336 NLRB 271
Caesar's Palace
CAESAR’S PALACE
271
Desert Palace, Inc. d/b/a Caesar’s Palace and Richard
Zollo. Case 28–CA–14240
September 28, 2001
DECISION AND ORDER
BY CHAIRMAN HURTGEN AND MEMBERS
LIEBMAN
AND TRUESDALE
On August 25, 1998, Administrative Law Judge Fre-
derick C. Herzog issued the attached decision. The Re-
spondent filed exceptions and a supporting brief. The
General Counsel filed an answering brief. The Respon-
dent filed a reply 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, findings,1 and conclusions
only to the extent consistent with this Decision and Or-
der.
The judge found that the Respondent violated Section
8(a)(1) by instructing employees not to discuss the Re-
spondent’s ongoing drug investigation with fellow em-
ployees, discharging employees Richard Zollo and Louis
Louft because they discussed the investigation with other
employees, and by interrogating employee Daniel
Miranto concerning whether employees had discussed
the investigation. The Respondent excepts, contending
that its need to maintain the confidentiality of its on-
going drug investigation is a substantial business justifi-
cation that justifies the intrusion on its employees’ exer-
cise of Section 7 rights. For the reasons set forth below,
we find merit in the Respondent’s exceptions.
The Respondent operates a hotel and casino in Las
Vegas, Nevada. In October 1996,2 the Respondent re-
ceived an anonymous letter, which alleged that the Re-
spondent’s employees and management were engaged in
illegal activity. The letter, received by the Respondent’s
director of work place diversity, Anelle Lerner, asserted
that an unnamed slot technician had, inter alia, dealt
drugs on company property, stolen company property,
and threatened the lives of fellow employees. The letter
also alleged that Supervisors Richie Strafella and Dennis
Baker were covering up this illegal activity and retaliat-
ing against employees who complained about the slot
technician. Finally, the letter named 11 slot technicians
who could substantiate the allegations.
1 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.
2 All dates hereafter refer to 1996.
The Respondent believed that the letter was referring
to a slot technician named John Grillo. Assistant Vice
President for Slot Operations John Vidmar, and the Re-
spondent’s director of work place diversity, Anella
Lerner, began their investigation on October 29 by inter-
viewing some of the slot technicians named in the letter,
including Louft and Zollo.3
Louft was informed that the Respondent had received
a letter concerning Grillo, but was not shown a copy of
it. When asked about Grillo’s drug use, Louft stated that
he had heard rumors of it. He was not told which other
employees were involved. Zollo was also asked for his
comments about Grillo without being shown the letter.
According to Vidmar, each employee he interviewed was
given strict instructions not to discuss anything related to
the investigation “with anybody at any time” or “in any
way, shape or form in or out of the work place.” Accord-
ing to Lerner, any employee who violated this prohibi-
tion would be subject to discipline, up to and including
termination. Each employee acknowledged that they un-
derstood the confidential nature of the investigation.
Further, none of them objected to the confidentiality re-
quirement or asked for a clarification. They were told
that if they had any questions or concerns once they left
the interview to contact Vidmar or Lerner.
It is undisputed that during the day following his inter-
view, Zollo commented to other employees that the in-
vestigation “could backfire on them” and that he was
concerned how the employees were selected to be inter-
viewed. Employees Mahler and Martinez responded
with similar comments.
The following day, two supervisors told Vidmar that
Zollo had been observed discussing the Grillo investiga-
tion with employees. Concerned that the Grillo investi-
gation might have been compromised, Vidmar began an
inquiry. Several employees told Vidmar that Zollo had
made comments, without elaboration, about Grillo’s drug
and financial dealings. Vidmar and Lerner also ques-
tioned employee Daniel Miranto about whether employ-
ees had discussed the investigation among themselves.
He was not given any assurances concerning the uses to
which his answers might be put, or about his freedom not
to answer. Vidmar concluded that Zollo had compro-
mised the investigation.
On about November 3, Vidmar received a voice mail
from employee Larry Moss that Louft had disclosed con-
3 Vidmar and Lerner with the assistance of the Respondent’s corpo-
rate security department interviewed slot technicians Moss, Weis-
newski, Mahler, Louft, Zollo, Miranto, and Supervisors DeSantos,
Baker, and Mackey. Subsequently, they spoke to Strafella and Grillo.
336 NLRB No. 19
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
272
fidential information about the investigation. Vidmar then
questioned Moss about his message. Moss said that Louft
had “pushed him” to learn what questions he had been
asked by the Respondent. According to Moss, Louft had
stated that Grillo knew about the investigation. On No-
vember 6, Vidmar terminated both Louft4 and Zollo for
among other things “unauthorized discussions of company
confidential information.” Mahler was suspended for dis-
cussing the investigation with other employees, including
revealing that three employees including Grillo were to be
terminated. Employee Richard Pike was also suspended
for informing Grillo that he was being called back for a
subsequent interview by the Respondent.5
We agree with the judge that employees have a Section
7 right to discuss discipline or disciplinary investigations
involving fellow employees. We also agree that the Re-
spondent’s rule prohibiting discussion of the ongoing drug
investigation adversely affected employees’ exercise of
that right. It does not follow however that the Respon-
dent’s rule is unlawful and cannot be enforced. The issue
is whether the interests of the Respondent’s employees in
discussing this aspect of their terms and conditions of em-
ployment outweighs the Respondent’s asserted legitimate
and substantial business justifications. Jeannette Corp. v.
NLRB, 532 F.2d 916 (3d Cir. 1976).6 As discussed below,
we find that it does not.
To strike a proper balance between the employees’
rights and the Respondent’s business justification, we must
examine the facts of this case in light of the surrounding
circumstances. Accord: Pennsylvania Power Co., 301
NLRB 1104 (1991) (employer’s interest in maintaining
confidentiality in drug program and protecting identity of
informants outweighed union’s interest in specific infor-
mation that led to investigation and discipline of employ-
ees for drug use). Compare Mobile Oil Exploration &
Producing, U.S., Inc., 325 NLRB 176 (1997) (employer
failed to demonstrate substantial confidentiality interest to
4 According to Vidmar, there was a second, independent basis for
Louft’s discharge, namely that he was the partial author of a cartoon
left on a supervisor’s desk the month before.
5 Pike was not, however, disciplined for telling Grillo on October 29,
of the Respondent’s intent to terminate him. Relying on the admission
of Supervisor Baker that, on October 29, Pike told Baker of the investi-
gation and that he had been instructed not to discuss it the judge re-
jected Vidmar’s testimony that Pike did not learn of the confidentiality
rule until October 30.
6 Under Jeannette, once it is established that an employer’s conduct
adversely affects employees’ protected rights, the burden is on the
employer to demonstrate “legitimate and substantial business justifica-
tion” for its conduct. 532 F.2d at 918. It is the responsibility of the
Board to strike the proper balance between the asserted business justifi-
cations and the invasion of employee rights in light of the Act and its
policy. Id.
justify discipline of employee, where target of investiga-
tion had already been informed of investigation).
Here, the Respondent imposed a confidentiality rule
during an investigation of alleged illegal drug activity in
the work place. Because the investigation involved allega-
tions of a management coverup and possible management
retaliation, as well as threats of violence, the Respondent’s
investigating officials sought to impose a confidentiality
rule to ensure that witnesses were not put in danger, that
evidence was not destroyed, and that testimony was not
fabricated. We find that the Respondent has established a
substantial and legitimate business justification for its rule
and that, in the circumstances of this case, this justification
outweighs the rule’s infringement on employees’ rights.
Finally, we find that the judge erroneously relied on the
purported disparate enforcement of the Respondent’s rule,
with respect to other employees who had disregarded in-
structions that the investigation remain confidential. This
case turns not on the issue of pretext─all of the disciplined
employees engaged in activity otherwise protected by Sec-
tion 7─but on the legality of the Respondent’s rule. Al-
though the Respondent disciplined some employees more
severely than others based on their individual circum-
stances (i.e., it discharged Zollo and Louft, but only sus-
pended Pike and Mahler), this action does not suggest that
Respondent’s asserted confidentiality interest was illegiti-
mate or insubstantial.
Accordingly, we find that the Respondent did not vio-
late Section 8(a)(1) of the Act by maintaining and enforc-
ing a confidentiality rule, or by discharging employees
Zollo and Louft for breaching the rule. We further find
that the Respondent did not violate Section 8(a)(1) of the
Act by interrogating employee Miranto about breaches of
that rule.
ORDER
The complaint is dismissed.
Scott Feldman, Atty., for the General Counsel.
Gregory J. Kamer, Atty. and Edwin A. Keller, Atty. (Kamer &
Zucker), of Las Vegas, Nevada, for Respondent.
DECISION
STATEMENT OF THE CASE
FREDERICK C. HERZOG, Administrative Law Judge. This
case was heard by me in Las Vegas, Nevada, on January 15 and
16, 1998,1 and is based on a charge (subsequently amended on
June 3, 1997) filed on March 17, 1997, by Richard Zollo (Zollo),
alleging generally that Desert Palace, Inc., d/b/a Caesar’s Palace
1 On January 13, 1998, the Regional Director for Region 28 issued
his order severing cases, approving withdrawal of charge, dismissing
complaint, and vacating notice of hearing in Case 28–CA–14238. As a
result, when this case came on for trial, I was left only with the allega-
tions and issues framed by the pleadings in Case. 28–CA–14240.
CAESAR’S PALACE
273
(Respondent), committed certain violations of Section 8(a)(1)
of the National Labor Relations Act (the Act). On June 19,
1997, the Regional Director for Region 28 of the National La-
bor Relations Board (the Board) issued a complaint and notice
of hearing alleging violations of Section 8(a)(1) of the Act.
Respondent thereafter filed a timely answer to the allegations
contained within the complaint, denying all wrongdoing.
All parties appeared at the hearing, and were given full op-
portunity to participate, to introduce relevant evidence, to ex-
amine and cross-examine witnesses, to argue orally, and file
briefs. Based on the record, my consideration of the briefs filed
by counsel for the General Counsel and counsel for Respon-
dent, and my observation of the demeanor of the witnesses, I
make the following
FINDINGS OF FACT
I. JURISDICTION
The complaint alleges, and the answer admits, that Respon-
dent is a Nevada corporation, with an office and place of busi-
ness in Las Vegas, Nevada, where at all times material it has
been engaged in the business of a hotel and casino; that during
the 12 months ending March 17, 1997, in the course and con-
duct of its business operations, it purchased and received at its
facility mentioned above goods, products, and materials valued
in excess of $50,000 directly from points outside the State of
Nevada; and that during the same 12-month period it derived
gross revenues therefrom in excess of $100,000.
Accordingly, I find and conclude that Respondent is now, and
at all times material has been, an employer engaged in commerce
within the meaning of Section 2(2), (6), and (7) of the Act.
II. THE ALLEGED UNFAIR LABOR PRACTICES
A. The Issues
It is alleged that on or about October 28, 1996, Respondent
promulgated and enforced a rule prohibiting its employees from
talking among themselves about Respondent’s ongoing investi-
gation of alleged illegal behavior by its employees, in violation of
Section 8(a)(1) of the Act.
It is also alleged that on or about November 6, 1996, by sus-
pending and subsequently terminating Respondent’s employees,
Richard Zollo (Zollo) and Louis Louft (Louft), for discussing the
ongoing investigation in concert with other employees, Respon-
dent violated Section 8(a)(1) of the Act.
The complaint was amended at hearing to allege that Respon-
dent unlawfully interrogated its employees regarding employees’
protected concerted activities, in violation of Section 8(a)(1) of
the Act.
Respondent has denied the commission of any unfair labor
practice.
B. The Evidence
Respondent operates a hotel and casino in Las Vegas, Nevada.
Louft began working for Respondent there as a slot technician
around August 1991. Respondent also employed Zollo as a slot
technician there. Zollo and Louft were both terminated on No-
vember 6.
During the week of October 21, Respondent received an
anonymous letter which made several allegations of misconduct,
allegedly being committed by Respondent’s employees and man-
agement. This letter was received by Respondent’s director of
work place diversity, Anelle Lerner (Lerner). The anonymous
letter identified a slot technician who was engaging in several
types of illegal conduct. This slot technician was later deter-
mined to be employee Grillo. The letter states that the conduct
had been occurring for years. Specifically, the letter stated that
an unnamed slot technician, but apparently referring to an em-
ployee named Grillo, had, inter alia:
threatened the lives of fellow employees;
stolen company property;
dealt drugs on company property;
been arrested and convicted for dealing drugs;
that supervisors Richie Strafella and Dennis Baker were
covering up this illegal conduct;
that when complaints were brought to these supervisors the
slot technician was informed about the complaints; and,
that the supervisors retaliated against employees for com-
plaining about the slot technician.
The letter also named 11 slot technicians who, so the letter
claimed, were aware of the allegations and who could supposedly
confirm the activities of Grillo, Strafella, and Baker.
In October 1996, John Vidmar (Vidmar) was employed as Re-
spondent’s assistant vice president for slot operations. Vidmar
ceased working for Respondent in October 1997. On October 29,
Respondent, through Vidmar and Lerner, began investigating the
letter’s allegations. They were assisted by Glass and Gilespie,
both of the corporate security department. They spoke to some
of the slot technicians named in the letter, including Moss, Weis-
newski, Mahler, Louft, Zollo, Miranto, and Supervisors DeSan-
tos, Baker, and Mackey. Subsequently, they spoke to Strafella
and Grillo. Vidmar arranged interviews by telling Mackey who
he wanted to speak to, but made no mention that the interviews
were to be kept confidential.
Vidmar testified that each person he interviewed was given
strict instructions not to discuss anything related to the investiga-
tion, “in any way, shape or form in or out of the work place,”
with no limitation as to the time the instruction was to apply.
Instead, they “were told not to discuss it with anybody at any
time.”
Lerner testified that any employee who violated this prohibi-
tion would be subject to discipline, up to and including termina-
tion. She also testified that the purpose of the rule was never
explained to employees.
Regarding the interviews of Louft and Zollo, Vidmar testified
that neither was provided, during the interviews, with any confi-
dential information concerning Grillo’s activities. Nor did he
recount any confidential facts disclosed by either employee, as
opposed to expressions of opinion or questions raised by them.
Louft, a credible witness, recalled that he was told about Re-
spondent having received a letter concerning Grillo, but that he
was not shown a copy of it. He credibly testified that he merely
commented in response to a question concerning Grillo’s drug
use that, “I heard rumors of that.” He also recalled denying
whether Dennis Baker was involved. Nor was he told which
other employees were involved.
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
274
Zollo, also a credible witness, recounted how, when asked for
his knowledge of Grillo, he commented that he didn’t know if he
was protected by supervisors and that he didn’t know about it
himself, but he’d wondered about it for years. Like Louft, Zollo
was not shown the letter referred to.
Zollo admitted that, during the day following the interview, he
commented to other employees about his concern that “this [the
investigation] could backfire” on them, and his concern about
how they had been selected to be interviewed. Employees
Mahler and Martinez made similar comments back to him when
they spoke in the Respondent’s breakroom.
About 3 days after his interview Louft was approached by em-
ployee Moss, and informed that three employees had been sus-
pended, and that they would have to pick up their workload.
Moss commented that there was “heavy stuff going down.” Con-
sistent with the prohibition from Respondent, Louft sought to
deflect any further comment, and to just return to work.
Vidmar testified that on October 30 he learned from Supervi-
sors Strafella and Mackey that Zollo had been observed having
conversation in Respondent’s electronics lab with fellow em-
ployees concerning the investigation of Grillo. Vidmar stated
that he then began to investigate whether or not the integrity of
his investigation had been compromised.
This, in turn, led him to be told by several employees that
Zollo had commented about the investigation, i.e., that he’d never
been through this before, and referred, without elaboration, to
drug and financial dealings of Grillo.
Accordingly, so Vidmar testified, he concluded that Zollo had
compromised the investigation.2
Around November 3, Vidmar got a voice mail from Moss in-
dicating that Louft had disclosed confidential information about
the investigation. According to Vidmar, he later interviewed
Moss and was told that Louft had approached Moss and “pushed
him” to learn what questions he’d been asked by Respondent,
and that Louft had commented that Grillo knew about the inves-
tigation.3
On November 6, both Louft and Zollo were terminated by
Vidmar. The reasons given by Respondent for these actions were
largely identical, and included, “Failure to . . . maintain
. . . satisfactory relationships with other employees, including
supervisors; insubordination; false statements; Unauthorized
discussion of company confidential information; Willful neglect,
disregard, or a violation of any company policy, procedure or
regulation established within the department assigned.”
Louft was additionally charged with having authored a cartoon
that was left on a supervisor’s desk. Vidmar claimed that
2 Just how it had been “compromised” remains unclear, as neither
Vidmar, nor any of the employees testified that Zollo ever stated any
detail concerning the general subject matter of “drugs.” Yet Vidmar
acknowledged that the mere fact that employees were called into the
office and questioned was not considered confidential. Even supervisor
DeSantos (who was clearly willing to compromise his own credibility
by testifying at variance to the way he testified in a preceding hearing),
could not be induced to go beyond saying that Zollo’s comment about
“drugs” was so general as to possibly apply to even prescription drugs.
3 Moss did not confirm the disclosure of any confidential informa-
tion by Louft, but merely that he’d asked him if he’d been called up-
stairs, and commented that the “shit’s hitting the fan.”
Mackey brought the cartoon to his attention, and that it served as
an independent cause for discharge.4
Louft admitted that he was the partial author of the cartoon,5
but credibly testified that it was done weeks prior to the investi-
gation, while he was discussing Grillo’s alleged favored status
with fellow employees, and was subsequently discarded by him.
He denied any knowledge concerning how it came to be on a
supervisor’s desk weeks later.
Employee Miranto testified that while meeting with Vidmar
and Lerner on October 29, he was questioned concerning accusa-
tions set forth in a letter. In a second meeting he was again ques-
tioned about whether employees has spoken about the letter. He
was not given any assurances concerning the uses to which his
answers might be put, or about his freedom not to answer.
C. Discussion and Conclusions
In Wright Line, 251 NLRB 1083 (1980), enfd. 662 F.2d 899
(1st Cir. 1981), cert. denied 455 U.S. 989 (1982), the Board an-
nounced the following causation test in all cases alleging viola-
tions of Section 8(a)(1) turning on employer motivation.
First, the General Counsel must make a prima facie
showing sufficient to support the inference that protected
conduct was a “motivating factor” in the employer’s deci-
sion.
Second, upon such a showing, the burden shifts to the
employer to demonstrate that the same action would have
taken place even in the absence of the protected conduct.
The U. S. Supreme Court approved and adopted the Board’s
Wright Line test in NLRB v. Transportation Management Corp.,
462 U.S. 393, 399–403 (1983).
In this case I conclude that the General Counsel has made a
strong case that Louft and Zollo were involved in protected activ-
ity preceding their discipline by Respondent. Their credited tes-
timony shows that they spoke of their concerns over Respon-
dent’s investigation, as they were quite obviously concerned over
the possibility of discipline. However, their testimony also
shows, and I find, that neither disclosed any “confidential” in-
formation of Respondent. Consequently,
The fact that they were discharged for the reason set forth in
the complaint cannot be denied in light of the admissions made
by Vidmar and Lerner. Their testimony made it absolutely clear
4 I do not believe this statement by Vidmar. The record contains ex-
amples of other cartoons, drawn by other employees, which are patently
more offensive than that drawn by Louft. Yet, the record discloses that
the drawers of those cartoons were not discharged. Additionally, Vid-
mar testified in a prior proceeding that he learned of the cartoon weeks
before Louft’s termination. If, as claimed, the authorship of the cartoon
was deemed sufficient in itself to warrant discharge, why was no action
taken concerning it until after the outset of Respondent’s investigation
into the letter? I conclude from all this that the cartoon was simply a
make-weight argument used by Respondent to bolster its position.
Such arguments, of course, have the effect, just opposite their intention,
of deepening and widening the trier of fact’s suspicions of intent to
discriminate. They cast a deep shadow over any justifications ad-
vanced concurrently by an employer. That is the effect here.
5 The small, crudely drawn cartoon depicts one person (John?),
standing over a body and admitting to a nearby person (Mitch?) that “I
just killed him.” The punch line is, “That’s O.K., just take me golfing.”
CAESAR’S PALACE
275
that both men were told by Respondent that they could not dis-
close anything about the interviews they were called into by Re-
spondent. These instructions had no limitations placed on them
as to the time they would remain in effect, or as to any circum-
stances which might constitute an exception.
In any listing of legitimate “working conditions” to be dis-
cussed by employees, surely the possibility of making common
cause against the possible threat of discipline is among the fore-
most. It cannot be argued that such conduct is unprotected.
The Board finds that the right of employees to organize for
collective bargaining is a strong Section 7 right, “at the very core
of the purpose for which the NLRB was enacted.” New Process
Co., 290 NLRB 704, 705 (1988). In any litany of the ways in
which employees organize themselves for collective bargaining,
their day-to-day discussions and interchange of ideas must surely
rank very high; for this reason it is regarded as protected activity.
Thus, their efforts to speak with one another, and share informa-
tion concerning those “working conditions” must generally be
regarded as protected as well. Manufacturing Services, 295
NLRB 254, 260 (1989). For example, it is unlawful for an em-
ployer to forbid employees to discuss their wage rates with one
another. Automatic Screw Products, Inc., 306 NLRB 1072
(1992).
An employer may not legally instruct employees to refrain
from discussing matters such as their pay raises, rates of pay, and
seeming inequities, and the like. Brunswick Food & Drug, 284
NLRB 663 (1987). There the Board adopted the findings and
conclusions of law, and provided a remedy for the employer’s
imposition of such restrictions on employees’ free exchange of
information concerning such important aspects of their “wages,
hours and working conditions”. As noted by the administrative
law judge therein, id. at 680:
For years the Board has recognized that to stifle communi-
cation between employees about such matters is to choke
off collective bargaining at its roots.” Salt River Valley Wa-
ter Users Assn. 99 NLRB 849 (1951). . . . The Board has
uniformly held that such action violates the Act. Coosa Val-
ley Convalescent Center, 224 NLRB 1288 at fn. 1 (1976).
Jeannette Corp., 217 NLRB 653 (1975), enfd. 532 F.2d 916
(3d Cir. 1976).
The right of employees to communicate with each other con-
cerning the desirability of organizing is one which is protected by
Section 7 of the Act. For, the effectiveness of organization rights
“depends in some measure on the ability of employees to learn
the advantages and disadvantages of organization from others.
Early in the history of the administration of the Act the Board
recognized the importance of freedom of communication to the
free exercise of organization rights.” (Citation omitted.) Central
Hardware v NLRB, 407 U.S. 539, 543 (1972). “Direct personal
contact is the most truly effective means of communicating not
only the option of collective bargaining, but the most compelling
reasons for exercising that option.” Belcher Towing Co., 256
NLRB 666 (1981).
“No restriction may be placed on the employees’ right to dis-
cuss self-organization among themselves, unless the employer
can demonstrate that a restriction is necessary to maintain pro-
duction or discipline.” (Citation omitted.) NLRB v. Babcock &
Wilcox Co., 351 U.S. 105, 113 (1956). The facility where em-
ployees work has long been recognized as a “place uniquely
appropriate” for exercise of that right of employees. Republic
Aviation Corp. v. NLRB, 324 U.S. 793, 801 fn. 6 (1945). Thus,
absent a valid rule, or special circumstances, employees are pro-
tected in such discussions. Hambre Hombre Enterprises, Inc.,
228 NLRB 136 (1977).
I, therefore, find and conclude that the oral rule promulgated to
employees by the Respondent and which, generally speaking,
prohibited discussion by them of their working conditions, in-
cluding an ongoing investigation which might possibly lead to
disciplinary actions against one of more employees, is invalid,
and is unlawful, as alleged in the complaint. I shall, accordingly,
require that the Respondent rescind such rule, as well as all warn-
ings and discipline administered on the basis of its existence.
The Respondent’s actions in warning and discharging its em-
ployees, Zollo and Louft, were predicated on the validity of a rule
that was clearly anything but valid. It follows that the “rule,”
whatever its wording, must be rescinded, and that their discipline,
including their terminations, must be revoked.
Thus, based on the admissions of Vidmar and Lerner and my
findings that both Louft and Zollo testified credibly, I have con-
cluded that the Respondent violated Section 8(a)(1) on when it
discharged Louft and Zollo for having violated its instructions
not to discuss or disclose the investigation it was conducting. Cf.
Mobil Oil Exploration & Producing, U.S., 325 NLRB 176
(1997).
I further note that Respondent has made substantial efforts to
point out or to prove the existence of valid business justification,
which might privilege such attempts by it to stifle communication
between employees concerning matters of such import to them.
However, where an employer disparately enforces even a valid
rule, it violates Section 8(a)(1). South Nassau Communities Hos-
pital, 274 NLRB 1181, 1182 (1985). Here, it is shown that Re-
spondent disparately enforced its own rule against disclosure.
Unlike Zollo and Louft, Vidmar chose to give a far lesser pun-
ishment to employee Mahler, based on his assessment that
Mahler had a mere passive role in disclosure. However, Respon-
dent’s own witnesses in this proceeding showed that it was
Mahler who disclosed information. For example, employee Pike
testified that it was Mahler who revealed that three employees
were to be terminated, including one of those under investigation,
Grillo. For another example, Pike not only disclosed confidential
matters, he did so to the very subject of the investigation, when,
upon learning of Respondent’s intent to terminate Grillo on Oc-
tober 29, he telephoned Grillo and told him of what he’d learned.
Despite this clear evidence of far greater disobedience to the rule
by both Mahler and Pike, neither was terminated. Indeed, Pike
was not disciplined in any way for having contacted Grillo on
October 29.6
6 Vidmar claimed, as excuse, that Pike didn’t learn until October 30,
of Respondent’s rule against disclosure. That assertion is untrue, how-
ever, as shown by the admission of Supervisor Baker that, on October
29, Pike told him about the investigation, as well as the fact that he’d
been instructed not to discuss it. Thus, it is clear that Pike knew of the
investigation, and of the rule. It is also clear that he ignored that in-
struction, and that Respondent knew of his having done so. The fact
that he was not disciplined at all for this behavior belies Respondent’s
DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD
276
I find that such disparate treatment infects and invalidates the
efforts of Respondent to convince me that it’s actions against
Louft and Zollo were merely justified efforts to protect it’s
legitimate right to carry out an investigation of alleged wrong-
doing.7 Thus, Respondent’s effort to establish a Wright Line
defense is shown to be a pretext, and necessarily means that the
reasons advanced by the employer in justification of its actions
either did not exist or were not in fact relied on, thereby leaving
intact the inference of wrongful motive established by the Gen-
eral Counsel’s prima facie case. International Carolina Glass,
319 NLRB 171 (1995); Limestone Apparel Corp., 255 NLRB
722 (1981), enfd. 704 F. 2d 799 (6th Cir. 1982).
I have great sympathy for Respondent’s legitimate concern
as an employer with maintaining a drug free work environment,
and find myself quite ready to grant great weight to confidenti-
ality efforts aimed at controlling employees who are drug im-
paired. Cf. Mobil Oil, supra. However, especially under the
circumstances of this case, I reject Respondent’s argument that
the Section 7 rights of employees “are far outweighed by the
Employer’s legitimate business concerns.” Here, both Respon-
dent, through Linden, and various employees were shown dur-
ing the course of the trial to have long since had knowledge of
the activities set forth in the letter that sparked the investigation
here. Thus, there was clearly no state of emergency at Respon-
dent’s place of business. Further, when the evidence clearly
showed that the rule of confidentiality had been most egre-
giously breached, and directly to the very subject of the investi-
gation, inexplicably the Respondent disparately took no action
against that offender.
Thus, in my opinion, the record here does not support Re-
spondent’s claim that a special need for the application of such
a rule has been shown. Instead, the need for such a rule can be
made out here only by resort to speculation. This is especially
true in this case, where the rule as announced by Respondent
was completely unlimited in scope and time.
The General Counsel’s prima facie case has been established
in this case by the showing that Zollo and Louft were warned
and discharged pursuant to an invalid and discriminatory ap-
plied rule. The Respondent’s justifications for its actions have
been discredited by me, and, therefore, cannot serve as any
predicate for a defense that the Respondent would have taken
the action against Norman in any event, even absent any pro-
tected activity on her part. Wright Line, supra.
Finally, I find that the allegation that Vidmar and Lerner
unlawfully interrogated an employee, when they questioned
Miranto is supported by the evidence. I credit the testimony of
Miranto fully. There was no warrant for either of them to ques-
tion Miranto without assuring him of the purpose of the question-
ing and that there would be no reprisals against him should he
refrain from answering. Having been called to the seat of author-
ity in the plant, Miranto would reasonably be coerced by the
assertions that it was merely motivated by valid business considerations
when it disciplined employees Louft and Zollo.
7 Further undercutting this argument of Respondent’s is the evidence
that Respondent, through Lerner, had for a long, long time had knowl-
edge of the assertions contained in the letter which set off this investi-
gation. This evidence undercuts any claim by Respondent that it was
acting in a sort of emergency situation.
questions put to him there. New Process Co., 290 NLRB 704
(1988). I so find and conclude.
For all the reasons set forth above, I find and conclude that
counsel for the General Counsel has established the truth of each
of the violations of Section 8(a)(1) which he set out to prove. I
further find and conclude that the Respondent has violated the
Act in each of the ways alleged.
CONCLUSIONS OF LAW
1. Respondent is an employer engaged in commerce within the
meaning of Section 2(2), (6), and (7) of the Act.
2. Respondent violated Section 8(a)(1) of the Act by instruct-
ing employees Zollo, Louft, and others to refrain from discussing
with other employees the investigation which it was conducting.
3. Respondent violated Section 8(a)(1) of the Act by interro-
gating employee Miranto.
4. Respondent violated Section 8(a)(1) of the Act by discharg-
ing its employees, Richard Zollo and Louis Louft, because they
had discussed Respondent’s investigation of other employees
with other employees, an activity entitled to protection under the
Act.
5. The above-unfair labor practices have an effect on com-
merce as defined in the Act.
THE REMEDY
Having found that the Respondent has engaged in certain un-
fair labor practices, I find that it must be ordered to cease and
desist and to take certain affirmative action designed to effectuate
the policies of the Act.
Having found that employees Richard Zollo and Louis Louft
were unlawfully discharged, Respondent is ordered to offer them
immediate reinstatement to their former positions, displacing if
necessary any replacement, or, if not available, to a substantially
equivalent position without loss of seniority and other privileges.
It is further ordered that they each be made whole for lost earning
resulting from their discharges, by payment to each of them of a
sum of money equal to that they would have earned from the date
of their discharge to the date of a bona fide offer of reinstatement,
less net interim earnings during that period. Backpay shall be
computed in the manner prescribed by F. W. Woolworth Co., 90
NLRB 289 (1950), and Florida Steel Corp., 231 NLRB 651
(1977).8 Interest on any such backpay shall be computed as in
New Horizons for the Retarded, 283 NLRB 1173 (1987).
It is further ordered that the Respondent expunge from its re-
cords any references to the discharges mentioned, and provide
both Zollo and Louft written notice of such expunction, and in-
form each of them that the Respondents’ unlawful conduct will
not be used as a basis for further personnel actions against
them.9
[Recommended Order omitted from publication.]
8 See generally Isis Plumbing & Heating Co., 138 NLRB 716
(1962).
9 See Sterling Sugars, Inc., 261 NLRB 472 (1982).