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US Court Kills Rule That Made Acquiring Companies Bargain With Existing Unions
HR Dive·Tuesday, 28 July 2026
A 2-1 majority of the D.C. Circuit court struck down the National Labor Relations Board's 'successor bar' rule, which had required companies that acquired other businesses to continue bargaining with the incumbent union. The court used a post-Chevron legal analysis to conclude the rule exceeded the NLRB's authority. This is a significant win for acquiring companies and a blow to union continuity rights.
Why It Matters
This ruling changes the power balance between workers and new owners after a company is bought — a situation that affects thousands of employees every time a business changes hands.
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