Based on insights from Phil Wilson on the ERG Homegirl Show
In a must-watch episode of the ERG Homegirl Show on LinkedIn, Phil Wilson, President of LRI Consulting Services, lays out a warning many employers desperately need to hear: your ERGs (Employee Resource Groups) could unintentionally land you in hot water with the NLRB.
Let’s break it down—Phil-style.
“It’s Just an ERG” … Until It’s Not
ERGs are designed to build inclusion, community, and employee engagement. But according to Phil, you’ve crossed a legal line when those same groups start proposing workplace changes—like benefits tweaks, pay equity demands, or scheduling fixes.
That line? You may now be dealing with a company-dominated labor organization, violating the National Labor Relations Act.
“It’s not that the ERG is bad—it’s that once you give it authority to represent people on working conditions, you’ve changed the legal relationship.” – Phil Wilson
Employer-Sponsored ≠ Employer-Controlled
Phil emphasized that the moment leadership starts entertaining proposals from ERGs on issues that fall under the umbrella of “terms and conditions of employment,” you’re on “thin ice”—especially during a union campaign.
- It’s not about the intent of the ERG.
- It’s about the function it appears to serve.
And if you’re a union-free employer trying to stay that way, this could be Exhibit A in an unfair labor practice charge.
Where DEI, HR, and Labor Law Collide
Here’s the kicker: Most ERGs are supported by well-meaning HR or DEI teams with zero background in labor law. Phil points out that without proper guardrails, you might be unintentionally creating a bargaining unit inside your own company.
This isn’t hypothetical. The NLRB has already ruled that safety committees and similar groups crossed the line when they started acting like union surrogates.
“You could end up having to disband the ERG. Or worse, you create a playbook for how a union should organize your employees.” – Phil Wilson
What Employers Should Be Doing Now
Phil doesn’t say, “Kill the ERGs.” But he does lay out a few non-negotiables:
Set Clear Boundaries
Define the scope of your ERGs in writing. Be explicit that they don’t have the authority to bargain or represent employees on workplace conditions.
Train the Sponsors
Don’t assume your leaders “get it.” Give ERG executive sponsors and DEI leaders a crash course in labor law basics.
Review the Playbook
Audit how ERGs interact with management. Are proposals about cultural events—or compensation? If it’s the latter, pump the brakes and reassess.
Keep Legal Close
Involve labor counsel from the start. A short review now can prevent a massive (and public) compliance nightmare later.
Final Word: ERGs Are Worth Protecting
Phil’s bottom line is simple: ERGs can be powerful and positive, but only if they’re designed to stay within the legal limits.
Fail to draw those lines, and your inclusion initiative might just become your newest labor relations problem.
📺 Watch the full episode here
📚 And for more on leadership, check out The LeaderShift Playbook by Phil Wilson.
