On August 2, 2023, the National Labor Relations Board (NLRB), a federal agency that enforces labor laws, issued its decision in Stericycle Inc., 372 NLRB No. 113 (2023) (“Stericycle”).
The ruling referenced two previous cases, The Boeing Company, 365 NLRB No. 154 (2017) (“Boeing”) and LA Specialty Produce Co., 368 NLRB No. 93 (2019) (“LA Specialty Produce”). The decision effectively overruled the standards set in these prior cases for determining whether facially neutral work rules violate Section 8(a)(1) of the National Labor Relations Act (NLRA).
The NLRA is a piece of legislation that provides most private-sector workers with the right to form, join or assist labor organizations. It also gives workers the ability to bargain collectively with their employers, and to refrain from any of such activities. Section 8(a)(1) in particular, forbidden employers “to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in section 7” which includes self-organization, joining labor organizations, collective bargaining and more.
This freshly-adopted volatile new standard potentially presents substantial changes for corporations and law firms alike. In particular, it may see a shift in the way firms evaluate whether their work rules could run afoul of labor laws. The NLRB’s landmark decision thus prompts a new wave of cautious deliberation for employee-centered policies.
The Stericycle case does not yet have a specific and well-outlined impact, but all employers need to be aware of it. Any employer governed by the NLRA should consider the changes this decision may bring about to their labor practices.
You can read a more detailed analysis of the decision on JD Supra where extensive legal considerations have been shared by the team at Sheppard Mullin Richter & Hampton LLP.