Region 6-Pittsburgh Secures Settlement Requiring Paragon Systems, Inc. Compensate Employees For Lost Bargaining Opportunity

On March 7, 2024, NLRB Region 6-Pittsburgh Regional Director Nancy Wilson approved a settlement agreement between Paragon Systems, Inc. and the United States Court Security Officers which represents over 500 employees who were formally employed by Paragon at various federal court houses. The settlement resolves an unfair labor practice charge that arose when Paragon employed the employees pursuant to a government contract.

The February 2023 complaint alleged that the employer bargained with the union with no intention of reaching an agreement pursuant to the wage reopener provision in the parties’ contract by withdrawing its proposal for a one percent wage increase to take effect October 2021, and by prematurely halting bargaining. Subsequently, the employer lost the government contract to another employer who hired the employees and was not alleged to have engaged in any unfair labor practices. The complaint sought a retroactive make-whole remedy for the employees’ lost opportunity to bargain in good faith for an annual wage increase, consistent with the NLRB General Counsel’s position that such relief is necessary for a truly make-whole remedy under the National Labor Relations Act.

In the settlement, the employer agreed to make whole all of the employees for lost wages, benefits, and all direct or foreseeable financial harms they suffered because the employer failed to bargain in good faith over a wage increase prior to losing the government contract. The employees will receive over $286,000 of monetary relief.

Region 6-Pittsburgh staff investigated and was prepared to litigate the unfair labor practice charge at the time it secured the settlement.

“I am proud of the Region 6 staff for their efforts in protecting employee rights and achieving a settlement in accordance with the General Counsel’s vision of fully restorative relief,” said Region 6 Regional Director Nancy Wilson. “This meaningful settlement is the result of an excellent and persistent team effort by agency personnel to hold the employer accountable under the National Labor Relations Act.”

Established in 1935, the National Labor Relations Board is an independent federal agency that protects employees, employers, and unions from unfair labor practices and protects the right of private sector employees to join together, with or without a union, to improve wages, benefits and working conditions. The NLRB conducts hundreds of workplace elections and investigates thousands of unfair labor practice charges each year. Region 6 serves areas in Maryland, Pennsylvania, Virginia, and West Virginia from its Regional Office in Pittsburgh.