NLRB Shifts Workplace Rules Standard: The Impact of Stericycle Decision on Employers

In a significant development for both unionized and non-unionized workplaces alike, the U.S. National Labor Relations Board (the “Board”) has rendered a game-changing decision regarding employer work rules. The decision, known as Stericycle, could change how seemingly neutral workplace rules are considered under the law.

As reported by JD Supra, the Stericycle decision modifies the standard for determining whether a seemingly neutral workplace rule is unlawful. Previously, such a rule had to readily or explicitly impede employees from exercising their rights under the National Labor Relations Act. However, in Stericycle, the Board therefore set forth a new threshold: now, the General Counsel must only demonstrate that a rule, regardless of its evident neutrality, has a “reasonable tendency” to deter employees from exercising their Act-protected rights.

The “reasonable tendency” standard is a significant departure from prior Board rulings and interpretations. The implications of this shift are broad and far-reaching for employers across the United States, whether their workplaces are unionized or not.

The ramifications of this decision are likely to manifest in practical workplace environments, potentially prompting revisions of employer rules and policies to ensure they do not come under the purview of the new “reasonable tendency” threshold. Legal professionals would do well to stay abreast of this evolving issue and advise their clients accordingly.