NLRB Sues to Assert Preemption Over New York Labor Board Law (1)

The National Labor Relations Board sued New York to block its new law asserting state authority over private-sector labor disputes.

The complaint, filed in US District Court for the Northern District of New York, alleges the measure signed into law Sept. 5 is preempted under the National Labor Relations Act and “unlawfully usurps” the NLRB’s authority. The law declares private-sector employees within the scope of the state’s Labor Relations Act, unless the NLRB “successfully asserts jurisdiction” via federal court order over “any employees, employer, trades, or industries.”

The statute creates a “parallel” regulatory system that “undermines” federal labor law passed by Congress, the complaint said.

This unusual NLRB court challenge to a state labor law could color approaches to similar bills in California and Massachusetts that would also empower state boards to adjudicate private industry labor fights. The measures stem from the current lack of quorum on the NLRB, which puts limits on its ability to hear certain labor disputes.

President Donald Trump fired Democratic member Gwynne Wilcox in January and Chair Marvin Kaplan left at the end of his term last month, leaving the board with only one member.

Without a quorum, the board can’t issue final decisions or rulemakings, but agency staff and administrative law judges are able to resolve many disputes.

William Cowen, acting general counsel of the NLRB, said in an interview with Bloomberg Law that a state-by-state patchwork of jurisdiction that’s begun to emerge in the New York statute will undermine federal labor law.

“The enactment of S.8034A creates an instant conflict with the federal scheme because it disrupts the NLRB’s exclusive authority to regulate most private sector labor relations,” Monday’s complaint argued.

The lawsuit seeks a declaratory judgment that New York’s statute is unlawful and an order to block its implementation.

The NLRB is represented by agency attorneys.

New York Gov. Kathy Hochul’s office and the legislation’s sponsors didn’t immediately respond to request for comment.

The case is NLRB v. State of New York, N.D.N.Y., No. 1:25-cv-1283, complaint filed 9/15/25.