Labor Law -- active



Starbucks v. McKinney   (U.S. Supreme Court)

Pushing back against lower standard for NLRB to obtain preliminary relief

On November 6, 2023, the NAM filed an amicus brief urging the U.S. Supreme Court to review a lower court decision granting preliminary relief in favor of a union—including forcing the employer to reinstate terminated employees—while the Board’s adjudication process remains ongoing. Under the National Labor Relations Act, federal district courts are empowered to grant preliminary relief at the NLRB’s request while an NLRB adjudication remains pending. In this case, the 6th Circuit affirmed a district court’s grant of preliminary relief—which is considered an extraordinary remedy reserved for extreme cases—under an unduly permissive standard. Specifically, the 6th Circuit, along with the 3rd, 5th, 10th and 11th Circuits, has held that the NLRB is entitled to preliminary relief upon a showing of reasonable cause to believe that the unfair labor practice alleged has occurred and that preliminary relief is just and proper. By contrast, other circuit courts have applied the traditional, and more stringent, four factor test to determine whether the NLRB is entitled to preliminary relief. Under that test, the NLRB must establish that (1) that it is likely to succeed on the merits of its claim, (2) that it is likely to suffer irreparable harm in the absence of preliminary relief, (3) that the balance of equities tips in its favor, and (4) that an injunction is in the public interest.

We argued in our amicus brief that the Court should grant Starbuck’s petition to resolve the circuit split and that the 6th Circuit’s lenient standard places unreasonable burdens on employers subject to unfair labor practice proceedings. Happily, on January 12, 2024, the Court granted the petition.

We filed another amicus brief on February 28, 2024, urging the Court to reverse the 6th Circuit's unsupported watered-down injunction standard that the Board has leveraged to interfere with American business. On June 13, 2024, the Court reversed the 6th Circuit's decision and made clear that the traditional, and more stringent, four-factor test used for determining a party’s entitlement to a preliminary injunction applies to the NLRB.


Related Documents:
NAM brief  (February 28, 2024)
NAM brief  (November 6, 2023)