Supreme Court rules for Starbucks, limits power of judges to protect fired union organizers

The Supreme Court ruled for Starbucks on Thursday and limited the power of judges and the National Labor Relations Board to protect union organizers.

In a 9-0 decision, the court overturned a ruling by a federal judge in Tennessee who sided with the NLRB and ordered Starbucks to rehire the so-called “Memphis Seven.”

In doing so, the justices set a higher legal standard to prevent judges from deferring to the labor board in pending disputes.

Justice Clarence Thomas said judges should follow the traditional rules before intervening and giving a temporary victory for the NLRB.

“A preliminary injunction is an ‘extraordinary’ equitable remedy that is never awarded as of right,” he said in Starbucks vs. McKinney.

Judges in different parts of the nation had followed differing approaches in these cases, and the court sided with those who said judges should be reluctant to intervene and issue a temporary injunction.

Justice Ketanji Brown Jackson agreed with part of the court’s ruling but dissented in part as well.

Starbucks has been aggressive in fighting against union organizers. The coffee company said it took the Memphis case to the high court seeking to “level the playing field” in these labor-management battles.

At issue was what the company called a union-friendly legal standard that allowed judges to intervene early and to rule against the employers.

“Getting an injunction is often the whole ballgame,” said Washington attorney Lisa Blatt on behalf of the company in Starbucks vs. McKinney.

The NLRB says these temporary injunctions are needed to protect workers who were fired in violation of the labor laws. But the companies say they should not be forced to rehire employees who broke their work rules.

In February 2022, Starbucks fired seven baristas in Memphis who were seeking to organize a union. The company said the dismissals arose from “significant violations” of their safety and security policies. They said the employees had remained in the store after closing hours and invited local media to interview them.

Starbucks Workers United called this “union busting” and filed a complaint with the NLRB contending the workers were fired in retaliation for their organizing efforts.

M. Kathleen McKinney, a regional director of the NLRB, petitioned a federal judge to issue an order protecting the workers while the board considered their complaint. U.S. District Judge Sheryl Lipman agreed there was “reasonable cause” to believe the workers had a valid claim, and she ordered Starbucks to rehire the seven employees.

Starbucks said the NLRB leans in favor of workers in these disputes and regularly wins orders from judges who force employers to rehire workers while their claims are pending for months or years before the labor board.

Their lawyers argued that in other non-labor cases, judges rarely issue such temporary injunctions and do so only if they are convinced the suing parties are likely to win in the end.