Starbucks CEO Found to have violated the NLRA By Inviting Employee to Quit

SCMP Breaking News - Labor & Employment

Year 9, Vol. 10 - October 7, 2024

On October 2, 2024, the National Labor Relations Board (“NLRB”) ruled that Starbucks Corporation violated Section 8(a)(1) of the National Labor Relations Act (“NLRA”) when, at a collaboration session, Interim Starbucks CEO Howard Schultz invited an employee to quit his job after the employee raised issues related to unionization.

More specifically, during a meeting meant to “co-create” improved working conditions held on April 8, 2022, union employee Madison Hall raised concerns about the company’s treatment of union supporters and, in response, Starbucks’ then Interim CEO remarked “if you’re not happy at Starbucks, you can go work for another company.” The NLRB upheld an Administrative Judge’s prior decision finding that Schultz’s statement was coercive and an implicit threat of discharge, which reinforced the idea that union activity was incompatible with continued employment at Starbucks and, thus, violated Section Section 8(a)(1) of the NLRA.

In so holding, the Board rejected Starbucks’ argument that Schultz was merely expressing the option for employees to seek other employment if they were unhappy and ordered Starbucks to cease any actions that may be perceived as threatening or coercive toward employees engaged in union activities and to post a notice of employee rights at all of its Long Beach stores.

What Should Employers do?

Employers – especially high-ranking executives and leaders of companies –   should be mindful of this NLRB decision and refrain from making any remarks to employees that may be perceived as implied threats of employment discharge or as coercive and/or threatening to union activities, as they are likely to be deemed illegal under the NLRA.

Should you require further advice or assistance in relation to this matter, please contact us at (787) 945-0380.

Because of the general nature of this newsletter, nothing herein should be construed as legal advice or a legal opinion. SCMP Breaking News and all its content is property of Silva-Cofresí, Manzano & Padró, LLC

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