Feds to Seek Contempt Damages for Covenant House NY’s “Contumacious” Labor Violations

Last week, the NLRB asked the Second Circuit Court of Appeals to put Covenant House New York’s appeal of a 2025 injunction on hold while it seeks contempt damages for Covenant House’s “contumacious violations” of the injunction.

U.S. District Judge Ronnie Abrams issued the preliminary injunction in September 2025 requiring Covenant House to bargain in good faith, provide withheld information to the union (1199SEIU), cease making threats of discipline for union activity, and file monthly bargaining reports. Shortly after the injunction was issued, NLRB Administrative Law Judge Lauren Esposito issued her order finding that Covenant House refused to bargain in good faith, refused to provide legally required information to the union, and engaged in coercive conduct toward employees for engaging in protected union activity. 

In July 2022, about 190 workers employed at Covenant House locations in Manhattan and the Bronx overwhelmingly voted to form their own union with 1199SEIU. Over the next nine months, Covenant House staff formed a rank-and-file bargaining committee, held union meetings, conducted contract surveys, and requested legally required information from management necessary to negotiate their first contract.

“Instead of respectfully and lawfully meeting their employees at the negotiating table to settle a fair first contract, Covenant House has stalled, withheld basic information, and threatened, disciplined and even terminated employees for their union activity–even while under a federal court injunction,” said 1199SEIU Executive Vice President Leigh Howard. “As a taxpayer-funded organization and New York City’s largest provider of shelter and healthcare for unhoused youth, Covenant House and its leadership should be ashamed to act with such disregard for its employees, the law, and the authority of a federal judge.” Read more here and in amNY.