Supreme Court Confirms Stricter Test for Granting Injunctions Under the NLRA
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APPLIES TO All Employers |
EFFECTIVE June 13, 2024 |
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Discussion
In Starbucks v. McKinney, the U.S. Supreme Court published an opinion resolving the issue among federal courts regarding how requests for injunctive relief under Section 10(j) of the National Labor Relations Act (NLRA) should be evaluated. The Supreme Court confirmed that lower courts must follow the traditional, more stringent test when reviewing such requests from the National Labor Relations Board (NLRB), which requires a requesting party to establish that (1) they are likely to succeed on the merits; (2) they are likely to suffer irreparable harm in the absence of preliminary relief; (3) the balance of equities tip in their favor; and (4) an injunction is in the public interest.
Section 10(j) of the NLRA authorizes the NLRB to seek temporary injunctions against employers and unions in federal district courts to stop unfair labor practices while the case is being litigated before administrative law judges and the Board. In recent years, the NLRB’s General Counsel has pushed NLRB field offices to utilize the Section 10(j) injunction remedy more frequently. Circuit courts have been split on which test should apply when granting Section 10(j) injunctive relief – the stricter four-part test or a more lenient two-part test. Under the two-part test, a requesting party is required only to show that there is reasonable cause to believe that unfair labor practices have occurred and that injunctive relief is proper.
In resolving the Circuit split, the Supreme Court noted “there is an obvious difference between having the Board show that it is ‘likely’ to succeed on the merits and having it show only that its theory of the case is ‘substantial and not frivolous,’ without having to convince the court that its theory is likely meritorious….” Based on the statutory context of the NLRA, the Supreme Court concluded that the stricter four-part test is appropriate when determining whether to grant extraordinary relief like a temporary injunction.
Action Items
- Continue to evaluate work policies and practices for compliance with the NLRA.
- Consult with legal counsel regarding any unfair labor practice allegations.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2024 ManagEase