Tesla v. NLRB

120 F.4th 433
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 25, 2024
Docket21-60285
StatusPublished
Cited by2 cases

This text of 120 F.4th 433 (Tesla 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
Tesla v. NLRB, 120 F.4th 433 (5th Cir. 2024).

Opinion

Case: 21-60285 RESTRICTED Document: 259-1 Page: 1 Date Filed: 10/25/2024

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit ____________ FILED October 25, 2024 No. 21-60285 Lyle W. Cayce ____________ Clerk Tesla, Incorporated,

Petitioner Cross-Respondent,

International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, AFL-CIO,

Petitioner,

versus

National Labor Relations Board,

Respondent Cross-Petitioner. ______________________________

Petition for Review of an Order of the National Labor Relations Board Agency Nos. 32-CA-197020, 32-CA-197058, 32-CA-197091, 32-CA-197197, 32-CA-200530, 32-CA-208614, 32-CA-210879, 32-CA-220777 ______________________________

Before Elrod, Chief Judge, and Jones, Smith, Stewart, Dennis, Richman, Southwick, Haynes, Graves, Higginson, Case: 21-60285 RESTRICTED Document: 259-1 Page: 2 Date Filed: 10/25/2024

No. 21-60285

Willett, Duncan, Engelhardt, Oldham, Wilson, Douglas, and Ramirez, Circuit Judges. * Per Curiam †: This case arises from a union organizing campaign at one of Tesla’s electric vehicle factories. Three pro-union Tesla employees and the United Auto Workers (“UAW”) alleged that Tesla engaged in unfair labor practices in violation of the National Labor Relations Act (“NLRA”). They filed charges with the National Labor Relations Board (“NLRB”), which found that a tweet by Tesla CEO Elon Musk was an unlawful threat and ordered it deleted. The Board likewise found that Tesla employee Richard Ortiz had been terminated in violation of the NLRA. Tesla petitioned this court for re- view of that order, and the NLRB cross-petitioned for enforcement. A panel of this court affirmed the Board’s order and granted its petition for enforce- ment. Tesla, Inc. v. NLRB, 63 F.4th 981 (5th Cir.), reh’g en banc granted, opin- ion vacated, 73 F.4th 960 (5th Cir. 2023) (mem.). Tesla petitioned for rehear- ing en banc, which we granted. Tesla, 73 F.4th 960. We VACATE the Board’s order and REMAND for further pro- ceedings. I We briefly recount (A) the history of Musk’s tweets, then (B) the story of Ortiz’s termination.

_____________________ * Judge Ho is recused and did not participate in this decision. † Judge Haynes concurs in the judgment only.

2 Case: 21-60285 RESTRICTED Document: 259-1 Page: 3 Date Filed: 10/25/2024

A Musk posted a photograph on Twitter 1 of a rocket belonging to one of his companies, Space Exploration Technologies Corp. A Twitter user named “dmatkins137”—who was not a Tesla employee—responded to that post with an article from a publication called “Reveal.” The “Reveal article” claimed that Tesla maintained unsafe working conditions. Musk and “dmatkins137” then engaged in the following colloquy: @elonmusk: Tesla factory literally has miles of painted yellow lines & tape. Report about forklifts not beeping is also bs. These are both demonstrably false, but were reported as “facts” by Reveal. @dmatkins137: Yellow is fine, got it. How about unions? @elonmusk: Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing? Our safety rec- ord is 2X better than when plant was UAW & everybody al- ready gets healthcare. ROA.4536–37. Two days later, another Twitter user named “ericbrownzzz”—also not a Tesla employee—replied to Musk’s original tweet. “ericbrownzzz” ac- cused Musk of threatening to take away employee benefits, and Musk again responded: @ericbrownzzz: Hi Elon, why would they lose stock options? Are you threatening to take away benefits from unionized workers?

_____________________ 1 The website formerly known as “Twitter” is now “X.” For clarity, however, we will refer to it as Twitter throughout this opinion because this case arose before the name change.

3 Case: 21-60285 RESTRICTED Document: 259-1 Page: 4 Date Filed: 10/25/2024

@elonmusk: No, UAW does that. They want divisiveness & enforcement of 2 class “lords & commoners” system. That sucks. US fought War of Independence to get *rid* of a 2 class- system! Managers & workers shd be equal w easy movement either way. Managing sucks btw. Hate doing it so much. ROA.4537. Musk further stated that “UAW does not have individual stock ownership as part of the compensation at any other company,” and as such, Tesla employees would lose stock options if they unionized because of UAW’s policy. ROA.4539. UAW filed an unfair-labor-practice charge based on only Musk’s orig- inal tweet, responding to “dmatkins137.” The Union alleged that the tweet was a threat to rescind stock options if employees unionized, and therefore violated Section 8(a)(1) of the NLRA. The Board agreed. The NLRB believed that Musk’s tweet violated the standard set forth in NLRB v. Gissel Packing Co., 395 U.S. 575 (1969). And it ordered Musk to delete his tweet. B Around the same time, UAW campaigned to unionize Tesla’s facility in Fremont, California. Tesla employees Richard Ortiz and Jose Moran were among the most active supporters of UAW’s campaign. During that time, three Tesla employees testified before the California legislature against union-backed legislation. Ortiz did not personally watch these proceedings but wanted to find out which of his coworkers testified against the legislation. So he asked Mo- ran to watch the hearings and identify the employees who testified. Moran sent Ortiz the names of the employees and their photos from Tesla’s internal Workday website. Ortiz then posted the employees’ photos on a pro-union Facebook group, along with the following statement:

4 Case: 21-60285 RESTRICTED Document: 259-1 Page: 5 Date Filed: 10/25/2024

These guys been in Sacramento saying we are lying about how things are at Tesla Management has been taking them one of them sez [sic] he made $130000 last year . . . . How many of you make . . . overtime . . . . This just proves how much kissing ass and ratting on people get you at Tesla and the ones that do the real work get passed over . . . . ROA.6278. One of the outed employees complained to Tesla Human Resources. The employee said Ortiz’s post was harassment. Ricky Gecewich opened a human resources investigation. Gecewich asked Ortiz if he had taken screenshots of the Workday photos to post them on Facebook. Ortiz denied doing so. When asked where he obtained the pic- tures, Ortiz said he “didn’t know” and “wasn’t sure.” ROA.535, 537. After investigating computer records, Tesla learned that Moran sent Ortiz the screenshots. In light of this information, Gecewich again asked Ortiz how he got the photographs. At this time, Ortiz admitted that he lied during his first conversation with Gecewich about how he obtained the pic- tures. Gecewich then recommended that Tesla terminate Ortiz for “know- ingly” misleading the investigation and because he “lied about knowing the source of the Workday screenshots” and “admitted to not telling the truth during the investigation interviews.” ROA.4508. Tesla referred Gecewich’s recommendation to an independent de- cisionmaker, Stephen Graminger. Before making any termination decision, Graminger asked how Tesla handled dishonesty during previous internal in- vestigations. He decided to terminate Ortiz after determining that Tesla had previously terminated an employee for lying to the company. The NLRB’s General Counsel and UAW filed unfair labor practice charges against Tesla for terminating Ortiz. The Board determined that

5 Case: 21-60285 RESTRICTED Document: 259-1 Page: 6 Date Filed: 10/25/2024

“[t]he credited evidence show[ed] that [Tesla] terminated Ortiz for lying during an investigation.” ROA.6285. But it nevertheless found that the com- pany violated the NLRA.

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Related

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Bluebook (online)
120 F.4th 433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tesla-v-nlrb-ca5-2024.