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Fifth Circuit Rejects NLRB’s Thryv Damages, Deepening Split Over Labor Remedies

Employers face different monetary exposure depending on where cases are litigated.

Overview

  • On October 31, the Fifth Circuit in Hiran Management v. NLRB held that Thryv-style awards for foreseeable pecuniary harms exceed the National Labor Relations Act.
  • The court read Section 10(c) as authorizing equitable relief such as reinstatement and backpay rather than full compensatory damages, citing UAW v. Russell.
  • The decision aligns with the Third Circuit and conflicts with the Ninth Circuit, creating a clear division over the Board’s expanded make‑whole remedy.
  • In Texas, Louisiana, and Mississippi, the NLRB may not order payment for expenses like credit‑card interest, missed rent, or childcare tied to unfair labor practices.
  • Traditional remedies remain in force, but the availability of broader monetary relief now depends on the forum and could ultimately be settled by the Supreme Court.