On August 2, 2023, the National Labor Relations Board (NLRB) announced a new standard for evaluating if typical work rules and employee handbook policies might violate the National Labor Relations Act (NLRA). This new standard, enacted in a decision involving Stericycle, Inc. and Teamsters Local 628, established a legal precedent to identify whether an employer’s work rule could implicitly restrict employees’ protected concerted activity under section 7 of the NLRA, even if it doesn’t explicitly do so. (JD Supra)
Under the new standard, not only the explicit content of an employer’s work rule will matter but also its potential implications. In other words, even if a rule doesn’t explicitly limit a worker’s right to engage in protected concerted activity, it still might be deemed in violation of the NLRA if it could be reasonably interpreted by an employee to limit such activities. Therefore, businesses and corporations, in particular, will need to carefully review and possibly modify their employee handbook policies.
The NLRB’s decision in the Stericycle, Inc. and Teamsters Local 628 case is expected to have significant implications for employers. It will likely lead to an increased scrutiny of work rules and employment handbook policies across various industries, followed by potential reforms. For legal professionals working with both large corporations and law firms, this new standard serves as a critical reminder of the importance of thorough legal review and audit of these policy documents for potential violations of NLRA provisions.
In light of this development, it’s crucial for legal counsel and HR professionals alike to be fully aware of the new standard, interpret it correctly, and ensure their companies’ policies and procedures are fully compliant. Legal teams should be ready to provide adequate advice to their clients and employers on these potential issues, and communicate any necessary changes to all relevant stakeholders in a clear, concise, and timely manner.