Appeals court rejects RadNet’s attempt to toss labor board ruling over fired union worker
A federal appeals court recently rejected imaging giant RadNet’s attempt to toss a National Labor Relations Board decision pertaining to a fired union worker.
The case dates to 2018 when technologists at affiliated San Fernando Valley Advanced Imaging, Los Angeles, voted to unionize. RadNet allegedly later laid off tech Veronica Atwater in January 2019 without providing notice to the National Union of Healthcare Workers, nor giving opportunity to bargain over the decision.
The union and Atwater subsequently filed a complaint alleging RadNet’s actions violated the law. The National Labor Board agreed, charging the imaging center operator needed to reinstate its former employee. RadNet challenged this decision before the 9th Circuit Court of Appeals, which rejected its request on March 19.
“…RadNet did not reinstate or pay Atwater. Substantial evidence therefore supports the [labor] board’s finding that RadNet breached the settlement agreement,” the decision memo states.
RadNet said Monday it does not comment on pending litigation, while the National Union of Healthcare Workers did not immediately respond to a Radiology Business request for comment.
In a previous 2024 decision, the NLRB ordered RadNet to cease and desist from “failing and refusing to recognize and bargain collectively with the union.” Among other things, it also wanted RadNet to make Atwater “whole” for any lost wages and benefits and remove any reference to her discharge from its files. At the time, the company said it had offered the woman her old position or something equivalent. However, following execution of the settlement agreement, her position ceased being used in the company’s operations.
“RadNet believes the decision that was issued [in 2024] by the NLRB is incorrect because of the fact the dispute was settled,” the company said at the time. “In fact, RadNet entered into a settlement agreement with the NLRB where the agency promised to afford the company an opportunity to present evidence to prove that there was no violation of the settlement agreement. Accordingly, RadNet intends to pursue an appropriate challenge to the NLRB’s decision in the federal court system.”
In this month’s subsequent decision, appeals court judges note that RadNet was to reinstate Atwater and provider her with back pay. The settlement agreement did not condition these actions on any related hearings pertaining to her employment and compliance with company rules. RadNet had sought to reopen the record to introduce evidence of Atwater’s “alleged misconduct on the job,” which may have impacted her ability to be reinstated or collect back pay. But judges rejected these attempts.
“The [labor] board did not abuse its discretion in denying RadNet’s motion to reopen the record to introduce evidence of Atwater’s alleged misconduct,” Thursday’s decision memo states. “RadNet’s newly discovered evidence of Atwater’s alleged misconduct affects the remedy, not its liability, and is more appropriately reserved for a later compliance proceeding.”
RadNet also emphasized in 2024 that the union no longer represents its workers. Nearly 70 Orange County employees originally organized to fight for better pay, “less oppressive workloads” and “respect from their bosses,” Radiology Business reported in 2021. However, RadNet reportedly refused to bargain with them initially, leading to another dispute decided before the NLRB.
Law360 first reported news of the recent ruling on Friday.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.