Vermont Information Processing, Inc. v. NLRB
CourtCourt of Appeals for the D.C. Circuit
Date FiledMay 26, 2026
Docket24-1360
StatusPublished
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Full Opinion
United States Court of Appeals
FOR THE DISTRICT OF COLUMBIA CIRCUIT
Argued October 15, 2025 Decided May 26, 2026
No. 24-1360
VERMONT INFORMATION PROCESSING, INC.,
PETITIONER
v.
NATIONAL LABOR RELATIONS BOARD,
RESPONDENT
CHRISTOPHER BENDEL, ET AL.,
INTERVENORS
Consolidated with 24-1375
On Petition for Review and Cross-Application
for Enforcement of an Order
of the National Labor Relations Board
Stephen D. Ellis argued the cause for petitioner. With him
on the briefs was Carl “Ott” Lindstrom. Tillman J.
Breckenridge entered an appearance.
2
Gregoire Sauter, Attorney, National Labor Relations
Board, argued the cause for respondent. With him on the brief
were Ruth E. Burdick, Deputy Associate General Counsel,
Meredith Jason, Assistant General Counsel, and Usha
Dheenan, Supervisory Attorney.
Before: MILLETT, WALKER and PAN, Circuit Judges.
Opinion for the Court filed by Circuit Judge PAN.
Opinion concurring in part and dissenting in part filed by
Circuit Judge WALKER.
PAN, Circuit Judge: Employees often wonder how much
money their coworkers are making. Such information might
help them negotiate salary raises, serve as a point of
comparison when seeking other employment, or simply satisfy
their curiosity. Sharing salary information among employees
is a protected activity under the National Labor Relations Act.
In this case, the National Labor Relations Board (NLRB)
determined that Vermont Information Processing, Inc. (VIP)
illegally fired four employees for creating and disseminating a
salary-sharing spreadsheet. The Board ordered VIP to offer the
employees reinstatement and to compensate them financially.
VIP petitions for review of that order, while the NLRB cross-
applies for enforcement.
We hold that substantial evidence supports the Board’s
determination that VIP illegally fired one of the employees,
Christopher Bendel. But with respect to the other three
workers, the Board impermissibly broadened its theory of
liability to include an additional consideration beyond the
scope of the NLRB General Counsel’s complaint against the
company. We therefore grant each petition in part, deny each
petition in part, and remand for further proceedings.
3
I. Factual Background
VIP is a software company that services the beverage
industry. It employs software engineers to build and maintain
applications used by its customers, and it organizes those
engineers into small software-development teams.
In February 2022, VIP began rolling out a restructuring
plan. As part of the roll-out, software engineer Christopher
Bendel met with his supervisor, Sam Graefe, to discuss how
the restructuring would affect Bendel’s role. The meeting did
not go well. Bendel was dissatisfied with the new position that
management had designed for him and expressed his concerns
to Graefe. He ended the conversation abruptly and then called
Graefe’s supervisor, Director of Development Christopher
McGinty, to discuss his concerns. Prior to those conversations,
Bendel had informed both Graefe and McGinty that “he had
offers from other companies.” J.A. 851. When Graefe and
McGinty compared notes about their interactions with Bendel,
Graefe noted that Bendel “didn’t seem too happy about our
conversation,” while McGinty wrote that it “wasn’t a pretty
conversation.” S.J.A. 4–6.
Later that day, Bendel messaged another software
engineer, Kaleb Noble, on VIP’s Google Workspace platform.
Bendel described his meeting with Graefe as a “shitshow” and
claimed that he had “hung up on [Graefe].”1 J.A. 1137–39.
During that conversation, Noble asked Bendel, “Do you mind
me asking your salary . . . ?” J.A. 1141. Bendel informed
Noble that his salary was $95,000, and Noble responded that
his was $87,000. Bendel then asked, “[W]anna start a [salary]
1
Graefe has never confirmed that Bendel hung up on him, and
Bendel later testified that he had been “puffing [his] chest a little bit
in the chat with” Noble. J.A. 594.
4
spreadsheet?” Id. After Noble agreed, Bendel created a
spreadsheet and shared it with Noble, and Noble said that he
would share it with two other software engineers, Gordon
Dragoon and Kestrel Swift. Noble described the spreadsheet’s
purpose as follows: “The idea in my mind is so if you wanna
ask for a raise you got some reference to see if you’re getting
fisted lol.” J.A. 1145. Bendel agreed. Bendel and Noble
shared the spreadsheet with Dragoon and Swift, and all four
employees entered their names, positions, and salaries into the
first four rows.
The next day, between 8:00 and 9:00 a.m., VIP held a
virtual all-hands meeting to launch its restructuring plan.
During or immediately after the meeting, the four employees
began sharing the spreadsheet link with other employees.
Around twenty-five coworkers entered information into the
spreadsheet. An employee who received the spreadsheet
shared it with a supervisor, who shared it with Development
Director McGinty, who passed it on to Operations Director
Louise Morgan.
At 11:26 a.m., Morgan met with McGinty to view and
discuss the spreadsheet. From the file-ownership information,
they could tell that Bendel had created it. And they noticed a
notation on the spreadsheet indicating that “100 [percent]” of
VIP’s software developers were “underpaid.” J.A. 1293
(showing two adjacent spreadsheet cells, the first reading “%
of underpaid devs” and the next reading “100”). Morgan and
McGinty attributed that statement to Bendel, as the
spreadsheet’s creator.2 When they told Chief Financial Officer
2
The record contains mixed evidence concerning whether Bendel
actually added this notation, or whether a different employee did.
But the record makes clear that, beyond identifying who originally
5
John Simard and other company leaders about the spreadsheet,
Simard reacted strongly. Simard believed that the spreadsheet
was “not appropriate,” “not accurate,” and “serve[d] no
purpose.” J.A. 1028. In particular, he took issue with “the idea
that [the spreadsheet] was being used to demonstrate that all of
[VIP’s] programmers, a hundred percent of them[,] are
underpaid.” Id. Based largely on Simard’s arguments,
management decided to disable the spreadsheet. They then
discussed Bendel’s future at the company and quickly decided
to fire him.
At around 11:32 a.m., VIP management disabled Bendel’s
internal accounts. The company remotely locked his computer
and fired him at around noon. When informing Bendel of his
termination, McGinty cited Bendel’s “feeling towards VIP”
and his “attitude,” particularly “towards the restructuring and
how he . . . was uninterested in partaking in that.” J.A. 855;
accord J.A. 1130 (Bendel’s description of his conversation
with McGinty). Management disabled the spreadsheet at
around 12:19 p.m., but Dragoon informed Noble and Swift that
he had already downloaded the spreadsheet and would transfer
it to his personal email.
During and after these events, the four creators of the
spreadsheet exchanged a plethora of colorful messages. Many
of those messages pertained directly to the spreadsheet, their
salaries, and their unhappiness with Bendel’s firing. Other
messages went further afield. For example, the employees
discussed their desire to leave VIP and to convince one of their
coworkers to join them. They repeatedly used profanity to
criticize VIP management; discussed “[p]urg[ing] [their]
computers,” J.A. 1197; and talked about sharing their
created the spreadsheet, Morgan and McGinty made no further effort
to verify that Bendel authored the notation.
6
complaints with a former VIP employee who was working for
a VIP customer.
The day after Bendel’s termination, VIP’s Information
Technology Director discovered the messages and forwarded
them to management, prompting management to convene a
meeting to discuss the messages and the fate of their authors.
Senior executives reviewed the spreadsheet, the messages, and
the employees’ most recent performance evaluations. It came
to light that in a performance review from two years earlier,
Swift had stated, “VIP will fire me without remorse the second
it doesn’t think it can squeeze more money out of me tha[n] it
pays me. Why would I be loyal? This is a loveless exchange
of labor for currency between two mutually selfish parties.”
J.A. 1366. Simard, concerned by the messages and by Swift’s
statement, successfully advocated for firing the disgruntled
employees. VIP terminated Dragoon, Noble, and Swift later
that day. The company did not conduct any further
investigation into the fired employees’ conduct.
Immediately after the terminations, McGinty held a
meeting with all VIP employees. He announced that VIP had
terminated the four spreadsheet creators but emphasized that
employees remained free to share salary information.
II. Procedural Background
Bendel, Dragoon, Noble, and Swift filed an NLRB charge
against VIP, accusing the company of firing them for “salary
sharing efforts.” J.A. 1254. The NLRB General Counsel then
filed a complaint and notice of hearing against VIP for
violating the National Labor Relations Act (NLRA). The
complaint alleged that VIP had fired the four employees for
“engag[ing] in concerted activities with each other and with
other employees for the purposes of mutual aid and protection,
7
by creating and disseminating a spreadsheet where employees
could view and share salary information.” J.A. 1258.
The case was tried before an administrative law judge
(ALJ). Numerous witnesses testified, including the four
employees and several members of VIP’s management team.
The ALJ ruled against VIP. He concluded that VIP had
terminated Bendel “for creating and disseminating the
spreadsheet.” J.A. 1739. And he determined that VIP had
terminated Dragoon, Noble, and Swift “for their instant
messaging chats about the spreadsheet and Bendel’s
termination,” activities “inextricably linked to their roles in
creating and disseminating the spreadsheet.” Id. He found as
a factual matter that the spreadsheet was not “materially
inaccurate” and that the “100% underpaid” notation was “a
statement of opinion, not an inaccurate statement of fact.” J.A.
1740 & n.13. As to remedies, the ALJ ordered VIP to offer
reinstatement to the four terminated employees and to
compensate them financially for certain monetary losses
caused by their wrongful terminations.
VIP timely filed exceptions to the ALJ’s decision.
Regarding Bendel, it argued that it had permissibly fired him
for using VIP’s resources “to create and disseminate false and
misleading information for the purpose of disrupting an
organizational restructuring to which he objected.” J.A. 1604.
It raised several arguments as to Dragoon, Noble, and Swift,
including that the ALJ had impermissibly amended the General
Counsel’s complaint as to those three employees by finding
that the “instant messaging chats about the spreadsheet and
Bendel’s termination” were protected conduct. J.A. 1615.
Finally, it challenged the remedies of reinstatement and
financial compensation that the ALJ had ordered.
8
The Board affirmed the ALJ’s decision. As to Bendel, the
Board largely adopted the ALJ’s findings and noted that VIP’s
“shifting explanations for Bendel’s discharge [were] additional
evidence of animus towards his protected concerted activity.”
J.A. 1733 n.5. Regarding Dragoon, Noble, and Swift, the
Board first “clarif[ied] that the relevant protected concerted
activity that these employees engaged in and for which [VIP]
discharged them is their online chat communications about the
salary spreadsheet, workplace conditions, and frustration over
Bendel’s recent discharge.” Id. It then “adopt[ed] the [ALJ’s]
pretext findings for the . . . reasons that the [ALJ] stated.” Id.
The Board ordered several remedies, two of which VIP
challenges here. First, it ordered VIP to offer reinstatement to
the discharged employees, even though all four of them had
already secured work elsewhere and had expressed no interest
in returning to VIP. Second, it ordered VIP to provide each
employee with a make-whole financial remedy, including
backpay and “reasonable search-for-work and interim
employment expenses, if any, regardless of whether these
expenses exceed interim earnings,” consistent with the Board’s
earlier decision in Thryv, Inc. J.A. 1734 (citing 372 NLRB No.
22, 2022 WL 17974951 (Dec. 13, 2022), vacated in part on
other grounds, 102 F.4th 727 (5th Cir. 2024)).
VIP petitions for our review, and the NLRB cross-applies
for enforcement of its order. We have jurisdiction under 29
U.S.C. § 160(e)–(f).
III. Standard of Review
We will “uphold the judgment of the Board unless, upon
reviewing the record as a whole, we conclude that the Board’s
findings are not supported by substantial evidence, or that the
Board acted arbitrarily or otherwise erred in applying
established law to the facts of the case.” DHSC, LLC v. NLRB,
9
944 F.3d 934, 937 (D.C. Cir. 2019) (citation omitted).
Evidence qualifies as “substantial” when “a reasonable mind
might accept [it] as adequate to support a conclusion.”
McLamb v. NLRB, 141 F.4th 1308, 1315 (D.C. Cir. 2025)
(cleaned up). Thus, “we may not displace the Board’s choice
between two fairly conflicting views, even though we would
justifiably have made a different choice had the matter been
before us de novo.” Id. at 1315–16 (cleaned up).
IV. Analysis
A. Christopher Bendel
The NLRA protects the right of employees “to engage
in . . . concerted activities for the purpose of collective
bargaining or other mutual aid or protection.” 29 U.S.C. § 157.
If an employer “interfere[s] with” that right, the employer has
committed an unfair labor practice. Id. § 158. We and the
NLRB have recognized that the NLRA’s protections extend to
salary sharing among employees. See Banner Health Sys. v.
NLRB, 851 F.3d 35, 41 (D.C. Cir. 2017).
The parties agree that the NLRB’s Wright Line
framework — which applies “[w]hen an employer claims to
have discharged an employee for legitimate
reasons” — governs this case. Windsor Redding Care Ctr.,
LLC v. NLRB, 944 F.3d 294, 298 (D.C. Cir. 2019) (discussing
Wright Line, a Div. of Wright Line, Inc., 251 NLRB 1083
(1980), enforced, 662 F.2d 899 (1st Cir. 1981)). That
framework has two steps: “At step one, the General Counsel
for the Board must make out a prima facie case that the
employee’s protected activity was a motivating factor in the
employer’s decision to fire her.” Id. “If the General Counsel
carries that burden, the analysis proceeds to step two, at which
the burden of persuasion shifts to the employer to show that it
10
would have taken the same action in the absence of the
unlawful motive.” Id. (cleaned up).
It is undisputed that the General Counsel has satisfied the
first step of the Wright Line framework: VIP concedes that
“Bendel’s role in creating and disseminating the [salary]
spreadsheet factored into his dismissal.” Opening Br. 7. VIP
instead focuses on the second Wright Line step, arguing that the
company would have fired Bendel even if it had not discovered
the spreadsheet. See Windsor Redding, 944 F.3d at 298.
In ruling against VIP and concluding that the company
illegally discharged Bendel, the Board reasoned that “[t]he
timing of the terminations and the lack of any credible evidence
that [VIP] planned to discharge [Bendel] prior to [the day that
management learned of the spreadsheet] supports the inference
of discriminatory discharge.” J.A. 1739.3 The Board also
“rel[ied] on [VIP’s] shifting explanations for Bendel’s
discharge as . . . evidence of animus towards his protected
concerted activity.” J.A. 1733 n.5. Substantial evidence in the
record supports the Board’s determinations. See DHSC, 944
F.3d at 937. For example, the record reflects that Bendel was
terminated within seventy minutes of management finding out
about the spreadsheet; and before that day, management had
3
The Board did not view the timing of the spreadsheet’s removal
as “sufficient, on its own, to establish [VIP’s] animus.” J.A. 1733
n.5. But the Board did not, as VIP suggests, determine that the
rapidity of the spreadsheet’s removal could play no role in
establishing animus. Cf. RAV Truck & Trailer Repairs, Inc. v. NLRB,
997 F.3d 314, 325 (D.C. Cir. 2021) (“Petitioner discharged [its
employee] less than twenty-four hours after the Union filed its first
petition. This timing supports an inference of unlawful motive.”).
11
made no mention of firing Bendel and had planned to give him
a new role in the restructured company.
VIP nevertheless insists that numerous lawful
considerations motivated its decision to fire Bendel. But at
bottom, VIP’s arguments are unpersuasive: The Board
reasonably rejected the company’s version of events, and we
review the Board’s decision deferentially. See DHSC, 944 F.3d
at 937 (“Substantial evidence is not a high bar.”).
First, VIP claims that it did not fire Bendel for salary
sharing, but rather because he used the “spreadsheet to disrupt
the roll-out of the restructuring plan and to immunize himself
against possible termination.” Opening Br. 23–24. In other
words, VIP argues that it objected only to the manner, timing,
and motive behind Bendel’s salary-sharing activity. But VIP
cites no authority that permits an employer to terminate an
employee for engaging in protected conduct in a disfavored
manner or for disfavored reasons. Such a loophole would
enable employers to evade the NLRA’s requirements by simply
framing their antipathy to lawful activity in terms of its
potential for “disruption.” VIP’s disapproval of the
circumstances that surrounded the creation and dissemination
of the salary-sharing spreadsheet is just “another way of
indicating that [Bendel] was terminated because he engaged in
protected concerted activity.” Citizens Inv. Servs. Corp. v.
NLRB, 430 F.3d 1195, 1203 (D.C. Cir. 2005).
Second, VIP claims that it fired Bendel for using VIP’s
information-technology “resources to create, disseminate and
host documents for non-business purposes.” Opening Br. 26.
To be sure, employers enjoy a circumscribed right to restrict
NLRA-protected activity on company time and on certain
company property. See Republic Aviation Corp. v. NLRB, 324
U.S. 793, 798–99 (1945); see also Caesars Ent., 368 NLRB
12
No. 143, 2019 WL 6896714, at *8 (Dec. 16, 2019) (exploring
Republic Aviation’s bearing on “virtual space[s],” like “email
system[s]”). But here, the record does not support VIP’s claim
that it fired Bendel for such a transgression. The executives
who discussed Bendel’s alleged misconduct and decided to
terminate him did not cite his use of VIP resources as a factor
in their decision-making. In fact, Morgan “kind of chuckled”
at how developers other than Bendel were modifying the
spreadsheet. J.A. 1052–53. And Simard — the man who led
the charge in firing Bendel — testified, as to the other
developers’ spreadsheet entries, “We didn’t care. It [didn’t]
matter.” J.A. 1053. Finally, VIP offered no evidence that it
has ever disciplined any other employee for using its digital
resources for purported “non-business purposes,” and certainly
not for such brief use on a single occasion.
Third, VIP claims that it fired Bendel for disseminating a
“misleading and confusing document” — conduct that VIP
implies falls outside the NLRA’s protection. Opening Br. 13.
Even if we assume that certain salary-sharing efforts might be
so “maliciously untrue” as to lose their protected status, the
Board determined that the spreadsheet at issue was not
“materially inaccurate.” J.A. 1740. Most notably, it found that
the “100% underpaid” notation was “a statement of opinion,
not an inaccurate statement of fact.” J.A. 1740 n.13. VIP offers
no basis for us to overturn the Board’s factual finding about the
spreadsheet’s accuracy.
Finally, VIP claims that it fired Bendel for his hostility
toward the company, as demonstrated by his messages with his
coworkers, his meetings with Graefe and McGinty, and his
disclosure that he had received other job offers. But VIP fired
Bendel before discovering his messages to coworkers, so those
messages could not have factored into his termination.
Moreover, even though Bendel’s meetings with his managers
13
about the restructuring went poorly, neither Graefe nor
McGinty indicated in post-meeting discussions that they might
fire Bendel. To the contrary, McGinty expressed his hope that,
despite Bendel’s dissatisfaction with the restructuring,
“[Bendel] could play a role in planning it.” S.J.A. 5. And
Graefe accepted “some of the blame” for his poor discussion
with Bendel. Id. Further, despite Bendel’s disclosure that “he
had offers from other companies,” J.A. 851, VIP had planned
to give Bendel a specific role within the restructured company.
In sum, substantial evidence supports the Board’s
determination that Bendel’s termination was triggered by
management’s discovery of the salary-sharing spreadsheet.
Within about ninety minutes of discovering the spreadsheet,
VIP management disabled Bendel’s account, fired him, and
took down the spreadsheet. VIP’s contrary arguments rely on
an alternative view of the facts that the Board reasonably
rejected.
B. Gordon Dragoon, Kaleb Noble, and Kestrel Swift
VIP argues that we should vacate the Board’s findings in
favor of Dragoon, Noble, and Swift because the Board
“impermissibly found a violation based on uncharged
conduct.” Opening Br. 28. We agree.
“The Due Process Clause and the [Administrative
Procedure Act] require that an agency setting a matter for
hearing provide parties with adequate notice of the issues that
[will] be considered, and ultimately resolved, at that hearing.
This requirement ensures the parties’ right to present rebuttal
evidence on all matters decided at the hearing.” Pub. Serv.
Comm’n of Ky. v. FERC, 397 F.3d 1004, 1012 (D.C. Cir. 2005)
(cleaned up); see also 5 U.S.C. §§ 554(b), 556(d). But “it is
well settled that the Board may find and remedy a violation
even in the absence of a specified allegation in the complaint if
14
the issue is closely connected to the subject matter of the
complaint and has been fully litigated.” Casino Ready Mix,
Inc. v. NLRB, 321 F.3d 1190, 1199–200 (D.C. Cir. 2003)
(cleaned up). Thus, where “the difference between the charge
made and the violation found . . . is small,” we will “not require
. . . the General Counsel to re-try the case.” Pergament United
Sales, Inc. v. NLRB, 920 F.2d 130, 136 (2d Cir. 1990).
Here, there are discrepancies between the conduct charged
in the complaint, and the determinations made by both the ALJ
and the Board. The General Counsel’s complaint alleged that
VIP fired Dragoon, Noble, and Swift for “engag[ing] in
concerted activities with each other and with other employees
for the purposes of mutual aid and protection, by creating and
disseminating a spreadsheet where employees could view and
share salary information.” J.A. 1258 (emphasis added). The
ALJ, however, found that VIP fired those three employees “for
their instant messaging chats about the spreadsheet and
Bendel’s termination,” noting that the messages were
“inextricably linked to their roles in creating and disseminating
the spreadsheet.” J.A. 1739. The Board took it a step further:
It “clarif[ied] that the relevant protected concerted activity that
[Dragoon, Noble, and Swift] engaged in and for which [VIP]
discharged them is their online chat communications about the
salary spreadsheet, workplace conditions, and frustration over
Bendel’s recent discharge.” J.A. 1733. The issue before us is
whether the ALJ and the Board permissibly relied on factors
that were “closely connected to the subject matter of the
complaint,” or instead unfairly considered issues for which VIP
lacked adequate notice. Casino Ready Mix, 321 F.3d at 1200
(citation omitted).
As to the ALJ’s ruling, we discern no error. The General
Counsel’s complaint alleged a violation based on VIP’s
response to the employees’ creation and dissemination of a
15
salary-sharing spreadsheet. The ALJ expanded the relevant
conduct to encompass “instant messaging chats about the
spreadsheet and Bendel’s termination.” J.A. 1739. In the
ALJ’s words, those chats were “inextricably linked to
[Dragoon’s, Noble’s, and Swift’s] roles in creating and
disseminating the spreadsheet.” Id. We agree. When a group
of employees builds and circulates a spreadsheet, the
participants necessarily will discuss that common endeavor.
And when management fires one member of the group for his
actions related to that spreadsheet, his compatriots’ discussion
of what happened is an extension of the group’s collaboration
on the spreadsheet. The ALJ did not meaningfully change the
scope of the protected conduct alleged in the complaint when
he considered the employees’ messages about the spreadsheet
and Bendel’s termination, which were closely connected to the
creation and dissemination of the spreadsheet.
The Board, however, further enlarged the relevant conduct
to include “online chat communications about . . . workplace
conditions.” J.A. 1733. In so doing, the Board stretched the
charged conduct beyond its breaking point. “Workplace
conditions” is a far-reaching category that can encompass
anything from salaries to cafeteria options to interpersonal
office dynamics. The employees’ chats covered a wide range
of topics, some of which do not appear “closely connected to
the subject matter of the complaint” — i.e., salary sharing.
Casino Ready Mix, 321 F.3d at 1200 (citation omitted). The
Board’s invocation of those unrelated chats therefore violated
VIP’s due-process rights. See id. VIP did not have notice that
its employees’ discussion of workplace conditions might be
considered protected conduct at the hearing, and the company
therefore had no opportunity to rebut arguments to that effect.
See Pub. Serv. Comm’n of Ky., 397 F.3d at 1012.
16
The NLRB’s claims to the contrary come up short.4 First,
the NLRB argues that all the employees’ “workplace
conditions” messages, no matter how seemingly unrelated to
their salary sharing, are “protected by association because
[they] occur[ed] within the context of protected conduct.” Oral
Arg. 1:11:09–15. But the Board did not cite this reasoning
below and therefore cannot raise it now. See SEC v. Chenery
Corp., 318 U.S. 80, 87 (1943) (“The grounds upon which an
administrative order must be judged are those upon which the
record discloses that its action was based.”); see also NLRB v.
CNN Am., Inc., 865 F.3d 740, 751 (D.C. Cir. 2017) (applying
Chenery to the NLRB).
Second, the NLRB suggests that the only “workplace
conditions” chats on which it relied were those that pertained
to salaries, Bendel’s firing, and other “closely connected”
topics. But nothing in the record makes that clear, and the
NLRB cannot rely on post hoc explanations to support its
order. See Chenery, 318 U.S. at 87. In any event, even if the
NLRB in fact relied only on “workplace conditions” chats
connected to salary sharing, its failure to explain that reasoning
when it rendered its decision was arbitrary and capricious. Cf.
Pub. Serv. Comm’n of Ky., 397 F.3d at 1012.
We need not set aside a Board decision based on an error
that did not prejudice the aggrieved party. See Davis
4
At the threshold, the NLRB argues that VIP has not preserved
its due-process argument: According to the NLRB, “VIP should
have filed a motion for reconsideration to preserve its objection.”
Response Br. 41. But before the Board, VIP argued that the ALJ had
“violated fundamental principles of due process” by treating the
employees’ “comments in the group chat” as protected. J.A. 1654–
55. That was sufficient to preserve VIP’s due-process claim for our
review.
17
Supermarkets, Inc. v. NLRB, 2 F.3d 1162, 1169 (D.C. Cir.
1993). But here, the Board’s reference to uncharged conduct
was not harmless. In the proceedings below, VIP sought to
refute the complaint’s allegation that the company had
terminated Dragoon, Noble, and Swift for “creating and
disseminating a salary-sharing spreadsheet” by highlighting
the employees’ poor attitude, as evidenced by their
unprofessional messages to each other. For example, VIP
argued that those messages showed that the employees were
“‘on the verge of quitting’ and making a ‘pact’ to take another
developer with them, discussing ‘purging’ VIP computers, and
collaborating with individuals outside of VIP” to harm the
company. J.A. 1665–66.
Had VIP known that the Board might view some of those
messages as protected statements about “workplace
conditions,” VIP likely would have tailored its defense to rely
only on messages that the Board viewed as unprotected.
Alternatively, had VIP known that the Board might view all the
messages as protected conduct, VIP could “have expanded its
defense [beyond the messages] to emphasize and corroborate
the employees’ disloyalty and imminent plans to quit.”
Opening Br. 29. Specifically, VIP says that it “would likely
have called other employees as witnesses and introduced
additional evidence (including other chat transcripts)” that
were not before the Board. Id. at 30.
The Board’s eleventh-hour adoption of a “workplace
conditions” theory thus “preclude[d VIP] from effectively
presenting its case.” Midwest Terminals of Toledo Int’l, Inc. v.
NLRB, 783 F. App’x 1, 6 (D.C. Cir. 2019) (per curiam)
(citation omitted); see also Davis Supermarkets, 2 F.3d at 1169
(indicating that prejudice may exist where the Board’s reliance
on uncharged conduct prevents a company from advancing a
“significant defense”). Although the Board found that VIP’s
18
concerns about purging computers, disseminating inaccurate
information, and using company technology were pretextual, it
did not draw any such conclusions about the employees’
discussions of quitting and of communicating with a former
employee. New arguments and evidence related to such
discussions therefore might have presented a significant
defense to the Board’s workplace-conditions theory.5
Because the Board prejudicially erred by citing “online
chat communications about . . . workplace conditions” as
protected conduct when the complaint did not charge such
conduct, J.A. 1733, we vacate the Board’s conclusion that VIP
engaged in unfair labor practices as to Dragoon, Noble, and
Swift, and remand their cases for further consideration
consistent with this opinion.
C. Bendel’s Remedies
VIP contests the Board’s order that the fired employees be
reinstated and “made whole” financially. Because we remand
for further proceedings as to Dragoon, Noble, and Swift, we
address only the remedies awarded to Bendel. We grant the
NLRB’s motion to enforce as to Bendel because (1) the Board
acted within its discretion when it ordered VIP to reinstate
Bendel to his former position, and (2) VIP has not preserved its
challenges to the make-whole financial remedy.
5
The NLRB also insists that VIP could not have suffered
prejudice because “VIP had the opportunity to, and did, litigate
claims that it fired [Dragoon, Noble, and Swift] for discussing the
spreadsheet, their workplace conditions, and Bendel’s termination.”
Response Br. 40. But that argument simply begs the question by not
engaging at all with the meaning of “workplace conditions.”
19
1. Reinstatement
In fashioning a remedy for an unlawful labor practice, the
Board may “take such affirmative action[,] including
reinstatement of employees with or without back pay, as will
effectuate the policies of [the NLRA].” 29 U.S.C. § 160(c).
We will uphold a reinstatement remedy “unless the employer
can show undue hardship.” Teamsters Local Union No. 171 v.
NLRB, 863 F.2d 946, 957 (D.C. Cir. 1988). Such hardship
exists, for example, where “compliance with the order is
unduly economically burdensome” or where the order “is a
patent attempt to achieve ends other than those which can fairly
be said to effectuate the policies of the” NLRA. Id. at 957–58
(citation omitted).
Here, VIP’s challenge to the Board’s order of
reinstatement relies on a single Second Circuit case that
overturned a reinstatement remedy under circumstances that
are readily distinguishable. See KBI Sec. Serv., Inc. v. NLRB,
91 F.3d 291, 295–96 (2d Cir. 1996). In KBI, the court
determined that a reinstatement order “would place an undue
burden on the employer” if the to-be-reinstated employees had
committed theft while at work. Id. at 292. The court remanded
the case so that the agency could develop the factual record
concerning whether the employees had committed the alleged
thefts. Id. at 296. As the Second Circuit later explained, where
an employee’s discharge was motivated by both a “proper”
reason (e.g., alleged theft) and an “improper” reason (e.g.,
illegal anti-union animus), the “proper” reason for discharge
can sometimes “render[] reinstatement an undue burden.”
NLRB v. G & T Terminal Packaging Co., 246 F.3d 103, 122
(2d Cir. 2001).
VIP asserts that KBI governs because, “just as a security
company [like KBI] should not have to reinstate a thief for risk
20
of reputational harm, a software company should not have to
restore [a] disloyal and untrustworthy engineer[].” Opening
Br. 46 (cleaned up). But even if we assume that KBI’s
reasoning is persuasive, VIP’s argument fails because it is
premised on a factual claim that the Board did not credit — i.e.,
that Bendel was terminated, at least in part, for being “disloyal
and untrustworthy.” As explained supra section IV.A, the
Board reasonably rejected VIP’s arguments concerning
Bendel’s alleged disloyalty and untrustworthiness as entirely
pretextual. Thus, unlike in KBI, VIP had no “proper reason” to
terminate Bendel. See G & T Terminal Packaging, 246 F.3d at
122 (explaining that KBI applies when an employee is
discharged for “both a proper reason . . . and an improper
reason”).
VIP also argues that the remedy is improper because
Bendel quickly found a new job and because the Board made
no finding that Bendel desired reinstatement. That argument is
unpersuasive because it fails to acknowledge the Board’s goal
of “effectuat[ing] the policies of the” NLRA. 29 U.S.C.
§ 160(c). VIP illegally terminated Bendel, and an offer of
reinstatement directly addresses that wrong, even if Bendel
ultimately declines to return to VIP. A contrary ruling would
undermine the purpose of the NLRA, see id. § 151, by
disadvantaging Bendel for seeking new employment. We
“extend broad deference to the Board’s choice of remedies,”
and we will “upset the Board’s choice of how best to effectuate
the policies of the” NLRA “only when a remedy is clearly
inadequate.” Microimage Display Div. of Xidex Corp. v.
NLRB, 924 F.2d 245, 254 (D.C. Cir. 1991) (cleaned up). VIP
has not made the requisite showing here.
21
2. Make-Whole Financial Remedy
“One important policy goal [of the NLRA] is to achieve a
restoration of the situation, as nearly as possible, to that which
would have obtained but for the illegal discrimination.” King
Soopers, Inc. v. NLRB, 859 F.3d 23, 38 (D.C. Cir. 2017)
(cleaned up). To advance that goal, the Board often orders
employers to “make whole” wrongfully discharged
employees — i.e., by giving them backpay and by reimbursing
certain expenses, historically identified on a case-by-case
basis. See id.; see also NLRB v. Strong, 393 U.S. 357, 359
(1969) (“Making the workers whole for losses suffered on
account of an unfair labor practice is part of the vindication of
the public policy which the Board enforces.” (cleaned up)).
In its 2022 decision in Thryv, the Board adopted a new
formulation of its make-whole remedy. See 2022 WL
17974951, at *9, *21 n.14. Prior to Thryv, in order to “ensure[]
affected employees [were] made whole for the consequences
of a respondent’s unlawful conduct,” the Board typically
ordered the respondent to provide backpay; and it sometimes
would consider whether the respondent should also
compensate employees for other related costs, such as
reasonable search-for-work expenses. Id. at *9–10. Thryv
standardized the Board’s practice by establishing “that in all
cases in which our standard remedy would include an order for
make-whole relief, the Board will expressly order that the
respondent compensate affected employees for all direct or
foreseeable pecuniary harms suffered as a result of the
respondent’s unfair labor practice.” Id. at *9 (emphasis in
original). Thryv also explained that respondents should
reimburse such “direct or foreseeable pecuniary harms”
“without regard to a discriminatee’s interim earnings.” Id. at
*9, *21 n.14. In other words, an employee must receive
compensation for all direct or foreseeable pecuniary harms,
22
even if his interim employment pays more than he would have
earned in his former job — which means that the employee
theoretically could end up better off than he would have been
had he not been wrongfully terminated.
Citing Thryv, the ALJ ordered VIP to compensate Bendel
“for all direct or foreseeable pecuniary harms that [he] suffered
as a result of [VIP’s] unfair labor practices, regardless of
whether these expenses exceed interim earnings.” J.A. 1740–
41. VIP challenged this remedy in its exceptions to the ALJ’s
decision. In a section entitled, “The proposed remedies are
unreasonably burdensome and punitive,” VIP devoted a
paragraph to the make-whole remedy. J.A. 1674, 1677. In full,
that paragraph read:
The ALJ appears to have ordered remedies that
impermissibly exceed make-whole remedies.
The [ALJ] proposes that VIP be ordered to
compensate the charging parties “for any loss”
of benefits and “for all direct or foreseeable
pecuniary harms that they suffered as a result of
Respondent’s unfair labor practices, regardless
of whether those expenses exceed interim
earnings.” If the ALJ proposes ordering
compensation for a loss of net salary and
benefits even if their net salary and benefits
from their new employment exceeds what they
would have received had they remained at VIP,
that is not a “make whole” remedy authorized
by the Act. It would provide the charging
parties with an unwarranted and unauthorized
windfall and impose a punitive and unlawful
penalty on VIP that is inconsistent with the
remedial purposes of the remedies authorized
by the Act.
23
J.A. 1677 (cleaned up).
As this paragraph makes clear, VIP’s argument below
amounted to a claim that the four employees would receive a
“windfall.” See King Soopers, 859 F.3d at 39 (describing the
contention that “a financial windfall” exists where “a
claimant’s interim earnings [from his new employment] equal
or exceed the sum of his lost earnings and employment-search
expense”). The Board rejected that argument and upheld the
ALJ’s make-whole remedy, ordering VIP to “compensate [the
four employees] for any other direct or foreseeable pecuniary
harms incurred as a result of the unlawful termination of their
employment, including reasonable search-for-work and
interim employment expenses, if any, regardless of whether
these expenses exceed interim earnings.” J.A. 1734.
In its petition for review, VIP abandons the “windfall”
argument that it advanced below and instead launches a
broadside attack against the Thryv remedy. It claims that the
“expansive Thryv remedy is no longer an equitable ‘make
whole’ remedy” but rather a form of “compensatory damages,”
which the NLRB supposedly lacks the statutory authority to
award. Opening Br. 49. To support that assertion, VIP devotes
eleven pages of briefing to arguments drawing on statutory
language, legislative history, an analogy to Title VII, and the
constitutional-avoidance doctrine.
VIP advanced none of those arguments below and
therefore has not preserved its facial challenge to the Thryv
remedy. See 29 U.S.C. § 160(e) (“No objection that has not
been urged before the Board . . . shall be considered by the
court . . . [absent] extraordinary circumstances.”). Under
§ 160(e), “the critical inquiry is whether the objections made
before the Board were adequate to put the Board on notice that
the issue might be pursued on appeal.” Consol. Freightways v.
24
NLRB, 669 F.2d 790, 794 (D.C. Cir. 1981). Applying that
standard, we have consistently disclaimed jurisdiction when a
party objects to a given action (e.g., a remedy) before the Board
and then presents a different objection to the same action before
this court. See, e.g., DHL Express, Inc. v. NLRB, 813 F.3d 365,
372 (D.C. Cir. 2016) (distinguishing between an argument
challenging the “validity of [a] presumption” and one
challenging the “application of that presumption”); Stephens
Media, LLC v. NLRB, 677 F.3d 1241, 1254–55 (D.C. Cir.
2012); Majestic Star Casino, LLC v. NLRB, 373 F.3d 1345,
1349 (D.C. Cir. 2004) (“[T]he company put forward [a] wholly
distinct argument [below.]”).
Before the Board, VIP advanced an argument that the
remedy in this case provided Bendel with an unjustifiable
“windfall.” It did not mention “Thryv,” “legislative history,”
“Title VII,” or “constitutional avoidance” in any of its filings.
In other words, VIP did “not challenge the Board’s standard
remedial language” from Thryv; “instead, it argue[d] that, for
case-specific reasons, a particular remedy should not be
imposed.” Logmet, LLC v. NLRB, No. 21-1273, 2022 WL
15603866, at *1 (D.C. Cir. Oct. 28, 2022). VIP may not assert
for the first time before this court that the Board’s earlier
decision in Thryv violates the NLRA. We lack authority under
§ 160(e) to consider that unpreserved argument.
Our dissenting colleague resists our straightforward
application of § 160(e). In so doing, he relies heavily on a
single case: Camelot Terrace, Inc. v. NLRB, 824 F.3d 1085
(D.C. Cir. 2016). That decision took a generous approach to
issue preservation, but it is not comparable to what happened
here. In Camelot Terrace, the petitioner made arguments
before the Board and before this court expressly challenging
the Board’s asserted authority to award “bargaining costs.” Id.
at 1090–91.
25
But here, as discussed, VIP did not alert the Board to any
general challenge to the Thryv remedy and did not even
mention Thryv in its Board filings. Even if VIP characterized
the specific remedy in this case as “unreasonably burdensome
and punitive” and “impermissibly exce[ssive]” — as our
dissenting colleague emphasizes — that did not preserve a
facial challenge to the Thryv remedy. VIP simply did not “put
the Board on notice that the [Thryv] issue might be pursued on
appeal.” Consol. Freightways, 669 F.2d at 794.
In our view, other cases are more on point than Camelot
Terrace. For example, in Advancepierre Foods, Inc. v. NLRB,
we held that we lacked jurisdiction over the petitioner’s
“frontal attack on Board precedent” where the petitioner had
not “challenge[d that precedent] before the Board” but had
instead focused on case-specific, fact-bound issues. 966 F.3d
813, 819 (D.C. Cir. 2020); see also id. (“Because
AdvancePierre’s frontal attack on Board precedent was never
made to the Board and extraordinary circumstances do not
excuse its failure, we cannot reach this argument.”).6 And in
Enterprise Leasing Co. of Florida v. NLRB, we disclaimed
jurisdiction over the argument that a type of remedy was
categorically “impermissibly punitive or otherwise unlawful”
where the petitioner previously had pressed only a fact-bound
6
The dissent argues that Advancepierre is off point because the
petitioner there “had implicitly” affirmed the Board precedent that it
later challenged in this court. Dissenting Op. 12 n.47. Though
Advancepierre observed in a footnote the petitioner’s prior “support
of the ALJ’s decision applying [the Board precedent at issue],” it did
not emphasize, or rest its holding on, that observation. 966 F.3d at
819 n.6. Instead, Advancepierre explained that the petitioner had
only “made passing reference” to its unpreserved appellate argument
before the Board, id. — the exact basis on which the dissent here
proposes to hold VIP’s appellate argument preserved.
26
challenge to a particular application of that remedy (i.e.,
contesting “the dates of its . . . obligations” under the remedy).
831 F.3d 534, 550–51 (D.C. Cir. 2016) (emphasis added).7
3. Constitutional Challenge to the Make-Whole Remedy
In its petition for review, VIP also argues that Thryv’s
formulation of the required remedy treats the underlying
dispute as a private-rights claim, which, under the Seventh
Amendment, may be addressed only by Article III courts. See
SEC v. Jarkesy, 603 U.S. 109, 127–28 (2024). We lack
jurisdiction to resolve this unpreserved challenge — even VIP
concedes that it “did not directly raise” this argument before
the Board. Opening Br. 54. We are unconvinced by VIP’s
contention that Jarkesy constitutes an “intervening change in
the law” that excuses its failure to preserve its claim. Id. at 54–
55; see also Stoiber v. SEC, 161 F.3d 745, 754 (D.C. Cir. 1998)
(“The failure to raise an issue in a prior forum is excusable
when due to an intervening change in the law . . . .”). The
Supreme Court decided Jarkesy in June 2024, and the Board
did not issue its opinion below until November 2024. Thus,
VIP could have brought Jarkesy to the Board’s attention as
supplemental authority while the case was pending, or VIP
could have moved for reconsideration or rehearing based on
Jarkesy. See 29 C.F.R. §§ 102.6, 102.48 (2024). VIP’s failure
to do so renders us “jurisdictionally barred from considering”
7
In critiquing our reliance on Enterprise Leasing, the dissent
focuses on an inapposite portion of that opinion addressing the
petitioner’s exceptions to the ALJ’s decision. That discussion was
distinct from Enterprise Leasing’s holding, which turned instead on
the petitioner’s attempt to press in this court a categorical, facial
objection to the remedy imposed when it had not made any such
objection before the Board in response to the “General Counsel’s
exceptions that first requested” the remedy. 831 F.3d at 550–51.
27
the argument now. NLRB v. Chipotle Servs., LLC, 849 F.3d
1161, 1162 & n.3 (8th Cir. 2017).
VIP also contends that we should forgive its failure to raise
a Seventh Amendment challenge below because doing so
“would [have been] futile because of certainty of an adverse
decision.” Randolph-Sheppard Vendors of Am. v. Weinberger,
795 F.2d 90, 105 (D.C. Cir. 1986) (cleaned up). But futility is
a high bar, and VIP fails to identify “a very clearly articulated
agency position” applying Jarkesy’s holding in the present
context. KPMG, LLP v. SEC, 289 F.3d 109, 118 (D.C. Cir.
2002). We thus cannot consider VIP’s Seventh Amendment
argument. See 29 U.S.C. § 160(e).
* * *
For the foregoing reasons, we deny VIP’s petition for
review and grant the NLRB’s cross-application for
enforcement as to employee Christopher Bendel. We grant
VIP’s petition for review and deny the NLRB’s cross-
application for enforcement as to employees Gordon Dragoon,
Kaleb Noble, and Kestrel Swift. We remand for further
proceedings consistent with this opinion.
So ordered.
WALKER, Circuit Judge, concurring in part and dissenting in
part:
The National Labor Relations Board concluded that
Vermont Information Processing unlawfully fired Christopher
Bendel for engaging in protected concerted activity. The
NLRB’s remedy included compensation for “direct or
foreseeable pecuniary harms incurred . . . , including
reasonable search-for-work and interim employment expenses,
if any, regardless of whether these expenses exceed interim
earnings.”1 VIP argues the NLRB does not have the statutory
authority to make that award. I agree and would vacate that
part of the NLRB’s order.
I. The Pecuniary-Harms Remedy Exceeds the NLRB’s
Remedial Authority Under § 10(c)
A. NLRB Remedies After Thryv
Before 2022, the NLRB’s remedies typically centered on
reinstatement and backpay. The Supreme Court has made clear
that, in this context, those are equitable remedies. 2
Then, in 2022, the NLRB decided Thryv, Inc. It
announced that the standard make-whole remedy going
forward would include compensation “for all direct or
1
JA 1734.
2
See Sure-Tan, Inc. v. NLRB, 467 U.S. 883, 901 (1984) (describing
backpay awards under the National Labor Relations Act as
“equitable”); Curtis v. Loether, 415 U.S. 189, 197 (1974) (“In Title
VII cases the courts of appeals have characterized back pay as an
integral part of an equitable remedy, a form of restitution.”); see also
Bowen v. Massachusetts, 487 U.S. 879, 893 (1988) (describing “an
order providing for the reinstatement of an employee with backpay”
as “an equitable action for specific relief”). But cf. infra, note 12.
2
foreseeable pecuniary harms suffered as a result of [an] unfair
labor practice.”3
Thryv gave examples of what these harms might include:
“interest and late fees on credit cards, or penalties if [an
employee] must make early withdrawals from her retirement
account in order to cover her living expenses,” loss of the
employee’s car or home “if she is unable to make loan or
mortgage payments,” and “increased transportation or
childcare costs.”4
In all, the “pecuniary harms” category appears to function
as a catch-all to compensate employees for any extra expenses
they may incur due to the loss of a job and paycheck. If the
employee was unable to make credit-card payments, the
employer is responsible for the late fees. If the employee loses
a home or car for the same reason, the employer must pay
whatever it takes to compensate for those losses.
Thryv remedies differ from the NLRB’s traditional
remedies in an important formal way. Whereas the traditional
remedies are equitable, Thryv remedies require the employer to
pay legal damages.
Let’s unpack that, beginning with a classic case that
awarded an equitable remedy. Zehmer contracted to sell a farm
to Lucy. Zehmer breached. The court did not order Zehmer to
pay damages, which would be a legal remedy. Instead, the
3
372 NLRB No. 22, slip op. at 13 (Dec. 13, 2022).
4
Id. at 9 (quoting Voorhees Care & Rehabilitation Center, 371
NLRB No. 22, slip op. at 4 n.14 (2021)).
3
court ordered Zehmer to sell Lucy the farm — an equitable
remedy.5
In contrast, Thryv authorizes a version of consequential
damages.6 Here again, consider a classic case. When
Baxendale delayed the reopening of Hadley’s mill by failing to
deliver an essential crankshaft, Baxendale was liable for
damages that either arose naturally from the breach in the
ordinary course of events or were reasonably within both
parties’ contemplation at the time of contracting. 7 The case
stands for the proposition that in some situations a plaintiff can
recover for “direct and foreseeable” harms — “a quintessential
form of legal damages.”8
In today’s case, the NLRB ordered VIP to reinstate
Christopher Bendel and give him backpay — equitable relief
long understood to be authorized by the National Labor
Relations Act. But the NLRB also ordered VIP to pay
Christopher Bendel “for any other direct or foreseeable
5
See Lucy v. Zehmer, 196 Va. 493, 504 (1954) (“generally, where a
contract is in its nature and circumstances unobjectionable, it is as
much a matter of course for courts of equity to decree a specific
performance of it as it is for a court of law to give damages for a
breach of it”).
6
See 3484, Inc. v. NLRB, 137 F.4th 1093, 1121 (10th Cir. 2025) (Eid,
J., concurring in part and dissenting in part) (“Congress has never
authorized the Board to award . . . tort-like legal damages”); id.
(calling the standard Thryv remedy “an award of compensatory and
consequential damages” regardless of “how the Board labels it”).
7
Hadley v. Baxendale, 9 Exch. 341 (Eng. 1854); see also Remedy,
Black’s Law Dictionary (12th ed. 2024) (describing an award of
damages as the typical legal remedy).
8
Trader Joe’s Co. v. NLRB, 167 F.4th 766, 801–02 (5th Cir. 2026)
(Oldham, J., dissenting).
4
pecuniary harms incurred.”9 That Thryv award converted the
NLRA’s equitable remedial scheme into a general
compensatory-damages regime.
B. The Scope of § 10(c)’s Remedial Grant
By passing the National Labor Relations Act, “Congress
did not establish a general scheme authorizing the Board to
award full compensatory damages for injuries caused by
wrongful conduct.”10 On the contrary, § 10(c) defines the
NLRB’s remedial authority in familiar equitable terms.
Section 10(c) provides that if the NLRB finds that a person
“has engaged in or is engaging in [an] unfair labor practice,”
the NLRB “shall issue and cause to be served on such person
an order requiring such person to cease and desist from such
unfair labor practice, and to take such affirmative action
including reinstatement of employees with or without back
pay, as will effectuate the policies of this subchapter.”11
For four reasons — and a fifth if you look to legislative
history — § 10(c) does not authorize compensatory relief for
other losses flowing from an employer’s wrongdoing.
First, the text refers only to equitable relief. It lists two
examples of the “affirmative action” the NLRB may take:
reinstatement and backpay, both classic forms of equitable
relief according to Supreme Court and D.C. Circuit
9
JA 1734.
10
UAW-CIO v. Russell, 356 U.S. 634, 643 (1958).
11
29 U.S.C. § 160(b), (c) (emphases added).
5
precedent.12 It does not mention legal relief, whether damages
or otherwise. So although these two specific equitable
remedies do not exhaust the NLRB’s remedial tools,13 they
12
See Phelps Dodge Corp. v. NLRB, 313 U.S. 177, 187–88, 188 n.6
(1941) (implying that reinstatement is a form of “equitable relief”);
Hubbard v. EPA, 949 F.2d 453, 462–66 (D.C. Cir. 1991) (treating
reinstatement and backpay as equitable relief restoring the position
and its pay); see also Curtis, 415 U.S. at 197 (treating “backpay as
an integral part of an equitable remedy” at least in the context of
Title VII).
I do not mean to suggest that all restitutionary remedies, like
backpay, are by their very nature equitable. Cf. id. (calling backpay
“a form of restitution”). On the contrary, the Supreme Court has
rightly rejected that. See Great-West Life & Annuity Insurance Co.
v. Knudson, 534 U.S. 204, 212 (2002) (“[N]ot all relief falling under
the rubric of restitution is available in equity. In the days of the
divided bench, restitution was available in certain cases at law, and
in certain others in equity.”). So if we were writing on a clean slate,
we might look to the type of restitutionary remedy at issue to
determine whether it is legal or equitable. See Samuel L. Bray, The
System of Equitable Remedies, 63 UCLA L. Rev. 530, 541–42
(2016); John H. Langbein, What ERISA Means by “Equitable,” 103
Colum. L. Rev. 1317, 1357–58 (2003) (discussing subrogation);
Restatement (Third) of Restitution and Unjust Enrichment § 4 cmt. d
(Am. L. Inst. 2011) (discussing methods for distinguishing legal and
equitable restitution).
Here, though, we do not write on a clean slate. In the context of
the NLRA, the Supreme Court has already decided that backpay is
an equitable remedy. See Sure-Tan, Inc., 467 U.S. at 901. That is
enough for today.
13
See Phelps Dodge, 313 U.S. at 188–89 (a list that begins with
“including” is illustrative, not limited to the items in the list).
6
illustrate the exclusively equitable character of the broader
category.14
Second, the rest of § 10(c) confirms the broader category’s
equitable character. Cease-and-desist orders function like
injunctions.15 Affirmative-action remedies likewise operate
like mandatory injunctions.16 And the NLRB’s remedial
authority is discretionary17 — a traditional feature of equity.18
So taken together, the statute authorizes equitable, restorative
relief: remedies that “recreate the conditions and relationships
that would have been had there been no unfair labor practice.” 19
14
See, e.g., United States v. Brock, 94 F.4th 39, 57 (D.C. Cir. 2024)
(an “illustrative list illustrates what type of conduct is encompassed
by the definition, and so other unlisted forms of conduct must fit that
same mold”).
15
See Regal Knitwear Co. v. NLRB, 324 U.S. 9, 14 (1945).
16
See Golden State Bottling Co. v. NLRB, 414 U.S. 168, 177 n.4
(1973). Though mandamus, a legal remedy, may also order actors to
take certain actions, the Supreme Court has indicated that the
NLRA’s affirmative-action remedies are equitable remedies. See
Phelps Dodge, 313 U.S. at 187–88, 188 n.6.
17
Phelps Dodge, 313 U.S. at 197–98.
18
American Federation of Labor v. Watson, 327 U.S. 582, 593
(1946) (“The power of a court of equity to act is a discretionary
one.”).
19
Camelot Terrace, Inc. v. NLRB, 824 F.3d 1085, 1092–93 (D.C.
Cir. 2016) (quoting Franks v. Bowman Transportation Co., Inc., 424
U.S. 747, 769 (1976); see also Phelps Dodge, 313 U.S. at 194
(“compensation for the loss of wages” and “offers of employment to
the victims of discrimination” serve to “restor[e] . . . the situation, as
nearly as possible, to that which would have obtained but for the
illegal discrimination”).
7
Third, the structure of § 10(c) confirms the same limit by
barring only reinstatement and backpay for employees
“suspended or discharged for cause.”20 The statute would not
bar only those two remedies if an employee could be denied
backpay but recover potentially larger sums through catch-all
compensation for all foreseeable downstream financial harms.
Fourth, this approach better accords with the Supreme
Court’s understanding of the remedial provision in Title VII,
and the Court interprets that provision in line with § 10(c) of
the NLRA.21 Even Title VII’s broader language — authorizing
reinstatement, backpay, “or any other equitable relief” — did
not permit compensatory damages until Congress amended the
statute in 1991 to authorize them expressly.22 If that broader
statute did not authorize compensatory damages, neither does
this narrower one.23
Fifth, for any die-hards who still care a lot about legislative
history, an early draft of the NLRA authorized the NLRB “to
take affirmative action, or to pay damages, or to reinstate
employees.”24 Then, during committee hearings, critics argued
20
29 U.S.C. § 160(c).
21
See, e.g., Pollard v. E.I. du Pont de Nemours & Co., 532 U.S. 843,
849 (2001).
22
See Civil Rights Act of 1991, Pub. L. No. 102-166, § 102, 105 Stat.
1072 (codified at 42 U.S.C. § 1981a); United States v. Burke, 504
U.S. 229, 238 (1992) (“Title VII [as applied prior to the Civil Rights
Act of 1991] does not allow awards for compensatory or punitive
damages”).
23
See Franks, 424 U.S. at 769 n.29 (“To the extent that there is a
difference in the wording of the respective provisions, § 706(g)
grants, if anything, broader discretionary powers than those granted
the National Labor Relations Board.”).
24
S. 2926, 73d Cong. § 205(c) (as introduced March 1, 1934).
8
that allowing the NLRB to award damages without defined
standards raised “due process” concerns. 25 Finally, Congress
enacted the statute with the monetary “damages” authority
omitted.
* * *
As the Supreme Court explained long ago, the NLRA does
not authorize the NLRB “to award full compensatory damages
for injuries caused by wrongful conduct.”26 Rather, Congress
drew a line between equitable and legal relief, and it opted for
only the former.27 By authorizing the NLRB to issue both,
Thryv crosses the boundary that Congress drew — a
conclusion that the Third Circuit reached in Starbucks, that the
Fifth Circuit reached in Hiran Management, that Judge Eid
reached in 3484, and that Judge Oldham reached in Trader
Joe’s.28
25
To Create a National Labor Board: Hearing on S. 2926 Before the
Senate Committee on Education & Labor, 73d Cong. 362 (1934)
(statement of James A. Emery) (“The Board may not only issue an
order in the light of the complaint, it may do many more things, it
may assess and require the employer to pay damages for which no
rule is established; require the reinstatement of employees, or require
any act which in its opinion achieves substantial justice, whatever
that may be. The Board determines that. If that be due process of
law, God save us.”).
26
UAW-CIO, 356 U.S. at 643.
27
If Congress had authorized the NLRB to award legal damages, the
Seventh Amendment would require a jury trial for claims seeking
legal relief that are analogous to traditional common-law actions.
See SEC v. Jarkesy, 144 S. Ct. 2117, 2130 (2024). But VIP forfeited
its argument that a Thryv remedy violates the Seventh Amendment
by not raising that argument before the NLRB.
28
See NLRB v. Starbucks Corp., 125 F.4th 78, 95–97 (3d Cir. 2024);
Hiran Management., Inc. v. NLRB, 157 F.4th 719, 725–29 (5th Cir.
9
B. King Soopers
In King Soopers, Inc. v. NLRB, this court held that the
NLRB can restore employees “as nearly as possible” to the
position they would have occupied absent the unfair labor
practice by reimbursing them for search-for-work and interim-
employment costs.29 There, the costs arose directly from the
employee’s duty to mitigate lost wages,30 and the NLRB
justified their reimbursement by analogy to other employment-
related losses that it has long compensated separately from
backpay, such as medical expenses and retirement
contributions.31 King Soopers concluded that when those
expenses represent a distinct injury caused by the unlawful
discharge, reimbursing them can permissibly produce an award
that exceeds the backpay calculation. 32
Whatever may be the faults of the NLRB’s
unprecedented33 expansion of make-whole relief in King
2025); see also 3484, Inc., 137 F.4th at 1125–27 (Eid, J., concurring
in part and dissenting in part); Trader Joe’s, 167 F.4th at 801–02
(Oldham, J., dissenting) (“The Thryv remedy is unlawful. . . .
Foreseeable pecuniary harms are a quintessential form of legal
damages.”); but see International Union of Operating Engineers,
Stationary Engineers, Local 39 v. NLRB, 155 F.4th 1023, 1052–53
(9th Cir. 2025) (upholding the NLRB’s authority to award
foreseeable pecuniary harms when those awards are limited to make-
whole remedies).
29
859 F.3d 23, 36–39 (D.C. Cir. 2017) (quoting Phelps Dodge, 313
U.S. at 194).
30
Id. at 37.
31
Id. at 38.
32
Id. at 38–39.
33
See King Soopers, Inc., 364 NLRB 1153, 1160 (2016) (“we adopt
a new policy of awarding search-for-work and interim employment
10
Soopers,34 that expansion at least confined the remedy to a
limited category of mitigation-related expenses tied to the
employment contract. When this court reviewed that decision,
it had no occasion to decide whether the NLRB can award
broader categories of pecuniary damages.
* * *
To put it all together, an award for pecuniary harms is a
compensatory-damages award. Congress did not authorize the
NLRB to order those awards. This court did not say otherwise
in King Soopers. We should say so now and hold that the
NLRB exceeded its authority when it ordered VIP to
compensate Christopher Bendel “for all direct or foreseeable
pecuniary harms.”
II. VIP’s Challenge to the NLRB’s Statutory Remedial
Authority Is Properly Before Us
In the majority’s view, VIP did not argue before the NLRB
that a Thryv remedy exceeds the NLRB’s statutory authority.
On that basis, the majority declines to address the merits of
VIP’s challenge. I disagree. VIP “specifically objected in its
exceptions” to the Thryv remedy.35
expenses regardless of discriminatees’ interim earnings and
separately from taxable net backpay, with interest”).
34
See id. at 1166 (Miscimarra, dissenting) (“my colleagues’ new
method for calculating backpay exceeds our statutory authority”); id.
at 1167 (“the changes adopted by my colleagues may produce a
substantial increase in contentious disputes over employment/search
expenses, and these disputes, in all cases, are likely to delay the
availability of any monetary remedies for employee-claimants”).
35
Parsippany Hotel Management Co. v. NLRB, 99 F.3d 413, 418
(D.C. Cir. 1996) (cleaned up); see also DHL Express, Inc. v. NLRB,
11
In its exceptions, VIP objected to the ALJ’s proposal to
award compensation “for all direct or foreseeable pecuniary
harms . . . regardless of whether those expenses exceed interim
earnings.”36 Not only does that language precisely describe the
Thryv remedy, it quotes a part of the ALJ’s proposal that
followed this language with a citation to Thryv itself.37 In
addition, VIP’s “brief in support of its exceptions adequately
put the Board on notice” of its objection.38 That brief includes
a section titled “The proposed remedies are unreasonably
burdensome and punitive.”39 With VIP’s specific objection
to “foreseeable pecuniary harms” under a section heading
objecting to “punitive” remedies, VIP put the NLRB on notice
of its objection to the Thryv remedy.40
To be sure, VIP’s examples focused on the risk of a
windfall — pointing to the possibility that backpay or
retirement benefits could overcompensate employees who had
already secured higher-paying jobs. But VIP’s illustrations do
not represent the full extent of VIP’s argument.41 That
813 F.3d 365, 372 (D.C. Cir. 2016) (explaining that that is enough to
preserve an issue for appeal).
36
JA 1677.
37
True, VIP didn’t state that it was challenging the Thryv decision
by name. But that does not matter. Preservation under Section 10(e)
turns on notice of the objection, not on citation to the precedent the
NLRB would likely rely on to defend the award.
38
Parsippany Hotel, 99 F.3d at 418 (cleaned up); see also DHL
Express, 813 F.3d at 372.
39
JA 1623, 1674.
40
Consolidated Freightways v. NLRB, 669 F.2d 790, 794 (D.C. Cir.
1981) (requiring only that the objection be “evident by the context in
which it is raised”).
41
JA 1677 n.25 (“As one example . . .”).
12
argument goes like this: The proposed award exceeded the
NLRB’s statutory authority (to award equitable relief) because
the proposed remedies are “punitive” (legal damages
language), and an award of “foreseeable pecuniary harms”
(more damages language) is part of the problem. 42
Would the question be easier if VIP had referred expressly
to Thryv? I suppose. But the NLRB “received adequate notice
of the basis for the objection.”43 And our court has not required
a party to frame objections with exacting detail, technical
precision, or citations to the precise precedent that it wants
reconsidered.44
VIP’s argument was no less developed than the argument
that was preserved in Camelot Terrace, Inc. v. NLRB. In that
case, a heading said, “The Board Lacks Authority to Award
Litigation Expenses and Bargaining Costs.”45 This court held
that the heading adequately alerted the NLRB to a challenge to
its statutory remedial authority, even though the supporting
argument was “no paragon of precision or detail.”46 So too
today.47
42
See Republic Steel Corp. v. NLRB, 311 U.S. 7, 12 (1940) (“We
have said that the power to command affirmative action is remedial,
not punitive.”).
43
Camelot Terrace, Inc. v. NLRB, 824 F.3d 1085, 1090 (D.C. Cir.
2016) (quoting Alwin Manufacturing Co. v. NLRB, 192 F.3d 133,
143 (D.C. Cir. 1999)).
44
See, e.g., id. at 1090–91.
45
Id. at 1091 (emphasis omitted).
46
Id. at 1090–91 (cleaned up).
47
The majority compares this to two other cases — one that is truly
“not comparable,” and another that favors VIP.
13
III. VIP’s Objection Is Ripe
By awarding monetary relief that exceeds interim
earnings, the NLRB’s order imposes a final, binding obligation
on VIP.48 In response, VIP makes a purely legal argument:
Section 10(c) does not permit the NLRB to impose an award
In Advancepierre Foods, Inc. v. NLRB, the ALJ had applied the
precedent in question (Mohawk) in the petitioner’s favor and the
petitioner accepted that framework before the
NLRB — “support[ing] , , , the ALJ’s decision applying Mohawk in
its favor.” 966 F.3d 813, 819 n.6 (D.C. Cir. 2020). It makes sense
that this court would not then entertain the petitioner’s facial
challenge to Mohawk after the petitioner had implicitly affirmed that
decision before the NLRB and won on that point. Cf. New
Hampshire v. Maine, 532 U.S. 742, 749 (2001) (discussing the rule
of judicial estoppel which “prevents a party from prevailing in one
phase of a case on an argument and then relying on a contradictory
argument to prevail in another phase” (cleaned up)). VIP has never,
in any way, argued that Thryv applies favorably to its situation. It
challenged its foundational premise — that the NLRB has authority
to award pecuniary harms — from the start.
In Enterprise Leasing Co. of Florida v. NLRB, the court explained
Enterprise’s failure this way: “Nowhere in any of its filings in the
proceedings below did Enterprise argue that it was impermissibly
punitive or otherwise unlawful for the Board to prevent Enterprise
from collecting from its employees the dues it had failed to pay to
the Union.” 831 F.3d 534, 550 (D.C. Cir. 2016). The “recoupment
bar” Enterprise challenged there was not even a part of the ALJ’s
proposed remedy that Enterprise challenged before the NLRB. Id.
Every part of that description cuts the other way here. By the very
logic of Enterprise Leasing, VIP put the NLRB on notice of its
objection to the Thryv remedy.
48
JA 1734 (ordering VIP to pay employees for “any other direct or
foreseeable pecuniary harms . . . regardless of whether these
expenses exceed interim earnings”).
14
that exceeds its equitable make-whole authority. That purely
legal challenge to a final, binding order is ripe for review. 49
True, we don’t yet know the amount of VIP’s liability. But
the NLRB has already imposed the disputed obligation as part
of its final order — to pay Christopher Bendel, among other
things, “for any other direct or foreseeable pecuniary harms.”50
In that situation, when a remedy is “objectionable on its face,” 51
courts routinely review such challenges to the NLRB’s
remedial authority on direct petition.52 And we should do so
here, where the issue is not how much VIP will ultimately owe,
but whether the Act authorizes the NLRB to impose this
category of relief at all — a question no future factual
development can affect.
49
Natural Resources Defense Council v. EPA, 643 F.3d 311, 320
(D.C. Cir. 2011) (“because the Guidance is final, and because the
issue raised by [the petitioner] is purely legal, the question before us
is fit for judicial review”).
50
JA 1734.
51
Scepter, Inc. v. NLRB, 448 F.3d 388, 391 (D.C. Cir. 2006).
52
See Republic Steel Corp. v. NLRB, 311 U.S. 7, 12–13 (1940)
(reviewing NLRB authority to impose a remedy requiring payments
to governmental agencies); Camelot Terrace, Inc. v. NLRB, 824 F.3d
1085, 1089–91 (D.C. Cir. 2016) (reviewing authority to impose
bargaining-costs remedy without awaiting compliance).
Notwithstanding my disagreement with the Court’s conclusion that
review should await compliance, I agree that VIP must be permitted
to renew the challenge in a later petition for review if the NLRB
enforces relief that exceeds the King Soopers benchmark. We cannot
tell VIP that its claim is premature now if we would call it forfeited
later.
15
IV. Conclusion
The NLRB ordered recovery for “any . . . direct or
foreseeable pecuniary harms.”53 Because that provides for
compensatory damages unauthorized by § 10(c) of the NLRA,
I respectfully dissent from the majority’s decision not to vacate
that portion of the order.54
53
JA 1734.
54
Though I think the question is close, this court’s NLRA precedents
require us to deny VIP’s challenge to the NLRB’s conclusion that
Christopher Bendel was unlawfully fired. So I join the majority’s
decision to deny that part of VIP’s petition. I also join the majority’s
decision to vacate the NLRB’s award for the three other employees
fired by VIP.