The Biden administration has been trying to expand labor policies and strengthen so-called “worker protections” through agency fiat, but it’s hitting some serious legal roadblocks lately. High-profile cases involving Starbucks, SpaceX, and Amazon spotlight the challenges faced by the National Labor Relations Board (NLRB), revealing just how messy and contentious the path to expanding a robust pro-union agenda can be.
Supreme Court Puts Starbucks Case on Ice
The Supreme Court recently overturned a lower court’s decision that ordered Starbucks to reinstate the "Memphis Seven," employees terminated during a unionization drive. Justice Clarence Thomas laid out a stricter four-factor test for issuing "10(j) injunctions," which temporarily halt unfair labor practices while the NLRB sorts things out.
This ruling makes it harder to secure these injunctions, slowing down the administration's efforts to swiftly tackle alleged unfair labor practices. Labor advocates have expressed frustration, seeing this as a significant blow to “worker protections.”
We checked in with labor relations expert Phil Wilson for his take on the ruling:
“I'd call this more of a Seinfeld decision—it’s mostly about nothing. It does make it somewhat more difficult for the General Counsel to get an injunction, but I don't think it will make it less likely they'll seek injunctive relief,” Wilson said. “After all, many Circuits currently follow the four-prong approach adopted by the Supreme Court, and the NLRB seeks injunctions in those jurisdictions all the time. I don’t think it should alter employer behavior at all. Employers should continue respecting employee rights to engage in concerted activity and feel comfortable following neutral company policies.”
SpaceX Challenges the NLRB’s Constitutionality
SpaceX is throwing a wrench in the works with its challenge to the NLRB’s constitutionality. The company’s appeal in the Fifth Circuit argues that the NLRB’s structure violates the separation of powers and the Seventh Amendment’s guarantee of a jury trial. Recently, the Fifth Circuit allowed SpaceX to continue its challenge, rejecting an NLRB motion to pause the appeal.
SpaceX claims the NLRB mixes legislative, executive, and judicial powers in a way that breaches constitutional lines. If SpaceX prevails, the fallout could significantly reshape the administration’s ability to enforce labor laws through the NLRB.
Amazon Dodges Labor Law Compliance Order
Amazon recently won a significant victory in the Second Circuit, which voided a broad order demanding the company comply with federal labor laws. The case involved Gerald Bryson, fired after organizing protests about Amazon's COVID-19 safety protocols. The NLRB had initially ruled his firing illegal, but Amazon fought back, arguing that the injunction was excessive and lacked proper justification.
The Second Circuit agreed with Amazon, highlighting the increasing judicial scrutiny of the NLRB’s actions and the high bar for justifying these injunctions.
Unions Push Back on Joint Employer Rulemaking
Adding another layer of complexity, unions are urging the NLRB to stop attempting to regulate joint employer classifications through rulemaking. The AFL-CIO and SEIU petitioned the board to revoke a Trump-era rule that narrows the scope of joint employer status, arguing it conflicts with common law and undermines the National Labor Relations Act.
The NLRB tried to broaden these categories, but a Texas federal judge declared the new rule too broad. The unions now want the NLRB to handle joint employer issues on a case-by-case basis, which they believe is better suited for these complex determinations.
What’s Next for Biden's Labor Policy?
These recent court battles highlight the rocky road ahead for the Biden administration’s attempts to expand labor policy favorable to unions. The Supreme Court’s demand for stricter standards on injunctions, SpaceX's constitutional challenge, and the Second Circuit’s call for detailed justifications all point to a more challenging environment for the administration’s pro-union agenda. Ongoing disputes over joint employer rules further complicate the landscape.
Buckle up—the ride through the courts is bound to get even bumpier.
