Three D, LLC v. National Labor Relations Board

629 F. App'x 33
CourtCourt of Appeals for the Second Circuit
DecidedOctober 21, 2015
DocketNos. 14-3284 (Lead), 14-3814(XAP)
StatusPublished
Cited by3 cases

This text of 629 F. App'x 33 (Three D, LLC v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Three D, LLC v. National Labor Relations Board, 629 F. App'x 33 (2d Cir. 2015).

Opinion

SUMMARY ORDER

Petitioner-Cross-Respondent Three D, LLC, d/b/a Triple Play Sports Bar and Grille (“Triple Play”) appeals a decision of the National Labor Relations Board (“NLRB” or “Board”) finding that Triple Play violated Section 8(a)(1) of the National Labor Relations Act (“NLRA” or “Act”) by taking certain actions against its employees, including discharge, for their Fa-cebook activity. Triple Play also appeals the Board’s finding that Triple Play violated' Section 8(a)(1) of the Act by maintaining an overbroad Internet/Blogging policy.

“We uphold the NLRB’s findings of fact if supported by substantial evidence and the NLRB’s legal determinations if not arbitrary and capricious.” Cibao Meat Products, Inc. v. NLRB, 547 F.3d 336, 339 (2d Cir.2008) (internal quotation marks and alteration omitted). Substantial evidence means “such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.” NLRB v. Starbucks Corp., 679 F.3d 70, 77 (2d Cir.2012) (internal quotation marks omitted). We assume the parties’ familiarity with the facts and record below, which we reference only as necessary to explain our decision.

Employee Discharges and Other Violations of Section 8(a)(1)

Section 7 of the Act guarantees that “[ejmployees shall have the right to self-organization, to form, join, or assist labor organizations ... and to engage in other concerted activities for the purpose of ... mutual aid or protection. . . .” 29 U.S.C. § 157. Section 8(a)(1) of the Act protects employees’ Section 7 rights by prohibiting an.employer from “interfer[ing] with, restraining], or coerc[ing] employees in the exercise of the rights guaranteed in [Section 7]....” 29 U.S.C. § 158(a)(1).

An employee’s Section 7 rights must be balanced against an employer’s interest in preventing disparagement of his or her products or services and protecting the reputation of his or her business. See Valley Hosp. Med. Ctr., Inc., 351 NLRB 1250, 1252-53 (2007). Accordingly, an employee’s communications with the public may lose the protection of the Act if they are sufficiently disloyal or defamatory. See MasTec Advanced Technologies, 357 NLRB No. 17, 2011 WL 3017454, at *6 (2011). These communications may be sufficiently disloyal to lose the protection of the Act if they amount to criticisms disconnected from any ongoing labor dispute. See NLRB v. Elec. Workers Local 1229 (Jefferson Standard), 346 U.S. 464, 476-77, 74 S.Ct. 172, 98 L.Ed. 195 (1953).

An employee’s public statement is defamatory if made maliciously, meaning “with knowledge of its falsity, or with reckless disregard of whether it was true or false.” Linn v. United Plant Guard Workers of America, Local 114, 383 U.S. 53, 61, 86 S.Ct. 657, 15 L.Ed.2d 582 (1966). “The mere fact that statements are false, misleading or inaccurate is insufficient to demonstrate that they are maliciously untrue. Where an employee relays in good faith what he or she has been told by another employee, reasonably believing the report to be true, the fact that the report may have been inaccurate does not remove the relayed remark from the protection of the Act.” Valley Hosp., 351 NLRB at 1252-53.

The Board determined as an initial manner that the only employee conduct at issue was (1) Spinella’s “like” of LaF-rance’s initial status update (“Maybe someone should do the owners of Triple Play a favor and buy it from them. They can’t even do the tax paperwork correctly!!! [36]*36Now I OWE money ... Wtf!!!!”); and (2) Sanzone’s comment stating “I owe too. Such an asshole.” Special App’x 5. Regarding this conduct, the Board concluded that, “in the context of the ongoing dialogue among employees about- tax withholding,” Spinella and Sanzone had at maximum endorsed LaFrance’s claim that Triple Play had erred in her tax withholding. Special App’x 5; The Board declined to hold either Sanzone or Spinella responsible for any other statement posted in the Facebook discussion on ground that “neither Sanzone nor Spinella would have lost the protection of the Act merely by participating in an otherwise protected discussion in which other persons made unprotected statements.” Special App’x 5.

The ALJ found and the Board agreed that the Facebook activity in this case was “concerted” under the standard set forth in Meyers Industries, 281 NLRB 882, 887 (1986) enfd. sub nom. Prill v. NLRB, 835 F.2d 1481 (D.C.Cir.1987), cert. denied 487 U.S. 1205, 108 S.Ct. 2847, 101 L.Ed.2d 884 (1988), because it involved four current employees and was “part of an ongoing sequence of discussions that began in the workplace about [Triple Play’s] calculation of employees’ tax withholding.” Special App’x 3 (internal quotation marks omitted). The Board also adopted the ALJ’s recommendation that the Facebook activity was “protected” because “the discussion concerned workplace complaints about tax liabilities, [Triple Play’s] tax withholding calculations, and LaFrance’s assertion that she was owed back wages.” Special App’x 8.

After finding that Sanzone’s and Spinel-la’s Facebook activity constituted protected concerted activity, the only remaining question before the Board was whether that Facebook activity was so disloyal or defamatory as to lose the protection of the Act. The Board applied Jefferson Standard to conclude that Sanzone’s and Spinella’s Facebook activity was not so disloyal as to lose protection of the Act because “[t]he comments at issue did not even mention [Triple Play]’s products or services, much less disparage them.” Special App’x' 5. The Board further concluded that Triple Play failed to meet its burden under Linn to establish that the comments at issue were defamatory because “there is no basis for .finding that the employees’ claims that them withholding was insufficient to cover their tax liability, or that this shortfall was due to an error on [Triple Play]’s part, were maliciously untrue.” Special App’x 6.

Triple Play argues on appeal that because Sanzone’s and Spinella’s Facebook activity contained obscenities that were viewed by customers, the Board should have found that this activity lost the protection of the Act under Starbucks, a case in which á Second Circuit panel remanded a Board Order for reconsideration of the proper standard to apply when analyzing an employee’s utterance of obscenities in the presence of customers. 679 F.3d at 80. In Triple Play’s view, the panel in Starbucks “strongly suggested” that an employee’s obscenities uttered in the presence of customers “would not be protected in most or all circumstances.” Appellant’s Br. 20.

Triple Play’s reliance on Starbucks is misplaced, The Starbucks panel premised its decision on a finding that the Board had “disregarded the entirely legitimate concern of an employer not to tolerate employee outbursts containing obscenities in the presence of customers.”

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629 F. App'x 33, Counsel Stack Legal Research, https://law.counselstack.com/opinion/three-d-llc-v-national-labor-relations-board-ca2-2015.