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National Labor Relations Board v. Eastown Distributors, Co.
Citation: 16 F. App'x 346Docket: No. 01-1255
Court: Court of Appeals for the Sixth Circuit; July 16, 2001; Federal Appellate Court
The court's Consent Judgment mandates Eastown Distributors, Co. and its affiliates to take specific actions to comply with the National Labor Relations Board's (NLRB) directives. Key provisions include: 1. **Compensation**: Eastown must compensate the claimants listed in Exhibit F for losses incurred, as detailed in the corresponding amounts, via installment payments. 2. **Payment Schedule**: Installment payments are to be made to the NLRB’s Regional Office on the following dates: December 29, 2000, and annually on December 21 from 2001 to 2006. 3. **Payment Structure**: Individual checks for claimants will be issued, with early payments before December 21, 2003, treated as interest (not subject to payroll taxes). Payments from December 21, 2003, onward will be divided into backpay and interest, with appropriate tax deductions applied to the backpay. 4. **Tax Deductions**: Normal payroll deductions for various taxes will be taken from the backpay portion, while no deductions will be made from the interest portion. A list of these deductions must accompany each check. 5. **Grace Period for Payments**: If any payment is missed, Eastown has a 15-day grace period to remedy the default. Failure to pay within this period will trigger acceleration of the full remaining balance due, which the NLRB can then pursue for collection, with added interest from the date of default. 6. **Prior Payments**: Eastown has already made the required December 29, 2000, installment payment and completed a separate $250,000 payment to employees in November 2000. These actions aim to ensure compliance with the National Labor Relations Act and to uphold the rights of the affected employees.