Health Center 'Laundered' Workers To Duck CBA: 2nd Circ.
Law360 (August 23, 2018, 4:05 PM EDT) -- A health care center chain violated federal labor law when it loaned a group of housekeepers to a subcontractor and later rehired them without seniority, tenure or other collectively bargained benefits, the Second Circuit said Thursday in a ruling affirming a National Labor Relations Board order.
The panel said HealthBridge Management LLC effectively "laundered" its workers by subcontracting them to Healthcare Services Group and then rehiring them sans seniority 15 months later, comparing this scheme to those in which businesses try to duck union contracts by firing their workers, dissolving and hiring the workers back as a new entity.
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