Fifth Circuit Court Partially Overturns NLRB Ruling Against Starbucks in Unionization Case
The U.S. Court of Appeals for the Fifth Circuit has largely rejected a National Labor Relations Board (NLRB) ruling that Starbucks illegally threatened employees for unionizing and engaged in surveillance of organizing efforts. In a 2-0 decision, the court dismissed claims that Starbucks violated federal labor law when a Wichita, Kansas, store manager and assistant manager stated that the hiring portal was closed and hours were reduced due to union or other protected activities. The court found these statements were not "threats of reprisal," as a hiring pause did not appear to jeopardize job security, and understaffing could justify shorter hours. Additionally, the court determined that a store manager's statements about knowing of unionization discussions and the impact of a successful vote were not coercive. However, the New Orleans-based court did uphold an NLRB finding that Starbucks illegally threatened to deny maternity leave benefits to a pregnant employee if workers unionized. This decision follow...
