Federal Appeals Court Limits The Power of the NRLB in Ruling on Starbucks Case

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A federal appeals court confirmed Starbucks unlawfully fired union organizers but narrowed how much the company could be ordered to pay in damages.

Key Facts:

– The U.S. Court of Appeals for the Third Circuit issued its ruling on Dec. 27.
– Two Philadelphia baristas, Echo Nowakowska and Tristan Bussiere, were fired.
– Starbucks claimed performance issues, but the court agreed with the NLRB’s finding of retaliatory motives.
– The court decided the NLRB lacked authority to mandate broad compensation for indirect harms.
– The case raised questions about the constitutionality of NLRB administrative law judges.

The Rest of The Story:

The court upheld the NLRB’s judgment that Starbucks violated labor law by reducing hours and then dismissing the two workers for their union involvement.

Although Starbucks argued they were simply enforcing company policies, the judges agreed that the firings were motivated by anti-union concerns.

However, the court removed part of the NLRB’s ruling that called for compensating employees for extra costs like job-search expenses and medical bills, saying the board’s remedial powers do not extend that far.

Starbucks also challenged the legality of the NLRB’s administrative law judges, but the court refused to rule on that issue.

Commentary:

We support the court’s stance that limits the NLRB’s power.

Given the Supreme Court’s ruling on Chevron, we expect more agencies to see their authority curtailed.

This approach reins in regulatory overreach and upholds a clearer separation of powers.

As for Starbucks, it is amusing to see a company known for championing certain left-leaning ideals discover that these positions might not always align with corporate interests.

Perhaps this experience will prompt greater caution in mixing politics with business.

The Bottom Line:

Starbucks must reinstate and compensate the fired workers for back pay, but the NLRB cannot force the company to cover broader financial losses.

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This ruling signals a possible turning point in how far federal agencies can go to penalize employers.