Starbucks Convinces Third Circuit to Dial Back NLRB Power (1)

A federal appeals court pared back the National Labor Relations Board’s power to order employers to pay for the downstream economic consequences of their labor law violations in a case involving Starbucks Corp.

The NLRB’s remedial authority falls short of requiring companies to repay their workers for expenses that aren’t directly caused by unfair labor practices, the US Court of Appeals for the Third Circuit ruled Friday.

The appeals court drew a line between traditional make-whole remedies like back pay and reinstatement on one hand, and orders for the reimbursement of credit card late fees and medical expenses on ...