Federal Court Blocks New York Labor Law Targeting Amazon as NLRB Stalls

A recent federal court ruling has paused New York’s attempt to enforce a new labor law aimed at addressing delays at the National Labor Relations Board (NLRB). The law, signed in September, empowered the state’s Public Employment Relations Board (PERB) to take on private-sector labor cases. But Amazon, facing a union-related case at its Staten Island facility, successfully argued that the law overstepped federal authority.

For insurance claims professionals, the decision highlights a critical tension in labor oversight that could affect how companies manage workforce disputes, regulatory compliance, and union activities. With the NLRB struggling to function due to political shifts and staffing gaps, states are attempting to intervene—but as this ruling shows, those moves may not hold under federal scrutiny.

Claims adjusters working with employers in high-labor-risk sectors, including warehousing and logistics, should pay close attention. Legal fragmentation between federal and state bodies could complicate the resolution of employment-related claims, particularly those involving terminations, union grievances, or retaliatory conduct. Understanding how jurisdictional disputes unfold will be essential for evaluating employer liability, handling EPL claims, and navigating regulatory environments across state lines.