Federal Court Rules Against Starbucks in Union Case

A federal appeals court has upheld the National Labor Relations Board's (NLRB) findings that Starbucks unlawfully fired two union organizers, Echo Nowakowska and Tristan Bussiere, due to their efforts to unionize. The 3rd U.S. Circuit Court of Appeals confirmed that substantial evidence supported the NLRB's conclusions regarding unfair labor practices, rejecting Starbucks' claims that the terminations were performance-related. However, the court limited the NLRB's remedial authority, ruling that it could not force Starbucks to cover indirect expenses incurred by the fired workers, such as credit card late fees or medical costs. This decision curtails the NLRB's power in Pennsylvania, New Jersey, and Delaware, potentially impacting similar cases involving other companies. Starbucks continues to face allegations of unfair labor practices amid a broader movement by workers to unionize across its stores. The case has broader implications for labor law enforcement, especially for companies challenging NLRB authority.