Creative Vision Res., L.L.C. v. Nat'l Labor Relations Bd. , 882 F.3d 510 ( 2018 )


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  •      Case: 16-60715    Document: 00514347767    Page: 1   Date Filed: 02/14/2018
    IN THE UNITED STATES COURT OF APPEALS
    FOR THE FIFTH CIRCUIT
    United States Court of Appeals
    No. 16-60715
    Fifth Circuit
    FILED
    February 14, 2018
    CREATIVE VISION RESOURCES, L.L.C.,                             Lyle W. Cayce
    Clerk
    Petitioner Cross-Respondent
    v.
    NATIONAL LABOR RELATIONS BOARD,
    Respondent Cross-Petitioner
    On Petitions for Review and Cross-Application
    for Enforcement of an Order of the
    National Labor Relations Board
    Before KING, PRADO, and SOUTHWICK, Circuit Judges.
    KING, Circuit Judge:
    The opinion previously issued in this case is withdrawn, and the
    following opinion is substituted therefor:
    Creative Vision Resources, L.L.C., succeeded another company as the
    staffing provider for garbage trucks in New Orleans. It set its own initial terms
    and conditions of employment instead of bargaining with the incumbent union.
    The union filed an unfair-labor-practice charge against Creative, alleging
    violations under Section 8(a) of the National Labor Relations Act. The
    administrative law judge concluded, among other things, that Creative was not
    a “perfectly clear” successor and accordingly was within its right to set initial
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    terms and conditions. The National Labor Relations Board reversed. Creative
    petitions this court for review, while the Board seeks enforcement of its order.
    We deny Creative’s petition and grant the Board’s petition to enforce.
    I.   FACTUAL AND PROCEDURAL BACKGROUND 1
    Richard’s Disposal is a trash-collection company in the greater New
    Orleans area. Since 2007, Local 100, United Labor Unions has represented the
    “hoppers” who ride on the back of Richard’s Disposal’s garbage trucks and pick
    up trash cans. Until early June 2011, the hoppers were employed by a labor-
    supply company called Berry III.
    Dissatisfied with Berry III’s management practices, Richard’s Disposal’s
    vice president, Alvin Richard III, decided to form Creative Vision Resources,
    L.L.C. (“Creative”), to become the new hopper supplier. These unsatisfactory
    practices, according to the Board’s decision, included Berry III’s “treatment of
    the hoppers as independent contractors,” which meant “Berry III paid the
    hoppers a flat rate of $103 per day with no overtime, and made no deductions
    for taxes or social security.”
    To prepare for the transition from Berry III to Creative, which was
    scheduled to take place on May 20, 2011, Richard prepared an employee
    handbook and safety manual. He also put together employment applications,
    which, along with federal and state tax forms, were to be distributed to current
    Berry III hoppers. Richard then personally distributed these applications
    along with tax forms to about 20 hoppers. He informed them that joining
    Creative would mean changes in the terms and conditions of their employment,
    including $11-per-hour pay with overtime and the deduction of taxes and social
    security from their paychecks.
    1We draw most of our discussion of the history of the dispute from the decisions of the
    Board and the administrative law judge. See Creative Vision Res., LLC, 364 N.L.R.B. No. 91
    (2016).
    2
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    Richard also asked a Berry III hopper named Eldridge Flagge to help
    him pass out applications. Flagge passed out approximately 50 applications
    and tax forms between mid-May and June 1. Richard testified that he told
    Flagge of the new terms and conditions; Flagge denied he was told and testified
    he did not tell the hoppers of the changes in the prospective terms of
    employment.
    Regardless, some of the hoppers learned of the changed terms. One
    hopper, Anthony Taylor, testified that the hoppers knew of the new pay rate
    before June 2 because “we all congregate out there in the morning. We been
    knowing that.” A Union official also testified that at least one hopper asked her
    about the $11-per-hour pay rate. When she asked who told them about the pay
    cut, “they said they just hear it. They had not heard from any authorized
    personnel.”
    Relevant here, Creative’s employee-selection process was not rigorous.
    Once Berry III hoppers filled out the application and tax forms, they were
    hired. Creative did not interview candidates, review qualifications, or check
    references. Rather, Richard acknowledged that he (and thus Creative)
    intended to offer a job to any Berry III hopper who applied.
    No transition occurred on May 20 because Creative had not received
    enough applications to fully staff its operations. By June 1, though, Creative
    had about 70 completed applications from the Berry III hoppers. At this point,
    Richard’s Disposal cancelled its contract with Berry III. Creative was to start
    as the new hopper supplier the next day. As the Board found, Creative directly
    told the hoppers about the new terms on the morning of June 2:
    At approximately 4 a.m., the hoppers assembled in the yard as
    usual, to await assignment to a truck. They were met by former
    Berry III supervisor, Karen Jackson, whom Richard had hired on
    June 1. Jackson informed all of the hoppers present that “[t]oday
    is the day you start working under Creative Vision.” Jackson then
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    explained to them the terms under which they would be working,
    including, among other things, the $11-per-hour pay rate, the
    deduction of Federal and State taxes, and a number of new
    employment standards and safety rules. Some of the hoppers
    refused to work upon learning of the new terms. A sufficient
    number of hoppers remained, however, to staff the trucks. Thus,
    on its first day of operations, [Creative] supplied 44 hoppers to
    Richard’s Disposal, all of whom were formerly employed by
    Berry III.
    Two days later, on June 4, Creative distributed an employee handbook
    setting out new rules and employment standards. Then, on June 6, after
    learning that Creative had replaced Berry III and retained the incumbent
    employees, the Union hand delivered a letter to Creative demanding that it
    recognize the Union as the hoppers’ exclusive representative for collective-
    bargaining purposes. Creative did not reply.
    Shortly thereafter, the Union filed an unfair-labor-practice charge
    against Creative. Acting on behalf of the Board’s Acting General Counsel, a
    Board Regional Director investigated and issued a complaint in March 2012.
    The dispute proceeded to a two-day trial, after which the administrative law
    judge (“ALJ”) concluded that Creative violated subsections 8(a)(1) and (5) of
    the National Labor Relations Act (the “Act”) by refusing to recognize the Union.
    He also concluded that Creative was not a perfectly clear successor because it
    “did not fail to communicate candidly with the hoppers” about its intent to set
    initial terms. As such, Creative did not violate the Act by setting initial terms.
    In making this determination, the ALJ relied on the fact that Richard
    communicated the initial terms of employment to approximately 20 hoppers in
    May and that a rumor spread among the hoppers that Creative would be
    paying $11 per hour. The ALJ also heavily relied on Creative’s June 2
    announcement of initial terms to the hoppers who were assembled for work
    and were awaiting assignment.
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    The Board disagreed with the ALJ in part. It upheld the ALJ’s finding
    that Creative was a successor and therefore violated subsections 8(a)(1) and (5)
    by refusing to recognize and bargain with the Union. It also concluded that
    Creative was a perfectly clear successor and had violated the Act by
    unilaterally imposing initial terms and conditions of employment. In its
    analysis, the Board looked only to Creative’s communications on or before
    June 1, concluding the June 2 announcement was untimely. The Board
    concluded    that    Creative’s    pre-June      2      communications—Richard’s
    communication of new terms to 20 hoppers, the rumors that reached an
    unknown number of hoppers, and the inclusion of tax forms with the
    applications—were insufficient. The Board concluded that the limited notice
    from these communications “did not negate the inference of probable
    continuity of employment of the remaining 50 Berry III hopper applicants, who
    lacked knowledge that their wages and benefits would be reduced.”
    One Board member dissented. He concluded that the hoppers were not
    formally hired until June 2, when they boarded the trucks, so he would have
    “examine[d] what [Creative] communicated to the hoppers on or before June 2.”
    To him, then, the 4:00 a.m. June 2 meeting was enough to give notice of new
    terms of employment. Even if it were not, though, the tax forms attached to
    the applications were sufficient in his view because the hoppers did not pay
    income taxes when employed by Berry III. Finally, Creative’s bargaining
    obligation was not triggered, and it could therefore unilaterally set new terms
    of employment, until June 6, the date the Union made its bargaining demand.
    Creative now petitions this court for review, while the Board seeks to
    have its order enforced. Creative does not contest the Board’s holding that
    Creative violated subsections 8(a)(1) and (5) of the Act by refusing to recognize
    and bargain with the Union. “[W]hen an employer does not challenge a finding
    of the Board, the unchallenged issue is waived on appeal, entitling the Board
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    to summary enforcement.” Sara Lee Bakery Grp. v. NLRB, 
    514 F.3d 422
    , 429
    (5th Cir. 2008). Thus, the Board is entitled to summary enforcement of the
    uncontested parts of its order.
    II.    DISCUSSION
    Creative makes three main arguments, two of which relate to the
    applicability of the perfectly clear successor doctrine. Creative first argues the
    Board erred by concluding Creative was a perfectly clear successor and thus
    could not set initial terms and conditions of employment without bargaining
    with the Union. Creative next argues that it did not violate its bargaining
    obligation because at the time Creative unilaterally set terms, the Union had
    not sent a bargaining demand. Finally, it argues that the complaint against it,
    issued on behalf of the Board’s former Acting General Counsel, was invalid.
    We review the Board’s “legal conclusions de novo and its ‘factual findings
    under a substantial evidence standard.’” Flex Frac Logistics, L.L.C. v. NLRB,
    
    746 F.3d 205
    , 207 (5th Cir. 2014) (quoting Sara Lee 
    Bakery, 514 F.3d at 428
    ).
    “Substantial evidence is that which is relevant and sufficient for a reasonable
    mind to accept as adequate to support a conclusion. It is more than a mere
    scintilla, and less than a preponderance.” El Paso Elec. Co. v. NLRB, 
    681 F.3d 651
    , 656 (5th Cir. 2012) (emphasis removed). “We may not reweigh the
    evidence, try the case de novo, or substitute our judgment for that of the Board,
    ‘even if the evidence preponderates against the [Board’s] decision.’” 
    Id. (quoting Brown
    v. Apfel, 
    192 F.3d 492
    , 496 (5th Cir. 1999)). This does not mean our
    review is pro forma (i.e., it is not merely a “rubber stamp”). NLRB v. Arkema,
    Inc., 
    710 F.3d 308
    , 314 (5th Cir. 2013). We must find the supportive evidence
    to be substantial. 
    Id. at 314–15.
    On the law, the Board’s “interpretation of the
    NLRA will be upheld ‘so long as it is rational and consistent with the Act.’”
    D.R. Horton, Inc. v. NLRB, 
    737 F.3d 344
    , 349 (5th Cir. 2013) (quoting Litton
    Fin. Printing Div. v. NLRB, 
    501 U.S. 190
    , 201 (1991)).
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    a. “Perfectly Clear” Successor
    We begin our analysis of whether Creative was a perfectly clear
    successor with the relevant statutory language. Section 8(a) of the Act provides
    that “[i]t shall be an unfair labor practice for an employer . . . to interfere with”
    or “restrain” protected union and organization rights or “to refuse to bargain
    collectively with the representatives of his employees.” 29 U.S.C. § 158(a)(1),
    (5). The employees’ representative is determined by a “majority of the
    employees” in the appropriate bargaining unit. 
    Id. § 159(a).
    Under the Act,
    when an employer qualifies as a “successor” to another, it is “bound to
    recognize and bargain with the union” that represented its predecessor’s
    employees. NLRB v. Burns Int’l Sec. Servs., Inc., 
    406 U.S. 272
    , 284 (1972).
    That bargaining obligation, though, does not mean every successor must
    abide by its predecessor’s terms and conditions of employment. The Supreme
    Court in Burns rejected a Board rule requiring just that, instead holding that
    “a successor employer is ordinarily free to set initial terms on which it will hire
    the employees of a predecessor.” 
    Id. at 294.
    No obligation to bargain before
    setting initial terms arises in most situations because it will normally not be
    evident whether the union will retain majority status until after the successor
    has hired a full complement of employees. 
    Id. at 295.
    Further, the Court
    expressed concern that “[s]addling” a successor “employer with the terms and
    conditions of employment contained in the old collective-bargaining contract
    may make [beneficial] changes impossible and may discourage and inhibit the
    transfer of capital.” 
    Id. at 288.
    The Board’s rejected rule would have been
    inconsistent with “[t]he congressional policy manifest in the Act,” which “is to
    enable parties to negotiate for any protection either deems appropriate, but to
    allow the balance of bargaining advantage to be set by economic power
    realities.” 
    Id. 7 Case:
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    The Burns Court also identified a narrow exception to that rule, which
    applies when “it is perfectly clear that the new employer plans to retain all of
    the employees in the [bargaining] unit and in which it will be appropriate to
    have [it] initially consult with the employees’ bargaining representative before
    [it] fixes terms.” 
    Id. at 294–95.
    Thus, two types of successors emerged from
    Burns: an “ordinary” successor, who is “free to set initial terms on which it will
    hire the employees of a predecessor,” and a “perfectly clear” successor, who
    must bargain with the employees’ union before changing terms to which its
    predecessor had agreed. See 
    id. Shortly after
    Burns, the Board decided Spruce Up, where it tried to set
    boundaries for the perfectly clear exception. See Spruce Up Corp., 
    209 N.L.R.B. 194
    , 195 (1974), enforced, 
    529 F.2d 516
    (4th Cir. 1975). In Spruce Up, the Board
    focused not only on whether the successor intended to retain its predecessor’s
    employees, but also on whether the incumbent employees would accept the
    successor’s offer of employment. See 
    id. Critical to
    whether the incumbent
    employees would accept, and thus allow the union to retain majority status,
    are the successor’s terms of employment. 
    Id. As the
    Board explained:
    When an employer who has not yet commenced operations
    announces new terms prior to or simultaneously with his
    invitation to the previous work force to accept employment under
    those terms, we do not think it can fairly be said that the new
    employer “plans to retain all of the employees in the unit,” as that
    phrase was intended by the Supreme Court.
    
    Id. The Board
    cautioned that a broader reading of Burns, which focused only
    on whether the successor intended to retain the employees, would cause
    successors “to refrain from commenting favorably at all upon employment
    prospects of old employees” so as to retain their “right to unilaterally set initial
    terms, a right to which the Supreme Court attache[d] great importance in
    Burns.” 
    Id. Instead, under
    Spruce Up’s test, what a new employer must avoid
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    is misleading employees or otherwise failing to provide notice of changing
    employment terms:
    [T]he caveat in Burns . . . should be restricted to circumstances in
    which the new employer has either actively, or by tacit inference,
    misled employees into believing they would all be retained without
    changes in their wages, hours, or conditions of employment, or at
    least to circumstances where the new employer . . . has failed to
    clearly announce its intent to establish a new set of conditions
    prior to inviting former employees to accept employment.
    
    Id. (footnote omitted).
          We have summarized the holdings of Burns and Spruce Up as follows:
    While “a successor employer is ordinarily free to set initial terms on which it
    will hire its predecessor’s employees, when a successor evinces a ‘perfectly
    clear’ intention to retain the predecessor’s employees, it must consult with
    their bargaining representative before fixing its own terms.” Adams & Assocs.,
    Inc. v. NLRB, No. 16-60333, 
    2017 WL 4079063
    , at *8 (5th Cir. Sept 15, 2017).
    A successor set on retaining its predecessor’s employees may dispel this
    “perfectly clear” intention by giving employees “prior notice of its intention” to
    institute its own initial terms or by “hold[ing] itself” as if it will not adhere to
    the terms of the previous collective-bargaining agreement (“CBA”). NLRB v.
    Hous. Bldg. Servs., Inc., 
    128 F.3d 860
    , 864 n.6 (5th Cir. 1997) (per curiam).
    Creative does not dispute that it is a successor, so we focus on whether
    it was a “perfectly clear” one. The key question here is whether Creative
    provided sufficient and timely notice of its intent to change the hoppers’ terms
    and conditions of employment, thereby clarifying that it was an ordinary
    rather than perfectly clear successor.
    The Board held that Creative was a perfectly clear successor. To the
    Board, June 1 rather than June 2 was the date by which Creative had to give
    notice of its intent to offer employment on different terms, so Creative’s June 2
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    announcement was irrelevant. As to the pre-June 2 communications, the Board
    concluded: (1) Richard did not tell Flagge about the new terms of employment
    and therefore Flagge did not tell those terms to the 50 Berry III hoppers he
    gave applications to; (2) Richard’s communication of new terms to
    approximately 20 Berry III hoppers and the subsequent word-of-mouth spread
    of those new terms were insufficient to put a majority of Creative’s hoppers on
    notice; and (3) inclusion of tax forms “without explanation, let alone an express
    announcement that taxes would be withheld from the hoppers’ pay, was too
    ambiguous” for “a reasonable employee in like circumstances [to] understand
    that continued employment [was] conditioned on acceptance of materially
    different terms.” Creative Vision Res., LLC, 364 N.L.R.B. No. 91, slip op. at 4–
    6 & n.12 (2016).
    Creative disputes each of these conclusions. It argues that its June 2
    announcement of new terms was timely because the announcement preceded
    the formal hiring of Berry III’s hoppers. Creative also argues that its pre-
    June 2 communications with the hoppers were sufficient to put them on notice.
    First, the Board erred by improperly substituting its credibility determinations
    for the ALJ’s over whether Richard told Flagge of the new terms of
    employment. Second, the Board erred by rejecting the credited evidence of the
    word-of-mouth communications between the hoppers. Finally, Creative argues
    that the Board’s conclusion about the ambiguity of the tax forms “demeans the
    hoppers,” as any American worker would realize that a tax form indicating that
    the employer will deduct taxes means the employer intends to do just that.
    We consider each of these arguments in turn.
    i. The June 2 Announcement
    The Board’s conclusion that Creative’s June 2 announcement was
    untimely is well founded. To reach this conclusion, the Board summarized its
    past decisions as holding that a successor employer may unilaterally set initial
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    terms of employment if it “clearly announce[s] its intent to establish a new set
    of conditions prior to, or simultaneously with, its expression of intent to retain
    the predecessor’s employees.” 
    Id. at 3.
    But after the successor expresses its
    intent to retain the predecessor’s employees, an announcement of new terms,
    “even if made before formal offers of employment are extended or the successor
    commences operations, will not vitiate the bargaining obligation.” 
    Id. The Board
    ’s    justification     for   this        prior-or-simultaneous-announcement
    requirement is as follows:
    [A] new employer that expresses an intent to retain the
    predecessor’s work force without concurrently revealing to a
    majority of the incumbent employees that different terms will be
    instituted, improperly benefits from the likelihood that those
    employees, lacking knowledge that terms and conditions will
    change, will choose to stay in the positions they held with the
    predecessor, rather than seeking employment elsewhere.
    
    Id. at 6.
    After stating the legal standard it would apply, the Board found that
    Creative expressed an intent to retain Berry III’s employees between mid-May
    and June 1.
    This court has briefly spoken twice about the timing of an announcement
    of new terms and its effect on notice. We recently observed in Adams &
    Associates that a communication of new employment terms through offer
    letters and employment agreements was untimely because the communication
    occurred after the successor evinced an intent to retain its predecessor’s
    employees. Adams & Assocs., 
    2017 WL 4079063
    , at *8. In Houston Building
    Services, we opined that a successor may not set its own initial terms if it fails
    to give “prior notice of its intention” and it “holds itself as if it will adhere to
    the terms of the previous CBA.” Hous. Bldg. 
    Servs., 128 F.3d at 864
    n.6. We
    turn to our sister circuits for further guidance.
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    The D.C. Circuit explicated the rationale for prior or simultaneous
    announcement of new terms in International Ass’n of Machinists & Aerospace
    Workers, AFL–CIO v. NLRB, 
    595 F.2d 664
    (D.C. Cir. 1978). There, the D.C.
    Circuit approved of Spruce Up’s qualification of Burns’s perfectly clear
    exception. 
    Id. at 674.
    Recall that the Spruce Up Board held that it is not
    “perfectly clear” that a successor “plans to retain all” the predecessor’s
    employees when it also plans to impose new terms on those employees. Spruce
    
    Up, 209 N.L.R.B. at 195
    . The successor can reasonably anticipate that some
    incumbents will balk at and decline the new terms. See 
    id. This qualification,
    while sensible, generates an additional problem, one the D.C. Circuit
    identified:
    [I]n the Board’s view . . . the successor . . . may endeavor to conceal,
    or at least postpone publicity on, reemployment objectives in order
    to avoid the onus of bargaining during the usually difficult period
    of takeover, and the incumbent employees may thereby be
    deprived of early appraisal of their retention prospects.
    Int’l Ass’n of 
    Machinists, 595 F.2d at 675
    . To provide an “important measure
    of protection” against this possibility, the Board adopted and the D.C. Circuit
    approved a prior-or-simultaneous-announcement requirement. 
    Id. at 674.
    Such a requirement ensures that incumbent employees will not be “lulled into
    a false sense of security” by a successor’s announcement that it intends to
    retain the incumbents. 
    Id. at 675;
    see also S & F Mkt. St. Healthcare LLC v.
    NLRB, 
    570 F.3d 354
    , 359 (D.C. Cir. 2009) (“[A]t bottom the ‘perfectly clear’
    exception is intended to prevent an employer from inducing possibly adverse
    reliance upon the part of employees it misled or lulled into not looking for other
    work.”). The D.C. Circuit went on to note that even when a subsequent
    announcement of new terms occurs before actual hiring, incumbent employees
    may “lack . . . sufficient time to rearrange their affairs.” Int’l Ass’n of
    
    Machinists, 595 F.2d at 675
    n.49. In those situations, they may “be forced to
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    continue in the jobs they held under the successor employer, notwithstanding
    notice of diminished terms.” 
    Id. The Seventh
    Circuit has found this reasoning persuasive. In Canteen
    Corp., it approved the Board’s rejection of the view “that the obligation to
    bargain only arose when the employer had failed to announce the initial
    employment terms prior to, or simultaneously with, the extension of
    unconditional job offers to the predecessor employees.” Canteen Corp. v. NLRB,
    
    103 F.3d 1355
    , 1360, 1364–65 (7th Cir. 1997). Similarly, the Sixth Circuit, in
    DuPont Dow, held that the announcement of new terms before operations
    commenced but after formal offers were made and accepted came too late. See
    DuPont Dow Elastomers, L.L.C. v. NLRB, 
    296 F.3d 495
    , 506 (6th Cir. 2002).
    We are persuaded by the Board’s and D.C. Circuit’s reasoning of the
    wisdom of the prior-or-simultaneous-announcement requirement. We apply it
    here and find, after careful examination of the record and the Board’s
    inferences drawn therefrom, that substantial evidence supports the Board’s
    conclusion that Creative evinced a “perfectly clear” intention to retain the
    Berry III hoppers by June 1. Thus, Creative’s announcement of new terms on
    June 2 was untimely.
    The record reflects that the shift from Berry III to Creative would be
    abrupt, so Creative needed to ensure it had hoppers lined up in advance.
    Creative distributed 70 applications to Berry III hoppers and made no efforts
    to hire hoppers from other sources. 2 Creative had no reason to do so. Richard
    2 Creative argues that it sought applicants from sources other than Berry III’s
    hoppers. It did not, however, file an exception to the ALJ’s finding to the contrary, and
    therefore the Board found that Creative was procedurally foreclosed from raising the issue.
    Under the circumstances, we will not consider this question. See 29 U.S.C. § 160(e) (“No
    objection that has not been urged before the Board, its member, agent, or agency, shall be
    considered by the court, unless the failure or neglect to urge such objection shall be excused
    because of extraordinary circumstances.”); Woelke & Romero Framing, Inc. v. NLRB, 456
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    knew the quality of the hoppers’ work, and his dissatisfaction was not with the
    hoppers but with Berry III’s management. Further, finding and training new
    hoppers would have been a major undertaking, delaying what was supposed to
    be a rapid transition. Richard did not interview any applicants or perform
    reference checks on them, and he testified that he was agreeing to hire
    Berry III hoppers who submitted applications. The distributed applications
    also contained W-4s—a tax form that is, as the Board noted, typically filled out
    after an employee is hired. From these facts, the Board inferred that the hiring
    process was a formality and that Creative sought to hire the Berry III hoppers
    en masse. And that is just what happened. On June 1, when Creative had
    enough Berry III applicants, Richard cancelled Berry III’s contract with
    Richard’s Disposal. All 44 hoppers Creative employed on the first day of
    operations were previously employed by Berry III. A reasonable mind could
    accept such evidence and inferences as sufficient to support the conclusion that
    by June 1, Creative had evinced a “perfectly clear” intent to retain the Berry
    III hoppers.
    Creative defends using June 2 as the cutoff date, arguing that its whole
    hiring process was “in flux” up until June 2 when the hoppers hopped on the
    trucks. It was only at that point that the hoppers were formally hired and it
    became “perfectly clear” how many would accept Creative’s new terms.
    Creative relies on Emerald Maintenance, Inc. v. NLRB, 
    464 F.2d 698
    (5th Cir.
    1972), to argue that the delay caused by insufficient hopper applications and
    uncertainty over how many hoppers would accept the new terms indicates that
    the Union’s majority status was not clear “until after the work force had been
    assembled” on June 2. See 
    id. at 701.
    There, Emerald required the incumbent
    U.S. 645, 665 (1982) (stating that § 160(e) precludes a court of appeals from reviewing claims
    not raised to the Board).
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    employees to reapply for their jobs and refused to recognize the union’s referral
    slips. 
    Id. at 700.
    This refusal contravened its predecessor’s CBA, which
    required the predecessor to fill all its positions with union members. 
    Id. Emerald built
    up its workforce after commencing operations and hired a
    significant number of non-incumbents. 
    Id. This court
    found that Emerald was
    not a perfectly clear successor because “it was not clear that a majority of
    Emerald employees were union members until after the work force had been
    assembled.” 
    Id. at 701.
          Emerald differs in key ways from this case. Unlike Creative’s application
    process, Emerald’s was not pro forma—it hired a significant number of non-
    incumbents and refused to hire union members simply because they were
    union. Emerald indicated from the outset that it intended to set its own terms
    by refusing to follow the terms of the CBA during the application process.
    Emerald built its workforce after it commenced operations and did so gradually
    (unlike Creative), making it less evident that the incumbent union’s majority
    status would continue. Finally, the procedural posture of Emerald informs our
    understanding of it. There, we considered the case without owing deference to
    a Board finding of perfectly clear successorship. (Remember that Burns was
    decided in the interim between the Board’s decision in Emerald and ours. 
    Id. at 699–700.)
    Here, by contrast, the Board has found that Creative is a perfectly
    clear successor, and we do not review de novo but for substantial evidence.
    Admittedly, Creative did not expressly announce that it intended to
    retain the hoppers. Its conduct, however, spoke volumes. We agree with the
    Board, that in limited circumstances, a successor’s plan to retain the
    incumbents will be perfectly clear from its actions and not its words. See
    Cadillac Asphalt Paving Co., 
    349 N.L.R.B. 6
    , 10–11 (2007). That was the case
    in Cadillac Asphalt, where, similarly to here, all the incumbents received
    applications (with attached W-4s), which were purely for recordkeeping
    15
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    No. 16-60715
    purposes. See 
    id. There as
    well, the successor made no effort to hire non-
    incumbents. See 
    id. at 10.
    The successor did announce that it was entering into
    a joint venture with the predecessor. See 
    id. at 7,
    10–11. But it did not
    announce that it planned to retain the incumbents. See 
    id. Rather, the
    Cadillac
    Asphalt Board found that the successor’s “perfectly clear” intent to retain the
    incumbents was evinced by its pro forma and closed application process. See
    
    id. at 10–11.
          Finally, we note that the facts of this case make it unnecessary for us to
    consider whether there are some situations where a subsequent announcement
    of new terms before formal hiring or commencement of operations will be
    timely. In this case, the June 2 announcement clearly was untimely. The
    announcement occurred the same day the hoppers were formally hired and
    Creative’s operations commenced. This same-day announcement gave the
    hoppers insufficient time to rearrange their personal affairs.
    ii. Pre-June 2 Communications
    Having concluded that Creative’s June 2 announcement of new terms
    was untimely, we turn now to whether Creative gave notice of its intent to
    establish new terms on or before June 1. In analyzing this issue, we consider
    the cumulative effect of three pre-June 2 communications from Creative to the
    hoppers: (1) Richard’s alleged communication to Flagge about the new terms
    of employment; (2) Richard’s communication of the new terms to about
    20 hoppers and the subsequent word-of-mouth exchanges among the hoppers;
    and (3) the inclusion of tax withholding forms with the job applications. We
    conclude that all three combined did not provide a majority of Creative’s
    hoppers with sufficient notice of the new terms.
    We turn first to Richard’s alleged conversations with Flagge. Recall that
    Flagge, a hopper, spoke to Richard and passed out about 50 applications to
    other hoppers. There is a dispute about what Richard told Flagge. Richard
    16
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    claimed he told Flagge about the new terms. Flagge denied this. The Board
    ultimately sided with Flagge, concluding that “Richard did not inform Flagge
    of the new terms and conditions of employment and, consequently, Flagge did
    not inform any of the hoppers to whom he gave applications that their terms
    and conditions would change under [Creative].” Creative, slip op. at 1.
    Creative argues that the Board erred by siding with Flagge. In Creative’s
    view, the ALJ credited Richard as “a sincere and meticulous witness,” and thus
    necessarily credited Richard’s testimony that he told Flagge the new terms. By
    reaching the opposite credibility finding than the ALJ, who actually saw the
    witnesses, the Board’s credibility choice was unsupported by substantial
    evidence.
    In making this argument, Creative mischaracterizes the ALJ’s and
    Board’s findings. The Board could not have erred in dismissing the ALJ’s
    credibility determination over what Richard told Flagge because the ALJ did
    not make a credibility determination over what Richard told Flagge. While
    ALJ “credibility determinations are binding except in rare instances,” Adams
    & Assocs., 
    2017 WL 4079063
    , at *8, no relevant ALJ credibility determination
    was made here. In order to see why, a detailed review of the ALJ’s decision is
    necessary.
    The ALJ began his analysis of Richard’s testimony by stating that
    Richard said that he told Flagge about the new terms. The ALJ then noted that
    “Flagge’s testimony squarely contradicts Richard . . . on this point.” Creative,
    slip op. at 20 (ALJ op.). Flagge said that Richard did not tell him anything
    about the new terms. The ALJ then moved to a separate issue in Richard’s
    testimony regarding how he had passed out applications to about 20 other
    hoppers and told them about the new terms. Regarding this testimony, the ALJ
    noted that the hoppers did not corroborate Richard’s testimony. But the ALJ
    also noted that other factors made Richard appear credible, such as Richard’s
    17
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    appearance as a meticulous witness. Thus, the ALJ was confronted with
    whether to credit Richard’s testimony about two different purported
    communications: (1) what Richard told Flagge, and (2) what Richard told the
    20 hoppers.
    Given this context, the ALJ’s finding becomes clear. The ALJ credited
    Richard’s testimony only with respect to what he told the 20 hoppers, not with
    respect to what he told Flagge. Specifically, the ALJ’s credibility finding on this
    point was the following:
    This finding, that hoppers working for Berry III learned
    some information about [Creative] from Jackson, does not
    contradict Richard[’s] . . . testimony that he informed hoppers
    about [Creative’s] initial terms of employment. Although
    Richard[’s] . . . testimony is     uncorroborated, it is    also
    uncontradicted. Moreover, it is consistent with the fact that at
    least some hoppers knew about the contemplated $11-per-hour
    wage rate.
    Further, as discussed above, Richard . . . appeared to be a
    sincere and meticulous witness. For these reasons, I credit his
    testimony that he told some of the hoppers—those to whom he gave
    employment application forms—that [Creative] would be paying
    an $11-per-hour wage, would guarantee 8 hours of employment per
    day, would pay overtime for hours worked in excess of 40 per week,
    and would withhold taxes from their paychecks. Based on
    Richard[’s] . . . credited testimony, I also find that he told these
    hoppers that [Creative] guaranteed four holidays.
    
    Id. at 22.
          As the emphasized portion highlights, the ALJ’s credibility finding
    relates only to Richard’s testimony that he told the 20 hoppers about the new
    terms.   How    could    the   ALJ   credit   Richard’s     testimony   about    his
    communications with Flagge as “uncontradicted” when the ALJ explicitly
    described that testimony earlier as being “squarely contradict[ed]?” Instead,
    18
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    the ALJ’s finding should be read to mean what it says: the ALJ credited
    Richard’s uncorroborated and uncontradicted testimony about what he told the
    20 hoppers, not the contradicted testimony about what he told Flagge.
    And this reading makes sense. This is not a case where the ALJ
    implicitly but necessarily resolved a credibility dispute. In the ALJ’s eyes,
    Richard telling 20 hoppers about the new terms was sufficient (among other
    circumstances, including the June 2 communications) to evade the perfectly
    clear exception. The ALJ therefore had no reason to decide whether Richard or
    Flagge was being truthful with respect to their conversation because the ALJ’s
    conclusion did not hinge on that determination. Finally, we note that the
    Board’s reading of the ALJ’s decision appears to match our own. The Board
    never stated that it was dismissing an ALJ credibility determination. In fact,
    with regard to the ALJ’s credibility findings, the Board expressly stated that
    it found no basis for reversing the findings. 
    Id. at 1
    n.1.
    We are left with a situation in which the ALJ did not make a credibility
    finding for this dispute and the Board found that “Richard did not inform
    Flagge of the new terms and conditions of employment.” 
    Id. at 1
    . Under these
    circumstances—where (1) the ALJ did not resolve the factual dispute raised by
    the conflicting testimony (Richard’s and Flagge’s competing versions of their
    conversation); (2) there is a clear Board finding (Richard did not tell Flagge
    about the new terms); and (3) the ALJ credited both witnesses with respect to
    other conversations (Richard’s uncontradicted testimony about what he told
    the 20 hoppers, and Flagge’s uncontradicted testimony about what he did not
    tell the other hoppers)—we will not disturb the Board’s finding under the
    substantial evidence standard of review.
    But even if the ALJ made a credibility determination that the Board
    overrode, the credibility choice is ultimately irrelevant. Both the ALJ and the
    Board agree that Flagge never communicated the new terms to the hoppers.
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    Because Flagge never passed along Richard’s message, no additional
    employees were put on notice of the new terms. See Adams & Assocs., 
    2017 WL 4079063
    , at *8 n.6 (observing that the notice inquiry “is conducted from the
    employees’ perspective” (citing Fall River Dyeing & Furnishing Corp. v. NLRB,
    
    482 U.S. 27
    , 43–44 (1987); NLRB v. Hous. Bldg. Serv., Inc., 
    936 F.2d 178
    , 180
    n.1 (5th Cir. 1991))).
    We next consider Richard’s communication of new terms to about 20
    hoppers (plus the subsequent informal word-of-mouth exchanges between the
    hoppers). These communications were insufficient to put a majority of
    Creative’s workforce on notice of the new terms. Although the Burns Court and
    Spruce Up Board spoke in terms of a plan “to retain all of the employees in the
    unit,” the Board and lower courts have subsequently recognized that the
    relevant inquiry is whether the successor planned to retain enough of the
    predecessor’s employees so that the union’s majority status will continue. 3
    Such a rule is sensible, and the Board’s reasoning shows why. Here, the Board
    reasoned that allowing a successor to communicate its new terms to a minority
    of its incumbent employees would invite abuse. A new employer “would be
    encouraged to announce changes in preexisting terms only to a select few
    incumbent employees, while allowing the majority of employees to be lulled by
    3  See Galloway Sch. Lines, 
    321 N.L.R.B. 1422
    , 1427 (1996) (“To summarize, the duty
    to bargain may not arise when initial employment terms are set because it may not be evident
    at that time that the union’s majority status in the old work force will continue in the new
    one. However, in other situations, it may be apparent from the new employer’s hiring plan
    that the union's majority status will continue, and then the new employer is required to
    bargain over initial terms.”); see also DuPont 
    Dow, 296 F.3d at 500
    –01 (“But where it is
    ‘perfectly clear’ that the new employer intends to retain the unionized employees of its
    predecessor as a majority of its own work force under essentially the same terms as their
    former employment, the new employer becomes a ‘perfectly clear successor’ and must bargain
    with the union.” (emphasis added)); Canteen 
    Corp., 103 F.3d at 1361
    –62 (“The Court thus
    established that a successor would be required to bargain with the union before setting its
    initial terms of hiring when it was clear that it intended to hire a majority of the predecessor’s
    workforce.” (emphasis added)).
    20
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    its silence into not seeking other work.” Creative, slip op. at 5. Like the Board,
    we conclude that such a result would be at odds with Burns and Spruce Up.
    The word-of-mouth spread of the new terms to some hoppers does not
    change this result. Both the ALJ and the Board found that “the record affords
    no way of quantifying how many of the hoppers had learned about the $11 per
    hour wage rate or the other terms and conditions of employment before they
    reported for work . . . on June 2.” 
    Id. Neither witness
    who testified that the
    hoppers knew of the new pay rate before June 2 said how many hoppers were
    privy. 4 It was reasonable for the Board to conclude that a majority of the
    incumbent hoppers were not put on notice through Richard’s communication
    of new terms to about 20 hoppers and subsequent word of mouth.
    The Board also found that, from the hoppers’ perspective, the new pay
    rate was unsubstantiated rumor or gossip and therefore could not constitute a
    clear announcement of the new terms. Taylor, the hopper who testified that he
    4  The ALJ, relying on the testimony of one hopper, Kumasi Nicholas, also found that
    Creative notified some other hoppers about the new terms in advance of the June 2 meeting.
    The Board found that Nicholas’s testimony did not support a finding that the hoppers were
    told of the new terms in advance. On direct examination, Nicholas was asked, “[W]hat
    happened on the very first day that [Creative] began operations[?]” Nicholas responded,
    “Well, they told us ahead of time—Mrs. Jackson told us ahead of time, you know, might be
    switching over to another little company where—you know, a pay rate, and she just let us
    know ahead of time, and then that’s when, you know, they started off.” An effort to clarify
    whether Nicholas learned about the pay rate before the June 2 meeting produced the
    response, “I’m not sure. It’s been about a year. . . . I know she told me that, but I’m not sure.”
    Creative, slip op. at 5 n.13.
    We will not disturb the Board’s conclusion. We acknowledge that when “the Board
    disagrees with the ALJ’s findings, this court examines the findings of the Board more
    critically than it would have done had the Board agreed with the ALJ.” Tex. World Serv. Co.,
    Inc. v. NLRB, 
    928 F.2d 1426
    , 1430 (5th Cir. 1991). “But this court still sustains the Board’s
    findings if the record taken as a whole contains substantial evidence to support those
    findings.” 
    Id. at 1
    431. “Provided substantial evidence exists, this court cannot reverse the
    Board’s decision when the Board and the ALJ merely draw different inferences from
    established facts.” 
    Id. Here, the
    Board merely drew a different inference (that Nicholas
    learned of the new terms at the June 2 meeting) from facts the ALJ and Board shared. Based
    on the ambiguity of Nicholas’s response and the uncertainty with which he delivered it, we
    find that substantial evidence supports the Board’s finding.
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    learned about the new pay rate before June 2, could not identify his source of
    information. The Union official, who received a call from hoppers claiming they
    heard Creative would pay only $11 per hour, said the hoppers could not confirm
    where their information came from. We will not disturb the Board’s reasonable
    conclusion that, as rumor and gossip with no clear source, the new terms were
    not clearly announced. Such a conclusion makes sense given that the purpose
    of a clear announcement is to give incumbent employees an opportunity to
    reshape their personal affairs. It is reasonable to conclude that an employee
    would not reshape his or her personal affairs (i.e., begin searching for new
    work) because he or she overhears uncorroborated rumors.
    Turning lastly to the tax withholding forms, we conclude that the Board’s
    decision, finding these forms insufficient to put the hoppers on notice, is
    supported by substantial evidence. Certainly, the tax forms conspicuously note
    that their purpose is to allow an employer to withhold taxes and social security.
    Creative argues that such a withholding would fundamentally change the
    hoppers’ terms of employment, as (so the argument goes) it would convert them
    from independent contractors to employees. Creative further argues that with
    this information, the hoppers should have deduced that the forms signaled a
    change in their terms of employment.
    While Creative’s argument is reasonable, the Board’s finding is even
    more so. The Board concluded that the inclusion of the tax forms was too
    ambiguous to constitute sufficient notice. In doing so, the Board pointed out
    that it was unclear whether the hoppers filled out tax forms for Berry III. Had
    they previously done so, Creative’s inclusion of tax forms would not clearly
    signal a change in employment terms. Further, the Board observed that no
    evidence existed that the hoppers considered themselves independent
    contractors rather than employees. Absent knowledge of their alleged original
    status as independent contractors, the hoppers would be unable to deduce that
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    a tax withholding would change that status. Finally, a number of hoppers
    wrote that they were exempt from paying taxes on the forms, indicating that
    the tax forms did not signal to the hoppers that a change in tax collection
    practices was imminent. Indeed, none of the hoppers testified that they
    understood that Creative planned to deduct taxes from their pay before the
    June 2 announcement. Given both the ambiguity of the announcement and the
    multistep deductions required for an employee to identify the change in
    employment terms, we determine that the Board’s conclusion that the tax
    forms did not put the hoppers on notice is supported by substantial evidence.
    See Rosdev Hosp., Secaucus, LP & La Plaza, Secaucus, LLC, 
    349 N.L.R.B. 202
    ,
    207 (2007) (ALJ op.) (“[T]o the          extent an employer’s pretakeover
    announcement contains ambiguities regarding the terms and conditions of
    employment offered to employees, such ambiguities will be resolved against
    the employer.”).
    The two cases Creative cites to support its argument that the inclusion
    of tax forms was sufficient notice—S & F Market and Ridgewell’s—in fact
    demonstrate the reasonableness of the Board’s position. Both present
    situations in which the notice at issue explicitly stated the new terms. No
    multistep deductions were required on the part of the employees. In S & F
    Market, the new employer included a cover letter with each job application that
    promised “significant operational changes,” identified various pre-employment
    checks and tests to be passed, and required the applicant to affirm his or her
    understanding that the employment offered would be temporary and at will.
    S & F 
    Mkt., 570 F.3d at 356
    . The panel concluded that “the employees had
    every indication—from S & F’s job applications, interviews, and letters offering
    employment—that S & F intended to institute new terms of employment.” 
    Id. at 360
    (emphasis added). Similarly, in Ridgewell’s, the new employer
    announced to the union during a meeting that it would change the workers’
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    statuses from employees to independent contractors. Ridgewell’s Inc., 
    334 N.L.R.B. 37
    , 37 (2001). The announcement “clearly signaled that the [new
    employer’s] initial terms and conditions of employment would differ.” 
    Id. To be
    clear, a new employer need not produce an itemized list of changes
    to employment terms. But the inclusion of tax forms in this case falls well short
    of the simple and direct announcements in S & F Market (via a cover letter
    with the job application) and Ridgewell’s (during a meeting with the union).
    We acknowledge that this case does not present facts indicating that
    Creative endeavored to create an impression that it would keep Berry III’s
    terms. This case is therefore slightly dissimilar from DuPont Dow and Elf
    Atochem, two opinions the Board cites to support its decision. In DuPont Dow,
    a single sentence in a memorandum distributed to the employees stated that
    the new employer would set initial terms. DuPont 
    Dow, 296 F.3d at 503
    . This
    single sentence was not “sufficiently clear and definite to overcome the
    impression carefully created by the Company that the terms and conditions
    would remain the same.” 
    Id. Similarly, in
    Elf Atochem, the new employer told
    the employees it would offer “comparable” terms and conditions and then
    reneged. Elf Atochem N. Am., Inc., 
    339 N.L.R.B. 796
    , 808 (2003).
    But while the case before us is distinguishable from DuPont Dow and Elf
    Atochem, the distinction is not dispositive. The Spruce Up Board did not limit
    the perfectly clear exception to situations where employees are actively misled.
    Rather, the Board warned that employees could be misled merely through
    “tacit inference.” Spruce 
    Up, 209 N.L.R.B. at 195
    . Indeed, even when
    employees “are not affirmatively led to believe that existing terms will be
    continued,” the expression of intent to retain the incumbents can, by itself,
    “engender expectations,” causing employees to “forego the reshaping of
    personal affairs.” Int’l Ass’n of 
    Machinists, 595 F.2d at 674
    .
    24
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    b. Necessity of a Bargaining Demand
    Creative’s next argument is that it did not violate its bargaining
    obligation because at the time Creative unilaterally set terms, the Union had
    not sent a bargaining demand. It relies on Fall River Dyeing & Furnishing
    Corp v. NLRB, to argue that all successors are free to set initial terms before
    the union demands bargaining. Creative’s duty to bargain was therefore not
    triggered until the Union’s demand on June 6, four days after Creative
    announced its initial terms.
    We find this argument meritless. As the Board pointed out, Fall River’s
    demand rule “developed in a very different context,” namely the ordinary
    successor context. Creative, slip op. at 6. The Board concluded that nothing in
    the language or the reasoning of Fall River supports the demand rule’s
    extension to the perfectly clear successor context. A full digression into Fall
    River and cases interpreting it shows why.
    In Fall River, the Supreme Court addressed when an ordinary
    successor’s obligation to bargain with an incumbent union attaches. See Fall
    
    River, 482 U.S. at 30
    . The successor in that case restarted its predecessor’s
    operations following a seven month hiatus and gradually built its workforce.
    
    Id. at 32–33,
    45. As a result of this gradual buildup, the percentage of the
    successor’s workforce composed of its predecessor’s employees fluctuated. See
    
    id. at 47.
    Due to this ongoing fluctuation, the Court was tasked with setting
    the proper moment to check to see if the majority of the successor’s workforce
    was composed of its predecessor’s employees. See 
    id. To set
    this moment, the
    Court adopted the “substantial and representative complement” rule. 
    Id. A successor’s
    bargaining obligation is triggered when it hires a “substantial and
    representative complement” of its workforce, a majority of which had
    previously been employed by its predecessor. 
    Id. But a
    bargaining obligation
    only triggers at this moment if the union has made a bargaining demand. 
    Id. 25 Case:
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    at 52. The Court reasoned that the combination of the “substantial and
    representative complement” rule as well as the demand rule would avoid
    placing “an unreasonable burden” on the employer to determine when its
    bargaining obligation attaches. See 
    id. at 50.
    “Once the employer has concluded
    that it has reached the appropriate complement, then, in order to determine
    whether its duty to bargain will be triggered, it has only to see whether the
    union already has made a demand for bargaining.” 
    Id. at 52–53.
           Importantly, however, the Fall River Court suggested that in some
    situations the composition of the employer’s workforce alone may trigger a duty
    to bargain. The Fall River Court observed that the “‘triggering’ fact for the
    bargaining obligation” in Burns was the “composition of the successor’s work
    force.” 
    Id. at 46.
    The Court noted that in Burns the predecessor’s “contract
    expired on June 30 and [the successor] began its services with a majority of
    [the predecessor’s] guards on July 1.” 
    Id. at 47;
    see 
    Burns, 406 U.S. at 275
    .
    There was no “start-up period by the new employer while it gradually buil[t]
    its operations and hire[d] employees.” Fall 
    River, 482 U.S. at 47
    .
    No case Creative cites has extended the demand requirement that Fall
    River established for ordinary successors to perfectly clear successors. 5
    Tellingly, not all courts even extend the demand requirement to all ordinary
    successor cases. The Second Circuit in Banknote Corp., limited the demand
    rule to factual circumstances analogous to Fall River—i.e., where there is a
    5 Cadillac Asphalt, the one case Creative cites as applying the demand rule in the
    perfectly-clear-successor context, actually supports the contention that a perfectly clear
    successor’s obligation to bargain over initial terms may arise before a union demand. In
    Cadillac Asphalt, the union’s demand came after Cadillac changed its terms and conditions.
    See Cadillac 
    Asphalt, 349 N.L.R.B. at 7
    –8. Cadillac stopped contributing to its employee’s
    union benefit fund on July 16. 
    Id. at 7.
    The union’s response came two days later, on July 18.
    
    Id. Nevertheless, the
    Board held that Cadillac was a perfectly clear successor and ordered it
    to make employees whole for its failure to make benefit fund payments starting on July 16.
    
    Id. at 1
    3.
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    “gradual or staggered hiring” or “a significant hiatus in operations.” Banknote
    Corp. of Am. v. NLRB, 
    84 F.3d 637
    , 646 (2d Cir. 1996). In those cases, a
    bargaining demand has an important function as there “may be considerable
    doubt as to whether a union that enjoyed the support of a majority of a
    predecessor’s bargaining unit continues to do so under the successor’s
    operation.” 
    Id. at 645.
    But when the successor engages in “a rapid transition
    period with the immediate hiring of a full employee complement,” the rationale
    for the demand rule dissipates. 
    Id. at 646.
    In those cases, the successor will be
    able to “easily discern its obligation to presume that the [union] continued to
    enjoy majority status.” 
    Id. at 645–46.
          While this court has indicated that a union bargaining demand is
    required to trigger a bargaining obligation in the ordinary successor context,
    see Hous. Bldg. 
    Serv., 936 F.2d at 180
    , we find Banknote’s reasoning persuasive
    for the perfectly clear successor context. Self-evident as it may be, the perfectly
    clear exception only applies when it is “perfectly clear” that the union’s
    majority status will survive the transition from predecessor to successor. See
    
    Burns, 406 U.S. at 294
    –95. Accordingly, sending a bargaining demand to a
    perfectly clear successor would be superfluous because the new employer
    would be able to “easily discern” from the outset that the union will
    presumptively retain its majority status during the transition. See Banknote
    
    Corp., 84 F.3d at 645
    –46. We therefore decline to require a union bargaining
    demand to trigger a perfectly clear successor’s duty not to unilaterally set
    initial terms of employment. In perfectly clear successor cases, the
    “composition of the successor’s work force” alone is the “‘triggering’ fact for the
    bargaining obligation.” See Fall 
    River, 482 U.S. at 46
    .
    c. Validity of the Complaint
    Finally, Creative argues the Board’s complaint was void because it was
    issued on behalf of Acting General Counsel Lafe Solomon, who at the time was
    27
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    serving in violation of the Federal Vacancies Reform Act (“FVRA”). The Board
    contends we lack jurisdiction to hear this argument because Creative was
    untimely in making it. Even if we have jurisdiction, the Board contends that
    the later General Counsel ratified the complaint, effectively curing any defect.
    “[T]he FVRA prevents a person who has been nominated for a vacant
    PAS [Presidential nomination and Senate confirmation] office from performing
    the duties of that office in an acting capacity.” NLRB v. SW Gen., Inc., 137 S.
    Ct. 929, 938 (2017). Solomon’s nomination was pending in the Senate from
    January 2011 to January 2013. 
    Id. at 937.
    During that time, Solomon was
    serving as Acting General Counsel. See 
    id. The FVRA
    prohibited him from
    doing so. 
    Id. at 944.
    The complaint in this case was filed in March 2012 while
    Solomon was serving as Acting General Counsel in violation of the FVRA.
    Creative thus argues that the complaint was void and “may not be ratified.”
    See SW Gen., Inc. v. NLRB, 
    796 F.3d 67
    , 71, 78 (D.C. Cir. 2015), aff’d, 137 S.
    Ct. 929 (2017). 6
    The Board responds by arguing the NLRA precludes our consideration
    of this issue. It relies on Section 10(e), which provides: “No objection that has
    not been urged before the Board, its member, agent, or agency, shall be
    considered by the court, unless the failure or neglect to urge such objection
    shall be excused because of extraordinary circumstances.” 29 U.S.C. § 160(e).
    Creative did not challenge Solomon’s authority when it filed its exceptions to
    the ALJ’s decision in February 2013. Creative did not object until April 2016,
    and the Board concluded the objection was untimely. See 29 C.F.R.
    6 Creative’s argument relies on the general rule that actions taken in violation of the
    FVRA are void ab initio. The FVRA, however, expressly exempts “the General Counsel of the
    National Labor Relations Board” from this rule. 5 U.S.C. § 3348(e)(1). The D.C. Circuit has
    left open whether the actions of an improperly serving Acting General Counsel are voidable
    or instead “wholly insulate[d] . . . even in the event of an FVRA violation.” SW 
    Gen., 796 F.3d at 79
    . We express no view on that question.
    28
    Case: 16-60715    Document: 00514347767       Page: 29   Date Filed: 02/14/2018
    No. 16-60715
    § 102.2(d)(1); see also 
    id. § 102.46(f).
    Creative does not now argue that its
    exceptions were timely or that it has shown extraordinary circumstances. See
    Indep. Elec. Contractors of Hous., Inc. v. NLRB, 
    720 F.3d 543
    , 550–52 (5th Cir.
    2013). Such arguments are forfeited. See SEC v. Life Partners Holdings, Inc.,
    
    854 F.3d 765
    , 784 (5th Cir. 2017). We have held untimely objections to be
    waived under Section 10(e). See Hallmark Phx. 3, L.L.C. v. NLRB, 
    820 F.3d 696
    , 712–13 (5th Cir. 2016). Because Creative did not timely object to
    Solomon’s authority to file the complaint, our review of any such argument is
    barred. See 29 U.S.C. § 160(e); 
    Hallmark, 820 F.3d at 713
    .
    III.     CONCLUSION
    For the foregoing reasons, we deny Creative’s petition and grant
    enforcement of the Board’s order.
    29