Supreme Court rules against NLRB

June 18, 2024

The Supreme Court recently decided a case that could make it more difficult for the National Labor Relations Board (NLRB) to force companies to bring back fired workers while the board conducts an investigation.

The case, decided on June 13, involved seven coffee shop employees who invited a crew from a local television station to visit their store and report on their unionizing efforts. The employer fired the employees for violating company policy.

The NLRB filed a petition with a district court requiring the coffee shop to bring back the employees while it determined whether the employer’s actions violated the National Labor Relations Act (NLRA).

Two-factor test not enough

To determine whether the NLRB could do this, the court considered two factors:

Whether there was reasonable cause to believe unfair labor practices had occurred.
Whether the board’s required action was just and proper.

The Supreme Court, however, determined that courts should instead use a four-factor test when considering an injunction request from the NLRB. When deciding whether the NLRB can take action against an employer while it reviews a decision, a court would consider whether:

The NLRB is likely to succeed on the merits of the case,
The NLRB faces irreparable harm if it cannot take the desired action,
The factors of the case weigh in the agency’s favor, and
The board’s action is in the public interest.

The Supreme Court sent the case involving the seven fired employees back to the district court so the four-factor test could be used.

Key to remember: The Supreme Court’s decision means the NLRB will need to meet a tougher standard when it asks a court to allow it to make employers reinstate workers while it decides a case.

Starbucks Corp. v. McKinney, Supreme Court, No. 23-367, June 13, 2024

Publish Date

June 18, 2024

Author

Terri Dougherty

Type

Industry News

Industries

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