Starbucks Loses NLRB Labor Dispute Involving Stores in Ann Arbor

by P.D. Lesko

A federal appeals court has upheld a National Labor Relations Board (NLRB) decision against Starbucks, finding the coffee giant committed unfair labor practices by disciplining workers for union activity — including wearing union-themed T-shirts — and improperly enforcing its dress code.
The April 17 ruling from the D.C. Circuit Court followed a long-running dispute involving Starbucks workers at a store in Ann Arbor, Michigan. Workers there alleged they were fired or disciplined for union organizing efforts, and the NLRB found Starbucks violated federal labor laws, including sections 8(a)(1) and 8(a)(3) of the National Labor Relations Act.

Starbucks had attempted to challenge the NLRB’s order by arguing that its late filings—submitted 23 minutes after the deadline due to document formatting issues—should be excused. However, the Board rejected the excuse, noting that Starbucks could have filed the documents in a Word format instead of waiting until the last minute. The court sided with the Board, stating that computer issues do not excuse missed legal deadlines and that the agency did not abuse its discretion.

In a separate but related decision, an administrative law judge found that Starbucks also violated workers’ rights at a store in Jacksonville, Florida. The judge ruled that Starbucks unlawfully began strictly enforcing its dress code in June 2023 — after years of tolerating union shirts and other non-approved clothing — without bargaining with the workers’ union. Workers testified that prior to the crackdown, managers routinely allowed them to wear shirts featuring union logos and other graphics.

The judge ordered Starbucks to reinstate any employees fired as a result of the dress code enforcement, remove any disciplinary records tied to the policy shift, and compensate workers for lost earnings and adverse tax consequences. Starbucks must also post notices at affected stores informing workers of their rights.

The case comes as Starbucks faces growing scrutiny nationwide over its handling of unionization efforts. Workers at hundreds of stores, including locations in college towns like Bloomington, have launched campaigns to form unions under the banner of Workers United.

Anyone interested in learning more about their rights or union activity can visit the National Labor Relations Board’s website at www.nlrb.gov.