Dish Network v. NLRB

CourtCourt of Appeals for the Tenth Circuit
DecidedMarch 7, 2018
Docket16-9514
StatusUnpublished

This text of Dish Network v. NLRB (Dish Network v. NLRB) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dish Network v. NLRB, (10th Cir. 2018).

Opinion

FILED United States Court of Appeals Tenth Circuit

UNITED STATES COURT OF APPEALS March 7, 2018 Elisabeth A. Shumaker TENTH CIRCUIT Clerk of Court

DISH NETWORK, LLC,

Petitioner - Cross/Respondent, Nos. 16-9514 and 16-9526 v. (NLRB No. 27-CA-131084) (Petition for Review) NATIONAL LABOR RELATIONS BOARD,

Respondent - Cross/Petitioner.

ORDER AND JUDGMENT *

Before HOLMES, MATHESON, and McHUGH, Circuit Judges.

INTRODUCTION

David Rabb worked as an inside sales associate (“ISA”) at a Dish Network,

LLC (“Dish”) call center in Littleton, Colorado. Mr. Rabb took incoming calls

from potential customers and tried to sell them Dish’s services. Dish in turn

incentivized sales by offering commissions. Dish, however, also discouraged

undesired conduct by docking commissions. These reductions in pay upset Mr.

* This order and judgment is not binding precedent except under the doctrines of law of the case, res judicata, and collateral estoppel. It may be cited, however, for its persuasive value consistent with Fed. R. App. P. 32.1 and 10th Cir. R. 32.1. Rabb. He complained about these practices to management and coworkers. He

eventually complained to the State of Colorado, filing a complaint with the

Colorado Department of Labor (“CDOL”).

The CDOL, however, had no statutory authority on which to act. Mr. Rabb

subsequently retained an attorney regarding the matter. In early 2014, Mr. Rabb

began soliciting coworkers at Dish to join a potential lawsuit against Dish. Then,

in mid-February 2014, Dish disciplined Mr. Rabb, allegedly for this solicitation

activity. The call center manager, Emily Evans, twice sought to have Mr. Rabb

fired for it. She was unsuccessful. But less than a month later, he was fired for

using silent hold (putting a customer on hold without music being played) to go to

the bathroom. Mr. Rabb then complained to the National Labor Relations Board

(the “Board” or “NLRB”).

Before an administrative law judge (“ALJ”), Mr. Rabb testified that he had

long used silent hold to go to the bathroom, that his supervisors knew of the

practice, and that the practice was not uncommon among ISAs. The ALJ credited

Mr. Rabb’s testimony, and found incredible the testimony of both the call center

manager, Ms. Evans, and David Gass, an inside sales manager. More specifically,

the ALJ found that—motivated by Mr. Rabb’s solicitation of coworkers for his

lawsuit—Ms. Evans and Mr. Gass had put Mr. Rabb under scrutiny with the

intention of finding a reason for which to fire him and, consequently, identified as

termination grounds Mr. Rabb’s long-standing practice of using silent hold to go

2 to the bathroom. Consequently, the ALJ found that Dish had violated the

National Labor Relations Act (“Act” or “NLRA”), see 29 U.S.C. §§ 157,

158(a)(1), by firing Mr. Rabb while motivated in part by animus towards Mr.

Rabb’s solicitation of coworkers to join a lawsuit over Dish’s pay practices.

Additionally, the ALJ found that Dish had an unlawfully overbroad

nonsolicitation policy and had violated the NLRA by disciplining Mr. Rabb under

that policy. Dish appealed to the full Board. The Board affirmed. Dish now

petitions this court for review. The Board cross-petitions for enforcement.

Exercising jurisdiction pursuant to 29 U.S.C. § 160(e)–(f), we deny Dish’s

petition for review and enforce the Board’s order against Dish.

I. BACKGROUND

Dish maintains a call center in Littleton, Colorado, where ISAs take

incoming phone calls from potential customers and attempt to sell them Dish’s

various offerings. ISAs earn a base salary and commissions. The call center has

a manager, Ms. Evans, and two inside sales managers, of whom only one, Mr.

Gass, is involved in this case. Below the sales managers are “coaches” who

supervise fifteen-member teams of ISAs. Mr. Rabb’s coach at the time of his

firing was Barry Appelhans.

When ISAs begin their shifts, they log into their computers and then

transfer into “READY AUX,” which permits calls to be directed to them. ISAs

can forestall incoming calls while receiving supervision by using the

3 “COACHING AUX” feature. While on calls, which usually last between fifteen

and thirty minutes but may last up to ninety minutes, ISAs are able to put

customers on one of two forms of hold: “HOLD AUX,” which plays music for the

customer, or “silent hold” (i.e., mute), where a customer hears nothing. Use of a

silent hold causes a red light to go on at an ISA’s workstation. For unpaid lunch

breaks, ISAs log out; paid breaks require use of “BREAK AUX.” Dish authorizes

ISAs working eight-hour shifts to take thirty minutes of paid break time and those

working ten-hour shifts are authorized to take thirty-five minutes.

Dish disciplines its ISAs for various offenses, called “Tier violations.”

These offenses range from failing to up-sell, to authorizing payment without a

customer’s consent, to using profanity on a call. Tier violations are punished by

docking ISAs’ commissions. Dish typically uncovers such violations by one of

three means: (1) coaches occasionally monitor calls by listening in via headset;

(2) the Quality Assurance unit reviews the recordings of two calls per week for

each ISA; and (3) the Sales Integrity Team investigates ISAs with high

cancellation rates. ISAs lose commissions because of Tier violations.

Mr. Rabb complained about this policy to both his colleagues and

supervisors, including a senior vice president to whom Ms. Evans transmitted a

letter on Mr. Rabb’s behalf in August of 2013. At one point, Mr. Rabb even

characterized Dish’s commission-docking practice to Ms. Evans as “stealing.” R.

at 59, 159–60 (Tr. of Hr’g, Mr. Rabb’s test., dated Jan. 6, 2015); R. at 336 (Tr. of

4 Hr’g, Ms. Evans’s test., dated Jan. 7, 2015).

Mr. Rabb’s discontent led him to file a complaint with the CDOL, which

responded by informing Mr. Rabb that it was without statutory jurisdiction to

regulate compensation structures. Mr. Rabb discussed the CDOL complaint with

his coach, Mr. Appelhans. On January 30, 2014, Mr. Rabb first met with a lawyer

regarding the potential suit and was accompanied by a coworker. After that, he

solicited as many as fifteen of his coworkers to join him as plaintiffs.

On February 18, Mr. Rabb received a “final warning” for allegedly

violating the solicitation policy after two of his coworkers complained to

management. The same day that Mr. Rabb received the final warning, he also

asked for a former employee’s phone number for the purpose of soliciting

participation in the lawsuit. Ms. Evans twice sought to fire Mr. Rabb for these

actions, though she was unsuccessful. But within three weeks, Mr. Rabb was

fired.

On March 4, Mr. Rabb used silent hold at the end of a call to use the

bathroom. Ms. Evans, Mr. Gass, and Mr. Appelhans were in a meeting in a glass-

walled conference room a short distance away. Apparently, Mr. Appelhans first

observed the illuminated red light at Mr. Rabb’s workstation, evincing his use of

silent hold. Upon Mr. Rabb’s return, Mr. Gass was waiting for him at his desk.

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