NLRB v. Starbucks Corp.

CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 5, 2025
Docket23-1767
StatusPublished

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

Bluebook
NLRB v. Starbucks Corp., (6th Cir. 2025).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 25a0305p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ NATIONAL LABOR RELATIONS BOARD, │ Petitioner, │ │ WORKERS UNITED, > No. 23-1767 │ Intervenor, │ │ v. │ │ │ STARBUCKS CORPORATION, │ Respondent. │ ┘

On Application for Enforcement of an Order of the National Labor Relations Board. Nos. 07-CA-292971; 07-CA-293916.

Argued: October 31, 2024

Decided and Filed: November 5, 2025

Before: BATCHELDER, STRANCH, and READLER, Circuit Judges. _________________

COUNSEL

ARGUED: Eric Weitz, NATIONAL LABOR RELATIONS BOARD, Washington, D.C., for Petitioner. Sarah M. Harris, WILLIAMS & CONNOLLY LLP, Washington, D.C., for Respondent. ON BRIEF: Ruth Burdick, Milakshmi Rajapakse, David Seid, NATIONAL LABOR RELATIONS BOARD, Washington, D.C., for Petitioner. Sarah M. Harris, Lisa S. Blatt, Tyler J. Becker, Dana S. Gotfryd, WILLIAMS & CONNOLLY LLP, Washington, D.C., for Respondent.

READLER, J., delivered the opinion of the court in which BATCHELDER, J., concurred. STRANCH, J. (pp. 36–45), delivered a separate opinion concurring in the judgment in part and dissenting in part. No. 23-1767 NLRB v. Starbucks Corp. Page 2

_________________

OPINION _________________

READLER, Circuit Judge. After working as a shift supervisor at a Starbucks café for nearly three years, Hannah Whitbeck led a movement to organize a union there. Several months into that campaign, Starbucks fired her. In its termination letter, the company justified its decision with a seemingly innocuous explanation: Whitbeck left an employee alone in the café for roughly half an hour, without telling any supervisor or co-manager, in violation of company policy.

Through the filing of an administrative complaint, the National Labor Relations Board challenged this explanation. In the Board’s view, Starbucks discharged Whitbeck due to her organizing activity, thereby committing an unfair labor practice in violation of § 8(a)(1), (3), and (4) of the National Labor Relations Act. An Administrative Law Judge agreed. Starbucks Corp., 372 NLRB No. 122, slip op. at 21, 2023 WL 5137739 (Aug. 9, 2023). The Board later affirmed that decision and expanded the statutory remedy, ordering Starbucks to compensate Whitbeck for any “direct or foreseeable pecuniary harms” suffered because of the anti-union discrimination against her. Id. at 4–5.

We grant the Board’s petition for enforcement of its decision that Starbucks committed an unfair labor practice. But because the Board exceeded its statutory authority in awarding Whitbeck “direct or foreseeable” monetary damages, we vacate the remedy and remand.

I.

A. Starbucks hired Whitbeck in 2019 to work as a barista at its Main and Liberty store in Ann Arbor, Michigan. Several weeks later, the company promoted her to shift supervisor. In that role, Whitbeck maintained “all the duties of a barista” and assumed the responsibility to “help[] guide the work of others and assist[] with ordering and accounting.” J.A. at 977.

In January 2022, Whitbeck cofounded an effort to organize a union at her store. With the help of Workers United, a labor union, Whitbeck discussed among her colleagues what she No. 23-1767 NLRB v. Starbucks Corp. Page 3

deemed to be the virtues of organizing, directing those interested to sign a union authorization card. Through these efforts, Whitbeck was widely viewed by her peers as the lead organizer at the Main and Liberty store.

Over the next two months, Whitbeck engaged in several visible measures to achieve her organizing ends. She emailed Starbucks’s then–Chief Executive Officer, demanding that the company recognize Workers United as the Main and Liberty store’s collective bargaining representative. She conducted a radio interview about the campaign. She began wearing union buttons in the café. She answered customer questions about unionizing. She appeared in a social media post supporting unionization. She placed union stickers in the store. And she wrote “Brewing Solidarity” on the store’s “community board,” a chalkboard open to messages from both Starbucks and the public.

In early March 2022, the Board held a videoconference hearing regarding Workers United’s petition to represent employees at various Starbucks stores in the Ann Arbor area, including the Main and Liberty location. Although she did not participate, Whitbeck attended the hearing, with her name and picture visible. On that same video call for a brief period of time was Paige Schmehl, the Starbucks district manager overseeing about ten shops around Ann Arbor, including the Main and Liberty location. Schmehl noticed Whitbeck’s attendance at the hearing. Schmehl and Erin Lind, the temporary manager of the Main and Liberty store, were also aware that store employees were organizing, including by their wearing union buttons at work. Shortly after the kickoff of that campaigning, Lind, at Schmehl’s direction, posted two flyers at the Main and Liberty store. One expressed Starbucks’s management’s “sincere hope” that employees “w[ould] see” they do not need to unionize. Id. at 797. The other stated that the act of signing a union card “carries legal weight” and encouraged employees to “get all the facts!” before signing. Id. at 820.

To further its attempt to organize, Workers United scheduled “sip-ins” at two other Starbucks locations in Schmehl’s district. At a March 20, 2022, sip-in at the Zweeb Street Starbucks location, a non-Starbucks-affiliated union supporter distributed union buttons and literature as well as Post-it notes for people to affix supportive messages on the store’s community board. Note that Whitbeck did not work at that store and did not attend the sip-in. No. 23-1767 NLRB v. Starbucks Corp. Page 4

But Schmehl sat in the store for the event’s full three-hour duration, seemingly honoring the substitute store manager’s request for “support” during the sip-in. Schmehl spoke to no one. But she did remove at least three notes from the community board for purportedly being inconsistent with company policy, which instructed that the board not include “[a]dvertisements,” “[n]otices or [a]nnouncements that are political or religious in nature,” “[n]otices that disparage Starbucks,” or “[a]ny material that could be deemed offensive, insulting or derogatory.” Id. at 945.

B. Amid these organizing efforts, an episode involving Whitbeck and her peers occurred at the Main and Liberty store. At the start of her shift on February 27, 2022, Whitbeck messaged Lind that multiple baristas had complained about working with B.G., another shift supervisor at the Main and Liberty store, with co-equal authority to Whitbeck’s. Whitbeck then wrote in the daily book, where employees document store incidents, that she “[d]id nothing like always 🙂.” Id. at 920. That notation was an apparent sarcastic reference to B.G.’s alleged remarks that Whitbeck “never does anything” at work. Id. at 185. When B.G. arrived for his shift at 3:00 p.m., he read this entry and, in turn, criticized Whitbeck for acting unprofessionally. As they argued, B.G. asked a nearby coworker if she knew how much “shit [Whitbeck] talk[ed]” about her. Id. at 375. Afterward, B.G. and Whitbeck stopped speaking for several hours.

That day, Whitbeck was scheduled to work until 7:00 p.m. with B.G. and Lucien Meloche, a barista, both scheduled to work until 10:30 p.m. B.G. was also scheduled to take a thirty-minute break—from 6:45 p.m. to 7:15 p.m.—meaning Meloche would be working alone if B.G. was not there when Whitbeck left the store at the end of her shift. Starbucks’s corporate policy, however, required at least two employees to be present in an open café (the “two- employee rule”).

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