The National Labor Relations Board (NLRB) recently issued a decision that will increase the scrutiny of employer handbook rules. The decision, Stericycle Inc., overrules a previous decision {(Boeing (2017) and LA Specialty Produce (2019)} that made it easier for employers to defend policies against claims they stifle labor rights.
Under the new standard, employers will have to show that their handbook rules are necessary to prevent or mitigate an actual or potential harm to their legitimate business interests. This is a higher standard than the previous standard, which only required employers to show that their rules were reasonably related to their business interests.
The NLRB’s decision is a significant victory for labor unions and workers’ rights advocates. It will make it more difficult for employers to use handbook rules to chill employees’ organizing activities.
Here are some of the specific workplace rules that the NLRB’s decision is likely to affect:
- Rules prohibiting employees from discussing their wages with each other.
- Rules prohibiting employees from soliciting union membership or wearing union insignia.
- Rules prohibiting employees from making disparaging remarks about the employer or its products.
- Rules prohibiting employees from recording conversations in the workplace.
- Rules prohibiting employees from using social media for work-related purposes.
Employers should review their handbook rules carefully to ensure that they comply with the NLRB’s new standard.
Here are some additional things to keep in mind about the NLRB’s decision:
- The decision applies to all employers, regardless of their size or industry.
- The decision is not retroactive, so it will only apply to handbook rules that are adopted or modified after the decision was issued.
- The decision is subject to challenge in court, so it is possible that the NLRB’s new standard could be overturned.
Overall, the NLRB’s decision is a significant change in the law that will have a major impact on employers’ ability to enforce handbook rules. Employers should take steps to ensure that their handbook rules comply with the new standard.
The biggest question is: Does your business model meet the criteria of the government and the states that your company operates in?
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