The NLRB's December 2022 ruling in Thryv, Inc. significantly expanded the scope of damages available under the National Labor Relations Act.
In December 2022, the National Labor Relations Board issued its decision in Thryv, Inc., fundamentally expanding the scope of remedies available when an employer is found to have committed an unfair labor practice. For Tennessee and Georgia employers, this decision represents one of the most significant shifts in labor law in decades.
Prior to Thryv, the standard NLRB remedy for an unlawful discharge included reinstatement and back pay — typically wages lost from the date of discharge to the date of reinstatement offer, minus interim earnings. The Board has now added what it calls "consequential damages," including: out-of-pocket medical expenses; credit card debt and late fees incurred because of lost wages; loss of a home or vehicle due to inability to make payments; and any other foreseeable direct or foreseeable pecuniary harm that flows from the unfair labor practice.
The practical impact is significant. An employee who was unlawfully discharged and then, say, lost their home or vehicle because they could not make payments — damages that were previously unrecoverable — can now recover those losses from the employer. The NLRB has historically been seen as a forum with limited financial exposure. That calculus has changed.
The Thryv decision comes alongside other regulatory changes affecting the employment relationship, including the FTC's proposed ban on non-compete agreements. Employers should view these developments as part of a broader regulatory environment that has become significantly more employee-favorable at the federal level.
Review your labor practices with counsel. The expanded remedy regime makes it more important than ever to ensure that termination decisions, especially those involving union activity or protected concerted activity, are legally sound before they are made. If you have pending NLRB charges, consult with labor counsel about how Thryv affects your exposure. If you have not had a labor law audit recently, this is a good time to schedule one.
John Harrison and Maury Nicely represent management in NLRB proceedings throughout Tennessee and Georgia. If you have questions about how the Thryv decision affects your business, contact Evans Harrison Hackett at 423.648.7890.
Attorney Advertising. This article is provided for informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. For advice specific to your situation, please contact Evans Harrison Hackett PLLC at 423.648.7890.