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On December 1, 2016, Parker Hannifin Corporation and CLARCOR Inc. announced that the companies have entered into a definitive agreement under which Parker will acquire CLARCOR for approximately $4.3 billion in cash, including the assumption of net debt. The transaction has been unanimously approved by the board of directors of each company. Upon closing of the transaction, expected to be completed by or during the first quarter of Parker’s fiscal year 2018, CLARCOR will be combined with Parker’s Filtration Group to form a leading and diverse global filtration business. Bass, Berry & Sims has served CLARCOR as primary corporate and securities counsel for 10 years and served as lead counsel on this transaction. Read more here.

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Securities Law Exchange BlogSecurities Law Exchange blog offers insight on the latest legal and regulatory developments affecting publicly traded companies. It focuses on a wide variety of topics including regulation and reporting updates, public company advisory topics, IPO readiness and exchange updates including IPO announcements, M&A trends and deal news.

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Labor Talk Blog: Terminated Employee Entitled to Union Representation Prior to Taking Reasonable Suspicion Drug Test

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September 22, 2014

The National Labor Relations Board (NLRB), in agreeing with an administrative law judge's (ALJ) April 2013 ruling, has held that suspending and discharging a union member for refusing a drug and alcohol test after the employee demanded union representation is a direct violation of the National Labor Relations Act (NLRA).

In Ralphs Grocery Co., 361 NLRB No. 9 (2014), coworkers observed the employee displaying unusual behavior, such as slurring his words and having difficulty operating the computer. Based on these observations, the employee was ordered to submit to a drug and alcohol test. The employee requested a union representative, but was told that he did not have this right. The employee attempted to contact a union representative or alternate steward regardless, but was unable to reach anyone. The employee again refused to submit to the test, despite warnings that his refusal would lead to discharge under Ralphs Grocery Company's (Ralphs) drug/alcohol testing policy, and he was ultimately terminated.

Ralphs insisted that the employee's refusal to submit to the testing was insubordinate and amounted to an automatic positive test result under its drug/alcohol testing policy, and this was a complete defense in the case. Ralphs also argued that it was not required to postpone its investigation because the employee could not contact a representative.

Both the NLRB and the ALJ held that the drug and alcohol test trigger the employee's Weingarten rights, which were established by a 1975 U.S. Supreme Court decision allowing employees to insist on having a union representative present for any investigatory interview that the employee reasonably believes could lead to disciplinary action. The NLRB and the ALJ determined that the employee's discharge was a direct result of his invocation of his Weingarten rights, and not because Ralphs believed the employee to be intoxicated.

While employers may institute policies calling for an employee's discharge for refusing to submit to a drug/alcohol test, this decision underscores the importance of recognizing an employee's attempt at exercising his/her union rights. Managers also should make record of any observed behavior indicating intoxication or illegal drug use as a means to support any actions in the wake of an unfair labor practice claim.

For more Labor and Employment information, visit www.BassBerryLaborTalk.com.


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