On August 2, 2023, a new precedent for employer work rules was set by the National Labor Relations Board (NLRB) in the case of Stericycle, Inc. This new legal standard concerns any employer work rules that may unintentionally restrict employees’ protected concerted activity. For corporate legal counsel and law firms advising businesses, the implications of this decision are significant. Let’s review the context and likely impacts of this ruling.
Before delving into the specifics of the Stericycle, Inc. case, it’s important to remember what the National Labor Relations Act (NLRA) protects. Section 7 of the NLRA guarantees employees the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and engage in other concerted activities for collective bargaining or other mutual aid or protection. These rights play an important role in ensuring employee freedom in the workplace, especially in the clarification of rules and policies that may impede unionizing or collective bargaining efforts.
With the case of Stericycle, Inc., the NLRB has reportedly implemented a new legal standard for assessing whether certain employer work rules might inadvertently encroach upon these protected activities. The exact details of this new standard are yet to be fully clarified and analyzed, but it undeniably represents a new benchmark in labor law.
This decision by the NLRB potentially makes it much more complicated for employers to implement certain types of workplace rules without running the risk of violating their employees’ NLRA rights. It may lead to increased scrutiny of company policies, and consequently, potential legal challenges, which could have substantial implications for large corporations and the wider business world.
More than ever, law firms and corporate counsel should be wary of the potential implications of the NLRB’s decision in Stericycle, Inc. It’s especially critical to review existing workplace rules or those being drawn up, to ensure they do not unintentionally infringe upon employees’ Section 7 rights.
This ruling serves as a stark reminder that in the evolving landscape of labor law, it is crucial for legal professionals to stay attuned to new standards and shifts in NLRB enforcement policy.