Starbucks appears likely to win dispute with agency

The US Supreme Court appeared to side with Starbucks Tuesday in a case that could make it harder for the federal government to seek injunctions when it suspects a company of interfering in unionization campaigns.

Justices noted during oral arguments that Congress requires the National Labor Relations Board to seek such injunctions in federal court and said that gives the courts the duty to consider several factors, including whether the board would ultimately be successful in its administrative case against a company.

“The district court is an independent check. So it seems like it should be just doing what district courts do, since it was given the authority to do it,” Justice Amy Coney Barrett said.

But the NLRB says that since 1947, the National Labor Relations Act — the law that governs the agency — has allowed courts to grant temporary injunctions if it finds a request “just and proper.”

The agency says the law doesn’t require it to prove other factors and was intended to limit the role of the courts.

The case that made it to the high court began in February 2022, when Starbucks fired seven workers who were trying to unionize their Tennessee store. The NLRB obtained a court order forcing the company to rehire the workers while the case wound its way through the agency’s administrative proceedings. Such proceedings can take up to two years.

A district court judge agreed with the NLRB and issued a temporary injunction ordering Starbucks to rehire the workers in August 2022. After the 6th US Circuit Court of Appeals upheld that ruling, Starbucks appealed to the Supreme Court.

Five of the seven workers are still employed at the Memphis store, while the other two remain involved with the organizing effort, according to Workers United, the union organizing Starbucks workers. The Memphis store voted to unionize in June 2022.