Court rejects Starbucks' challenge to U.S. Labor Board, ruling it illegally fired baristas | Starbucks

A federal appeals court has largely rejected Starbucks' appeal of a National Labor Relations Board (NLRB) finding that the coffee chain illegally fired two Philadelphia baristas because they wanted to organize a union.

The 3rd U.S. Court of Appeals said the coffee giant lacked standing to challenge the constitutionality of administrative judges at the NLRB, the government agency created to enforce U.S. labor laws regarding labor practices. and collective bargaining.

The ruling represents a possible setback for companies including Amazon, grocery chain Trader Joes and SpaceX that have sought to limit agencies' enforcement powers.

Circuit Judge Thomas Ambro wrote for a three-judge panel that substantial evidence supported the NLRB's conclusion that Starbucks engaged in unfair labor practices when it fired Echo Nowakowska and Tristan Bussiere from their South Philadelphia store and previously reducing Nowakowska's opening hours.

The court also found substantial evidence that Starbucks knew before the layoffs that the baristas had recorded meetings with supervisors without their consent, and rejected Starbucks' claim that there was no need to rehire the baristas with back pay because he only discovered the inappropriate recordings later.

But the Philadelphia court said the NLRB exceeded its authority by ordering Starbucks to pay the baristas for foreseeable expenses resulting from their termination. These could have included costs related to finding a new job and direct medical expenses.

Starbucks said it fired Nowakowska in January 2020 because she performed poorly and mistreated her customers, and fired Bussiere the following month because he spread a false rumor that another barista would be fired.

Neither Starbucks nor its lawyers immediately responded to requests for comment. An NLRB spokesperson declined to comment.

Many Starbucks workers have accused the Seattle-based company of unfair labor practices, which it has denied, as part of a worker-led campaign to unionize stores nationwide.

That campaign included strikes this month at more than 300 retail locations, according to Starbucks Workers United.

It was the first time a federal appeals court considered broader challenges to the NLRB's enforcement powers.

Ambro said Starbucks lacked standing to challenge the removal protections because it could not demonstrate harm.

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