A federal appeals court on Friday largely dismissed Starbucks’ appeal against a National Labor Relations Board (NLRB) ruling that it illegally fired two Philadelphia baristas involved in union organizing.
The 3rd U.S. Circuit Court of Appeals upheld the NLRB’s conclusion that Starbucks engaged in unfair labor practices by firing Echo Nowakowska and Tristan Bussiere from their South Philadelphia store and reducing Nowakowska’s hours. Circuit Judge Thomas Ambro wrote that substantial evidence supported the NLRB’s findings.
The court also rejected Starbucks’ argument that it need not rehire the baristas with back pay, despite claiming it discovered later that they had recorded meetings with supervisors without consent. However, the court ruled the NLRB overstepped by ordering Starbucks to cover the baristas’ foreseeable expenses, such as job search and medical costs.
Starbucks maintained it fired Nowakowska in January 2020 for poor performance and mistreating customers and dismissed Bussiere the following month for spreading false rumors. Neither the company nor its attorneys responded to requests for comment, and the NLRB declined to comment.
This ruling comes amid widespread accusations of unfair labor practices by Starbucks, which it denies, as workers nationwide push to unionize. Recent strikes involved over 300 stores, according to Starbucks Workers United.
The decision also marked the first federal appeals court review of broader challenges to NLRB enforcement powers, including the constitutionality of its administrative law judges. The court ruled Starbucks lacked standing to challenge those provisions, as it could not prove harm.
The cases are NLRB v. Starbucks Corp, No. 23-1953, and Starbucks Corp v. NLRB, No. 23-2241, in the 3rd U.S. Circuit Court of Appeals.
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