NLRB faces lawsuit from Station Casinos challenging constitutionality of procedure | Casinos and games

Station Casinos filed a constitutional challenge Tuesday to the National Labor Relations Board’s proceedings, seeking a way to end several anti-union allegations in litigation by alleging the federal agency lacks the authority to pursue complaints against companies like them.

The local casino operator filed a lawsuit against the administrative agency and its executives in U.S. District Court in Nevada, records show. The company is seeking a temporary and permanent injunction to stop ongoing proceedings before the nation’s highest labor relations court.

“Station Casinos has taken the extraordinary step of suing the NLRB because the NLRB system has failed it and many other companies and, more importantly, threatens to strip Station Casinos team members of their right to choose whether or not to be represented by a union. “, the company said in a press release.

The case comes several months after the start of NLRB trial hearings related to an April 2021 complaint. Attorneys for the National Labor Relations Board argued that Red Rock Resorts — the parent company of the Station Casinos brand — used layoffs related to the COVID-19 pandemic to undermine workers affiliated with the Culinary Local 226 union and union representation at the company.

The court filing is the latest in a battle of wills between Station Casinos, whose majority owners are Frank and Lorenzo Fertitta, and Culinary. The union attempted to collectively bargain at several of the Station’s union properties for years, but did not sign a contract. Some properties have even renounced their interest in union representation – although some of these actions are the subject of unfair labor practice allegations in the NLRB trial.

An NLRB ruling in June ordered Red Rock Resorts to bargain with Culinary at Red Rock Casino because the company engaged in anti-union tactics before workers voted on their representation. The company said it appealed the decision to the Washington DC Court of Appeals.

In Tuesday’s lawsuit, Station Casinos’ lawyers argue that Article II of the Constitution — which establishes the executive branch — requires NLRB board members and administrative law judges to be removed by the president. But the president cannot remove them and they can only be removed for “good reasons”.

In other claims, the attorneys also argue that the NLRB’s proceeding deprives Station Casinos of the right to a jury trial and challenges the fairness of allowing the agency “to act as prosecutor, judge and jury, the all in the same matter.”

In a typical case for the agency charged with arbitrating labor disputes, NLRB regional directors are filing complaints related to allegations of unfair labor practices. Administrative judges make decisions and recommend orders, which can be appealed to the Council, which is made up of individuals appointed by the president. Decisions of the Board may also be appealed to the United States Court of Appeals.

The company was first ordered to bargain in good faith with unionized Red Rock Resort employees in a 2021 court ruling.

The first of the NLRB’s proceedings against Station Casinos began in July and the case, if continued, could extend into mid-2025.

This is a developing story. Check back for updates.

Contact McKenna Ross at [email protected]. Follow @mckenna_ross_ on X.