346 NLRB 624
Midwestern Personnel Services
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
346 NLRB No. 58
624
Midwestern Personnel Services, Inc. and Chauffeurs,
Teamsters and Helpers Local Union No. 215,
a/w International Brotherhood of Teamsters.1
Cases 25–CA–25503–2, 25–CA–25823–3, and 25–
CA–25978–5
February 28, 2006
SUPPLEMENTAL DECISION AND ORDER
BY CHAIRMAN BATTISTA AND MEMBERS SCHAUMBER
AND WALSH
On July 22, 2004, Administrative Law Judge Ira San-
dron issued the attached supplemental decision.
The
General Counsel and the Respondent filed exceptions
and supporting briefs, and the General Counsel filed an
answering brief.
The National Labor Relations Board has delegated its
authority in this proceeding to a three-member panel.
The Board has considered the decision and the record
in light of the exceptions and briefs and has decided to
affirm the judge’s rulings,2 findings,3 and conclusions,
and to adopt the recommended amended Order.4
Introduction
As set forth in the underlying Decision and Order in
this case, the Respondent’s truckdrivers commenced an
unfair labor practice strike on January 17, 1998.5
On
1 We have amended the caption to reflect the disaffiliation of the In-
ternational Brotherhood of Teamsters from the AFL–CIO effective July
25, 2005.
2 The Respondent has excepted to the judge’s refusal to permit its
counsel to develop testimony from its expert witness beyond the facts
and opinions encompassed within the expert’s report, which was admit-
ted into evidence. The Respondent argues that the judge deprived the
Respondent of due process of law by limiting the expert’s testimony.
The Respondent’s exception to the judge’s rulings is without merit.
The judge acted within his discretion to limit testimony based on its
probative weight. The Respondent’s counsel was given an opportunity
to convince the judge that the expert could provide probative testimony
in addition to the contents of his report. Counsel was unable to do so.
Member Schaumber finds that the judge’s evidentiary rulings limit-
ing the Respondent’s ability to examine its expert witness were unnec-
essarily restrictive. Because the Respondent failed to demonstrate how
it was prejudiced, however, he finds that the judge’s rulings constituted
harmless error.
3 The Respondent has excepted to some of the judge’s credibility
findings. The Board’s established policy is not to overrule an adminis-
trative law judge’s credibility resolutions unless the clear preponder-
ance of all the relevant evidence convinces us that they are incorrect.
Standard Dry Wall Products, 91 NLRB 544 (1950), enfd. 188 F.2d 362
(3d Cir. 1951). We have carefully examined the record and find no
basis for reversing the findings.
4 The General Counsel has excepted to the judge’s failure to include
appropriate interest on the backpay sums identified in his order. The
judge issued an amended Order on August 5, 2004, which ordered the
Respondent to pay interest as prescribed in New Horizons for the Re-
tarded, 283 NLRB 1173 (1987). We affirm the amended Order.
5 Midwestern Personnel Services, 331 NLRB 348 (2000), enfd. 322
F.3d 969 (7th Cir. 2003).
March 27, 1998, the Union made an unconditional offer
to return to work on behalf of the striking employees.
The Respondent refused to reinstate them, thereby violat-
ing Section 8(a)(3) and (1) of the Act. The backpay pe-
riod began on March 27, 1998, and ended on December
31, 1999, when the Respondent ceased doing business in
the relevant geographic area.
The issues presented in this backpay proceeding are
whether the Respondent made a valid offer of reinstate-
ment to the discriminatees on April 12, 1999, and
whether the Respondent sustained its burden of showing
that any of the discriminatees failed to make a reasonable
search for interim employment.
A. Respondent’s April 12, 1999 Letter
On April 12, 1999, the Respondent sent a letter to each
discriminatee that stated,
You are hereby notified that work is available at Davi-
ess County Ready Mix, in Owensboro, KY, at the rate
of pay of $10.80 per hour. You are being offered this
work and must respond to this letter of recall within
three (3) days of receiving this letter by calling 1–800–
897–9792. Failure to respond within three (3) days af-
ter receipt of this letter, will confirm that you are not in-
terested in returning to work.
The Respondent contends that the letter constituted an offer
of reinstatement sufficient to toll the backpay period.
A reinstatement offer to a discriminatee must be spe-
cific, unequivocal, and unconditional in order to toll
backpay. See L. A. Water Treatment, 263 NLRB 244,
246 (1982); and Standard Aggregate Corp., 213 NLRB
154 (1974). It is the employer’s burden to establish that
it made a valid offer of reinstatement to the discrimina-
tees. L. A. Water, supra at 246. For a reinstatement offer
to be valid, it must have sufficient specificity to apprise
the discriminatee that the employer is offering uncondi-
tional and full reinstatement to the employee’s former or
a substantially equivalent position. Standard Aggregate,
supra at 154.
Applying these principles, the Respondent’s April 12
letter was not a valid offer of reinstatement sufficient to
toll backpay because the positions offered were not sub-
stantially equivalent to those the discriminatees previ-
ously held. First, the positions offered paid $10.80 an
hour, while the discriminatees’ prestrike positions paid
$12.10 to $13.20 an hour. Second, those discriminatees
who called the Respondent in response to the letter were
told that they would lose the seniority they had previ-
ously held.6 Because the discriminatees would not have
6 The Respondent’s owner, Samuel Ware, testified that each location
kept a separate seniority list and thus discriminatees would fall to the
MIDWESTERN PERSONNEL SERVICES
625
retained their rates of pay or seniority, the letter did not
constitute a valid offer of reinstatement and did not toll
the backpay period.7 See Weldun International, 340
NLRB 666, 677 (2003) (position not substantially
equivalent if it does not offer equivalent compensation,
or does not include restoration of the seniority acquired
prior to an unlawful discharge); Thalbo Corp., 323
NLRB 630, 637–638 (1997) (reinstatement offer invalid
because it was for a different shift, did not provide dis-
criminatee substantially equivalent compensation, or
restore her seniority), enfd. 171 F.3d 102 (2d Cir. 1999).
Accordingly, an evaluation of the discriminatees’ re-
sponse to the letter is unnecessary.8
B. The Discriminatees’ Alleged Failure to
Mitigate Backpay
In his Supplemental Decision and Amended Order, the
administrative law judge found specified amounts of
backpay to be due the 24 discriminatees. Thereafter, the
Respondent filed exceptions to the recommended amount
of backpay as to 12 of the discriminatees: Wade Carter,
Timothy Cronin, Jerry Fickas, Greg Harris, Henry Lang-
don, Randy Leinenbach, Robert Linendoll, Chris Pente-
cost, Scott Taylor, Randal Underhill, Gary Williams, and
David Wyatt.9 The Respondent contends that these dis-
criminatees should not receive either part or all of the
backpay awarded them by the judge.
In a backpay proceeding, the General Counsel must
first show the amount of gross backpay due to each dis-
criminatee. The respondent then has the burden of estab-
lishing affirmative defenses to mitigate its liability, in-
cluding willful loss of interim earnings.
Millennium
Maintenance & Electrical Contracting, 344 NLRB 516,
571 (2004); Chem Fab Corp., 275 NLRB 21 (1985),
enfd. mem. 774 F.2d 1169 (8th Cir. 1985). To be enti-
tled to backpay, a discriminatee must make reasonable
efforts to secure interim employment. Electrical Work-
bottom of the Owensboro seniority list behind the employees already
working at that facility. Ware also testified that an employee’s level of
seniority could affect the number of hours that employee worked if
there were layoffs or not enough work.
7 In finding that the Respondent’s offer did not constitute a valid of-
fer of reinstatement, we do not rely on the fact that the positions were at
a different facility than the facilities at which most of the discriminatees
previously worked.
8 See Clean Soils, Inc., 317 NLRB 99, 110 (1995) (the Board does
not evaluate a discriminatee’s reply to a reinstatement offer until the
respondent proves that the offer is a valid one); Consolidated Freight-
ways, 290 NLRB 771, 772–773 (1988) (same), enfd. as modified 892
F.2d 1052 (D.C. Cir. 1989), cert. denied 498 U.S. 817 (1990).
9 There are no exceptions to the judge’s findings as to the appropri-
ate amount of backpay for the following discriminatees: Brian
Aldridge, Chris Bolin, William Buzzingham, Anthony D. Clark, John
Fritchley III, Donald Harris, Michael Herr, Preston Kellams, Christo-
pher Means, Jeffrey Metcalf, Michael Pettit, and Eric Webster.
ers Local 3 (Fischbach & Moore), 315 NLRB 1266
(1995) (citing Mastro Plastics, 136 NLRB 1342 (1962),
enfd. in relevant part 354 F.2d 170 (2d Cir. 1965), cert.
denied 384 U.S. 972 (1966)). It is the respondent’s bur-
den to demonstrate affirmatively that the discriminatee
failed to exercise reasonable diligence in searching for
work. Id. The discriminatee must put forth an honest,
good-faith effort to find interim work; the law does not
require that the search be successful. Chem Fab Corp.,
supra. Doubts, uncertainties, or ambiguities are resolved
against the wrongdoing respondent. United Aircraft
Corp., 204 NLRB 1068, 1068 (1973). The “sufficiency
of a discriminatee’s efforts to mitigate backpay are de-
termined with respect to the backpay period as a whole
and not based on isolated portions of the backpay pe-
riod.”
Wright Electric, Inc., 334 NLRB 1031 (2001)
(quoting Electrical Workers Local 3 (Fischbach &
Moore), supra, enfd. 39 Fed. Appx. 476 (8th Cir. 2002).
In support of its contention that certain discriminatees
failed to mitigate their backpay, the Respondent called an
expert witness, Dr. Malcolm Cohen, to testify about the
conditions of the job market at the time in question. The
Respondent also submitted a report by Dr. Cohen that
showed the number of trucking positions available annu-
ally in Indiana and Kentucky. The Respondent and our
dissenting colleague assert that this evidence indicates
that certain of the discriminatees failed to make a reason-
able search for interim employment. In agreement with
the judge, we find that Dr. Cohen’s report and testimony
were insufficient to meet the Respondent’s burden of
demonstrating that the discriminatees failed to seek in-
terim employment with reasonable diligence.
Dr. Cohen reviewed the “help wanted” section of four
local newspapers, picked one day from each quarter dur-
ing the backpay period, and counted the number of ad-
vertisements he deemed applicable to the discriminatees.
However, he did not include data as to the pool of appli-
cants, nor analysis regarding the ability of the discrimi-
natees to secure the trucking positions he identified. In
addition, Dr. Cohen’s findings focused on the number of
trucking positions statewide, rather than in the geo-
graphic area in which the discriminatees lived. With
regard to the “help wanted” ads, Dr. Cohen made no
mention of whether the jobs would be comparable to the
wages and hours of the discriminatees’ former positions.
The Board has previously found that the existence of
“help wanted” advertisements does not serve to meet the
Respondent’s burden of proving that the discriminatees
failed to search for work with reasonable diligence.
Acme Bus Corp., 326 NLRB 1447, 1448–1449 (1998);
Coronet Foods, Inc., 322 NLRB 837, 842 (1997), enfd.
in relevant part 158 F.3d 782 (4th Cir. 1998). For these
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
626
reasons, we find that this evidence has little probative
value.
Our dissenting colleague relies on general job market
conditions to show that jobs were available for discrimi-
natees. We believe that the burden on the wrongdoer
(the Respondent) is more substantial than that. The Re-
spondent has not shown identifiable jobs in the relevant
area which were available to these discriminatees.
We now turn to individual discriminatees and find that
the Respondent failed to establish that any of them failed
to exercise reasonable diligence in their search for in-
terim employment. We adopt the backpay awards to
Timothy Cronin, Jerry Fickas, Greg Harris, Wade Carter,
Robert Linendoll Jr., Scott Taylor, Randal Underhill,
Gary Williams, and David Wyatt for the reasons stated in
the judge’s decision. For the reasons that follow, we also
adopt the backpay awards to Henry Langdon, Randy
Leinenbach, and Christopher Pentecost.
1. Henry Langdon
The judge found that Henry Langdon made reasonable
efforts to secure interim employment. We adopt that
finding. In searching for interim employment, Langdon
primarily relied upon the Union’s looking-for-work list.
The Union’s list was maintained at the union hall for
members looking for work as drivers in the construction
industry. Those looking for work were required to sign
the list once every 30 days, though some signed more
frequently. When employers called the Union with jobs
for drivers, the Union would contact persons on the list
in the order in which their names appeared.
The list
proved to be a successful tool for finding interim em-
ployment for several discriminatees, including Langdon.
Through the Union’s list, Langdon secured six differ-
ent jobs during 1998, one of which lasted 6 months. In
addition, Langdon registered with the State unemploy-
ment agency and searched for work on his own. In July
1999, Langdon independently secured employment
which he held for the remainder of the backpay period.
We find that Langdon’s efforts constituted reasonable
diligence to obtain interim employment. See Amshu As-
sociates, Inc., 234 NLRB 791, 794 (1978) (discriminatee
made reasonably diligent search to secure work including
reading want ads and responding by telephone, consult-
ing superintendents, friends, relatives, and local union,
registering with State unemployment office, and making
other inquiries).
The Respondent contends that Langdon should receive
no backpay. The Respondent argues that he incurred a
willful loss of earnings by relying almost exclusively on
the Union’s list. The Respondent also contends that the
list was not a true hiring hall procedure and the Union
did not make reasonable work opportunities available to
the discriminatees. We reject the Respondent’s conten-
tions.
The Board has long held that, in seeking interim em-
ployment, a discriminatee need only follow his regular
method for obtaining work. See Tualatin Electric, Inc.,
331 NLRB 36 (2000) (discriminatees satisfied their obli-
gation to mitigate when they followed their normal pat-
tern of seeking employment through the union’s hiring
hall), enfd. 253 F.3d 714 (D.C. Cir. 2001). Langdon, as
a new union member, was entitled to go through the Un-
ion in seeking interim employment. The Respondent
chose to discriminate against Langdon for his union ac-
tivities and we will not entertain its arguments that
Langdon’s reliance on the Union for interim employment
relieves it of its liability. See Ferguson Electric Co., 330
NLRB 514, 518 fn. 17 (2000), enfd. 242 F.3d 426 (2d
Cir. 2001).
Whether the Union’s list constituted a “true hiring
hall” is irrelevant to the issue of whether Langdon, or
other discriminatees, reasonably relied on the list in seek-
ing interim employment. The record shows that several
discriminatees, including Langdon, were successful in
mitigating at least some of their backpay by using the
list. The list exclusively encompassed driver positions in
the construction industry, jobs which each of the dis-
criminatees was qualified to perform and similar to the
positions they held at the Respondent. Thus, the Re-
spondent did not meet its burden of showing that the Un-
ion’s list was an unreasonable method of searching for
interim employment.
Our dissenting colleague says that, for 12 months of
the 21-month backpay period, Langdon relied exclu-
sively on the Union’s looking-for-work list. However,
there is no showing that such reliance was unreasonable.
Indeed, as noted above, that list was successfully used to
find work for several discriminatees, including Langdon.
And, as noted, Langdon turned to other sources when it
appeared to him that the union list was insufficient. In
these circumstances, we do not believe that the Respon-
dent has shown a failure to search for work.
2. Randy Leinenbach
The judge found that Randy Leinenbach also searched
for work with reasonable diligence. We adopt that find-
ing. Leinenbach applied for work with a number of em-
ployers, including personally asking the owners of sev-
eral small trucking companies for a job. He specifically
recalled the names of eight employers with whom he
made applications. He inquired at one of these employ-
ers five or six times during the backpay period, and in-
quired at another employer about once a month. He also
registered with the State unemployment agency and
searched for work through the agency, which is prima
MIDWESTERN PERSONNEL SERVICES
627
facie evidence of a reasonable search for employment.
Allegheny Graphics, 320 NLRB 1141, 1145 (1996),
enfd. sub nom. Package Service Co. v. NLRB, 113 F.3d
845 (8th Cir. 1997); United Aircraft Corp., 204 NLRB
1068, 1071 fn. 6 (1973). Leinenbach also engaged in
self-employment and, during 1999, worked for his par-
ents’ company. Under these circumstances, we find that
Leinenbach conducted his search for work with reason-
able diligence.
In arguing that Leinenbach failed to diligently seek in-
terim employment, the Respondent relies on Southeast-
ern Envelope Co., 246 NLRB 423 (1979). That case is
inapposite. In Southeastern Envelope Co., the discrimi-
natee showed only that she went “from place to place”
and asked various people she encountered what kind of
work they did and whether they “are hiring in your job.”
Id. at 430. Leinenbach, by contrast, inquired with the
owners of small trucking companies about a job as a
driver. Thus, Leinenbach’s search in this regard was
focused on jobs that he was qualified to perform and he
was inquiring with persons in a position to hire him if
jobs were available.
The Respondent also asserts that Leinenbach rejected
an offer of employment as a cement mixer truckdriver.
However, the Respondent failed to provide evidence of
whether or when Leinenbach was offered the cement
mixer truckdriver position. In fact, it is not clear from
the record that the company with whom Leinenbach
talked even offered a job to him.
Our dissenting colleague contends that Leinenbach
should receive no backpay, citing evidence that he had
no earnings during the first two quarters of the backpay
period, that he could not recall specific dates and details
of his job search, and that his job search was sporadic.
We disagree with our colleague’s contentions.
First, the fact that Leinenbach was unsuccessful in his
initial search for interim employment does not establish
that he failed to conduct that search with reasonable dili-
gence. See Chem Fab Corp., supra, 275 NLRB at 21.
Our dissenting colleague relies on “the market for truck
drivers” during the backpay period. As shown above,
such general economic conditions are insufficient to sat-
isfy the Respondent’s burden. Second, the fact that
Leinenbach could not remember with more specificity
the dates of his applications is attributable to the nearly
5-year delay between his search for work and the date of
his testimony and does not provide sufficient evidence to
support a finding that Leinenbach failed to mitigate. See
United States Can Co., 328 NLRB 334, 356 (1999) (dis-
criminatee not barred from receiving backpay where he
claimed to have made three job contacts per week but
was unable to recall the name of a single employer he
contacted, after 5-year lapse between job search and tes-
timony), enfd. 254 F.3d 626 (7th Cir. 2001); Allegheny
Graphics, supra, 320 NLRB at 1145 (discriminatee’s
testimony was sufficient to show that he made a reason-
able effort to mitigate his loss of income over the back-
pay period as a whole, despite his poor memory and fail-
ure to keep adequate records of his job search efforts).
Third, our colleague asserts that Leinenbach’s efforts
were “sporadic and casual.”
The cases relied upon by
our dissenting colleague in support of this assertion are
distinguishable and do not support a finding that Leinen-
bach failed to mitigate. In Glenn’s Trucking Co., 344
NLRB 377 (2005), the Board found that the discrimina-
tee failed to seek any employment after the first few
months of the backpay period. The discriminatee went
for nearly a year with no evidence of any job search ef-
forts. On these facts, the Board found that the respondent
satisfied its burden of establishing that the discriminatee
failed to exercise reasonable diligence in searching for
interim employment. Likewise, in Moran Printing, Inc.,
330 NLRB 376 (1999), the Board found that employee
Dixon failed to mitigate by engaging in only the most
sporadic search for interim employment where he signed
the union out-of-work book only twice after his dis-
charge and gave conflicting testimony regarding his ef-
forts to seek work, which the judge discredited.
Leinenbach’s efforts, by contrast, were more frequent
and encompassed the entire backpay period. There was
no evidence that he stopped looking for work. He regis-
tered with the unemployment office, made regular and
ongoing applications for work, engaged in self-
employment, and worked for his parents’ company. The
record shows that, in 1999, Leinenbach earned some in-
come during every quarter. We find for these reasons
that the Respondent did not meet its burden of establish-
ing that he failed to search for work with reasonable dili-
gence. Our colleague’s assertion that Leienebach’s ef-
forts were sporadic and casual is thus contradicted by the
evidence cited above.
3. Christopher Pentecost
The judge found that Christopher Pentecost made rea-
sonably diligent efforts to find interim employment. We
adopt the judge’s finding.
In 1998, Pentecost signed the Union’s looking-for-
work list and worked a few jobs through the Union last-
ing a day to 6 weeks in duration. Pentecost also inde-
pendently sought work at various employers and engaged
in self-employment by doing cleanup at farms.
He
worked at one job which he learned about from a relative
and registered with the State unemployment office.
During the first quarter of 1999, Pentecost remained on
the Union’s looking-for-work list and continued to re-
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
628
ceive sporadic employment through the Union. Pente-
cost remained on the Union’s list for the rest of 1999,
sought employment through other Teamsters locals as
well as two other unions, and sought employment inde-
pendently, but was unable to secure employment.
In sum, Pentecost worked at five different employers
during the backpay period. Taking the backpay period as
a whole, we find that the record established that Pente-
cost searched for interim employment with reasonable
diligence.10
Our dissenting colleague argues that Pentecost’s long
periods of unemployment demonstrate that he failed to
exercise reasonable diligence in seeking interim em-
ployment during the last three quarters of 1999. We dis-
agree. The sufficiency of a discriminatee’s efforts to
search for interim employment is determined with re-
spect to the backpay period as a whole, not on isolated
portions.
Electrical Workers Local 3 (Fischbach &
Moore, Inc.), supra, 315 NLRB at 1266 (discriminatee’s
search was sufficient when he worked for 3-1/2 months
and inquired about work with four employers during the
other 2-1/2 months of 6-month backpay period). Fur-
thermore, there is no requirement that a discriminatee’s
efforts to seek interim employment be successful.
Weldun International, Inc., supra, 340 NLRB at 682.
The record establishes that Pentecost made an “honest,
good faith effort to find interim work.” Chem Fab, su-
pra, 275 NLRB at 21. He applied at several employers
and sought work through several unions. For these rea-
sons, we find that the Respondent failed to establish that
Pentecost’s employment search was not reasonably dili-
gent and we adopt the judge’s backpay award.
ORDER
The National Labor Relations Board adopts the rec-
ommended amended Order of the administrative law
judge and orders that the Respondent, Midwestern Per-
sonnel Services, Inc., Olive Branch, Mississippi, and
10 Chairman Battista finds that Pentecost made reasonably diligent
efforts to obtain work during all quarters of the backpay period except
for one segment of 1998. At that time, Pentecost was offered a position
with Central City Produce, but he turned it down because, as he
claimed, he anticipated the offer of a union job in the near future.
However, he never specified what that position was and he did not say
when it would have been available. In sum, Pentecost has not shown a
basis for turning down a job that could have mitigated backpay. Ac-
cordingly, Chairman Battista would toll Pentecost’s backpay from the
date he turned down the Central City Produce position until he obtained
further interim employment later in 1998.
Although, as discussed in his following dissent, Member Schaumber
finds that Pentecost is not entitled to backpay for the last three quarters
of 1999, he nevertheless joins Member Walsh in finding, in agreement
with the judge and contrary to the Chairman, that Pentecost remained
entitled to backpay during all of the entire 1998 segment of the backpay
period.
Louisville, Kentucky, its officers, agents, successors, and
assigns, shall pay the sums set forth in the amended Or-
der.
MEMBER SCHAUMBER, dissenting in part.
I agree with my colleagues in all respects other than
their decision to affirm the judge’s awards of full back-
pay to discriminatees Henry Langdon, Randy Leinen-
bach, and Chris Pentecost.
The Supreme Court has instructed us, consistent with
the clear language of the Act, that the power of the Board
to command affirmative action such as reinstatement and
backpay “is remedial, not punitive.”
Carpenters Local
60 v. NLRB, 365 U.S. 651, 655 (1961). Backpay is not
mechanically compelled by the Act, but is instead en-
trusted to the Board’s discretion, consistent with the
“healthy policy” underlying the Act of “promoting pro-
duction and employment.” See Phelps Dodge Corp. v.
NLRB, 313 U.S. 177, 196, 198 (1941). Thus, an em-
ployee who has been the victim of an unfair labor prac-
tice is not entitled to simply await reimbursement from
his employer for lost wages, “for the statute was not in-
tended to encourage idleness.”
NLRB v. Mercy Penin-
sula Ambulance Service, 589 F.2d 1014, 1017 (9th Cir
1979). To this end, Board law requires a discriminatee to
exercise reasonable diligence in seeking interim em-
ployment. See Glenn’s Trucking Co., supra.
Measured against this standard, I find that discrimina-
tees Henry Langdon, Randy Leinenbach, and Chris Pen-
tecost failed to exercise reasonable diligence in seeking
employment for some or all of the backpay period which
commenced on March 27, 1998, and ended on December
31, 1999. Each of these individuals was an experienced
truckdriver employed by the Respondent at its facilities
in Indiana and Kentucky prior to a strike in 1998. Their
remarkable lack of success in obtaining interim employ-
ment for many months at a time, despite a strong job
market for truckdrivers, is, in my view, a predictable
consequence of their sporadic and desultory efforts to
obtain work. Accordingly, I decline to hold the Respon-
dent liable for all their lost income.
The Respondent introduced evidence indicating that
there were ample opportunities for the discriminatees to
obtain work as truckdrivers during the backpay period.
Economist Dr. Malcolm Cohen prepared a report show-
ing that the unemployment rates in Indiana were below
the national average, while in Kentucky, the unemploy-
ment rates were similar to or just slightly higher than the
national average. The report also discloses that there
were 4280 projected openings for truckdrivers within the
States of Indiana and Kentucky in 1998 and in 1999.
Nationwide, truckdrivers were among the 10 occupations
with the largest job growth.
MIDWESTERN PERSONNEL SERVICES
629
Dr. Cohen also found a large number of help wanted
advertisements for truckdrivers in the local newspapers
in the selected areas. Specifically, he found 754 adver-
tisements for truckdrivers during the backpay period in
four local newspapers.1 Thus, it would appear from Dr.
Cohen’s testimony and report that the employment con-
ditions were very favorable and that truckdriver positions
were available during the backpay period.
My colleagues, like the judge, give Dr. Cohen’s report
little to no weight in their analysis of the discriminatees’
efforts to seek interim employment. Job searches, how-
ever, are not conducted in a vacuum, and evidence of the
economic conditions in which the searches occurred pro-
vides useful context. As the Sixth Circuit explained in
NLRB v. Seligman & Associates, Inc., 808 F.2d 1155,
1165 (6th Cir. 1986): “The reasonableness of the effort to
find substantially equivalent employment should be
evaluated in light of the individual’s background and
experience and the relevant job market.” Where, as here,
the relevant job market for truckdrivers was robust, and
there were many help wanted advertisements for truck-
driver positions in the relevant area, yet certain discrimi-
natees remained unemployed for many months at a time,
the adequacy of their job search must be viewed in a dif-
ferent light than it would be if the job market for truck-
drivers was weak and marked by high unemployment.
1. Henry Langdon
The judge found that Henry Langdon made reasonably
diligent efforts to find interim employment during the
backpay period and awarded him $44,555 for lost in-
come. My colleagues adopt that finding. I disagree.
In seeking to find interim employment, Henry Lang-
don relied for more than 12 months of the 21-month
backpay period exclusively on the placement of his name
on the Union’s looking-for-work list.2
While Langdon
secured some work though the list during the early
months of the backpay period, for the next 9 months—
the fourth quarter of 1998 and the first two quarters of
1999—his reliance on the list failed to result in meaning-
ful employment. Indeed, for the first two quarters of
1 The actual number of vacancies likely was much larger because Dr.
Cohen only reviewed one issue per quarter for each newspaper.
2 My colleagues rely on the fact that Langdon also registered with
the State unemployment office as evidence that Langdon made rea-
sonably diligent efforts to find interim employment. Such reliance is
misplaced. Langdon’s registration with the State unemployment office
has no bearing on the reasonableness of his job search efforts. In Indi-
ana, applicants for unemployment benefits must file weekly reports
listing their job contacts in order to receive benefits, but this require-
ment is waived for applicants who have signed up for work through a
union. Thus, signing the Union’s looking-for-work list was sufficient
for Langdon to receive benefits, and this is apparently all he did to
search for work for more than a year into the backpay period.
1999, he earned a total of $522. Nevertheless, during
this 9-month period, Langdon relied solely on the list for
interim employment. He never looked at help wanted
ads or engaged in any other method to find employment,
and did not submit a single independent job application
during this period. Only during the third quarter of 1999,
when he was in danger of losing his house, did Langdon
search the local paper. Within weeks, he found suitable
employment, and stayed with that job for 1 year.
The record evidence establishes that Langdon failed to
take even the most basic steps that a reasonable person
would take to find a job, given his training, skills, and the
conditions of the market. See NLRB v. Seligman & As-
sociates, Inc., supra. Langdon was an experienced driver
and was qualified to operate any type of truck, including
those hauling hazardous materials. Given his experience,
qualifications, and the strength of the relevant job mar-
ket, I find that placing his name on a union looking-for-
work list without meaningful result for 9 months does
not constitute reasonable diligence. Even assuming that
Langdon was entitled to rely on the Union’s looking-for-
work list for a reasonable period of time, he should have
broadened the scope of his search when it became appar-
ent that the list was no longer effective. Langdon’s tes-
timony supports this finding. When he was in danger of
losing his home, Langdon finally decided to look in the
newspaper. After doing so, he almost immediately found
meaningful employment.
In support of their finding that Langdon’s job search
was reasonably diligent, my colleagues cite Tualatin
Electric, Inc., 331 NLRB 36 (2000), enfd. 253 F.3d 714
(D.C. Cir. 2001), and Ferguson Electric Co., 330 NLRB
514 (2000), enfd. 242 F.3d 426 (2d Cir. 2001), for the
principle that a discriminatee, in seeking interim em-
ployment, need only follow his regular method for ob-
taining work. My colleagues’ reliance on those cases is
misplaced. In Ferguson Electric, the parties stipulated
that the employee’s regular method for obtaining electri-
cal work was to seek employment with nonunion con-
tractors in conjunction with the union’s organizing pol-
icy. Similarly, in Tualatin Electric, the employees were
union salts whose normal pattern of seeking employment
was to use the union’s hiring hall. On those facts, in both
cases, the Board found that the employees were entitled
to follow their regular job search methods in seeking
interim employment. In this case, however, there is no
evidence regarding Langdon’s “regular method for ob-
taining work,” and thus no basis upon which to find that
his regular method of seeking employment was simply
signing the Union’s looking-for-work list. Indeed, it is
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
630
unclear that Langdon was a member of the Union before
he worked for the Respondent.3
For these reasons, I would reduce Langdon’s backpay
award by an amount equal to 6 months’ pay.
2. Randy Leinenbach
The judge awarded Randy Leinenbach $43,185, find-
ing that Leinenbach applied for work through the unem-
ployment office and independently made various other
applications throughout the backpay period. The major-
ity adopts the judge’s finding and his award on a record
which simply does not support it.
Leinenbach never sought assistance from the Union to
find interim employment. He did not check the newspa-
per want ads for truckdriver openings or engage in other
methods to find work. Not surprisingly, for the first two
quarters of the backpay period, April through September
1998, Leinenbach had no interim earnings whatsoever.4
He testified that his job search during this 6-month pe-
riod consisted of submitting applications to five prospec-
tive employers, including his parents’ company. Leinen-
bach was in jail during the last quarter of 1998 and un-
available for employment.
In 1999, Leinenbach performed some work for his par-
ents, earning $1035 for each of the first two quarters of
1999, which amounts to less than $100 a week. He
claimed he inquired about work with a few small truck-
ing companies, but was unable to provide specific dates
or details. In total, Leinenbach specifically recalled con-
tacting fewer than eight employers during the 21 months
of the backpay period—no more than one per quarter—
but could not state when he applied. As stated, the mar-
ket for truckdrivers during the backpay period was
strong, and Leinenbach, by his own account, was one of
the Respondent’s most qualified drivers, with approxi-
mately 30 years of truckdriving experience. The evi-
dence shows that Leinenbach did not seek interim em-
ployment with reasonable diligence, but, at most, en-
gaged in a sporadic and casual search for work. See
Glenn’s Trucking Co., supra (discriminatee’s search for
interim employment was sporadic and not conducted
with reasonable diligence when evidence showed he ap-
plied at four employers over a few months and then made
no applications for the remaining year of the backpay
period); Moran Printing, Inc., 330 NLRB 376 fn. 4
(1999) (discriminatee conducted “sporadic” search for
employment when, in the course of more than a year, he
signed the union’s out-of-work book twice and could
3 Because the cases are clearly distinguishable, it is not necessary for
me to pass on whether they were correctly decided.
4 Leinenbach was in jail during the last quarter of 1998 and thus un-
available for employment. The judge deducted this quarter from the
backpay award and thus that quarter is not before the Board.
only recall applying at two employers). As a result, he is
not entitled to a backpay award.
3. Christopher Pentecost
During 9 months of 1999, the entire second, third, and
fourth quarters, Christopher Pentecost was unemployed
with no interim earnings. When asked about his job
search during this 9-month period of time, Pentecost
said, “I looked for jobs and filled out applications.”
However, he was able to recall only one of the employers
with whom he applied. Pentecost provided vague testi-
mony about signing a few union out-of-work lists, but
was unable to give a timeframe. My colleagues correctly
state that the Board looks to the record as a whole to de-
termine if it establishes that a given employee has dili-
gently sought employment during the backpay period.
However, backpay can, and indeed must, be tolled when
the record shows that the employee did not make a rea-
sonable effort to secure work during a meaningful por-
tion of the backpay period. See Rainbow Coaches, 280
NLRB 166, 193 (1986) (employee Kama failed to make
reasonable effort to seek interim employment during
portion of the backpay period by applying at one com-
pany during four quarters of unemployment).
Pentecost could only specifically recall submitting one
application during his long period of unemployment in
1999. Under these circumstances, I find that Pentecost
failed to engage in a reasonably diligent search for in-
terim employment and would deny backpay for the last
three quarters of 1999.
J. Steve Robles, Esq., for the General Counsel.
James U. Smith III, Esq. (Smith & Smith), of Louisville, Ken-
tucky, for the Respondent.
SUPPLEMENTAL DECISION AND ORDER
STATEMENT OF THE CASE
IRA SANDRON, Administrative Law Judge. This matter arises
out of a compliance specification and notice of hearing issued
on June 30, 2003, against Midwestern Personnel Services, Inc.
(MPS or the Respondent), stemming from the Board’s Decision
and Order in Midwestern Personnel Services, 331 NLRB 348
(2000), as affirmed by the Seventh Circuit Court of Appeals in
NLRB v. Midwestern Personnel Services, 322 F.3d 969 (7th
Cir. 2003). As set forth in the Board’s decision, MPS truck-
drivers commenced an unfair labor practice strike on January
17, 1998. On March 27, 1998, they made an unconditional
offer to return to work, at which time the Respondent refused to
reinstate them, thereby violating Section 8(a)(3) and (1) of the
National Labor Relations Act (the Act). It is undisputed that
the backpay period began on March 27, 1998, and ended on
December 31, 1999, the date when MPS ceased doing business
in the geographic area where the discriminatees had worked.
Pursuant to notice, I conducted a trial in Evansville, Indiana,
on November 17, 2003, and March 22−24, 2004, at which all
MIDWESTERN PERSONNEL SERVICES
631
parties were afforded full opportunity to be heard, to examine
and cross-examine witnesses, and to introduce evidence.
A number of discriminatees testified. Additionally, the Gen-
eral Counsel called Patricia Nachand, former compliance offi-
cer, concerning preparation of the compliance specification and
its methodology; Joe Dimatteo, a retired union business agent,
as to the out-of-work list that was maintained by Teamsters
Local 215 (the Union); and Tom Horstman, a representative of
the State of Indiana’s unemployment office in Evansville, re-
garding how the State treated discriminatees who had signed
that list. The Respondent called Malcolm Cohen, president of
Employment Research Corporation, as an expert witness in
economics, concerning the job market for drivers during the
backpay period; and Sam Ware, former president of MPS, on
how the business operated and his interaction with employees.
The General Counsel and the Respondent filed helpful
posthearing briefs that I have duly considered.
Legal Parameters
The Board and the Seventh Circuit Court of Appeals have al-
ready determined that the Respondent discriminated against the
subject employees by not reinstating them on March 27, 1998.
Such an unfair labor practice finding is presumptive proof that
they are owed some backpay. Intermountain Rural Electric
Assn., 317 NLRB 338 (1995); NLRB v. Mastro Plastics, 354
F.2d 170, 178 (2d Cir. 1965), cert. denied 384 U.S. 972 (1966).
The objective in a compliance case such as this one is to restore
the discriminatees to the status quo ante, as much as possible, to
the circumstances that would have existed had the Respon-
dent’s unfair labor practices not occurred. Alaska Pulp Corp.,
326 NLRB 522, 523 (1998); Manhattan Eye, Ear & Throat
Hospital, 300 NLRB 20 (1990).
It is usually impossible to know with absolute certainty ex-
actly what an individual discriminatee would have made had he
or she continued working for a respondent during the backpay
period. Recognizing this reality, the Board has held that in
evaluating the legal sufficiency of a backpay specification, the
General Counsel need only show that the methodology it used
was reasonable and nonarbitrary. Virginia Electric Co. v.
NLRB, 319 U.S. 533, 544 (1943); Performance Friction Corp.,
335 NLRB 1117, 1118 (2001). Any uncertainty over how
much backpay should be awarded to a discriminatee is resolved
in his or her favor and against the respondent. Alaska Pulp
Corp., supra at 522; United Aircraft Corp., 204 NLRB 1068
(1973). Thus, the burden of proof is upon a respondent to es-
tablish affirmative defenses that mitigate liability (Atlantic
Limousine, 328 NLRB 257, 258 (1999); Hacienda Hotel &
Casino, 279 NLRB 601, 603 (1986)), as is the burden of calling
discriminatees. Electric & Cabcor Service Corp., 335 NLRB
315−316 (2001); Superior Warehouse Grocers, 282 NLRB 802
(1987).
In sum, MPS bears the evidentiary burden of showing the
money it owes to any of the discriminatees should be reduced
vis-à-vis the backpay specification. MPS has asserted three
primary bases for diminution of backpay, as follows.
Issues
1. Whether the Respondent’s April 12, 1999 offer of em-
ployment to discriminatees1 constituted a valid offer of rein-
statement, requiring discriminatees to respond and cutting off
the Respondent’s backpay liability.
2. Whether certain discriminatees failed to make reasonable
efforts to secure and retain interim employment.2
3. Whether as to Wade Carter and Robert Linendoll, the Re-
spondent is entitled to certain offsets not incorporated in the
backpay specification.3
Facts
Based on the entire record, including the Board’s Decision
and Order, testimony of witnesses and my observations of their
demeanor, documents, and stipulations of the parties, I make
the following findings of fact.
A. Methodology Used by the General Counsel
In determining the backpay of discriminatees, Nachand made
calculations on a quarterly calendar basis during the backpay
period and deducted interim earnings from the projected earn-
ings of what they would have made at MPS during the same
timeframes. Interim earnings were based on discriminatees’
income tax returns. Projected earnings were determined by
using the 1997 incomes of the discriminatees and, when their
earning figures were unavailable, the average income of dis-
criminatees whose figures were available.
The Respondent has stipulated to the validity of the General
Counsel’s overall methodology, and I find that it constituted a
reasonable method of calculation.
B. Respondent’s Operations Prior to the Strike
MPS provided labor, primarily truckdrivers, to companies
engaged in the construction industry. River City Holding, Inc.
was its largest customer. Most of the discriminatees worked
out of locations in Boonville and Rockport, Indiana, but there
were also work locations in Huntingberg, Indiana, and Owens-
boro, Kentucky. The wage rate paid to the drivers began at
$10.80 per hour and went up several dollars, based primarily on
seniority. Similarly, the number of hours drivers worked
ranged from 40 to over 80 hours per week, with more senior
drivers being given overtime preference.
C. Use of the Union’s Out-of-Work List (the List)
After going out on strike, most of the discriminatees used the
list maintained at the union hall. They had to sign the list at
1 GC Exh. 4.
2 The interim earnings figures for Brian Aldridge, Chris Bolin, Wil-
liam Buzzingham, Anthony Clark, John Fritchley III, Donald Harris,
Michael Herr, Preston Kellams, Christopher Means, Jeffrey Metcalf,
Michael Pettit, and Eric Webster are no longer in dispute. See the
Respondent’s brief.
3 The Respondent has contended that Randall Leinenbach’s backpay
should be reduced for the period of time he was incarcerated during the
third and fourth quarters of 1998. In its posthearing brief, at 12, the
General Counsel has modified the backpay specification as to Leinen-
bach to reflect this, in conformity with applicable precedent. See, e.g.,
Performance Friction Corp., 335 NLRB 1117, 1121 (2001); Gifford-
Hill & Co., 188 NLRB 337, 338 (1971).
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
632
least once every 30 days, but some did so more frequently.
When employers called with jobs for drivers, Dimatteo con-
tacted persons on the list, starting with those at the top. Some-
one who turned down work went to the bottom of the list.
The State of Indiana accepts such a method as a reasonable
work search. Thus, Horstman testified that the unemployment
office considers an unemployed worker registered on a union’s
out-of-work list to have satisfied the requirement to actively
search for employment. Therefore, such a person is not re-
quired to complete the active search section of the weekly
voucher submitted to the unemployment office.
D. Respondent’s April 12, 1999 Letter
The April 12, 1999 letter of employment to discriminatees,
signed by Area Manager Jim Teegarden, stated the following:
You are hereby notified that work is available at Davi-
ess County Ready Mix, in Owensboro, KY, at the rate of
pay of $10.80 per hour. You are being offered this work
and must respond to this letter of recall within three (3)
days of receiving this letter by calling 1–800–897–9792.
Failure to respond within three (3) days after receipt of
this letter, will confirm that you are not interested in re-
turning to work.
Many of the discriminatees had conversations with Teegar-
den following the issuance of the letter. Since Teegarden did
not testify, their similar versions of what he said were uncon-
troverted, and I credit them.
Teegarden specifically told Gerald Fickas, John Henry
Fritchley, Michael Herr, Henry Langdon, Scott Taylor, Randal
Underhill, and David Wyatt that they would not carry over the
seniority they had enjoyed before the strike. Teegarden also
told Fickas, Fritchley, Herr, Taylor, Underhill, and Wyatt that
they would be making less money than they had previously.
Fickas, Herr, Langdon, Taylor, Underhill, and Wyatt also
would have had a considerably longer drive to get to Owens-
boro than the locations where they had previously performed
work for the Respondent.
Randall Leinenbach spoke with the general manager of River
City Holding, which contracted out the work to MPS. He was
told that he would begin at a lower pay rate and without senior-
ity restoration.
Two discriminates—Timothy Cronin and Christopher Pente-
cost—responded to the letter and reported to the Owensboro
facility. Cronin quit because, as a result of not having his sen-
iority reinstated, he worked only half as many hours as he had
before the strike. Pentecost also quit, after realizing that he
would be paid less, retain no seniority, and have a longer com-
mute.
For the reasons stated above, all of the named discriminatees
either declined employment at the outset or quit shortly after
accepting it.
In sum, the Respondent’s employment offer, both on its face
and as explained by Teegarden, effectively treated the discrimi-
natees as new hires. Thus, the offer was without the seniority
levels previously enjoyed, and it offered most of the discrimi-
natees less (up to several dollars an hour) than they had made
prior to the strike. Many discriminatees also would have a
much longer commute.
E. Alleged Failure to Mitigate
The Respondent offered the testimony of economist Dr.
Malcolm Cohen, who was stipulated to be an expert in his field,
to show that the discriminatees as a group did not make reason-
able efforts to search for and obtain interim employment. The
Respondent also contends that specific individuals failed to do
so.
1. The testimony of Dr. Cohen
Dr. Cohen was paid by the Respondent to prepare a report4
and to testify. Using the report as a reference, he testified that
the job market for truckdrivers during the backpay period was
good, based on his analysis of national and statewide employ-
ment data. He summed up that there were 4280 such jobs a
year in Indiana and Kentucky. His report also detailed his re-
view of the “help wanted” section of three local newspapers.
For each newspaper, Dr. Cohen picked one day from each quar-
ter during the backpay period and counted the number of adver-
tisements he deemed applicable to the discriminatees.
2. Specific allegations of failure to mitigate
and claimed offsets
Following are the employment and employment efforts that
specified discriminatees made during the backpay period, based
on their unrebutted and credible testimony. With the exception
of Cronin and Leinenbach, all of them were signed up on the
out-of-work list during their periods of unemployment.
a. Carter
In 1998, Wade Carter went into his own business, under the
name of Carter Construction Company, and he continued to be
self-employed through 1999. In 1998, his business generated
$35,167 in income, but after paying out wages and purchasing
major business equipment, the business did not make any
money that year. This was reflected in his income tax returns.
There is nothing in the record to suggest that he would have
gone into his business had he not been unlawfully laid off.
b. Cronin
On his own, Timothy Cronin obtained jobs at J. H. Rudolph
(Rudolph), Spencer County Highway Department, and the
Caddick Poultry Company. Cronin also temporarily returned to
work at MPS but quit for the reasons previously stated. He also
quit the job with Rudolph because it was too far from home and
did not give him enough hours. After quitting Rudolph, he
obtained a mechanic’s position at Ford, through a temporary
hiring agency.
c. Fickas
Through the list, Gerald Fickas obtained employment with
Rudolph and with D. J. Transportation. He also applied for
jobs listed in newspaper want ads.
4 R. Exh. 7.
MIDWESTERN PERSONNEL SERVICES
633
d. Harris
Through the list, Gregory Harris secured employment at
Field Technologies, Industrial Contractors, and Rudolph. He
also sought work on his own, by submitting job applications,
and he obtained employment with DMI Furniture, Blankenber-
ger, and Dolly Madison Industries.
e. Langdon
Henry Langdon accepted six jobs through the union hall dur-
ing 1998, including one at J. H. Rudolph. One of these assign-
ments lasted 6 months. In addition, on his own, Langdon
sought and secured employment with Boyd Brothers for the
latter half of 1999.
f. Leinenbach
Randall Leinenbach applied for work through the unem-
ployment office and independently made various other applica-
tions throughout the backpay period.
g. Linendoll
Through the list, Robert Linendoll worked for Sergeant Elec-
tric and AK Steel. He also successfully applied on his own for
jobs at Jacobi Sod, Johnston Coca-Cola, BGM Equipment
Company, and Huebner Trucking. Linendoll took a 3-week
vacation during the last quarter of 1998. The record does not
reflect that drivers for MPS received vacation pay, and I find it
inappropriate to assume that such a benefit was provided.
h. Pentecost
In addition to signing the list, Christopher Pentecost signed
up on at least five other Teamster Union out-of-work lists, in
locations in states other than Indiana and Kentucky. He even
expanded his search to non-Teamster Union out-of-work lists.
Pentecost returned to work for MPS but quit for the reasons
previously described. He was offered employment with Central
City Produce but turned down the offer because he was advised
that union work would soon be made available to him. He
applied and secured employment at Mid America Oil Com-
pany, F. D. Jacobi Company, Gumbk Constructors, H. A.
Klink, and TVA Power Plant through Atlantic Plant Mainte-
nance.
i. Taylor
Through the list, Scott Taylor obtained employment at Ster-
ling Boilers. He also applied for jobs through the unemploy-
ment office and on his own.
j. Underhill
Randall Underhill returned to work for a previous employer,
Metzger Construction.
k. Williams
Gary Williams made job applications on his own. He ob-
tained work with several employers, including Miles Farm,
Evansville Marine, and A. K. Steel. Some paid less than what
he made at MPS.
l. Wyatt
David Wyatt obtained a job at Rudolph through the list. He
also made many job applications on his own.
Analysis and Conclusions
A. The April 12, 1999 Letter
In order to require a discriminatee to respond and to toll
backpay liability, an employer’s reinstatement offer has to meet
certain criteria. It must be specific, unequivocal, and uncondi-
tional in offering a discriminatee his or her previous (or sub-
stantially equivalent) position, at the same rate of pay, with
seniority and benefits intact. Hoffman Plastic Compounds, 326
NLRB 1060, 1061 (1998); Tony Roma’s Restaurant, 325
NLRB 851, 852 (1998). The burden is on the employer to es-
tablish that its offer met these requirements. Tony Roma’s at
852.
The Respondent’s offer, both on the face of the letter and as
explained to discriminatees by Teegarden, failed to meet any of
the above requirements. Discriminatees were offered unspeci-
fied positions, with complete loss of previous seniority and, in
most cases, at a considerably lower pay rate. Moreover, some
of the discriminatees were faced with a much longer distance to
travel to work. Just the fact that the offer took away discrimi-
natees’ seniority rights was enough to invalidate it. See NLRB
v. Laidlaw Corp., 507 F.2d 1381, 1382 (7th Cir. 1974).
Hence, I conclude that the offer of employment did not qual-
ify as a valid offer of reinstatement and therefore neither re-
quired discriminatees to respond nor cut off the Respondent’s
backpay liability.5
B. Alleged Failure to Mitigate Backpay Liability
Discriminatees do have a duty to mitigate damages by mak-
ing reasonably diligent efforts to seek interim employment.
Black Magic Resources, 317 NLRB 721 (1995); American
Bottling Co., 116 NLRB 1303 (1956). Whether a claimant’s
search for employment has been reasonable is evaluated in light
of all of the circumstances (Pope Concrete Products, 312
NLRB 1171 (1993); Cornwell Co., 171 NLRB 342, 343
(1968)), and is measured over the backpay period as a whole,
not isolated portions thereof. Wright Electric, 334 NLRB 1031
(2001); Electrical Workers Local 3 (Fischbach & Moore), 315
NLRB 266 (1995). This reasonable diligence standard does not
require a discriminatee to exhaust all possible job leads. Black
Magic Resources, supra; Lundy Packing Co., 286 NLRB 141,
142 (1987).
Consistent with the remedial nature of compliance proceed-
ings, the burden is not on claimants to show they made a rea-
sonable search for work but on a respondent to show their fail-
ure to do so. Black Magic Resources, supra; Southern House-
hold Products Co., 203 NLRB 881 (1973). The employer does
5 In light of these conclusions, I need not address the General Coun-
sel’s contention that the amount of time the Respondent gave discrimi-
natees to respond was a further ground to invalidate the offer. I note
that the letter did not give them a time limit in which to report to work
or to make a decision but only to contact MPS. See Esterline Electron-
ics Corp., 290 NLRB 834, 835 (1988), which distinguishes the two
situations.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
634
not meet this burden by presenting evidence of lack of em-
ployee success in obtaining interim employment or of low in-
terim earnings. Food & Commercial Workers Local 1357, 301
NLRB 617 (1991). Aircraft & Helicopter Leasing, 227 NLRB
644, 646 (1976).
1. Dr. Cohen’s report and testimony
The first part of Dr. Cohen’s report gave the number of
trucking positions available annually in Kentucky and Indiana.
It did not include any data as to pool of potential applicants or
an analysis of whether the discriminatees would or would not
have been able to secure such positions. Those considerations
aside, a fundamental problem with relying on this aspect of his
findings is that his data was on a Statewide basis. It contained
no breakdown of the number of jobs available in various parts
of each state and provided no specific information for the geo-
graphic area where the discriminatees worked. Certainly, the
discriminatees were not obliged, as part of their duty to mitigate
damages, to seek jobs in locations that would have forced them
to relocate or to commute hundreds of miles.
The second aspect of Dr. Cohen’s analysis was his analysis
of local newspaper “help wanted” advertisements. By picking
one day to project over an entire quarter, Dr. Cohen could have
simply chosen the most favorable sample from each newspaper.
Even if he made no deliberate effort to skew the results, the day
selected might or might not have been representative. The
report also failed to specify what qualified as a suitable job and
would be counted. As with the first part of the report, no re-
search was done into the pool of potential applicants or how
many applicants actually put in for each of these jobs. Nor was
any mention made of whether the discriminatees would have
been likely to get the jobs or whether the jobs would have been
comparable to the wages, hours, and commutes they had be-
fore. No analysis was done on how specific discriminatees
would have fared in their applications; indeed, attempting to
determine this appears to be an impossible task.
The Board has recognized the inherent difficulty of using
want ads to evaluate whether discriminatees have made reason-
able efforts to seek interim employment and, accordingly, has
found such ads to be of little probative value. Thus, in Airport
Services Lines, 231 NLRB 1272 (1977), the Board stated,
“[T]he newspaper want ads did not establish that the jobs
would have been available if [discriminatee] applied or that
[discriminatees] would have been selected for any available
positions.” 231 NLRB at 1273; see also Florence Printing Co.,
158 NLRB 775, 777 (1966), enfd. 376 F.2d 216 (4th Cir. 1967),
cert. denied 389 U.S. 840 (1967).
Taking all of the above factors into account, I conclude that
Dr. Cohen’s report and testimony were insufficient to meet the
Respondent’s burden of demonstrating that the discriminatees
as a group failed to seek work with reasonable diligence.
2. The actions of individual discriminatees
The Respondent contends that Langdon’s and most other dis-
criminatees’ reliance on the list for extended periods of time
did not constitute a reasonably diligent work search.
The Respondent first claims that the Union did not operate a
true hiring hall. However, it offered no evidence to support this
bald assertion, and the State of Indiana recognizes the Union’s
out-of-work list as a bona fide means of seeking employment.
Consistent with the State’s policy, the Board has held that seek-
ing employment through a union’s normal referral system evi-
dences a reasonably diligent search. Big Three Industrial Gas,
263 NLRB 1189, 1198 (1982); Seafarers Atlantic District
(Isthmian Line), 220 NLRB 698, 699 (1975). See also Moran
Printing, 330 NLRB 376 (1999) (such efforts must be more
than sporadic). In any event, as discussed below, none of the
discriminatees at issue relied exclusively on the list to seek
interim employment.
The Respondent further contends that the decision of certain
discriminatees to “work union” through reliance on the list
breached their duty to mitigate. However, discriminatees are
entitled to fulfill their job search responsibilities as union mem-
bers, and an employer who discriminated against them is es-
topped from raising this as a ground for diminishing backpay
liability. Tulatin Electric, 331 NLRB 36 (2000); Ferguson
Electric Co., 330 NLRB 514 (2000), enfd. 242 F.3d 426 (2d
Cir. 2001).
Turning to specific individuals, Fickas signed the list and ob-
tained two jobs, one through the list. He also searched the clas-
sified ads and applied for various positions. Harris sought em-
ployment through the list, through which he secured three jobs.
He also sought work on his own, leading to jobs at three other
companies. In addition, he submitted applications to jobs that
he did not obtain. Langdon signed the list and accepted six
different jobs through the union hall during 1998 alone, one of
which was an assignment that lasted 6 months. Leinenbach
made numerous job applications through the State and on his
own, and in 1999, worked each quarter for one employer. Tay-
lor sought employment through the list and the State unem-
ployment office. The Union helped him obtain one job, and he
applied for several other positions, both through the State ser-
vice and independently. Underhill was on the list and during
the backpay period returned to work for a previous employer.
Wyatt sought work through the list, through which he obtained
a job, and he made many applications for employment on his
own.
Based on the above, I conclude that Fickas, Harris, Langdon,
Leinenbach, Taylor, Underhill, and Wyatt made reasonably
diligent efforts to obtain interim employment and that the Re-
spondent has failed to meet its burden of showing that they
failed to mitigate damages.
With respect to Carter, the Respondent first contends that his
self-employment effectively removed him from the job market
and amounted to a willful loss of earnings, thereby disqualify-
ing him from backpay. Legal precedent is clearly to the con-
trary. See Cassis Management Corp., 336 NLRB 961 (2001);
Performance Friction Corp., 335 NLRB 1117 (2001); Fugazy
Continental Corp., 276 NLRB 1334, 1338 (1985), enfd. 817
F.2d 979 (2d Cir. 1987). The Respondent has therefore failed
to satisfy its burden of proving Carter did not make a reasona-
bly diligent search.
The Respondent raises an additional issue with regard to its
backpay liability to Carter for 1998. That year, Carter pur-
chased major equipment for his business. In calculating
Carter’s interim earnings in 1998, consistent with its methodol-
MIDWESTERN PERSONNEL SERVICES
635
ogy in general in formulating the backpay specification, the
General Counsel relied on income tax returns. The Respondent
has conceded the validity of this methodology.
The general rule is that a discriminatee’s net earnings in his
or her own business are treated as normal interim earnings.6
California Dental Care, 281 NLRB 578 (1986); Heinrich Mo-
tors, 166 NLRB 783 (1967), enfd. 403 F.2d 145,148 (2d Cir.
1968). The Respondent contends that the money Carter spent
on major equipment in 1998 should be treated as net earnings
and, hence, as interim earnings. However, the Respondent has
not offered any Board or court precedent for this proposition.
There is no evidence that but for the unlawful layoff, Carter
would have gone into his business, as a result of which he in-
curred those equipment costs. Accordingly, and relying on the
previously-cited presumptions in favor of discriminatees, I
conclude that the Respondent has failed to carry its burden of
proving that equipment costs for Carter’s business venture
should constitute interim earnings.
As to Linendoll, he worked at two jobs he secured through
the list and at four other jobs he obtained on his own. I con-
clude that the Respondent has failed to establish that Linendoll
did not make reasonable efforts to secure interim employment.
There remains the matter of the 3-week vacation he took in the
fourth quarter of 1998.
Nothing in the record suggests that Linendoll had or would
have later received paid vacation benefits in the employ of
MPS.7 Therefore, that 3-week period must be considered time
when he did not seek employment. The Respondent contends
that the entire fourth quarter should be tolled because Linendoll
did not work at all during that quarter. However, the vacation
was only for 3 weeks, and the record does not support a finding
that he removed himself from the job market for the full quar-
ter. Rather, I conclude that it is more appropriate to reduce by
three-thirteenths Linendoll’s gross backpay figure for the fourth
quarter of 1998. An equivalent deduction, with the appropriate
resulting changes to accumulated interest, is reflected in the net
backpay for Linendoll listed in the Order below.
As to Pentecost, the Respondent contends that his failure to
accept employment with a nonunion company and his subse-
quent lengthy period of unemployment establishes he failed to
mitigate. However, Pentecost testified that he did not accept
the position because he anticipated (better paying) union work
would soon be available. He made numerous job applications
and subsequently worked for several companies. I conclude
that the Respondent has not established that he incurred a will-
ful loss of interim earnings by not accepting the nonunion posi-
tion. Cf. Pepsi-Cola Bottling Co. of Fayetteville, 330 NLRB
1043, 1044 (2000). As to Pentecost’s long period of unem-
ployment, the law is settled that long periods of unemployment
or underemployment do not necessarily equate to a showing of
lack of reasonable diligence. McKenzie Engineering, 336
6 There is nothing in the record indicating that he engaged in any
self-employment prior to his layoff, in which event income from his
business would not be deducted from his backpay. See Birch Run
Welding & Fabricating, 286 NLRB 1316 (1987).
7 Contrast, Ironworkers Local 15, 298 NLRB 445 (1990), where the
discriminatee had accrued paid vacation leave.
NLRB 336 (2001); Mining Specialists, 335 NLRB 1275 (2001).
In all of the circumstances, I conclude that the Respondent has
failed to establish that Langdon’s employment search was not
reasonably diligent.
Finally, Williams sought work through the list and secured
jobs on his own. The Respondent contends that Williams’
backpay should be reduced because some of these jobs paid
less than what he had made at MPS. However, there is no duty
upon discriminatees to seek better paying jobs than those they
have actually obtained during the interim earnings period.
Tilden Arms Management Corp., 307 NLRB 13 (1992); Sioux
Falls Stock Yards Co., 236 NLRB 543 (1978). I therefore con-
clude that the Respondent has failed to carry its burden of prov-
ing that Williams failed to make a reasonably diligent search.
CONCLUSION
For the reasons I have stated, I accept the General Counsel’s
final backpay specifications, as modified by its posthearing
brief (at 11−12) in all respects, save the reduction I have set out
to the amount owed to Linendoll.
On the above findings of fact and conclusions of law and on
the entire record, I issue the following recommended8
ORDER
It is hereby ordered that Respondent Midwest Personnel Ser-
vices, Inc., Olive Branch, Mississippi, and Louisville, Ken-
tucky, its officers, agents, successors, and assigns, shall pay the
individuals named below the indicated amounts of total gross
backpay and other reimbursable sums for the period from
March 27, 1998, to December 31, 1999:
Brian Aldridge
$16,422.00
Chris Bolin
8,934.00
William Buzzingham
44,887.00
Wade Carter
37,448.00
Anthony D. Clark
4,722.00
Timothy Cronin
22,437.00
Jerry Fickas
40,646.00
John Fritchley III
13,214.00
Donald Harris
8,773.00
Greg Harris
18,102.00
Michael Herr
5,721.00
Preston Kellams
13,954.00
Henry T. Langdon Jr.
44,555.00
Randy Leinenbach
43,185.00
Robert Linendoll Jr.
24,287.93
Christopher C. Means
36,593.00
Jeffrey Metcalf
21,794.00
Chris Pentecost
53,433.00
Michael Pettit
43,759.00
Scott Taylor
24,421.00
8 If no exceptions are filed as provided by Sec. 102.46 of the Board’s
Rules and Regulations, the findings, conclusions, and recommended
Order shall, as provided in Sec. 102.48 of the Rules, be adopted by the
Board and all objections to them shall be deemed waived for all pur-
poses.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
636
Randal Underhill
30,339.00
Eric Webster
26,648.00
Gary Williams
31,980.00
David Wyatt
33,339.00
TOTAL
$649,593.93