In a significant development, the U.S. Supreme Court has decided to hear Starbucks’ appeal against a judicial decision that mandated the rehiring of seven employees at a Memphis, Tennessee, café. A federal agency determined that these workers had been terminated for supporting unionization efforts.
Background of the Legal Battle
Starbucks is challenging a lower court’s ruling that found the company likely discouraged other employees from exercising their rights under U.S. labor law by dismissing the Memphis workers in 2022. This case marks the first instance reaching the Supreme Court involving an ongoing nationwide campaign to unionize Starbucks stores.
The Memphis store is among over 370 Starbucks locations in the United States to unionize since 2021, signaling a shift for the Seattle-based company that had remained non-union for decades.
National Labor Relations Board (NLRB) Involvement
The U.S. National Labor Relations Board (NLRB) concluded that Starbucks unlawfully terminated the Memphis employees to undermine the union drive and send a message to other workers. Consequently, the NLRB sought an injunction to compel Starbucks to rehire the employees. U.S. District Judge Sheryl Lipman, based in Memphis, granted the injunction, a decision upheld by the 6th U.S. Circuit Court of Appeals in 2023, which criticized Starbucks’ actions.
Starbucks’ Defense and Appeal
Starbucks contended that the workers were terminated for violating a company safety policy, specifically by opening the store without consent and allowing journalists inside. Although Starbucks claimed to have rehired the seven employees in compliance with Lipman’s order, the company pursued an appeal of the 6th Circuit decision to the Supreme Court.
Starbucks argued that the 6th Circuit set a low bar by requiring the NLRB to show only “reasonable cause” to believe the company committed labor law violations. Business groups supporting Starbucks urged the Supreme Court to hear the case, contending that lower courts have made it too easy for the NLRB to obtain orders addressing alleged illegal labor practices.
Broader Implications and Ongoing Cases
Over 700 complaints have been filed with the NLRB accusing Starbucks of unlawful labor practices, including firing union supporters, worker surveillance, and store closures during labor campaigns. The 6th Circuit also considers another Starbucks appeal regarding an NLRB ruling in a separate case in Ann Arbor, Michigan.
Furthermore, other U.S. appeals courts review NLRB rulings related to Starbucks, including allegations of illegal termination of union organizers in Philadelphia and refusal to bargain with unionized workers in Seattle.
Starbucks, maintaining its innocence, asserts that it provides competitive wages and benefits to employees while respecting their rights under federal labor law. The Supreme Court’s decision on this case is anticipated to have far-reaching implications for labor relations in the country.
