Background
This case stems from an unfair labor practice proceeding concerning a Starbucks store in La Quinta, California. Employees began a union organizing campaign in December two thousand twenty-one. The Board later issued subpoenas at Starbucks’ request to obtain information from union supporters. The Board found that these subpoenas violated Section eight a one of the National Labor Relations Act by interfering with employee rights.
The court’s reasoning
The court explained that the proper test for Section eight a one liability is whether an employer’s conduct would tend to be coercive under the totality of the circumstances. The Board incorrectly treated the National Telephone discovery rule as the dispositive standard for liability. That rule balances confidentiality interests against an employer’s need for information, but it does not answer whether the conduct itself is coercive. The court noted that the Board conceded the correct standard on appeal but still relied on the wrong test to reach its conclusion.
What it means going forward
The decision requires the National Labor Relations Board to re-evaluate the Starbucks case using the totality of the circumstances test. It clarifies that discovery rules cannot be used as a substitute for the coercion analysis required to find an unfair labor practice.
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