Explainer: Starbucks Case Before U.S. Supreme Court To Decide Test For Reinstating Fired Workers During Unionization Drives

The case originated from allegations that Starbucks unjustly fired seven employees in Memphis, Tennessee, who were actively engaged in unionization campaigns. The NLRB intervened and filed a petition in the US District Court for injunctive relief under Sections 7 and 8 of the National Labour Relations Act (NLRA). The District Court applied the 'Lenient Standard' test and granted a preliminary injunction, ordering Starbucks to reinstate the terminated workers.

However, Starbucks contested the District Court's decision, arguing that the traditional 'Four-Factor Preliminary Injunction' test should have been applied instead of the NLRB's Lenient Standard. Despite Starbucks' appeals, the Sixth Circuit Court of Appeals upheld the District Court's ruling, hinting at potential shifts in how federal appellate courts approach NLRB preliminary injunctions. Now, the case has reached the US Supreme Court, where judges would determine which standard should govern the review of NLRB injunction requests.

What is the Four-Factor Preliminary Injunction test?

The Four-factor Preliminary Injunction test is a legal standard used by courts to assess whether to grant injunctive relief in various types of cases, including labour disputes. This test typically involves weighing four key factors:

1. Likelihood of Success on the Merits: The court considers whether the party seeking the injunction is likely to succeed on the underlying legal claims or merits of the case. In labour disputes, this involves determining whether there is evidence of unfair labour practices or violations of labour laws.
2. Risk of Irreparable Harm: The court evaluates whether the party seeking the injunction would suffer irreparable harm if the injunction is not granted.
3. Balance of Equities: The court examines the balance of interests between the parties involved in the case.
4. Public Interest: The court takes into account the broader public interest in granting or denying the injunction.

What is the Lenient Standard test?

The Lenient Standard test diverges from the traditional Four-factor Preliminary Injunction test. It typically involves two primary factors:

1. Reasonable Cause of Labour Law Violation: The court evaluates whether there is reasonable cause to believe that the employer has committed unfair labour practices or violated labour laws.
2. Just and Proper Relief: The court considers whether granting the injunction would be "just and proper" under the circumstances.

This dispute directly impacts the ability of workers to exercise their fundamental rights to organize, collectively bargain, and advocate for fair treatment in the workplace.

The decision is expected by the end of June. Typically, the U.S. Supreme Court releases its decisions on cases argued during a term before the end of that term, which usually concludes in late June.

Case Title: Starbucks Corp. v. McKinney, U.S., No. 23-367