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Appeals court holds salon in contempt for ignoring NLRB order

Posted On: Mar. 1, 2023 12:51 PM CST


A federal appeals court has held a salon in contempt for ignoring a National Labor Relations Board order in a case involving the wrongful termination of an employee who spoke out about COVID-19 workplace safety measures.

The U.S. Court of Appeals for the Seventh Circuit on Monday held Haven Salon + Spa, Inc. in contempt and ordered the Muskego, Wisconsin-based business to pay a $1,000 fine plus $150 for each day next week that the business continues to be in noncompliance.

The daily fines are set to increase by $100 after next week if the business continues to ignore the order.

The case involves Katherine Rehm, who claims she was fired in May 2020 after raising concerns that her employer was not doing enough to protect workers against COVID-19.

Ms. Rehm claimed the business further retaliated against her by threatening legal action after she complained to the National Labor Relations Board.

An administrative law judge determined that the termination was unlawful, recommending that the NLRB order the business to compensate Ms. Rehm for lost pay and other expenses, offer to rehire her, notify her that it would remove references to her unlawful termination from her employee file and take other remedies.

The NLRB requested that the appeals court step in when the business failed to comply with the order.

The court found that the business has still not complied with NLRB requirements to remove the termination references from Ms. Rehm’s employee file, to post a notice of employee rights at its store locations, and to file a sworn certification with the board attesting to its compliance.

The appeals court ruled to hold the business in contempt after the company “intentionally” ignored numerous petitions and orders in the case, from both the NLRB and the court itself.