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1 - National Labor Relations Board

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172 Thirty-fourth Annual Report of the <strong>National</strong> <strong>Labor</strong> <strong>Relations</strong> <strong>Board</strong><br />

declining to assert jurisdiction in a representation case and an<br />

unfair labor practice case involving a nonproprietary or nonprofit<br />

nursing home, had violated the constitutional rights of a<br />

union seeking to represent the employees of the nursing home.<br />

The court reasoned that the rationale of Fay v. Douds extends<br />

to all constitutional deprivations, whether or not they involve a<br />

deprivation of property rights. It concluded that the union's<br />

contention, that the distinction made by the <strong>Board</strong> between the<br />

impact upon commerce of proprietary nursing homes, over which<br />

it asserted jurisdiction,4 and that of nonprofit nursing homes,<br />

over which it declined to assert jurisdiction, was so arbitrary<br />

as to amount to a denial of due process, was not transparently<br />

frivolous. Since nonprofit nursing homes, unlike nonprofit hospitals,<br />

are not expressly excluded by section 2(2) of the Act, the<br />

court was of the view that the <strong>Board</strong>'s refusal to assert jurisdiction<br />

over them as a category was contrary to a Supreme<br />

Court decision 5 holding that the <strong>Board</strong> may not renounce jurisdiction<br />

over an entire category of employers otherwise subject<br />

to the Act, if those employers exert a substantial impact on<br />

commerce. It therefore denied the <strong>Board</strong>'s motion to dismiss the<br />

complaint.6<br />

2. Investigation of Representation Petition<br />

Three cases during the year involved challenges to the <strong>Board</strong>'s<br />

compliance with the provision of section 9 (c) (1) of the Act<br />

requiring it to conduct an investigation of a representation petition<br />

to determine if there is reasonable cause to believe that<br />

a question of representation affecting commerce exists. In all<br />

three cases, employers contended that the <strong>Board</strong> should have<br />

dismissed the petitions for want of a sufficient showing of interest<br />

on the part of the employees in an election. In each case,<br />

the court ruled in favor of the <strong>Board</strong>. In the Modern Plastics<br />

case,' the Sixth Circuit, reversing a district court and vacating<br />

and injunction issued by it prohibiting the <strong>Board</strong> from conducting<br />

a representation election, concluded that the <strong>Board</strong>'s investigation<br />

satisfied the statutory requirement. The court<br />

pointed out that the investigation need only be sufficient<br />

to establish a reasonable cause to believe that a question of<br />

representation affecting commerce exists, and that the nature<br />

4 University Nursing Home, 168 NLRB No. 53 (1967).<br />

5 Office Employees v. N.L.R.B., 353 U.S. 313 (1957).<br />

6 The <strong>Board</strong> subsequently set the case for hearing in order to develop a record to assist it in<br />

resolving the issues on remand.<br />

7 Modern Plaattca Corp. v. McCulloch, 400 F.Zd 14.

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