Livonia, MI- Fountain Bleu Health and Rehabilitation Center scored a legal victory as the U.S. Court of Appeals for the Sixth Circuit ruled that the facility did not breach federal law when it unilaterally hiked wages and hired non-union staff during the height of the COVID-19 pandemic. The ruling overturns a prior decision by the National Labor Relations Board (NLRB), which had previously ruled against the nursing home.
Crisis Management or Labor Violation?
The Livonia-based nursing home, grappling with a massive staff shortage in March 2020, took swift action when 75% of its unionized workforce—comprising licensed practical nurses and certified nursing assistants—stopped showing up to work as COVID-19 swept through the facility. In a bid to keep operations afloat and residents safe, Fountain Bleu raised hourly wages by $2 for those treating COVID-positive patients and brought in non-union, non-certified nursing aides under a federal waiver that temporarily eased certification requirements.
Court’s Take
The appeals court acknowledged the extraordinary circumstances, siding with the facility’s decision to act quickly during the crisis. The court noted that Fountain Bleu had kept staff informed about the pay increase and the number of COVID cases among residents, ensuring a degree of transparency.
However, the ruling also flagged the NLRB’s valid concerns that, once the immediate emergency passed, the nursing home should have engaged in bargaining with SEIU Healthcare Michigan, the union representing its workers. The court partially upheld the NLRB’s stance, stating that Fountain Bleu failed to negotiate the long-term impacts of its emergency measures, especially regarding the hiring of non-union workers and the subsequent rollback of the pay increase.
What’s Next?
This ruling is poised to influence how similar disputes are handled in the future, particularly as healthcare facilities weigh operational needs against union obligations during emergencies. Fountain Bleu’s case highlights the delicate balance between protecting residents and respecting labor agreements—a challenge that many long-term care facilities continue to face as they navigate the post-pandemic landscape.
Both healthcare operators and unions are likely to keep a close eye on the implications of this decision, which underscores the importance of communication and negotiation in even the most dire circumstances.