News

🗞️ Six Years and a Federal Court Order Later, a Phoenix Employer Still Hadn't Paid

A Phoenix small business that unlawfully fired a worker was ordered in 2026 to pay nearly $10,000 in backpay after failing to respond at every stage of a multi-year federal enforcement process.

onthelaborfront

14 Apr 2026 — 3 min read

It took a federal appellate court, two default judgments, and more than six years, but the National Labor Relations Board has ordered a Phoenix small business to compensate its former employee for an unlawful termination.

Joanne Raus was fired by The Market by Jennifer's LLC after engaging in what federal labor law calls protected concerted activity, the right of workers, whether unionized or not, to act collectively to improve their working conditions. The NLRB found the termination unlawful and in May 2020 ordered the company to reinstate Raus and compensate her for lost wages. The employer failed to respond to that proceeding, and the Board issued its ruling by default. The Ninth Circuit Court of Appeals enforced the order that July.

A separate dispute then emerged over how much backpay Raus was actually owed. The NLRB's regional office issued a compliance specification in January 2026 laying out the figures in detail and notified the company that a timely response was required. The Market by Jennifer's LLC did not reply. A follow-up letter warning of a default motion went unanswered. A formal Notice to Show Cause from the Board drew no response either.

On April 14, 2026, the Board granted the General Counsel's Motion for Default Judgment, treating all figures in the compliance specification as established fact. The final order requires the company to pay Raus $9,783 in backpay and $65 in expenses, plus interest compounding daily through the date of payment, calculated under the formulas set out in New Horizons, 283 NLRB 1173 (1987) and Kentucky River Medical Center, 356 NLRB 6 (2010). The Board also corrected a $117 arithmetic error in the compliance specification, raising the net backpay figure from the $9,666 originally stated.

Because Raus will receive multiple years of wages in a single payment, the company must also compensate her for any resulting adverse tax consequences and file a report with the regional director allocating the award across the appropriate calendar years. The NLRB's remedial authority does not extend to punitive damages; the agency is limited to making workers whole through backpay, reinstatement, and interest.

The case illustrates how the NLRB's multi-step enforcement process — an initial unfair labor practice finding, appellate court enforcement, and a separate compliance proceeding to determine the exact amount owed — can extend the timeline for resolution when a respondent declines to participate at each stage.

Key Points

Raus was terminated for engaging in protected concerted activity, a right the NLRA extends to both union and non-union workers.
The employer failed to respond twice: first in the original 2020 unfair labor practice proceeding, and again in the 2026 backpay compliance proceeding.
The Ninth Circuit enforced the Board's reinstatement and backpay order in July 2020; a dispute over the backpay amount remained unresolved until 2026.
The Board identified and corrected a $117 arithmetic error in the compliance specification, increasing the backpay award from $9,666 to $9,783.
Interest compounds daily through the date of actual payment, calculated under longstanding NLRB interest formulas.
The company must separately address the adverse tax consequences Raus faces from receiving back wages as a lump sum.
The NLRB has no authority to impose punitive fines; its remedies are confined to make-whole relief including backpay, reinstatement, and interest.