$1.2M NLRB Health Care Center Settlement Underscores Risk of Missteps During Provider Union Organizing

A Colorado health center’s operational changes became a seven-figure labor law lesson. In January 2026, the National Labor Relations Board (NLRB) approved a $1.2 million settlement after finding that several healthcare providers were unlawfully terminated amid a union organizing effort. The case underscores how quickly routine workforce decisions can escalate into significant liability when employee rights under the National Labor Relations Act are not carefully considered.

On January 20, 2026, Region 27 of the NLRB approved an informal settlement agreement totaling approximately $1.2 million in backpay and frontpay to four physicians and one nurse practitioner formerly employed by Peak Vista Community Health Centers in Colorado Springs, Colorado. The settlement resolved 18 unfair labor practice charges filed in August 2024 by the Union of American Physicians and Dentists (UAPD) on behalf of the providers following their terminations.

The UAPD, an affiliate of AFSCME and the AFL-CIO, is the country’s largest bicoastal union representing licensed physicians and advanced practice clinicians, with more than 7,000 members nationwide across private and public sectors.

According to the providers, Peak Vista significantly increased daily patient encounters, reduced patient visit times, and mandated that providers work additional unpaid hours in the summer of 2024.  In August 2024, in response to these changes, more than 90 Peak Vista providers filed a petition to unionize. 

In July and August 2024, the providers alleged they were terminated for collectively protesting and questioning Peak Vista’s newly instituted changes, as well as for their participation in the organizing campaign with the UAPD.  The providers also alleged practices of unlawful surveillance of employees and threats from supervisors in response to the organizing drive.    

In December 2024, the NLRB ruled that the employees were wrongfully terminated and the Health Center appealed the ruling.  On January 13, 2025, an overwhelming majority of providers voted in favor of joining the UAPD.  On January 20, 2026, the parties settled the charges for approximately $1.2 million in lieu of reinstatement to the providers.  Part of the settlement required the Health Center to physically post in its workplaces and electronically distribute to all employees a 2-page notice about the settlement.  In a letter from the Health Center President and CEO, he acknowledged the settlement and “…the importance of having clear organizational understanding of protected and concerted employee activities” and vowed: “[W]e are using this as an opportunity to learn and improve. We are reviewing and refining our internal practices, leadership training and decision-making processes to help ensure collectively as an organization, both employer and employees have a better understanding of employment rights so that our policies and practices are consistent with both our values and our legal responsibilities.”    

Key Takeaways

This case is a reminder that no industry, including health care, is immune from organizing activity or heightened NLRB scrutiny. Employers should carefully evaluate how operational changes, disciplinary actions and communications with employees may intersect with protected concerted activity, particularly during periods of workforce unrest.

Proactive steps include training supervisors on NLRA requirements, reviewing policies and decision-making protocols for compliance and consulting experienced labor counsel before taking adverse action involving employees engaged in collective activity.

If you have questions about this development or would like assistance assessing labor-related risks within your organization, please contact a member of our Workplace Law Group or your regular Smith Anderson attorney.