On September 28, 2023, an administrative law judge (ALJ) at the National Labor Relations Board found that Starbucks violated the National Labor Relations Act (NLRA) by improving wages and benefits for nonunion employees while withholding the increases from employees who had unionized or were in the process of organizing.
Of course, the Board has long held that an employer may not unilaterally change the terms or conditions of employment for unionized employees, nor can an employer make such changes during a pre-election period. Caught in a "catch-22," Starbucks chose not to implement wage increases for unionized and organizing employees. Board General Counsel Jennifer Abruzzo ultimately filed a complaint, alleging that Starbucks' motive in withholding the increases for unionized and organizing employees was unlawful and that the company engaged in further unlawful conduct by communicating its decision and reasoning to employees.
The ALJ sided with Abruzzo. Though the ALJ did not go so far as to find that the company had a legal obligation to offer the same increases to union employees, she applied the well-known Wright Line standard and determined that the company's legitimate business justifications were pretext for discrimination. Starbucks has already indicated its intent to appeal the decision to the Board.
Background
As covered extensively by the media over the past several years, Starbucks has experienced a significant wave of union organizing at its stores across...
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