Wednesday, June 10, 2015

Digest of Recent NLRB Decisions on Employment in the Digital Age

The NLRB has been active in its continued attempts to establish rules for both unionized and non-unionized employers regarding "concerted activity" in the digital age.  This includes guidance and attacks on social medial policies and rulings relating to company emails.  Below is a digest of some of the most recent NLRB cases on this issue.

Purple Communications, Inc., 361 NLRB No. 43 (2014), the NLRB has ruled that “employee use of email for statutorily protected communications on nonworking time must presumptively be permitted” by employers that provide employees with access to email at work.  While the majority in Purple Communications characterized the decision as “carefully limited,” in reality, it appears to be a major game changer.  This decision applies to all employers, not only those that have union-represented employees or that are in the midst of union organizing campaigns.  The NLRB reasoned that:

By focusing too much on employers' property rights and too little on the importance of email as a means of workplace communication, the Board (in its earlier ruling) failed to adequately protect employees' rights...and abdicated its responsibility ‘to adapt the Act to the changing patterns of industrial life.’

NRLB GC Guidance Memorandum, GC 15-04, March 18, 2015, Concerning Employer Rules.

This GC memo relates to numerous Employee Handbook rules.  Highlights of the GC position as it relates to electronic and social media polices are as follows:

Unlawful confidentiality rules: Any blanket bans on employee information outside of work, bans on publishing confidential information without limiting language, or any other ban that is broad enough that it might include employee wages, benefits, or terms and conditions of employment.  The GC does give examples of “lawful confidentiality rules” that are specific enough to not encompass terms and conditions of employment, such as “Misuse or unauthorized disclosure of confidential information not otherwise available to persons or firms outside employer is cause for disciplinary action, including termination.”

Rules regarding conduct toward supervisors: The GC provides examples of language that is inappropriate under Section 7 regarding employee rights to criticize or protest employer labor policies or treatment of employees.  The GC did state that policies requiring employees to be respectful to customers, without mentioning management, would not violation Section 7.  Likewise, rules requiring employees to cooperate with each other and management in the performance of their work would not implicate Section 7 rights.  These policies also could extend to social media behavior.

Rules regulating conduct toward fellow employees:  The NLRB will ban internet or social media policies that it feels prevent employees from debating with each other about unions, management, and the terms and conditions of employment.  For instance, the GC found a policy unlawful that stated “[d]on’t pick fights” online. 

The GC did find that anti-harassment policies were lawful.  For instance, a policy was acceptable that prevented “harassment of employees, patients or facility visitors.”  Likewise, an employer can ban “use of racial slurs, derogatory comments, or insults.”

Policies regarding interaction with third parties: Any policy that could be construed as banning an employee’s right to communicate with news media, government agencies, or other third parties about wages, benefits, or other terms and conditions of employment will be found unlawful by the NLRB.  Policies will be lawful if they clarify that the employee cannot speak on behalf of the company but that the employees can speak to outsiders on behalf of themselves.

Unlawful rules regarding logos and trademarks:  The NLRB claims employees have fair use to use company intellectual property in support of concerted activity.  For instance, the NLRB has found unlawful a policy preventing use of “any Company logos, trademarks, graphics, or advertising materials” in social media.

Wendy’s Social Media Policy: The GC memo contains a discussion of its settlement with Wendy’s International LLC.  The company social medial policy required anyone commenting about Wendy’s on social media to obtain advance approval from his or her supervisor.  This was found to be overly broad and could prevent employee’s from discussing protected activities.

Wendy’s also banned posting photographs taken at company property.  The NLRB found this could violate the NLRA because pictures of, for instance, employee’s picketing would be lawful. 

Another Wendy’s policy prevented the creation of a blog or online group “related to your job” without approval from the company.  Because employees have the right to discuss the terms and conditions of employment online, this policy was unlawful.

The Wendy’s anti-disparagement policy was also found unlawful.  The offending provisions stated: [d]o not harass, threaten, libel, malign, defame, or disparage fellow professionals, employees, clients, competitors, or anyone else.  Do not make personal insults, use obscenities or engage in any conduct that would be unacceptable in a professional environment.”

Pier Sixty, LLC  362 NLRB 59 (2015), a March 31, 2015 (post GC Memorandum) decision where the NLRB found that language of the most offensive degree was not “so egregious as to exceed the Act’s protection.” Id. at *3.  Two days before a union election, a frustrated employee on break posted of his supervisor on Facebook:

Bob is such a NASTY MOTHER F***** don’t know how to talk to people???  F*** his mother and his entire f****** family?? What a LOSER??  Vote YES for the UNION???!!

The NLRB applied, what the dissenting panel member described as the “Atlantic Steel test on steroids” of (i) the place of the discussion, (ii) the discussion’s subject matter, (iii) the nature of the employee’s outburst, and (iv) whether the employer provoked the outburst, the Board also cobbled together “totality of the circumstances” factors from previous Board cases in considering (i) employer’s antiunion hostility, (ii) whether employee was impulsive or deliberate, (iii) whether the employer considered language similar to that used by employee to be offensive, (iv) whether the employer maintained a specific rule prohibiting the language at issue, and (v) whether the discipline imposed upon employee was typical of that imposed for similar violations or disproportionate to his offense.  

The employee was reinstated from his termination as the NLRB found his post was protected concerted activity.

Boch Imports, Inc., 362 NLRB No. 83 (April 30, 2015).  The NLRB found the company’s social media policy overly broad. The handbook rule required employees to: (1) identify themselves whenever they posted comments about the employer, the employer’s business, or a policy issue, and (2) prohibited employees from using the employer’s logo “in any manner.” In finding this policy unlawful, the NLRB reasoned that the self-identification requirement could cover comments about the terms and conditions of employment, and the requirement to self-identify would reasonably interfere with employees' protected activities on social media. The NLRB took issue with the restriction on using the employer’s logo “in any manner.” This, the Board reasoned, could cover protected employee communications, such as an employee engaging in union activity while wearing a uniform bearing the company logo.

In Macy’s Inc., 01-CA-123640 (May 12, 2015), an administrative law judge found that Macy’s maintained an unlawful employee handbook that contained overbroad confidential information policies. Macy’s policies prohibited employees from divulging “the personal information of the Company’s employees and customers,” “information about employees ... which if known outside the Company could harm the Company or its . . . employees,” “confidential information,” “information such as names, home and office contact information,” “any information that is not generally available to the public that relates to the Company or the Company’s . . . employees,” and “personally-identifiable information (Personal Data) ... [which] includes names, home and office contact information.” The ALJ found that these provisions unlawfully restrict employees from discussing the terms and conditions of their employment.
Macy’s handbook included a “savings clause” stating that nothing in the handbook was intended to limit employees from engaging in their rights protected by the Act, including protected concerted activities. The ALJ, howver, found that this “savings clause” was insufficient and written in a “generic” manner, whereas the prohibitions on employee conduct were very specific.
Rocky Mountain Eye Center, P.C., 19-CA-134567 (May 6, 2015).  An administrative law judge found that the company violated the NLRA by terminating an employee based on an unlawful confidentiality provision. That policy stated that “information about physicians, other employees, and the internal affairs of [the employer] are considered confidential . . . Breach of either patient or facility confidentiality is considered gross misconduct and may lead to immediate dismissal.” An employee accessed a database that included contact information for both the employer’s patients and employees and provided the employee contact information to a union organizer. The ALJ held that the confidentiality policy unlawfully restricted protected activity and was applied to restrict the employee’s right to share information about other employees with the union. The judge went on to further conclude that the employer violated the Act by terminating the employee for engaging in protected concerted activity.
In Landry’s Inc. (Bubba Gump Shrimp Co.), 362 NLRB No. 69 (April 16, 2015), the NLRB found that a social medial policy was permissible. The employee claimed termination based on making protected negative statements in social media about the employer. The employer’s social media policy stated:
While your free time is generally not subject to any restriction by the Company, the Company urges all employees not to post information regarding the Company, their jobs, or other employees which could lead to morale issues in the workplace or detrimentally affect the Company’s business. This can be accomplished by always thinking before you post, being civil to others and their opinions, and not posting personal information about others unless you have received their permission.

The judge noted that the “cautionary language” in the first sentence could act to inhibit employees from exercising their Section 7 rights. But the judge went on to conclude that when read in conjunction with the second sentence, the policy was sufficiently narrowly tailored to the “manner and tone” with which employees discuss the terms and conditions of their jobs, and “not the content.” The judge concluded that the employer did not violate the Act.