Crozer Health must disclose part of its sale agreement with Prospect Medical Holdings to its nurses union, a federal appeals court ruled, invalidating the National Labor Relations Board’s mandate to disclose the entire agreement.
When the Pennsylvania Association of Staff Nurses and Allied Professionals learned that Los Angeles-based Prospect planned to acquire the four-hospital system in Pennsylvania, the union petitioned for a full copy of the definitive agreement to learn how it would impact the employees it represents. The 3rd U.S. Circuit Court of Appeals, in a 2-1 vote, granted partial access to the agreement after finding that Crozer violated federal law by not disclosing parts of it, but also that the request for the entire document was overreaching.
The decision set the precedent that employers aren’t obligated to send unions information that hasn’t been proven relevant. The NLRB’s demand to disclose the entire agreement, including attachments and schedules Crozer