Capstone Logistics v. NLRB

122 F.4th 194
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 25, 2024
Docket23-60513
StatusPublished

This text of 122 F.4th 194 (Capstone Logistics v. NLRB) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Capstone Logistics v. NLRB, 122 F.4th 194 (5th Cir. 2024).

Opinion

Case: 23-60513 Document: 75-1 Page: 1 Date Filed: 11/25/2024

United States Court of Appeals for the Fifth Circuit United States Court of Appeals ____________ Fifth Circuit

FILED No. 23-60513 November 25, 2024 ____________ Lyle W. Cayce Clerk Capstone Logistics, L.L.C.,

Petitioner/Cross-Respondent,

versus

National Labor Relations Board,

Respondent/Cross-Petitioner. ______________________________

Petition for Review of an Order of the National Labor Relations Board Agency Nos. 15-CA-257443, 15-CA-259712 ______________________________

Before Southwick, Haynes, and Douglas, Circuit Judges. Dana M. Douglas, Circuit Judge: Capstone Logistics, LLC (“Capstone”) petitions for review of a National Labor Relations Board (“NLRB” or “the Board”) decision and order determining that Capstone violated the National Labor Relations Act (“NLRA”) by firing an employee for engaging in protected concerted activity or, alternatively, because it believed she had engaged in protected concerted activity. The Board opposes Capstone’s petition and cross- petitions for summary enforcement of its order. Because we determine that the decision of the NLRB was, in part, supported by substantial evidence, we DENY Capstone’s petition for review and ENFORCE the order. Case: 23-60513 Document: 75-1 Page: 2 Date Filed: 11/25/2024

No. 23-60513

I. Capstone is a nationwide company that provides labor to other businesses, including Associated Wholesale Grocers at its facilities. In the fall of 2019, Capstone began supplying personnel to work as auditors at Associated Wholesale Grocers’ food distribution warehouse in Pearl River, Louisiana. Using scan guns, the auditors checked groceries that had been loaded onto pallets on various docks, including the cold dock for perishables, to ensure that Associated Wholesale Grocers accurately fulfilled its customers’ orders. The auditors’ job also required them to spend some time inside of freezers at the facility. Associated Wholesale Grocers provided its employees with freezer suits to withstand the cold temperatures, but Capstone did not supply its auditors with such suits. After verifying the customers’ orders were correctly filled, the auditors then rewrapped the orders and rebuilt the pallets. Capstone initially told the Pearl River auditors that they would be paid hourly during their training and would receive production pay—at sixteen cents per case scanned—after their training. But in the nine months or so that Capstone provided auditors to Associated Wholesale Grocers at its Pearl River facility, its auditors were only ever paid an hourly wage. A. In September 2019, Capstone hired Joyce Henson to serve as lead auditor at the Pearl River facility. During her one-month tenure, Henson spoke to the other Capstone auditors, as well as Capstone and Associated Wholesale Grocers personnel, about a variety of work-related matters. The auditors expressed concerns related to safety and training, the need for warm clothing to withstand cold temperatures, and the rate of pay. Henson also spoke separately with Associated Wholesale Grocers and Capstone officials about her own pay as lead auditor. On either October 17 or 18, Prince Wilson, a Capstone manager who trained the auditors at the Pearl River facility, brought Henson and the other

2 Case: 23-60513 Document: 75-1 Page: 3 Date Filed: 11/25/2024

auditors to a meeting with Associated Wholesale Grocers’ Director of Distribution Chris Griffin and Senior Manager Ryan Carroll. At the meeting, Henson raised the auditors’ concerns about the safety of the location in which they would be working, their need for freezer suits, and their pay. As Henson spoke on their behalf, the other auditors nodded their heads in agreement. Griffin told Henson that he would discuss these matters with Capstone. At the end of the meeting, after the other auditors had left, Henson spoke privately with Griffin and Carroll to raise concerns about her own pay. Henson also mentioned that she had contacted Donny Rouse, the owner of a grocery chain that was a major Associated Wholesale Grocers customer, and who happened to be a friend of Henson’s stepfather.1 Griffin expressed surprise that Henson knew Rouse and told her to contact Capstone’s Vice President of Operations Tim Casey and Director of Operations Mike Ruder. Griffin told Casey about his meeting with Henson and the other Capstone auditors. He expressed annoyance that the auditors came to him directly instead of their own managers about Capstone-related matters. Griffin also complained that Henson did not know who to report to, and he told Casey about Henson’s relationship with Donny Rouse. Casey assured Griffin that he would take care of it. Several days later, at about noon on October 22, Henson and the other auditors met with Capstone officials Casey and Ruder, along with Andrew Powell, who at the time of the meeting was Capstone’s site manager in Kansas City and would later succeed Ruder as Capstone’s Director of _____________________ 1 In a LinkedIn message sent from Henson to Rouse on October 16, Henson asked Rouse for his “help” with her pay. Henson informed Rouse that she was initially told by Capstone told that she would make $175 to $200 per day at sixteen cents per case, but she was recently informed by Capstone’s floor supervisor that she would only make $11.75 per hour instead. After telling Rouse that she “can’t continue this [job] for [$]11.75/hr,” Henson asked Rouse to “put in a call for [her].” The following day, Rouse responded to Henson’s message, stating, “no problem, I will look into it.”

3 Case: 23-60513 Document: 75-1 Page: 4 Date Filed: 11/25/2024

Operations for Pearl River. During the meeting, Henson raised the concerns about the safety of the area in which the auditors were being trained. Powell indicated that this was a problem at another Associated Wholesale Grocers’ location and that he had been able to rectify the issue. Henson also claimed that Prince Wilson, the individual who trained the auditors, was unqualified to do so, but Casey disagreed. Other auditors also raised concerns during the meeting about their training and safety. When Henson asked about freezer suits for the auditors, Casey responded that Capstone was only required to provide its employees with gloves and vests. Henson also raised the issue of compensation, stating that the auditors had been told they would make sixteen cents per case scanned and arguing that the production pay system was flawed. Casey remarked that the auditors would be paid only eight or nine cents per case. After the meeting with the other auditors, Henson spoke separately with Casey, Ruder, and Powell. She specifically raised concerns about her own pay to the Capstone officials, complaining that she had been told that she would make $200 per day as lead auditor.2 Casey indicated that Capstone would investigate it and that she would get what was due. Casey also told Henson that if she had any concerns, she should bring them only to him or Ruder, and specifically asked her not to go to Associated Wholesale Grocers with any Capstone-related issues or concerns. Following these meetings, Henson sent a LinkedIn message to Donny Rouse. The message, which Henson sent to Rouse at 2:43 p.m. on October 22, concerned her pay and the pay of her fellow auditors, and it implicitly asked Rouse to intervene with Associated Wholesale Grocers officials Griffin and Carroll on the auditors’ behalf. It read:

_____________________ 2 Henson’s pay stubs reflect that prior to the October 22 meeting, she had been paid on an hourly basis at a rate of $10 per hour.

4 Case: 23-60513 Document: 75-1 Page: 5 Date Filed: 11/25/2024

This is by far the worst company I have ever worked for.

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Cordua Restaurants v. NLRB
985 F.3d 415 (Fifth Circuit, 2021)

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Bluebook (online)
122 F.4th 194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capstone-logistics-v-nlrb-ca5-2024.