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A recent amendment to the New York Labor Relations Act allows a state board to intervene in private-sector labor disputes, a move immediately challenged by the National Labor Relations Board (NLRB) as a federal overreach. This legal clash centers on the doctrine of federal preemption, setting a significant precedent for labor law enforcement across the United States. The core conflict is whether states can act when federal agencies are perceived as unable to function fully.
The amendment, known as S.B. 8034, removes a long-standing exclusion for employers covered by the National Labor Relations Act (NLRA). Prior to this change, the state law expressly excluded these employers from its coverage. Now, the New York Public Employment Relations Board (PERB), which primarily oversees public-sector labor relations, is permitted to assert jurisdiction over private-sector employers in specific circumstances. This change took effect immediately upon the governor's signature on September 5, 2025.
The key condition for state intervention is that the NLRB must be unable to successfully assert its own jurisdiction pursuant to a federal court order. The state justifies this amendment by citing the NLRB's loss of a quorum earlier in the year, which it claims has hindered the federal board's ability to perform key functions like certifying union elections and deciding on unfair labor practice charges. As PERB Chair Timothy Connick stated, "As the current administration continues to sideline longstanding labor institutions... it is more important than ever that New York State step up to defend the rights of workers."
The NLRB filed a lawsuit on September 12, arguing that the New York law is invalid based on the legal principle of preemption. Preemption is a constitutional doctrine where federal law supersedes, or "preempts," state law when the two conflict. The NLRB's lawsuit contends that the NLRA grants the federal board exclusive jurisdiction over most private-sector labor disputes.
This means that, under established federal law, the NLRB is the sole authority for matters like union election certifications and investigating claims of unfair labor practices in the private sector. NLRB Acting General Counsel William B. Cowen emphasized this point, stating, "the NLRB has exclusive jurisdiction over unfair labor practices in the private sector. Legislation like this cannot be reconciled with the Supremacy Clause of the U.S. Constitution." The lawsuit seeks to have the state law invalidated, asserting that it creates a conflicting regulatory framework that undermines national labor policy.
This legal battle creates immediate uncertainty for private-sector employers and labor unions in New York. Until the courts resolve the challenge, the potential for dual jurisdiction exists. Employers could theoretically face unfair labor practice charges from both state and federal agencies, leading to conflicting rulings, legal complexity, and increased compliance costs. For unions, the amendment offers a potential alternative path for seeking recognition and addressing grievances if the federal process is stalled. However, any certifications or decisions made by the PERB would be under a legal cloud until the NLRB's lawsuit is settled.
Based on our assessment experience, the situation requires careful monitoring. Employers should be aware that their obligations under the NLRA remain in full force. The most prudent course of action is to continue complying with federal labor laws while tracking the outcome of this pivotal case. The court's final decision will determine whether New York's approach is a temporary measure or a new model for other states, fundamentally reshaping the landscape of American labor relations.
Key points for employers to remember:
