The Third Circuit recently delivered a ruling that invalidates the National Labor Relations Board’s (NLRB) use of expanded monetary remedies for workers who have been terminated by Starbucks. This ruling targeted the NLRB’s 2022 decision in Thryv v. NLRB, which had earlier allowed for what the board referred to as “make-whole relief.” Such relief went beyond the conventional scope of backpay to include compensation for other financial burdens such as credit-card fees, mortgage charges, child care expenses, and medical costs.
The case reflects ongoing legal dialogues concerning the extent to which the NLRB can impose financial remedies in unfair labor practice cases. Starbucks’s challenge to the board’s decision underscores the complexities and tensions in balancing corporate practices with labor rights, particularly when it comes to determining fair compensation for unjustly dismissed workers.