๐๏ธ NLRB Dismisses Union Petition as North American Security Contract Ends
An NLRB regional director dismissed a union representation petition after finding the employer would cease operations within days, raising unresolved questions about employee rights under the incoming contractor.
On February 24, 2026, NLRB Region 5 Regional Director Sean R. Marshall dismissed a representation petition filed by the Fraternity of American Protective Officers (FAPO) in Case 05-RC-379932, involving security officers employed by North American Security, Inc. at a National Oceanic and Atmospheric Administration (NOAA) facility in College Park, Maryland.
FAPO filed the RC petition on January 27, 2026, seeking to represent full-time and regular part-time security officers and sergeant supervisors at the site. The petition triggered an administrative investigation, which uncovered two decisive facts: North American Security would cease all operations at the facility on or about February 28, 2026, and Golden SVCS, LLC would assume the security services contract beginning March 1, 2026.
On February 6, the Regional Director issued a Notice to Show Cause, directing parties to explain why the petition should not be dismissed. By the February 12 deadline, only the incumbent union โ the International Union, Security, Police and Fire Professionals of America (SPFPA) โ had responded, and it agreed that dismissal was appropriate.
The order rests on the Board's established "imminent cessation" exception to its statutory election mandate under 29 U.S.C. ยง 159(c)(1), which directs the Board to order an election whenever a question of representation exists. As articulated in Retro Environmental Inc., 364 NLRB No. 70 (2016), the Board recognizes a narrow exception when it is "reasonably certain that conducting an election will serve no purpose" โ specifically when an employer completely ceases to operate, sells its operations, or fundamentally changes the nature of its business. That standard traces to earlier precedents including Hughes Aircraft Co., 308 NLRB 82 (1992), and Martin Marietta Aluminum, 214 NLRB 646 (1974). A contemporaneous Region 12 ruling in SolarMovil PR LLC (January 2026) reaffirmed that documented, definite cessation within approximately 90 days satisfies the standard.
The dismissal closes the RC proceeding, but it does not resolve the question of what labor rights, if any, attach to North American Security's employees under Golden SVCS, LLC. Under the Supreme Court's successor employer doctrine established in NLRB v. Burns International Security Services, 406 U.S. 272 (1972), a new employer that hires a majority of its workforce from the predecessor's employees โ and operates the business in substantially the same form โ may be obligated to recognize and bargain with the incumbent union. Whether Golden SVCS qualifies as a Burns successor depends on its actual hiring decisions. If it retains a majority of North American Security's NOAA unit employees, SPFPA's bargaining rights could carry over. If it does not, employees may face a representation gap requiring a new organizing effort.
An additional layer of complexity arises from the history of federal nondisplacement policy. For much of the period between 2009 and 2025, executive orders required successor federal service contractors to offer a right of first refusal to qualified employees of the predecessor contractor. However, as of the date of this decision, no such requirement is in force. The most recent nondisplacement rule โ implementing Executive Order 14055, issued in November 2021 โ was rescinded effective December 22, 2025, following the revocation of its underlying executive order. Absent a contractual or regulatory nondisplacement provision, whether Golden SVCS retains North American Security's employees will turn entirely on its own hiring decisions, which in turn determines whether it triggers successor employer obligations under Burns.
The petition dismissal and the Notice of Representation Hearing are both withdrawn. Parties wishing to seek Board review of the dismissal had until March 10, 2026 to file a request with the NLRB's Executive Secretary.
Key Points
- FAPO filed an RC petition on January 27, 2026 to represent security officers at a NOAA facility in College Park, Maryland
- Administrative investigation found North American Security would cease operations on approximately February 28, 2026, with Golden SVCS, LLC assuming the contract March 1
- Regional Director Marshall applied the Board's narrow "imminent cessation" exception, finding an election would serve no purpose
- Incumbent union SPFPA was the only party to respond to the Notice to Show Cause and agreed the petition should be dismissed
- The order does not address whether Golden SVCS, LLC may constitute a successor employer with a duty to recognize and bargain with SPFPA
- Under NLRB v. Burns International Security Services (1972), successor employer obligations turn on whether a majority of the new workforce is drawn from the predecessor's unit employees
- Federal nondisplacement requirements that previously required successor contractors to offer predecessor employees a right of first refusal are not currently in force, as the most recent implementing rule was rescinded effective December 22, 2025; Golden SVCS's hiring decisions are therefore unconstrained by nondisplacement obligations
- Parties had until March 10, 2026 to seek review before the NLRB's Executive Secretary
Primary Source Author: Sean R. Marshall, Regional Director, NLRB Region 5
Primary Source: North American Security, Inc. and Fraternity of American Protective Officers (FAPO), Case 05-RC-379932, Decision and Order Dismissing Petition and Withdrawing Notice of Representation Hearing (NLRB Region 5, February 24, 2026)
Primary Source Link: https://apps.nlrb.gov/link/document.aspx/09031d45841e0e3b
Supplemental Links
- NLRA Section 9(c)(1) โ Statutory basis for the election mandate (nlrb.gov)
- NLRB Region 5 โ Regional Office (nlrb.gov)
- Retro Environmental Inc., 364 NLRB No. 70 (2016) โ Imminent cessation standard (nlrb.gov)
- SolarMovil PR LLC โ Region 12 imminent cessation ruling, January 2026 (Littler)
- Employer imminent cessation burden of proof analysis (Constangy Brooks)
- NLRB v. Burns International Security Services, 406 U.S. 272 (1972) โ Successor employer doctrine (Justia)
- NLRB โ Successor employer obligations overview (nlrb.gov)
- Nondisplacement of Qualified Workers Under Service Contracts: Rescission of Regulations, effective December 22, 2025 โ Federal Register
- Perfectly clear successor exception โ Ridgewood Health Care Center analysis (National Law Review)