Double Eagle Hotel & Casino v. National Labor Relations Board

414 F.3d 1249, 177 L.R.R.M. (BNA) 2845, 2005 U.S. App. LEXIS 14106
CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 13, 2005
Docket04-9520, 04-9532
StatusPublished
Cited by15 cases

This text of 414 F.3d 1249 (Double Eagle Hotel & Casino v. National Labor Relations Board) 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.

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Double Eagle Hotel & Casino v. National Labor Relations Board, 414 F.3d 1249, 177 L.R.R.M. (BNA) 2845, 2005 U.S. App. LEXIS 14106 (10th Cir. 2005).

Opinion

TACHA, Chief Circuit Judge.

Petitioner Double Eagle Hotel & Casino (“Double Eagle”) seeks review of an order issued by Respondent National Labor Relations Board (“NLRB” or “Board”). Double Eagle argues that the Board erred in deciding that several rules maintained for its employees violate the National Labor Relations Act (“NLRA”), codified at 29 Ü.S.C. § 151 et seq. The NLRB cross-petitions for enforcement of its order. We have jurisdiction to review, modify, and enforce NLRB orders under §§ 10(e)-(f) of the NLRA. See 29 U.S.C. § 160(e)-(f). We deny Double Eagle’s petition and, subject to the modification noted below, grant the NLRB’s cross-petition for enforcement of its order.

I. BACKGROUND

Double Eagle operates a hotel and casino in Cripple Creek, Colorado. In the casino, two types of employees interact with the customers playing slot machines: slot technicians and security officers. The slot technicians oversee the operation of the machines, including repairs, while the security officers are in charge of policing *1252 the slot area. Each type of employee receives tips from customers and are required by casino policy to share these tips. The manner for sharing tips between slot technicians and security officers is the foundation of the dispute leading to this proceeding.

Prior to May 21, 2001, all tips were pooled with half the tips going to slot technicians and the other half to security officers. Because the slot technicians outnumbered the security officers, a slot technician’s share of the tip pool was smaller than a security officer’s share. On May 21, in response to complaints from the slot technicians, Double Eagle changed its tip-splitting policy. Under the new policy, tips were not first divided between the different groups of employees. Instead, each slot technician and security officer received an equal share of the total tip pool.

By October 2001, the relative number of slot technicians and security officers had shifted. Because the security officers now outnumbered the slot technicians, the slot technicians sought to revert to the original tip-splitting policy so that they could receive a larger share of the tips. This created friction between the two groups of employees, and as a result, Double Eagle management orally issued a rule prohibiting discussion of the tip-splitting policy. After a number of incidents in which the slot technicians expressed their dissatisfaction over the tip-splitting policy, including one in which a slot technician violated the tip rule, one technician was fired and two others were suspended. Alleging violations of the NLRA, the employees’ union, International Brotherhood of Electrical Workers, Local No. 113, initiated administrative proceedings against Double Eagle.

Although the administrative law judge (“ALJ”) found that Double Eagle committed numerous violations of the NLRA, we limit our discussion to the few issues that Double Eagle raises in its petition for review. 1 The ALJ held that the tips rule violated § 8(a)(1) of the NLRA. 2 As a result, the ALJ held that the employees who were disciplined for violating this rule had been unlawfully punished. The ALJ also ordered Double Eagle to cease and desist from maintaining a rule prohibiting discussion of the tip-splitting policy on the casino floor and to offer reinstatement and back pay to the disciplined employees. Double Eagle appealed this order and the Board affirmed on these issues. The Board further held that Double Eagle’s “Customer Service,” “Confidential Information,” and “Communication” rules violated § 8(a)(1). Double Eagle timely petitions for review of the Board’s decision and the NLRB cross-petitions for enforcement of the order.

II. DISCUSSION

A. Standard of Review

Section 10 of the NLRA, which grants this Court jurisdiction to consider Double Eagle’s petition, requires that “the findings of the Board with respect to questions of fact if supported by substantial evidence on the record considered as a whole shall be conclusive.” 29 U.S.C. § 160(e). “Substantial evidence is such *1253 relevant evidence as a reasonable mind might accept as adequate to support a conclusion. Accordingly, if supported by substantial evidence, we must affirm the Board’s conclusions even though we might reach a different result were we reviewing the record de novo.” Pub. Serv. Co. of Colo. v. N.L.R.B., 405 F.3d 1071, 1077 (10th Cir.2005) (internal quotation marks omitted).

Although the NLRA does not expressly state a standard of review for the Board’s legal determinations, our review is clearly established by existing case law. We give deference to the Board’s interpretation of the NLBA. “For the Board to prevail, it need not show that its construction is the best way to read the statute; rather, courts must respect the Board’s judgment so long as its reading is a reasonable one.” Four B Corp. v. N.L.R.B., 163 F.3d 1177, 1182 (10th Cir.1998) (quotations and emphasis omitted). We review de novo any other legal determinations made by the Board “to determine whether the Board correctly interpreted and applied the law.” Id. (quotations omitted).

B. Customer Service Rule

We begin our review by discussing a rule maintained by Double Eagle entitled “Customer Service,” as the analysis is relevant to our discussion of the tips rule. The customer service rule, contained in Double Eagle’s employee handbook, states:

Never discuss Company issues, other employees, and personal problems to or around our guests. Be aware that having a conversation in public areas with another employee will in all probability be overheard.

The Board held that this rule overly restricted the employees’ ability to discuss work-related issues and therefore violated § 8(a)(1). Double Eagle petitions for review of this holding, arguing that the Board erred because it misinterpreted the scope of its rule.

The Board began its analysis of the customer service rule by recognizing that “[a] rule like the one at issue here, which prohibits employees from discussing working conditions, is viewed by the Board as analogous to a no-solicitation rule for purposes of considering" its legality.” Double Eagle Hotel & Casino and Int’l Brotherhood of Electrical Workers, Local No. 118, 341 N.L.R.B. No. 17 at 2, 2004 WL 210355 (Jan. 30, 2004). The right to solicit employees to join the union is guaranteed by § 7 because self-organization could not occur without the ability to solicit. The right to solicit, however, is not absolute. As the Ninth Circuit has recognized, “the right of employees to solicit or distribute materials must be balanced against an employer’s right to maintain discipline in its establishment.” N.L.R.B. v. Silver Spur Casino,

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414 F.3d 1249, 177 L.R.R.M. (BNA) 2845, 2005 U.S. App. LEXIS 14106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/double-eagle-hotel-casino-v-national-labor-relations-board-ca10-2005.