Close X
Attorney Spotlight

Find out how Gardner Bell's experience promoting financial and economic development initiatives both locally and abroad informs his role as an attorney. Find out more>

Search

Close X

Experience

Search our Experience

Experience Spotlight

On December 1, 2016, Parker Hannifin Corporation and CLARCOR Inc. announced that the companies have entered into a definitive agreement under which Parker will acquire CLARCOR for approximately $4.3 billion in cash, including the assumption of net debt. The transaction has been unanimously approved by the board of directors of each company. Upon closing of the transaction, expected to be completed by or during the first quarter of Parker’s fiscal year 2018, CLARCOR will be combined with Parker’s Filtration Group to form a leading and diverse global filtration business. Bass, Berry & Sims has served CLARCOR as primary corporate and securities counsel for 10 years and served as lead counsel on this transaction. Read more here.

CLARCOR
Close X

Thought Leadership

Enter your search terms in the relevant box(es) below to search for specific Thought Leadership.
To see a recent listing of Thought Leadership, click the blue Search button below.

Thought Leadership Spotlight

Securities Law Exchange BlogSecurities Law Exchange blog offers insight on the latest legal and regulatory developments affecting publicly traded companies. It focuses on a wide variety of topics including regulation and reporting updates, public company advisory topics, IPO readiness and exchange updates including IPO announcements, M&A trends and deal news.

Read More >

Labor Talk Blog: When Does "Offensive" Employee Conduct Lose Protection Under the NLRA?

Publications

June 23, 2014

Following a trend that has developed over the last several years,1 the National Labor Relations Board (the "Board") recently found that the termination of a Starbucks employee violated the National Labor Relations Act (the "NLRA" or the "Act"), even though the employee had engaged in extremely offensive, obscenity-filled conduct in the presence of customers.2 During his off-duty hours, the employee, who was supporting a union organizing effort, entered a different location from the one where he worked and engaged in a profanity-laced confrontation with a store manager in the presence of customers.

This was the Board's second look at the case. Initially, the Board held that the employee's conduct did not lose its "protected" status under Section 7.3 The Board also found that the employer's rule prohibiting employees from wearing more than one pro-union button while on duty violated Section 7 of the Act. When that decision was reviewed by the Second Circuit Court of Appeals, the Court found that the Board's decision violated both previous court decisions and the Board's own precedent.

"One-Button" Rule Allowed and Extreme Behavior Contextual to Workplace

As to the rule restricting the wearing of pro-union buttons, the Second Circuit found that Starbucks had established that its "one-button" restriction was a necessary and appropriate means of protecting its legitimate managerial interests.

As to the employee's behavior, the Second Circuit found that the Board had misapplied its own test originally set forth in Atlantic Steel Co.4 as to when an employee's behavior becomes so extreme that it loses protection under Section 7 of the Act. The Court noted that there, the Board was not considering the use of obscenities in a public place in the presence of customers, but rather was considering conduct in a workplace context, e.g., a factory floor. In many cases, the Board has acknowledged that the "language of the shop is not the language of 'polite society' . . .," and has given some leeway for impulsive behavior by an employee. Since the Board has not previously ruled on the question of whether an employee who uses obscenities in the presence of customers loses the protection of Section 7 under certain circumstances, the Court remanded the case to the Board to give it the opportunity to consider what standard would apply in that context.5

In this second decision, based on the same facts, the Board concluded that Starbucks had violated the Act but for a different reason. The Board found that Starbucks did not prove that the employee would have been terminated for his misconduct even if he had not engaged in protected pro-union activities. The Board's decision was based on a notation on the termination form completed by the employee's store manager that he was ineligible for rehire in part because he ". . . strongly support[s] the . . . union."

The Board did "assume" that the employee's conduct was severe enough to lose the protection of the Act but determined it would not set the standard to be applied in deciding whether a retail employee loses protection of the Act when engaged in misconduct in the presence of customers.6

Stay tuned, and look for a second appeal by Starbucks back to the Second Circuit.

Two Points of Guidance for Employers

The holding in this case provides valuable guidance to employers. First, any reference to an employee's participation in protected activity should be avoided on any documentation or in discussion with the employee. Second, any termination decision based on "discourteous" or "disrespectful" behavior should be reviewed carefully with the company's labor counsel before action is taken.

Given the current composition of the Board, it is unlikely that the board will find that an employee would lose the protection of Section 7 even by engaging in clearly unaccepted and offensive behavior. At the very least, however, there is hope that the appropriate Court of Appeals will follow the Second Circuit and refuse to enforce such a decision.

For more Labor and Employment information, visit www.BassBerryLaborTalk.com.


1 See: Bass Berry Labor Talk, "Does Your 'Courtesy' Policy Violate the NLRA?," October 9, 2012

Starbucks Corporation and Local 660, Industrial Workers of the World, 360 NLRB No. 134 (June 16, 2014).

355 NLRB 636 (2010).

245 NLRB 814 (1979).

NLRB v. Starbucks Corporation, 679 F.3d 78, 80 (2nd Cir. 2012).

360 NLRB No. 134 at p. 2, n. 10.


Related Professionals

Related Services

Notice

Visiting, or interacting with, this website does not constitute an attorney-client relationship. Although we are always interested in hearing from visitors to our website, we cannot accept representation on a new matter from either existing clients or new clients until we know that we do not have a conflict of interest that would prevent us from doing so. Therefore, please do not send us any information about any new matter that may involve a potential legal representation until we have confirmed that a conflict of interest does not exist and we have expressly agreed in writing to the representation. Until there is such an agreement, we will not be deemed to have given you any advice, any information you send may not be deemed privileged and confidential, and we may be able to represent adverse parties.