In a significant shift, the National Labor Relations Board (NLRB) has outlined a new standard for the analysis and review of employer workplace rules, an action likely to lead to increasing complexities for anyone responsible for composing such policies.
This adjustment was characterized by the board’s decision in Stericycle, Inc., 372 NLRB No. 113 (2023), resulting in another Trump-era decision being overturned. The majority of the Board expressed that a work rule would be seen as inherently illegal if it possesses “a reasonable tendency to chill employees from exercising their Section 7 rights.”
The inclusion of this ground in determining the legality of a work rule denotes a considerable change in the approach and methodology of the NLRB. This reversal implies that the interpretation of workplace rules, from this point forward, would lean more towards stricter scrutiny. Much to the dismay of corporates and potentially the legal professionals advising them, this could mean an increase in the amount of time and resources devoted to ensuring the drafting of such rules falls within NLRB’s new guidelines.
In conclusion, the shift by the NLRB underlines the fluid nature of labor laws and their interpretation. For those in corporate legal departments and law firms, this sends out a clear signal to be proactive in reviewing and potentially restructuring existing workplace rules to ensure compliance with the NLRB’s new stance.