As you recall, the Ferrone Law Group (FLG) was successful in Compton Firefighters, IAFF Local 2216 v. City of Compton (2023), in obtaining historic remedies including reimbursement to Local 2216 for collecting bargaining costs, time spent by the bargaining team attending bargaining sessions, and litigation expenses for the time spent litigating the matter before PERB. PERB continues to breathe life into the collective bargaining statute, setting forth meaningful consequence for a party found to be in violations.
On February 21, 2024, PERB issued its decision in Teamsters Local 542 v. El Centro Regional Medical Center (2024), stating “we have determined that compound daily interest, rather than the rate of simple interest at seven percent per annum, is appropriate in this case and all future cases where interest is awarded.” Any instance in which PERB orders back pay, or other monetary damages, will now require the payment of compounding interest.
This significantly enhances the liability to the losing party—simple interest is interest calculated on the amount due, while compounding interest includes interest on both the amount due and the interest that accrues. This change will incentives parties to remain in compliance with the law, and not engage in unfair labor practices. Notably, the decision introduces a significant policy shift to actually enforce so-called “make-whole” remedies; the change aims to better compensate affected employees, aligning with the Board’s commitment to ensure justice and deter future unfair practices.
