National Labor Relations Board v. Lee Hotel Corporation

On September 13, 1989 the National Labor Relations Board affirmed an Administrative Law Judge’s finding that the respondent Lee Hotel Corporation violated §§ 8(a)(1) and (3) of the National Labor Relations Act by discharging four of its employees for their involvement in union activity. The employees worked as cocktail waitresses and bartenders in the hotel’s bar and lounge. The Board affirmed the ALJ’s Order that the Hotel reinstate the employees and awarded them backpay to make them whole for the loss of earnings and other benefits they suffered as a result of the illegal discharges.

The ALJ subsequently held a backpay hearing and, on March 25, 1992, the Board issued a Supplemental Decision and Order adopting the ALJ’s backpay award with slight modifications. The Board now seeks enforcement of that Order.

The Hotel contends, that, because the employees reported less tip income to the Internal Revenue Service than they reported to the Regional Director of the NLRB, the ALJ, in his backpay award, should not have awarded a greater amount of tip income than the employees reported on their income tax returns. To support its assertions, the Hotel argues that the ALJ’s findings were…