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LABOR BOARD V. GULLETT GIN CO., 340 U. S. 361 (1951)

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U.S. Supreme Court

Labor Board v. Gullett Gin Co., 340 U.S. 361 (1951)

National Labor Relations Board v. Gullett Gin Co.

No. 122

Argued November 29, 1950

Decided January 15, 1951

340 U.S. 361

Syllabus

Under § 10(c) of the National Labor Relations Act, as amended by the Labor Management Relations Act, 1947, the Board did not exceed its power or abuse its discretion in refusing to deduct sums paid to employees as unemployment compensation by a state agency when the Board found that they were discharged in violation of the Act and ordered their reinstatement with back pay. Pp. 340 U. S. 362-366.

(a) Since no consideration is given to collateral losses in ordering reimbursement of wrongfully discharged employees for their lost earnings, no consideration need be given to collateral benefits which they may have received. P. 340 U. S. 364.

(b) Unemployment compensation payments made by a state out of funds derived from taxation are collateral benefits, since they were not made to discharge any liability or obligation of the employer, but to carry out a policy of social betterment for the benefit of the entire state. Pp. 340 U. S. 364-365.

(c) A different result is not required by the fact that, under the state law, the unemployment compensation payments incidentally affect adversely the employer's experience rating record, and prevent him from qualifying for a lower tax rate. P. 340 U. S. 365.

(d) The conclusion here reached is supported by the fact that the Board had for many years been following the practice of disallowing deductions for collateral benefits such as unemployment compensation, and Congress did not require any change in that practice when it amended the National Labor Relations Act in 1947. Pp. 340 U. S. 365-366.

179 F.2d 499, reversed.

The case is stated in the opinion. The judgment below is reversed, p. 340 U. S. 366. chanroblesvirtualawlibrary

Page 340 U. S. 362





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