On August 2, 2023, the National Labor Relations Board (NLRB) issued a landmark decision in the case of Stericycle Inc. that marks a new approach in how the Board will weigh workplace policies and rules. The primary fork in this shift revolves around whether these rules infringe upon employees’ rights of engagement in collective workplace activities. These rights, protected under Section 7 of the National Labor Relations Act (NLRA), includes facets like the right to self-organization, to form, join, or assist labor organizations, and to bargain collectively. The full decision lays out in more detail this fundamental reinterpretation of the NLRA.
This new standard bears significant implications for corporations and law firms alike. For the former, the onus of ensuring their workplace policies and rules do not infringe upon employees’ Section 7 rights has potentially become intricate. Law firms, at the same time, face the challenge of interpreting and applying this new standard while advising their corporate clients.
Certain common workplace policies such as fraud prevention, confidentiality, and media contact rules might face a level of scrutiny they have not had to tackle before – further underscoring the need for careful reassessment of existing policies. Beyond the creation of new policies, the corporate world could see a shift in the dynamics of their existing employee relationships and engagements, especially involving labor organizations.
The full implications of this shift can only be observed with the passage of time, but one thing is clear – the NLRB’s new standard presents fresh challenges for both the corporate and legal world in the years to come.