Station Casinos on Tuesday filed a constitutional challenge to National Labor Relations Board proceedings, seeking a way to stop several union-busting allegations in litigation by alleging the federal agency lacks the authority to prosecute claims against businesses like them.
The locals casino operator filed a lawsuit against the administrative agency and its leaders in the U.S. District Court in Nevada, records show. The company seeks a temporary and permanent injunction to halt pending proceedings in the nation’s top 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 deprive Station Casinos’ team members of their right to choose whether to be represented by a union or not,” the company said in a news release.
The case comes several months after the commencement 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 the COVID-19 pandemic layoffs to undermine Culinary Local 226 union-affiliated workers and union representation in the company.
The court filing is the latest in a back-and-forth battle of wills between Station Casinos, whose controlling owners are Frank and Lorenzo Fertitta, and Culinary. The union has tried to collectively bargain at several unionize Station properties for years but have not signed a contract. Some properties have even reversed their interest in union representation — though some of those actions are subject of unfair labor practice allegations in the NLRB trial.
An NLRB decision in June ordered Red Rock Resorts to bargain with Culinary at Red Rock casino because it engaged in union-busting tactics before workers voted on representation. The company said it appealed that decision in the D.C. Court of Appeals.
In Tuesday’s lawsuit, attorneys for Station Casinos argue that Article II of the Constitution — which establishes the executive branch — requires that NLRB board members and administrative law judges be removable by the president. But, the president cannot remove them and instead they can only be removed for “good cause.”
In other claims, the attorneys also argue the NLRB proceedings deprive Station Casinos the right to a jury trial and challenges the fairness of allowing the agency to “act as prosecutor, judge and jury, all in the same case.”
In a typical case for the agency tasked with refereeing labor-related disputes, NLRB’s regional directors issue complaints related to unfair labor practice allegations. Administrative law judges issue decisions and recommend orders, which can be appealed to the Board, made up of presidential appointees. Board decisions can also be appealed in the U.S. Court of Appeals.
The company was first ordered to bargain in good faith with union employees at Red Rock Resort in a 2021 court decision.
The first of the NLRB proceedings against Station Casinos began in July, and the case, if it continues, could stretch into mid-2025.
This is a developing story. Check back for updates.
Contact McKenna Ross at mross@reviewjournal.com. Follow @mckenna_ross_ on X.
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