The U.S. Supreme Court is set to hear a challenge from Starbucks Corp. (NASDAQ:SBUX) against the National Labor Relations Board’s decision to reinstate fired baristas who were organizing a union.
What Happened: The case stems from a 2022 incident where Starbucks fired seven baristas from a Memphis coffeehouse for violating company policy by inviting a TV news crew into the store after hours, The Washington Post reported on Monday. The workers claimed they were fired for their union activities, a claim the National Labor Relations Board (NLRB) agreed with.
A federal judge approved the NLRB’s request for an order to reinstate the workers, a decision upheld by an appeals court.
The case arrives at the Supreme Court amid ongoing negotiations between Starbucks and the local union, to withdraw ongoing litigation. However, Starbucks is disputing the standard used by federal judges to determine whether workers should be reinstated when requested by the NLRB.
The Supreme Court’s decision could potentially impact labor organizing across the country. Experts fear a ruling against the NLRB could weaken labor organizing in other scenarios.
“This could have a substantial impact,” said James Cooney, a labor studies professor ...