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Michael's Painting, Inc. & Painting L.A., Inc.

337 N.L.R.B. 860 (2002)

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Michael’s Painting, Inc. & Painting L.A., Inc.

National Labor Relations Board
337 N.L.R.B. 860 (2002)

SC

Facts

Michael and Laurie Abikasis owned and controlled Michael’s Painting, Inc. (Michael’s) (defendant), a painting contractor. On March 27, 1998, employees of Michael’s began picketing, seeking to unionize and protesting an alleged failure to pay prevailing wages. On March 31, 1998, Michael terminated employees who engaged in union activities. Also on March 31, Painting L.A., Inc. (Painting LA) was incorporated. Laurie was the sole shareholder of Painting LA. Painting LA’s rules stated that work was reviewed and approved by Michael. Painting LA purchased all assets of Michael’s and began operation as a painting contractor. The employees who were terminated were not rehired at Painting LA. A complaint was filed on the Michael’s employees’ behalf at the National Labor Relations Board (NLRB). The complaint alleged that Painting LA was an alter ego of Michael’s. The Abikasises argued that they formed Painting LA because the liability insurance for Michael’s was going to expire and the company could not afford the new insurance premiums. The administrative-law judge issued a recommended order finding that Michael’s violated the National Labor Relations Act (the act).

Rule of Law

Issue

Holding and Reasoning (Pollack, J.)

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