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    Labor Board Curbs Gag Rules in Severance Agreements

    The National Labor Relations Board said severance pacts requiring confidentiality and nondisparagement violated a law on collective worker activity.The National Labor Relations Board has ruled that it is generally illegal for companies to offer severance agreements that prohibit workers from making potentially disparaging statements about the employer or from disclosing details of the agreement.The ruling by the board, which has a Democratic majority, overturns a pair of 2020 decisions, when the board was controlled by Republicans and found that such severance agreements were not illegal on their face. It continues the labor board’s worker- and union-friendly trajectory under appointees of President Biden.The earlier decisions held that the severance agreements were illegal only if accompanied by other circumstances making them suspect, such as the possibility that they were being used to cover up the illegal firing of employees who tried to form a union.Still, Anne Lofaso, a professor of labor law at West Virginia University, said the latest decision was limited to rights under the National Labor Relations Act, such as employees’ rights to draw attention to unsafe working conditions, or to engage in other activities that protect or benefit workers as a group.She said an employer could still offer workers a severance agreement requiring them to give up their right to sue over, say, race discrimination under the Civil Rights Act of 1964.In the ruling, issued Tuesday, the board said it was returning to longstanding precedent. The 2020 standard, it said, ignored the fact that a severance package with confidentiality or nondisparagement provisions could on its own “unlawfully restrain and coerce” workers’ labor rights.“It’s long been understood by the board and the courts that employers cannot ask individual employees to choose between receiving benefits and exercising their rights,” the board’s chairman, Lauren McFerran, said in a statement.Charlotte Garden, a professor of labor law at the University of Minnesota, said the 2020 approach had effectively tried to “narrow the rule to situations where an employer was trying to cover up their own previous unlawful activity and prohibit employees from talking about it.” The current ruling, she added, takes a broader view of when employees have the right to speak out.The case involved a Michigan hospital that permanently furloughed 11 union members during the pandemic. To receive severance benefits, they were required to sign an agreement that barred them from making statements that could disparage the hospital and from sharing the terms of the agreement.In furloughing the workers and offering them the agreement, the hospital also bypassed the union, depriving it of a chance to negotiate the terms, according to Tuesday’s ruling.In his dissent, Marvin Kaplan, the board’s lone Republican, argued that offering the severance agreement was illegal because the hospital circumvented the union, but not specifically because of its nondisclosure and nondisparagement provisions.Under Mr. Biden’s appointees, the labor board has moved relatively quickly to reinstate workers who it determines have been fired illegally. It has also issued rulings effectively expanding the financial remedies available to such workers and making it easier for a subset of employees within a workplace to unionize. More

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    Judge Finds Amazon Broke Labor Law in Anti-Union Effort

    The ruling, on charges brought by the National Labor Relations Board, involved actions at two Staten Island warehouses before union votes last year.Amazon violated labor law in advance of unionization elections last year at two warehouses on Staten Island, a federal administrative judge has ruled.The judge, who hears cases for the National Labor Relations Board, ruled on Monday that Amazon supervisors had illegally threatened to withhold wage and benefit increases from employees at the warehouses if they voted to unionize. The judge, Benjamin W. Green, also ruled that Amazon had illegally removed posts on a digital message board from an employee inviting co-workers to sign a petition being circulated by the Amazon Labor Union. The union sought to represent workers at both warehouses.The ruling ordered Amazon to stop the unfair labor practices and to post a notice saying it would not engage in them.In the same ruling, the judge dismissed several accusations brought in a complaint by the labor board’s prosecutors, including charges that Amazon indicated take-home pay would fall if workers unionized; that Amazon promised improvements in a program that subsidizes workers’ educational expenses if they chose not to unionize; and that Amazon indicated that workers would be fired if they unionized and failed to pay union dues.The judge found that these accusations were either overstated or, in the final instance, that the action was not illegal.Amazon can appeal the ruling to the labor board in Washington.“We’re glad that the judge dismissed 19 — nearly all — of the allegations in this case,” Mary Kate Paradis, an Amazon spokeswoman, said in a statement, adding: “The facts continue to show that the teams in our buildings work hard to do the right thing.”The union declined to comment.The violations occurred at a vast Amazon warehouse known as JFK8, where workers voted to unionize in an election whose results were announced in April, and at a smaller, nearby warehouse known as LDJ5, where workers voted down a union the next month.In the weeks before the elections, Amazon summoned employees at the warehouses to dozens of anti-union meetings at which supervisors questioned the credibility of the Amazon Labor Union, emphasized the costliness of union dues and warned that workers could end up worse off under a union.The judge’s ruling set aside a broader question brought by labor board prosecutors: whether employers can force workers to attend such meetings.The meetings are legal under labor board precedent and common among employers facing union campaigns. But the board’s general counsel, Jennifer Abruzzo, has argued that the precedent is in tension with federal labor law and had sought to challenge it.Judge Green concluded that he lacked the authority to overturn the precedent. “I am required to apply current law,” he wrote. Ms. Abruzzo’s office can file an appeal asking the labor board in Washington to overturn the precedent. More

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    Starbucks Illegally Denied Raises to Union Members, Labor Board Says

    Federal labor regulators have accused Starbucks of illegally discriminating against unionized employees by denying them wage and benefit increases that the company put in place for nonunion employees.In a complaint on Wednesday, a regional office of the National Labor Relations Board accused the company of breaking the law when its chief executive, Howard Schultz, “promised increased wages and benefits at U.S. stores if its employees rejected the union as their bargaining representative,” and when it withheld raises and benefits from unionized workers.The labor board is seeking, among other things, that affected employees be made whole for the denial of benefits and wage increases. It is also asking that Mr. Schultz read a notice to all employees informing them that some had been unlawfully denied benefits and pay increases and explaining their rights under federal labor law. Alternatively, a board official could read this material to employees in Mr. Schultz’s presence.The labor board’s case is scheduled for a hearing on Oct. 25 before an administrative law judge, unless Starbucks settles with the agency beforehand. Starbucks could appeal any ruling by an administrative judge to the full board.In a statement, Starbucks said that it was required under federal law to negotiate changes in wages and benefits with the union and that it was therefore not allowed to make such changes unilaterally, as it can in nonunion stores. “Wage and benefits are ‘mandatory’ subjects of the collective bargaining process,” the statement said.Workers United, the union representing the company’s newly organized workers, said the complaint affirmed its contention that Starbucks was discouraging union activity.“He claims to run a ‘different kind of company,’ yet in reality, Howard Schultz is simply a billionaire bully who is doing everything he can to crush workers’ rights,” Maggie Carter, a worker who helped unionize her store in Knoxville, Tenn., said in a statement.More than 225 out of roughly 9,000 corporate-owned Starbucks locations in the United States have voted to unionize since last fall.Mr. Schultz began indicating that the company would roll out new benefits, but only for nonunion workers, shortly after he began his third tour as the company’s chief executive in April.The next month, the company announced a series of new benefits — including additional career development opportunities, better tipping options and more sick time — but only for stores that hadn’t unionized or weren’t in the process of unionizing. The benefits were to begin in the coming months.The company unveiled wage increases as well, some of which had already been announced and which the company said would apply to all workers. But other increases were new and would apply only to nonunion workers.For example, according to Reggie Borges, a Starbucks spokesman, all employees stood to benefit from a companywide $15-an-hour minimum wage, but nonunion workers hired by May 2 would get a 3 percent raise if that proved higher than $15.The wage policy appears to have sown confusion, with some employees briefly receiving a pay increase that was then withdrawn. Colin Cochran, a worker at a store near Buffalo that initially voted to unionize and then voted against the union in a rerun election decided this month, provided pay stubs showing that his $16.28 hourly wage had increased to $16.77 the first week of August, when Starbucks began the pay increases nationwide. But Mr. Cochran’s pay stub for the second week of August showed his hourly pay dropping back to $16.28. (The union is challenging the election loss at this store.)Mr. Borges said that the reversion to the previous wage had resulted from an inadvertent error and that unionized stores would get wage increases in September.Workers involved in union campaigns at other Starbucks locations said the denial of pay and benefit increases to unionized stores had slowed their organizing efforts.Kylah Clay, a Starbucks worker in Boston who helped organize several stores in the area, said inquiries from employees at other stores who were interested in unionizing had dropped off substantially not long after the company’s pay and benefits announcement in May. But they picked up recently after the pay and many benefit changes took effect, she said. More

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    NLRB Finds Merit in Union Accusations Against Amazon and Starbucks

    In a sign that federal labor officials are closely scrutinizing management behavior during union campaigns, the National Labor Relations Board said Friday that it had found merit in accusations that Amazon and Starbucks had violated labor law.At Amazon, the labor board found merit to charges that the company had required workers to attend anti-union meetings at a vast Staten Island warehouse where the Amazon Labor Union won a stunning election victory last month. The determination was communicated to the union Friday by an attorney for the labor board’s regional office in Brooklyn, according to Seth Goldstein, a lawyer representing the union.Such meetings, often known as “captive audience” meetings, are legal under current labor board precedent. But last month, the board’s general counsel, Jennifer Abruzzo, issued a memo saying that the precedent was at odds with the underlying federal statute, and she indicated that she would seek to challenge it.In the same filing of charges, the Amazon Labor Union accused the company of threatening to withhold benefits from employees if they voted to unionize, and of inaccurately indicating to employees that they could be fired if the warehouse were to unionize and they failed to pay union dues. The labor board also found merit to these accusations, according to an email from the attorney at the regional office, Matt Jackson.Mr. Jackson said the agency would soon issue a complaint reflecting those accusations unless Amazon settled the case. The complaint would be litigated before an administrative law judge, whose decision could be appealed to the labor board in Washington.Understand the Unionization Efforts at AmazonBeating Amazon: A homegrown, low-budget push to unionize at a Staten Island warehouse led to a historic labor victory. (Workers at another nearby Amazon facility rejected joining a similar effort shortly after.)Retaliation: Weeks after the landmark win, Amazon fired several managers in Staten Island. Some see it as retaliation for their involvement in the unionization efforts.A New Playbook: The success of the Amazon union’s independent drive has organized labor asking whether it should take more of a back seat.Amazon’s Approach: The company has countered unionization efforts with mandatory “training” sessions that carry clear anti-union messages.Mr. Goldstein applauded Ms. Abruzzo and the regional office for taking “decisive steps ending required captive audience meetings” and said the right to unionize “will be protected by ending Amazon’s inherently coercive work practices.”Kelly Nantel, an Amazon spokeswoman, said in a statement that “these allegations are false and we look forward to showing that through the process.”At Starbucks, where the union has won initial votes at more than 50 stores since December, the labor board issued a complaint Friday over a series of charges the union filed, most of them in February, accusing the company of illegal behavior. Those accusations include firing employees in retaliation for supporting the union; threatening employees’ ability to receive new benefits if they choose to unionize; requiring workers to be available for a minimum number of hours to remain employed at a unionized store without bargaining over the change, as a way to force out at least one union supporter; and effectively promising benefits to workers if they decide not to unionize.In addition to those allegations, the labor board found merit to accusations that the company intimidated workers by closing Buffalo-area stores and engaging in surveillance of workers while they were on the job. All of those actions would be illegal.In a statement, Starbucks Workers United, the branch of the union representing workers there, said that the finding “confirms the extent and depravity of Starbucks’s conduct in Western New York for the better part of a year.” It added: “Starbucks will be held accountable for the union-busting minefield they forced workers to walk through in fighting for their right to organize.”Starbucks said in a statement that the complaint doesn’t constitute a judgment by the labor board, adding, “We believe the allegations contained in the complaint are false, and we look forward to presenting our evidence when the allegations are adjudicated.” More

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    Supreme Court Ends Biden’s Eviction Moratorium

    The ruling followed political and legal maneuvering by the administration to retain protections for tenants. It puts hundreds of thousands at risk of being put out of their homes.WASHINGTON — The Supreme Court on Thursday rejected the Biden administration’s latest moratorium on evictions, ending a political and legal dispute during a public health crisis in which the administration’s shifting positions had subjected it to criticism from adversaries and allies alike.The court issued an eight-page majority opinion, an unusual move in a ruling on an application for emergency relief, where terse orders are more common. The court’s three liberal justices dissented.The decision puts hundreds of thousands of tenants at risk of losing shelter, while the administration struggles to speed the flow of billions of dollars in federal funding to people who are behind in rent because of the coronavirus pandemic and its associated economic hardship. Only about $5.1 billion of the $46.5 billion in aid had been disbursed by the end of July, according to figures released on Wednesday, as bureaucratic delays at the state and local levels snarled payouts.The majority opinion, which was unsigned, said the Centers for Disease Control and Prevention had exceeded its authority.“The C.D.C. has imposed a nationwide moratorium on evictions in reliance on a decades-old statute that authorizes it to implement measures like fumigation and pest extermination,” the opinion said. “It strains credulity to believe that this statute grants the C.D.C. the sweeping authority that it asserts.”Justice Stephen G. Breyer, writing for the three dissenting justices, faulted the court for its haste during a public health crisis.“These questions call for considered decision-making, informed by full briefing and argument,” he wrote. “Their answers impact the health of millions. We should not set aside the C.D.C.’s eviction moratorium in this summary proceeding.”The majority said the issues were fully considered and straightforward. “It is indisputable that the public has a strong interest in combating the spread of the Covid-19 Delta variant,” the opinion said. “But our system does not permit agencies to act unlawfully even in pursuit of desirable ends.”“If a federally imposed eviction moratorium is to continue,” the opinion said, “Congress must specifically authorize it.”In dissent, Justice Breyer wrote that “the public interest is not favored by the spread of disease or a court’s second-guessing of the C.D.C.’s judgment.”The Biden administration and other moratorium proponents predicted that the decision would set off a wave of dire consequences.“As a result of this ruling, families will face the painful impact of evictions, and communities across the country will face greater risk of exposure to Covid-19,” Jen Psaki, the White House press secretary, said in a statement.The ruling also renewed pressure on congressional Democrats to try to extend the freeze over the opposition of Republicans.“Tonight, the Supreme Court failed to protect the 11 million households across our country from violent eviction in the middle of a deadly global pandemic,” said Representative Cori Bush, a Missouri Democrat who slept on the steps of the Capitol this month to protest the expiration of the previous moratorium. “We already know who is going to bear the brunt of this disastrous decision: Black and brown communities, and especially Black women.”But landlords, who have said the moratoriums saddled them with billions of dollars in debt, hailed the move.“The government must move past failed policies and begin to seriously address the nation’s debt tsunami, which is crippling both renters and housing providers alike,” said Bob Pinnegar, the president of the National Apartment Association, a trade association representing large landlords.It will most likely take a while for the backlog of eviction cases in many states to result in the displacement of renters. But tenant groups in the South, where fast-track evictions are common, are bracing for the worst.In recent days, Mr. Biden’s team has been mapping out strategies to deal with the likely loss of the moratorium, with a plan to focus its efforts on a handful of states — including South Carolina, Tennessee, Georgia and Ohio — that have large backlogs of unpaid rent and few statewide protections for tenants.The administration had at first concluded that a Supreme Court ruling in June had effectively forbidden it from imposing a new moratorium after an earlier one expired at the end of July. While the administration had prevailed in that ruling by a 5-to-4 vote, one member of the majority, Justice Brett M. Kavanaugh, wrote that he believed the moratorium to be unlawful and that he had cast his vote to temporarily sustain it only to allow an orderly transition. He would not support a further extension without “clear and specific congressional authorization (via new legislation),” he wrote.Congress did not act. But after political pressure from Democrats, a surge in the pandemic and new consideration of the legal issues, the administration on Aug. 3 issued the moratorium that was the subject of the new ruling.The administration’s legal maneuvering might have failed, but it bought some time for tenants threatened with eviction. In unusually candid remarks this month, President Biden said that was part of his calculus in deciding to proceed with the new moratorium, which was set to expire Oct. 3.Congress declared a moratorium on evictions at the beginning of the coronavirus pandemic, but it lapsed in July 2020. The C.D.C. then issued a series of its own moratoriums, saying that they were justified by the need to address the pandemic and authorized by a 1944 law. People unable to pay rent, the agency said, should not be forced to crowd in with relatives or seek refuge in homeless shelters, spreading the virus.The last moratorium — which was put in place by the C.D.C. in September and expired on July 31 after being extended several times by Congress and Mr. Biden — was effective at achieving its goal, reducing by about half the number of eviction cases that normally would have been filed since last fall, according to an analysis of filings by the Eviction Lab at Princeton University.The challengers in the current case — landlords, real estate companies and trade associations led by the Alabama Association of Realtors — argued that the moratorium was not authorized by the law the agency relied on, the Public Health Service Act of 1944.That law, the challengers wrote, was concerned with quarantines and inspections to stop the spread of disease and did not bestow on the agency “the unqualified power to take any measure imaginable to stop the spread of communicable disease — whether eviction moratoria, worship limits, nationwide lockdowns, school closures or vaccine mandates.”The C.D.C. responded that the moratorium was authorized by the 1944 law. Evictions would accelerate the spread of the coronavirus, the agency said, by forcing people “to move, often into close quarters in new shared housing settings with friends or family, or congregate settings such as homeless shelters.”The moratorium, the administration told the justices, was broadly similar to quarantine. “It would be strange to hold that the government may combat infection by prohibiting the tenant from leaving his home,” its brief said, “but not by prohibiting the landlord from throwing him out.”The case was complicated by congressional action in December, when lawmakers briefly extended the C.D.C.’s moratorium through the end of January in an appropriations measure. When Congress took no further action, the agency again imposed moratoriums under the 1944 law.In its Supreme Court brief, the government argued that it was significant that Congress had embraced the agency’s action, if only briefly.The central legal question in the case was whether the agency was entitled to act on its own. In June, with the earlier moratorium about to expire, the court voted 5 to 4 in favor of the administration, allowing that measure to stand.But that victory was distinctly provisional. Justice Kavanaugh, who voted with the majority, wrote that he had cast his vote reluctantly and had taken account of the then-impending expiration of the earlier moratorium.“The Centers for Disease Control and Prevention exceeded its existing statutory authority by issuing a nationwide eviction moratorium,” Justice Kavanaugh wrote. “Because the C.D.C. plans to end the moratorium in only a few weeks, on July 31, and because those few weeks will allow for additional and more orderly distribution of the congressionally appropriated rental assistance funds, I vote at this time to deny the application” that had been filed by the challengers.The other members of the court did not give reasons for their votes in the June ruling. But four of them — Justices Clarence Thomas, Samuel A. Alito Jr., Neil M. Gorsuch and Amy Coney Barrett — voted to lift the earlier moratorium. Taken together with Justice Kavanaugh’s statement, that distinctly suggested that a majority of the justices would not look favorably on another extension unless it came from Congress.The Biden administration initially seemed to share that understanding, urging Congress to act and saying it did not have the unilateral power to impose a further moratorium through executive action. When Congress failed to enact legislation addressing the issue, the moratorium expired.Under pressure from Speaker Nancy Pelosi and other Democrats and wary of the rise of the Delta variant, the administration reversed course a few days later.The new moratorium was not identical to the earlier one, which had applied nationwide. It was instead tailored to counties where Covid-19 was strongest, a category that currently covers some 90 percent of counties in the United States.Mr. Biden was frank in discussing his reasoning, saying the new measure faced long odds but would buy tenants some time.“The bulk of the constitutional scholarship says that it’s not likely to pass constitutional muster,” he said on Aug. 3. “But there are several key scholars who think that it may — and it’s worth the effort.”Many states and localities, including New York and California, have extended their own moratoriums, providing another layer of protection for some renters. In some places, judges, aware of the potential for large numbers of people to be put out on the street even as the pandemic intensifies again, have said they would slow-walk cases and make greater use of eviction diversion programs. More

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    The National Labor Relations Board grants a reprieve to inflatable rats.

    It turns out that inflatable rodents may be as unstoppable as their living, breathing cousins.On Wednesday, the National Labor Relations Board ruled that unions can position large synthetic props like rats, often used to communicate displeasure over employment practices, near a work site even when the targeted company is not directly involved in a labor dispute.While picketing companies that deal with employers involved in labor disputes — known as a secondary boycott — is illegal under labor law, the board ruled that the use of oversized rats, which are typically portrayed as ominous creatures with red eyes and fangs, is not a picket but a permissible effort to persuade bystanders.Union officials had stationed the rat in question, a 12-foot-tall specimen, close to the entrance of a trade show in Elkhart, Ind., in 2018, along with two banners. One banner accused a company showcasing products there, Lippert Components, of “harboring rat contractors” — that is, doing business with contractors that do not use union labor.Lippert argued that the rat’s use was illegal coercion because the creature was menacing and was intended to discourage people from entering the trade show. But the board found that the rat was a protected form of expression. “Courts have consistently deemed banners and inflatable rats to fall within the realm of protected speech, rather than that of intimidation and the like,” the ruling said.The rise of the rodents, often known as “Scabby the Rat,” dates to the early 1990s, when an Illinois-based company began manufacturing them for local unions intent on drawing attention to what they considered suspect practices, such as using nonunion labor. The company later began making other inflatable totems, like fat cats and greedy pigs, for the same purpose.The labor relations board had previously blessed rats in a 2011 ruling. But seven years later, its general counsel, Peter B. Robb, sought to reopen the debate.Mr. Robb, a Trump appointee, issued an internal memo in 2018 arguing that erecting a rat near an employer that was not directly involved in a labor dispute amounted to “unlawful coercion” — an attempt to disrupt the business of a neutral party. His office subsequently intervened on behalf of the companies in a handful of cases in which firms sought to block unions from deploying large inflatable paraphernalia close to their facilities.One of those cases was dismissed, while a successor to Mr. Robb sought to dismiss another. (A judge has yet to rule on the motion to dismiss that case.)In the case brought by Lippert, an administrative law judge ruled against the company in 2019, arguing that the rat did not amount to a picket or illegal coercion.The judge noted that the rat and banners, which were erected by members of a local branch of the International Union of Operating Engineers, were stationary and did not create confrontation with passers-by. There was no evidence that the two union representatives present marched in front of the trade show or blocked people from entering, the judge wrote. They appeared to merely sit beside the rat.The company appealed to the labor board in Washington, which solicited public comment last fall on whether it should modify or overturn the precedent.But the board’s chairman, Lauren McFerran, a Democratic appointee, concluded that precedent required dismissing the complaint. Two Republican appointees indicated that they considered the precedent flawed but that banning inflatable rats would violate the First Amendment.A lone Republican appointee, William J. Emanuel, argued that the precedent should be overturned. More