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From Supreme Court and NLRB Review Labor Injunctions and Precedent

How could the NLRB's review of Section 10(j) injunctions affect Starbucks?

Likely What happens if… A possibility worth considering, not a forecast.

Securing injunctions against Starbucks may become more difficult due to new legal standards. The Supreme Court's 2024 decision in Starbucks Corp. v. McKinney established that the National Labor Relations Board must satisfy the traditional four-factor preliminary injunction test when seeking temporary relief. This test requires demonstrating a likelihood of success on the merits, irreparable harm absent preliminary relief, a favorable balance of equities, and public interest. The Sixth Circuit, in a recent case, reinforced this by ruling that irreparable harm must be shown clearly with affirmative evidence, rejecting the idea that harm can be inferred. Because concrete evidence of a union's loss of support is rarely available in early litigation, this higher evidentiary burden makes it increasingly difficult for NLRB prosecutors to secure injunctions during refusal-to-bargain cases against Starbucks.

Reported by 2 independent outlets Written Oct 17
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How it reaches Starbucks

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The facts so far

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  • The Supreme Court rejected the lower standard in Starbucks, holding that the NLRB must satisfy the traditional four-factor preliminary injunction test.natlawreview.com
  • The Sixth Circuit ruled that irreparable harm must be shown clearly with affirmative evidence, rejecting the inference of harm.natlawreview.com
  • The NLRB’s evidence of decreased attendance at union meetings and generalized assertions of dwindling support proved insufficient in the Sixth Circuit case.natlawreview.com

Why it matters

The threat of injunctive relief has long been a key tool used by the NLRB to encourage early settlement in labor disputes. If these injunctions become more difficult to secure, employers like Starbucks have less incentive to reach an early settlement, potentially prolonging disputes and weakening the immediate enforcement of labor rights.

This legal shift is part of a broader trend where circuits continue to split on the issue of irreparable harm, meaning the Supreme Court may be asked to intervene again. The difficulty in securing injunctions, combined with the NLRB’s limited resources, may signal that employers will see fewer injunctions sought in unfair labor practice cases.

What we don't know yet

  • Will the NLRB General Counsel articulate an agencywide policy regarding the aggressive pursuit of injunctive relief?
  • Will the Supreme Court intervene again to resolve the split among federal circuits on the issue of irreparable harm?

Is this still moving?

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What would change this answer

The NLRB changes its policyIf the current NLRB General Counsel articulates a policy encouraging field offices to aggressively pursue injunctive relief, the difficulty in securing injunctions could decrease.
Courts adopt a lower standardIf federal courts begin to accept the inference of irreparable harm again, it would become easier for NLRB prosecutors to secure injunctions against Starbucks.

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  • About Monetary Damages

    If the NLRB finds it increasingly difficult to secure preliminary injunctions, how might the legal focus shift to seeking monetary damages in these refusal-to-bargain cases?

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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.