Courtyard Manor of Livonia

National Labor Relations Board - Board Decisions

Jan 20, 2004

341 N.L.R.B. 7 (N.L.R.B. 2004)

COURTYARD MANOR OF LIVONIA 7
Courtyard Manor of Livonia and Local 79, Service
Employees International Union, AFL–CIO.
Cases 7–CA–46452 and 7–CA–46673
January 20, 2004
DECISION AND ORDER
BY CHAIRMAN BATTISTA AND MEMBERS LIEBMAN
AND SCHAUMBER
The General Counsel seeks a default judgment in this
case on the ground that the Respondent has failed to file
an answer to the consolidated complaint. Upon charges
and amended charges filed by the Union between July 28
and October 22, 2003, the General Counsel issued a con-
solidated complaint on November 7, 2003, against
Courtyard Manor of Livonia, the Respondent, alleging
that it has violated Section 8(a)(1) and (3) of the Act.
The Respondent failed to file an answer.1
On December 16, 2003, the General Counsel filed a
Motion for Default Judgment with the Board. On De-
cember 17, 2003, the Board issued an order transferring
the proceeding to the Board and a Notice to Show Cause
why the motion should not be granted. The Respondent
filed no response. The allegations in the motion are
therefore undisputed.
The National Labor Relations Board has delegated its
authority in this proceeding to a three-member panel.
Ruling on Motion for Default Judgment
Section 102.20 of the Board’s Rules and Regulations
provides that the allegations in the complaint shall be
deemed admitted if an answer is not filed within 14 days
from service of the complaint, unless good cause is
shown. In addition, the consolidated complaint affirma-
tively stated that unless an answer was filed by Novem-
ber 21, 2003, all the allegations in the consolidated com-
plaint would be considered admitted. Further, the undis-
puted allegations in the General Counsel’s motion dis-
close that the Region, by letter dated November 28,
2003, notified the Respondent that unless an answer was
received by December 5, 2003, a motion for default
judgment would be filed.
In the absence of good cause being shown for the fail-
ure to file a timely answer,2 we grant the General Coun-
sel’s Motion for Default Judgment.

1 The original complaint in Case 7–CA–46452 issued on October 24,
2003. According to the uncontroverted allegations in the General
Counsel’s motion, the Respondent did not file an answer to that com-
plaint either.
2 Copies of the consolidated complaint and the November 28 letter
were served on the Respondent by both certified and regular mail. The
copies sent by certified mail were returned marked “refused” or “re-
fused to sign.” The copies sent by regular mail were not returned. It is
well settled that a respondent’s failure or refusal to claim certified mail
On the entire record, the Board makes the following
FINDINGS OF FACT
I. JURISDICTION
At all material times, the Respondent, a corporation
with an office and facility in Livonia, Michigan, has been
engaged in the operation of an assisted living facility for
the elderly, specializing in residents suffering from Alz-
heimer’s disease and dementia. During the 12 months
preceding the filing of the charge in Case 7–CA–46452,
the Respondent, in conducting its operations, derived
gross revenues in excess of $100,000, and purchased and
received at its Livonia facility natural gas valued in ex-
cess of $10,000 from CMS Energy Corp., 80 percent of
which was received by CMS Energy Corp. directly from
points outside the State of Michigan.
We find that the Respondent is an employer engaged
in commerce within the meaning of Section 2(2), (6), and
(7) of the Act and that Local 79, Service Employees In-
ternational Union, AFL–CIO, the Union, is a labor or-
ganization within the meaning of Section 2(5) of the Act.
II. ALLEGED UNFAIR LABOR PRACTICES
At all material times, the following individuals held
the positions set forth opposite their names and have
been supervisors of the Respondent within the meaning
of Section 2(11) of the Act and agents of the Respondent
within the meaning of Section 2(13) of the Act:

Robin Chandok Executive Director
Sharon Clontz Director of Operations
Julie Bell Human Resource/Payroll Man-
ager
Bonnie Govan Day Shift Supervisor-Direct
Care

At all material times, the Respondent has maintained
an employee manual that contains at pages 9 and 13, in
pertinent part, the following overly broad rules:

CONFIDENTIALITY
“Confidential information i.e. pay rates, benefits,
etc., about staff persons is not to be discussed . . .
You are obligated to hold all information about
Courtyard Manor in the strictest confidence.”

SOLICITATION
“ . . . employees are not to solicit or distribute lit-
erature.”

or to provide for receiving appropriate service cannot serve to defeat
the purposes of the Act. See I.C.E. Electric, Inc., 339 NLRB 247
(2004), and cases cited there. Further, the failure of the Postal Service
to return documents sent by regular mail indicates actual receipt. Id.
341 NLRB No. 4
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 8

About July 28, 2003, the Respondent terminated its
employees Andrea Walker and Sheila Webb. The Re-
spondent engaged in this conduct because the named
employees joined and assisted the Union and to discour-
age employees from engaging in these and other pro-
tected concerted activities.
CONCLUSION OF LAW
By the acts and conduct described above, the Respon-
dent has been interfering with, restraining, and coercing
employees in the exercise of the rights guaranteed in
Section 7 of the Act, in violation of Section 8(a)(1) of the
Act. In addition, by terminating employees Andrea
Walker and Sheila Webb, the Respondent has been dis-
criminating in regard to the hire or tenure or terms or
conditions of employment of its employees, thereby dis-
couraging membership in a labor organization, in viola-
tion of Section 8(a)(3) of the Act. The Respondent’s
unfair labor practices affect commerce within the mean-
ing of Section 2(6) and (7) of the Act.
REMEDY
Having found that the Respondent has engaged in cer-
tain unfair labor practices, we shall order it to cease and
desist and to take certain affirmative action designed to
effectuate the policies of the Act. Specifically, having
found that the Respondent has violated Section 8(a)(1)
by maintaining overly broad confidentiality and no-
solicitation/distribution rules in its employee manual, we
shall order the Respondent to rescind those rules, remove
them from its employee manual, and advise employees in
writing that the rules are no longer being maintained.
In addition, having found that the Respondent has vio-
lated Section 8(a)(3) and (1) by terminating employees
Andrea Walker and Sheila Webb, we shall order the Re-
spondent to offer the discriminatees full reinstatement to
their former jobs or, if those jobs no longer exist, to sub-
stantially equivalent positions, without prejudice to their
seniority or any other rights or privileges previously en-
joyed, and to make them whole for any loss of earnings
and other benefits suffered as a result of the discrimina-
tion against them. Backpay shall be computed in accor-
dance with F. W. Woolworth Co., 90 NLRB 289 (1950),
with interest as prescribed in New Horizons for the Re-
tarded, 283 NLRB 1173 (1987). The Respondent shall
also be required to expunge from its files any and all
references to the unlawful terminations, and to notify
Andrea Walker and Sheila Webb in writing that this has
been done and that the terminations will not be used
against them in any way.
ORDER
The National Labor Relations Board orders that the
Respondent, Courtyard Manor of Livonia, Livonia,
Michigan, its officers, agents, successors, and assigns,
shall
1. Cease and desist from
(a) Maintaining overly broad rules that limit employ-
ees’ right to discuss their wages and working conditions.
(b) Maintaining overly broad rules that prohibit em-
ployees from soliciting or distributing literature in non-
work areas and during nonworktime.
(c) Terminating or otherwise discriminating against
employees because they join or assist Local 79, Service
Employees International Union, AFL–CIO, or any other
labor organization, and to discourage employees from
engaging in these and other protected concerted activi-
ties.
(d) In any like or related manner interfering with, re-
straining, or coercing employees in the exercise of the
rights guaranteed them by Section 7 of the Act.
2. Take the following affirmative action necessary to
effectuate the policies of the Act.
(a) Rescind the overly broad confidentiality and no so-
licitation/distribution rules, remove them from its em-
ployee manual, and advise employees in writing that the
rules are no longer being maintained.
(b) Within 14 days from the date of this Order, offer
Andrea Walker and Sheila Webb full reinstatement to
their former jobs or, if those jobs no longer exist, to sub-
stantially equivalent positions, without prejudice to their
seniority or other rights and privileges previously en-
joyed.
(c) Make whole Andrea Walker and Sheila Webb for
any loss of earnings and other benefits suffered as a re-
sult of their unlawful terminations, with interest, in the
manner set forth in the remedy section of this decision.
(d) Within 14 days from the date of this Order, remove
from its files any and all references to the unlawful ter-
minations of Andrea Walker and Sheila Webb, and
within 3 days thereafter, notify them in writing that this
has been done, and that the unlawful terminations will
not be used against them in any way.
(e) Preserve and, within 14 days of a request, or such
additional time as the Regional Director may allow for
good cause shown, provide at a reasonable place desig-
nated by the Board or its agents, all payroll records, so-
cial security payment records, timecards, personnel re-
cords and reports, and all other records including an elec-
tronic copy of such records if stored in electronic form,
necessary to analyze the amount of backpay due under
the terms of this Order.
COURTYARD MANOR OF LIVONIA 9
(f) Within 14 days after service by the Region, post at
its facility in Livonia, Michigan, copies of the attached
notice marked “Appendix.”3 Copies of the notice, on
forms provided by the Regional Director for Region 7,
after being signed by the Respondent’s authorized repre-
sentative, shall be posted by the Respondent and main-
tained for 60 consecutive days in conspicuous places
including all places where notices to employees are cus-
tomarily posted. Reasonable steps shall be taken by the
Respondent to ensure that the notices are not altered,
defaced, or covered by any other material. In the event
that, during the pendency of these proceedings, the Re-
spondent has gone out of business or closed the facility
involved in these proceedings, the Respondent shall du-
plicate and mail, at its own expense, a copy of the notice
to all current employees and former employees employed
by the Respondent at any time since July 28, 2003.
(g) Within 21 days after service by the Region, file
with the Regional Director a sworn certification of a re-
sponsible official on a form provided by the Region at-
testing to the steps that the Respondent has taken to com-
ply.

APPENDIX
NOTICE TO EMPLOYEES
POSTED BY ORDER OF THE
NATIONAL LABOR RELATIONS BOARD
An Agency of the United States Government

The National Labor Relations Board has found that we vio-
lated Federal labor law and has ordered us to post and obey
this notice.

FEDERAL LAW GIVES YOU THE RIGHT TO

Form, join, or assist any union

3 If this Order is enforced by a judgment of a United States court of
appeals, the words in the notice reading “Posted by Order of the Na-
tional Labor Relations Board” shall read “Posted Pursuant to a Judg-
ment of the United States Court of Appeals Enforcing an Order of the
National Labor Relations Board.”

Choose representatives to bargain with us on
your behalf
Act together with other employees for your bene-
fit and protection
Choose not to engage in any of these protected
activities.

WE WILL NOT maintain overly broad rules that limit
employees’ right to discuss their wages and working
conditions.
WE WILL NOT maintain overly broad rules that prohibit
employees from soliciting or distributing literature in
nonwork areas and during nonworktime.
WE WILL NOT terminate or otherwise discriminate
against employees because they join or assist Local 79,
Service Employees International Union, AFL–CIO, or
any other labor organization, and to discourage employ-
ees from engaging in these and other protected concerted
activities.
WE WILL NOT in any like or related manner interfere
with, restrain, or coerce you in the exercise of the rights
guaranteed you by Section 7 of the Act.
WE WILL rescind our overly broad confidentiality and
no solicitation/distribution rules, remove them from our
employee manual, and advise employees in writing that
the rules are no longer being maintained.
WE WILL, within 14 days from the date of the Board’s
Order, offer Andrea Walker and Sheila Webb full rein-
statement to their former jobs or, if those jobs no longer
exist, to substantially equivalent positions, without
prejudice to their seniority or other rights and privileges
previously enjoyed.
WE WILL make whole Andrea Walker and Sheila Webb
for any loss of earnings and other benefits suffered as a
result of their unlawful terminations, with interest.
WE WILL, within 14 days from the date of the Board’s
Order, remove from our files any and all references to the
unlawful terminations of Andrea Walker and Sheila
Webb, and WE WILL, within 3 days thereafter, notify them
in writing that this has been done, and that the unlawful
terminations will not be used against them in any way.

COURTYARD MANOR OF LIVONIA