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A US federal appeals court has upheld a ruling against Starbucks, confirming that the company violated labor laws over its handling of in-store union activity, including workers wearing pro-union T-shirts.
The decision adds further pressure on HR leaders across the retail and hospitality sectors to review internal policies around dress codes and workplace expression.
The case, which originated from a Starbucks outlet in Ann Arbor, Michigan, saw the D.C. Circuit Court support the National Labor Relations Board (NLRB) in its finding that the coffee chain violated workers’ rights under the National Labor Relations Act. In particular, the court determined that Starbucks breached sections 8(a)(1) and 8(a)(3) by disciplining employees engaged in union activity and improperly changing its dress code enforcement.
Starbucks attempted to overturn the NLRB’s findings by appealing on procedural grounds, citing technical delays in its court submissions. The company argued that formatting problems caused it to miss a legal filing deadline by 23 minutes. The Board dismissed the claim, stating that it could have avoided the issue by using a simpler file format. The court agreed, ruling that computer issues did not justify the delay and that the Board acted within its rights.
Separate ruling criticises sudden policy shift
In a related matter, an administrative law judge found that Starbucks also breached federal labor law at a Jacksonville, Florida store. In that case, the judge ruled that the company unlawfully introduced strict enforcement of its dress code in June 2023, after years of allowing more flexible attire, including union-themed apparel. The change was implemented without engaging in bargaining with union representatives, the ruling said.
According to worker testimony, employees were previously permitted to wear graphic T-shirts, including those supporting union activity, without issue. The judge determined that Starbucks’ reversal on this practice constituted a unilateral policy change and penalised workers without proper negotiation.
As a result, Starbucks has been ordered to reinstate any employees dismissed under the revised dress code, remove disciplinary actions related to the crackdown, and compensate affected workers for lost income and associated tax impacts. The company must also display notices at impacted stores, outlining workers' rights under federal labour law.
Policy changes prompt industry-wide reflection
The decisions arrive as Starbucks updates its national dress code policies, stating that, from May 12, employees must wear solid black tops and approved denim or khaki bottoms. The company has denied any link between those changes and the NLRB decisions, citing a broader “Back to Starbucks” initiative. It has clarified that union pins remain permissible for stores with recognised representation.
With union activity expanding across US locations (although Starbucks says 94% of its stores in the US are not represented by a union), HR and compliance leaders are being urged to carefully review workplace appearance policies to ensure they do not infringe on legally protected organising efforts.
