power to bring actions against companies exists independent of the current board’s validity, even
though this position is in tension with the legislative history behind the NLRB. The Supreme
Court has agreed to hear a key NLRB case that will address the board’s current validity, but in
the meantime businesses will face scrutiny from the pro-labor Solomon.
UPDATE:
On August 1, 2013, President Obama withdrew Solomon’s nomination.
BIO:
Joe B. Garza is a Dallas Tax Attorney and lead partner at the Dallas law firm, Garza & Harris, Ltd. As a
top Tax and Estate Planning Attorney, Joe B. Garza has preserved millions in wealth for private client and
small businesses across the nation.