On November 5, 2025, the United States Court of Appeals for the Sixth Circuit issued an opinion in NLRB v. Starbucks Corp., joining with the Third and Fifth Circuits in finding the National Labor Relations Board (NLRB or Board) exceeded its authority under the National Labor Relations Act (NLRA) by ordering an employer to compensate an unlawfully terminated employee for any “direct or foreseeable pecuniary harms” the employee suffered as a result of her termination of employment. In refusing to enforce these remedies, the Sixth Circuit delivered the most recent blow to the NLRB’s efforts to impose more broad, far-reaching, and more financially severe remedies under the NLRB’s 2022 ruling in Thryv, Inc.
The Board in Thryv explained that under its remedial authority in Section 10(c) of the NLRA, it could, and going forward would, expressly include the “direct or foreseeable pecuniary harms” suffered by an employee impacted by an unfair labor practice in any “make-whole” relief issued by the Board. It went on in Thryv to state that its expansion of the Board’s make-whole remedy was “necessary to more fully effectuate the make-whole purposes of the Act.” Under Thryv, the Board explained that it could order relief for the resulting consequences of unfair labor practices, including damages such as credit card fees, out-of-pocket medical expenses, and interest and penalties for missed mortgage payments. These types of relief go well beyond the reinstatement, backpay, and...
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