Labor Law – LMRA – Deduction of Workmen’s Compensation from Employer’s Back Pay Liability

The National Labor Relations Board found that the Moss Planing Mill Company had committed an unfair labor practice in discharging an employee for his union activities. The company’s secretary-treasurer also had battered the employee, inflicting injury, at the time of the discharge. Pursuant to section 10 (c) of the amended National Labor Relations Act, the Board ordered the company to reinstate the employee and make him whole for back pay lost due to the unfair discharge. The order was enforced by the court of appeals. In a supplemental order specifying the amount of back pay to be awarded, the Board refused to deduct the sum of $432 which the employee had received for incapacity from the injury under North Carolina’s workmen’s compensation law. On a motion to amend the enforcement decree, held, the Board’s supplemental order set aside and remanded for new computation with deduction of the $432. Workmen’s compensation benefits paid by the employer’s insurance carrier are in discharge of the employer’s statutory obligation to compensate the employee for injuries arising out of employment and, as such, are direct benefits to be deducted from the employer’s gross back pay liability. Failure to deduct them would make the employee more than whole at the expense of the employer. NLRB v. Moss Planing Mill Co., (4th Cir. 1955) 224 F. (2d) 702.