Starbucks (NASDAQ:SBUX) founder and former CEO Howard Schultz violated federal labor laws by telling a California employee to go work somewhere else if she was not happy with the company’s labor policies.

The National Labor Relations Board ruled that Schultz’s remark was an unlawful, coercive threat, upholding a previous decision made last October by an administrative law judge.

The incident between Schultz and an employee in California occurred in 2022 when Schultz, while at a company event, was approached by a barista who raised the benefits of unionization with Schultz. Schultz responded by telling the employee, “if you’re not happy at Starbucks, you can go work for another company.”

The NLRB decision is just the latest development in the contentious history between the coffee chain and the Starbucks Workers Union (“SBWU”). The NLRB has previously ruled against Starbucks, claiming its efforts to thwart unionization constitutes “egregious misconduct.”

And despite the company’s best efforts, SBWU won approval at its 500^th Starbucks on Wednesday. Although the milestone is notable, there are still 16,121 restaurants remaining non-union.

New CEO Brian Niccol attempted to straddle both sides of the fence in a recent letter to his employees, saying while he “deeply respects the right of workers to be represented by a union,” he reiterated the company’s commitment to foster a positive work environment and address any issues that are counter to the company’s values.

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