
Ted Parker is a student at Harvard Law School and a member of the Labor and Employment Lab.
In today’s news and commentary, newly proposed budgets for the Department of Labor and the National Labor Relations Board show staff cuts on the horizon, and an Oregon state law mandating labor peace agreements in cannabis dispensaries is permanently enjoined.
Proposed budgets for the Department of Labor (DOL) and the National Labor Relations Board released (NLRB) released on Friday point to drastic cuts in staff for both agencies. In yesterday’s news and commentary, Liana reported that a preliminary injunction currently prevents Trump from ordering mass firings of federal workers. But even if that injunction becomes permanent, Trump can still shed federal workers with Congressional cooperation. Bloomberg reports that the Department of Labor’s FY 2026 budget in brief requests funding for only 10,879 employees, down from the 14,855 it has now. That would amount to a 25% cut to DOL staff (already low due to more than 2,700 buyouts in recent months). The NLRB is in a similar position. Its budget justification proposes a 4.7% spending decrease, which would be achieved through staff attrition (buyouts and voluntary early retirement). Bloomberg reports that this is an effort to “avoid[] mass layoffs” while still “align[ing]” with the administration’s downsizing goals, making this a “qualified win” for the agency (if Congress approves). Needless to say, any reduction in the workforce of the NLRB will only make it more difficult for the agency to carry out its functions and add to already long backlogs.
Meanwhile, a federal district court in Oregon permanently enjoined a state law requiring businesses that sell cannabis to sign labor peace agreements (LPAs). In several states, a new dispensary must enter into an LPA with a union in order to receive a license to sell cannabis. John recently covered one dispensary’s challenge to California’s version of this law in Ctrl Alt Destroy, Inc. v. Elliot. That challenge was dismissed on a “unclean hands” theory (“Because it is a business which exists solely for the purpose of making money through . . . violations of federal law, Plaintiff comes before the Court seeking equitable relief with unclean hands.”). Now, a court in Oregon has come out the other way in Casala, LLC v. Kotek, which judged the state law both Garmon– and Machinists-preempted. As John pointed out, Ctrl Alt Destroy’s unclean hands theory arguably makes the preemption question irrelevant. However, Casala does not explicitly address this theory. Instead, it makes the orthogonal point that even though the cannabis industry is illegal under federal law, the NLRA still applies because “[t]he NLRA does not limit its jurisdiction to ‘lawful commerce’ or ‘legal substance,’” leaving a true confrontation between these positions to another day.
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June 26
A district judge issues a preliminary injunction blocking agencies from implementing Trump’s executive order eliminating collective bargaining for federal workers; workers organize for the reinstatement of two doctors who were put on administrative leave after union activity; and Lamont vetoes unemployment benefits for striking workers.
June 25
Some circuits show less deference to NLRB; 3d Cir. affirms return to broader concerted activity definition; changes to federal workforce excluded from One Big Beautiful Bill.
June 24
In today’s news and commentary, the DOL proposes new wage and hour rules, Ford warns of EV battery manufacturing trouble, and California reaches an agreement to delay an in-person work mandate for state employees. The Trump Administration’s Department of Labor has advanced a series of proposals to update federal wage and hour rules. First, the […]
June 23
Supreme Court interprets ADA; Department of Labor effectively kills Biden-era regulation; NYC announces new wages for rideshare drivers.
June 22
California lawmakers challenge Garmon preemption in the absence of an NLRB quorum and Utah organizers successfully secure a ballot referendum to overturn HB 267.
June 20
Three state bills challenge Garmon preemption; Wisconsin passes a bill establishing portable benefits for gig workers; and a sharp increase in workplace ICE raids contribute to a nationwide labor shortage.