The U.S. Supreme Court June 17 ruled that the National Labor Relations Board (NLRB) was not authorized to issue decisions during a 27-month period when three of its five seats were vacant, invalidating more than 500 decisions.   

The 5-4 decision by the Supreme Court resolved a series of conflicting appellate court opinions by clarifying what constitutes a quorum on the board.  According to the court opinion, the NLRB must have at least three members in order to issue decisions.  

“The Supreme Court’s decision is embarrassing for the Administration because of the failure to fill the Board’s empty seats for such a long period of time,” said Maurice Baskin of Venable LLP, ABC’s general counsel. “This resulted in cases being decided, mostly against employers, without legal basis.”  

The ruling did not dictate how the NLRB should handle the previously decided two-member cases. The NLRB will have to decide which cases need to be revisited and what procedures should be adopted to comply with the Supreme Court’s decision.  

The U.S. Senate June 22 confirmed two of President Obama’s nominees to the NLRB, Brian Hayes and Mark Pearce, bringing the total number of NLRB members to the full complement of five for the first time in more than two years. The full membership may not last long, however, as Peter Schaumber’s term expires in August and Craig Becker’s recess appointment expires in 2011.