Region 25-Indianapolis Secures Settlement Requiring La-Z-Boy Furniture Galleries to Rescind Unlawful Work Rules, Pay $297,000 to Employees

On March 15, 2024, Region 25-Indianapolis obtained approval for an agreement settling a case against Hilst Enterprises, Inc. d/b/a La-Z-Boy Furniture Galleries (Employer), a furniture seller, based on an unfair labor practice charge filed by a former employee who had been unlawfully laid off in retaliation for engaging in protected concerted conduct.

Region 25 issued a complaint against the Employer in February 2023 alleging that, among other things, the Employer maintained unlawful work rules prohibiting employees from discussing wages, hours, and working conditions, and discharged two employees, who had concertedly raised issues about wages, hours, and working conditions to the Employer, in order to discourage other employees from engaging in these and other concerted activities.

In the settlement agreement, the Employer agreed to rescind its unlawful work rules prohibiting employees from discussing their working conditions; pay $297,000 in backpay, front pay, interest, excess tax, mileage, and medical expenses for the two discharged employees; remove the unlawful discharges from the employees’ files; send a letter of apology to the discharged employees; and mail and email a notice to its employees.

“I applaud the great work of Region 25 staff investigating and litigating the case and obtaining this excellent settlement,” said NLRB Region 25 Regional Director Patricia K. Nachand. “Workers have a right to take collective action free from retaliation. These hard-fought remedies are a critical part of effectuating 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 25 serves areas in Illinois, Indiana, Iowa, and Kentucky from its Regional Office in Indianapolis and its Subregional Office in Peoria.