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"para_10" }, { "text": "______________________________", "paragraph_id": "para_11" }, { "text": "Petition for Review and Cross-Application for Enforcement", "paragraph_id": "para_12" }, { "text": "of an Order of the National Labor Relations Board", "paragraph_id": "para_13" }, { "text": "Agency Nos. 31-CA-299464,", "paragraph_id": "para_14" }, { "text": "31-CA-305504, 31-RC-296066", "paragraph_id": "para_15" }, { "text": "______________________________", "paragraph_id": "para_16" }, { "text": "Before Smith, Wiener, and Higginson, Circuit Judges.", "paragraph_id": "para_17" }, { "text": "Jerry E. Smith, Circuit Judge:", "paragraph_id": "para_18" }, { "text": "Starbucks stores underwent a flurry of union organizing activity in", "paragraph_id": "para_19" }, { "text": "2022. This case arises from one such attempt where Starbucks employees", "paragraph_id": "para_20" }, { "text": "sought to unionize in Sylmar, California. As the National Labor Relations", "paragraph_id": "para_21" }, { "text": "Board (“NLRB” or “Board”) tells it, what ensued was a campaign of coer-", "paragraph_id": "para_22" }, { "text": "cive threats, interrogation, and unlawful firing. Because the NLRB’s findings", "paragraph_id": "para_23" }, { "text": "are a mix of supported and unsupported conclusions, review and enforce-", "paragraph_id": "para_24" }, { "text": "ment are granted in part and denied in part.", "paragraph_id": "para_25" }, { "text": "United States Court of Appeals", "paragraph_id": "para_26" }, { "text": "Fifth Circuit", "paragraph_id": "para_27" }, { "text": "FILED", "paragraph_id": "para_28" }, { "text": "June 23, 2026", "paragraph_id": "para_29" }, { "text": "Lyle W. Cayce", "paragraph_id": "para_30" }, { "text": "Clerk", "paragraph_id": "para_31" }, { "text": "Case: 24-60651 Document: 137-1 Page: 1 Date Filed: 06/23/2026", "paragraph_id": "para_32" }, { "text": "No. 24-60651", "paragraph_id": "para_33" }, { "text": "2", "paragraph_id": "para_34" }, { "text": "I.", "paragraph_id": "para_35", "court_paragraph": 2 }, { "text": "The Board found that Starbucks, through managers Tiffany Fuller and", "paragraph_id": "para_36" }, { "text": "Jennifer Tayarah, made coercive threats against Edison Sosa, David Ramirez,", "paragraph_id": "para_37" }, { "text": "Barbara Pichardo, and Jason Untaran, all employees at the store at issue. The", "paragraph_id": "para_38" }, { "text": "Board also found that Starbucks had coercively interrogated and unlawfully", "paragraph_id": "para_39" }, { "text": "discharged Untaran.", "paragraph_id": "para_40" }, { "text": "A. Sosa", "paragraph_id": "para_41" }, { "text": "Fuller met with Sosa in June or July 2022; Sosa asked about a letter", "paragraph_id": "para_42" }, { "text": "Starbucks had posted. The letter stated that, though it announced a plan to", "paragraph_id": "para_43" }, { "text": "increase pay and benefits in August, Starbucks was not permitted to “unilat-", "paragraph_id": "para_44" }, { "text": "erally change terms and conditions of employment in unionized stores or", "paragraph_id": "para_45" }, { "text": "stores undergoing organizing activity.” To that end, it limited the pay and", "paragraph_id": "para_46" }, { "text": "benefit increases to stores where there had been no union activity before the", "paragraph_id": "para_47" }, { "text": "first letter was sent.", "paragraph_id": "para_48" }, { "text": "Sosa asked Fuller what it meant to unionize. Fuller stated that “it", "paragraph_id": "para_49" }, { "text": "would not be up to her, that whatever issues or questions the employees had", "paragraph_id": "para_50" }, { "text": "would have to be up to the Union, so that she would not be able to do anything", "paragraph_id": "para_51" }, { "text": "for them.” Sosa brought up the letter, and Fuller stated that the benefits", "paragraph_id": "para_52" }, { "text": "“would be put on pause” because the store was going through the unioniza-", "paragraph_id": "para_53" }, { "text": "tion process. According to Sosa, Fuller also stated that “it would be up to", "paragraph_id": "para_54" }, { "text": "the unionized representative to argue whether or not we would get those", "paragraph_id": "para_55" }, { "text": "[benefits].” Sosa also stated that Fuller claimed that the new benefits", "paragraph_id": "para_56" }, { "text": "“would be either added on, or not, based on if the Union representative", "paragraph_id": "para_57" }, { "text": "would argue for that.”", "paragraph_id": "para_58" }, { "text": "B. Ramirez", "paragraph_id": "para_59" }, { "text": "Fuller spoke to Ramirez, the employee who had requested an election", "paragraph_id": "para_60" }, { "text": "on union representation, and stated that Fuller was opposed to unionizing", "paragraph_id": "para_61" }, { "text": "because of the “risks that she believed we [partners] would lose benefits.”", "paragraph_id": "para_62" }, { "text": "Case: 24-60651 Document: 137-1 Page: 2 Date Filed: 06/23/2026", "paragraph_id": "para_63" }, { "text": "No. 24-60651", "paragraph_id": "para_64" }, { "text": "3", "paragraph_id": "para_65" }, { "text": "Specifically, she said she was concerned about losing access to free tuition to", "paragraph_id": "para_66", "court_paragraph": 3 }, { "text": "Arizona State University and health benefits through union negotiations.", "paragraph_id": "para_67" }, { "text": "C. Pichardo", "paragraph_id": "para_68" }, { "text": "Pichardo had a conversation with Fuller and Tayarah in which", "paragraph_id": "para_69" }, { "text": "Pichardo asked them about their views on unionization. Before that conver-", "paragraph_id": "para_70" }, { "text": "sation, Pichardo had discussed unionization with Fuller on four occasions. In", "paragraph_id": "para_71" }, { "text": "the meeting with Tayarah and Fuller, Tayarah told Pichardo that unionizing", "paragraph_id": "para_72" }, { "text": "the store “wouldn’t change the world” and that “the Union wouldn’t", "paragraph_id": "para_73" }, { "text": "change better working conditions for [Pichardo].” Tayarah then stated that", "paragraph_id": "para_74" }, { "text": "she understood why In-N-Out should unionize but not why Starbucks would.", "paragraph_id": "para_75" }, { "text": "When Pichardo asked for better wages and working conditions, Tayarah told", "paragraph_id": "para_76" }, { "text": "her “there are other jobs that do offer better pay.”", "paragraph_id": "para_77" }, { "text": "D. Untaran", "paragraph_id": "para_78" }, { "text": "1.", "paragraph_id": "para_79" }, { "text": "Fuller had a one-on-one meeting with Untaran on June 22 in the back", "paragraph_id": "para_80" }, { "text": "of the house, where she asked him “how [he] felt about unionization.” Fuller", "paragraph_id": "para_81" }, { "text": "did not know about Untaran’s views of the union at the time. Untaran re-", "paragraph_id": "para_82" }, { "text": "sponded by stating that he felt unionization would not be necessary if employ-", "paragraph_id": "para_83" }, { "text": "ees weren’t overwhelmed with work and had more support. Fuller replied", "paragraph_id": "para_84" }, { "text": "that voting for the union would not guarantee extra hours or more employees.", "paragraph_id": "para_85" }, { "text": "In the same conversation, Fuller stated that access to free tuition, health", "paragraph_id": "para_86" }, { "text": "benefits, and a pay bump were “going to be withheld during the time of", "paragraph_id": "para_87" }, { "text": "negotiations.”", "paragraph_id": "para_88" }, { "text": "2.", "paragraph_id": "para_89" }, { "text": "Starbucks and the NLRB have two distinctive renditions of the facts", "paragraph_id": "para_90" }, { "text": "with regard to Untaran’s discharge.", "paragraph_id": "para_91" }, { "text": "Starbucks claims it fired Untaran because of his poor behavior. He", "paragraph_id": "para_92" }, { "text": "Case: 24-60651 Document: 137-1 Page: 3 Date Filed: 06/23/2026", "paragraph_id": "para_93" }, { "text": "No. 24-60651", "paragraph_id": "para_94" }, { "text": "4", "paragraph_id": "para_95" }, { "text": "arrived late to work and vaped in the store (violating company policy), claim-", "paragraph_id": "para_96", "court_paragraph": 4 }, { "text": "ing “nobody was . . . actually watching so it didn’t matter.” Team members", "paragraph_id": "para_97" }, { "text": "also complained that Untaran neglected or actively resisted doing typical", "paragraph_id": "para_98" }, { "text": "work such as cleaning, restocking, and other closing tasks. After multiple", "paragraph_id": "para_99" }, { "text": "warnings—several verbal and one written—Starbucks terminated him on", "paragraph_id": "para_100" }, { "text": "July 1, 2022.", "paragraph_id": "para_101" }, { "text": "The Board, on the other hand, asserts that Starbucks unlawfully dis-", "paragraph_id": "para_102" }, { "text": "charged Untaran based on anti-union animus. The Board recounts the", "paragraph_id": "para_103" }, { "text": "employees’ months-long efforts to unionize starting in January 2022. Once", "paragraph_id": "para_104" }, { "text": "the union filed its petition to represent the store’s employees, Starbucks’s", "paragraph_id": "para_105" }, { "text": "managers began to speak individually with employees and seemingly to dis-", "paragraph_id": "para_106" }, { "text": "courage unionization. On June 22, Fuller spoke to Untaran specifically about", "paragraph_id": "para_107" }, { "text": "the petition—who, up to that point, had kept his union activity quiet. On", "paragraph_id": "para_108" }, { "text": "June 28, Untaran joined employees at a coordinated union meeting at the", "paragraph_id": "para_109" }, { "text": "store with Congressman Tony Cardenas. Four days later, Starbucks fired", "paragraph_id": "para_110" }, { "text": "Untaran. The Board also claims that Starbucks treated other employees", "paragraph_id": "para_111" }, { "text": "differently from Untaran, giving them more grace and warnings before", "paragraph_id": "para_112" }, { "text": "termination.", "paragraph_id": "para_113" }, { "text": "E. Procedural History", "paragraph_id": "para_114" }, { "text": "After the July election, a majority of employees voted against union", "paragraph_id": "para_115" }, { "text": "representation. The union then filed objections on account of Untaran’s", "paragraph_id": "para_116" }, { "text": "termination and because of various statements by managers. The case went", "paragraph_id": "para_117" }, { "text": "before an administrative law judge (“ALJ”), who ruled against Starbucks on", "paragraph_id": "para_118" }, { "text": "four charges.", "paragraph_id": "para_119" }, { "text": "First, the ALJ found Starbucks violated the National Labor Relations", "paragraph_id": "para_120" }, { "text": "Act (“NLRA”) Section 8(a)(1) twice for statements by employers that", "paragraph_id": "para_121" }, { "text": "unionization “wouldn’t change the world” and that “there are other jobs", "paragraph_id": "para_122" }, { "text": "that do offer better pay.” Second, the ALJ found Fuller’s statements rose to", "paragraph_id": "para_123" }, { "text": "Case: 24-60651 Document: 137-1 Page: 4 Date Filed: 06/23/2026", "paragraph_id": "para_124" }, { "text": "No. 24-60651", "paragraph_id": "para_125" }, { "text": "5", "paragraph_id": "para_126" }, { "text": "the level of an unlawful threat in violation of Section 8(a)(1) when the man-", "paragraph_id": "para_127", "court_paragraph": 5 }, { "text": "ager told an employee that the changes in benefits would be put on hold dur-", "paragraph_id": "para_128" }, { "text": "ing the election. Third, the ALJ found anti-union animus motivated (at least", "paragraph_id": "para_129" }, { "text": "in part) Untaran’s termination, violating Section 8(a)(1) and (3). This ani-", "paragraph_id": "para_130" }, { "text": "mus was “inferred” by the timing of Untaran’s firing—just “four days after", "paragraph_id": "para_131" }, { "text": "he met with the Congressman” and by Starbuck’s treatment of allegedly sim-", "paragraph_id": "para_132" }, { "text": "ilarly situated employees. Finally, the ALJ found Starbucks fell short of its", "paragraph_id": "para_133" }, { "text": "burden to show it would have terminated Untaran absent the union activity.", "paragraph_id": "para_134" }, { "text": "The NLRB adopted some of the ALJ’s conclusions and reversed", "paragraph_id": "para_135" }, { "text": "others. The Board agreed that Starbucks violated Section 8(a)(1) when Ful-", "paragraph_id": "para_136" }, { "text": "ler and Tayarah made comments that the benefits would be “on pause” dur-", "paragraph_id": "para_137" }, { "text": "ing the election; the union “would not bring better working conditions”; and", "paragraph_id": "para_138" }, { "text": "that other jobs would offer better pay. The Board also found Starbucks vio-", "paragraph_id": "para_139" }, { "text": "lated Section 8(a)(1) and (3) by firing Untaran for his union activity. The", "paragraph_id": "para_140" }, { "text": "Board reversed the ALJ in part, further finding that Starbucks violated Sec-", "paragraph_id": "para_141" }, { "text": "tion 8(a)(1) based on separate employer statements and the June 22 “coer-", "paragraph_id": "para_142" }, { "text": "cive interrogation” of Untaran regarding his union support. Finally, the", "paragraph_id": "para_143" }, { "text": "Board adopted the ALJ’s remedies: reinstatement of Untaran, backpay, com-", "paragraph_id": "para_144" }, { "text": "pensatory damages, and a new election. This petition for review and cross-", "paragraph_id": "para_145" }, { "text": "petition for enforcement followed.", "paragraph_id": "para_146" }, { "text": "II.", "paragraph_id": "para_147" }, { "text": "Starbucks asks this court to deny enforcement of the Board’s entire", "paragraph_id": "para_148" }, { "text": "order. In the alternative, it requests relief from the remedy of compensatory", "paragraph_id": "para_149" }, { "text": "damages and a new election. Starbucks urges that the order of compensation", "paragraph_id": "para_150" }, { "text": "violates the NLRA and the Constitution (Article III and Seventh Amend-", "paragraph_id": "para_151" }, { "text": "ment). Starbucks also asks us to vacate the new-election remedy because of", "paragraph_id": "para_152" }, { "text": "the allegedly “erroneous conclusion that Starbucks wrongfully discharged", "paragraph_id": "para_153" }, { "text": "Untaran” and because a supermajority of employees voted against", "paragraph_id": "para_154" }, { "text": "Case: 24-60651 Document: 137-1 Page: 5 Date Filed: 06/23/2026", "paragraph_id": "para_155" }, { "text": "No. 24-60651", "paragraph_id": "para_156" }, { "text": "6", "paragraph_id": "para_157" }, { "text": "unionization.", "paragraph_id": "para_158", "court_paragraph": 6 }, { "text": "The judiciary has a limited role in reviewing the NLRB’s decisions.", "paragraph_id": "para_159" }, { "text": "We “affirm the Board’s conclusions ‘if they have a reasonable basis in the", "paragraph_id": "para_160" }, { "text": "law and are not inconsistent with the [NLRA].’” Tesla, Inc. v. NLRB,", "paragraph_id": "para_161" }, { "text": "86 F.4th 640, 647 (2023) (quoting In-N-Out Burger, Inc. v. NLRB, 894 F.3d", "paragraph_id": "para_162" }, { "text": "707, 714 (5th Cir. 2018) (alteration in original)).", "paragraph_id": "para_163" }, { "text": "The Board’s factual findings are conclusive if they are “supported by", "paragraph_id": "para_164" }, { "text": "substantial evidence on the record considered as a whole.” 29 U.S.C.", "paragraph_id": "para_165" }, { "text": "§ 160(e). We ask whether “a reasonable person could have found what the", "paragraph_id": "para_166" }, { "text": "ALJ found, even if this court may have reached a different conclusion.”", "paragraph_id": "para_167" }, { "text": "Renew Home Health v. NLRB, 95 F.4th 231, 239 (5th Cir. 2024). “The sub-", "paragraph_id": "para_168" }, { "text": "stantiality of evidence must take into account whatever in the record fairly", "paragraph_id": "para_169" }, { "text": "detracts from its weight.” Universal Camera Corp. v. NLRB, 340 U.S. 474,", "paragraph_id": "para_170" }, { "text": "488 (1951). Therefore, the Board must consider “contradictory evidence or", "paragraph_id": "para_171" }, { "text": "evidence from which conflicting inferences could be drawn.” Id. at 487.", "paragraph_id": "para_172" }, { "text": "A. Section 8(a)(1) Coercion", "paragraph_id": "para_173" }, { "text": "The merits of the Board’s conclusions regarding coercive threats are", "paragraph_id": "para_174" }, { "text": "mixed. The conclusion that Untaran was coercively interrogated is sup-", "paragraph_id": "para_175" }, { "text": "ported by substantial evidence.", "paragraph_id": "para_176" }, { "text": "“An unlawful threat is established under Section 8(a)(1), if under the", "paragraph_id": "para_177" }, { "text": "totality of the circumstances, an employee could reasonably conclude that the", "paragraph_id": "para_178" }, { "text": "employer is threatening economic reprisals if the employee supports the", "paragraph_id": "para_179" }, { "text": "union.” NLRB v. Delta Gas., Inc., 840 F.2d 309, 311 (5th Cir. 1988). An", "paragraph_id": "para_180" }, { "text": "employer’s predictions about the precise effect unionization will have on the", "paragraph_id": "para_181" }, { "text": "company must “be carefully phrased on the basis of objective fact to convey", "paragraph_id": "para_182" }, { "text": "an employer’s belief as to demonstrably probable consequences beyond his", "paragraph_id": "para_183" }, { "text": "control or to convey a management decision already arrived at.” NLRB v.", "paragraph_id": "para_184" }, { "text": "Gissel Packing Co., 395 U.S. 575, 618 (1969).", "paragraph_id": "para_185" }, { "text": "Case: 24-60651 Document: 137-1 Page: 6 Date Filed: 06/23/2026", "paragraph_id": "para_186" }, { "text": "No. 24-60651", "paragraph_id": "para_187" }, { "text": "7", "paragraph_id": "para_188" }, { "text": "1. Coercive Threats Against Sosa", "paragraph_id": "para_189", "court_paragraph": 7 }, { "text": "The NLRB maintains that Fuller’s conversation with Sosa contained", "paragraph_id": "para_190" }, { "text": "a coercive threat. The Board cites NLRB v. Dothan Eagle, Inc., 434 F.2d 93,", "paragraph_id": "para_191" }, { "text": "98 (5th Cir. 1970), for the proposition that “whenever the employer by prom-", "paragraph_id": "para_192" }, { "text": "ises or by course of conduct has made a particular benefit part of the estab-", "paragraph_id": "para_193" }, { "text": "lished wage or compensation system, then [it] is not at liberty unilaterally to", "paragraph_id": "para_194" }, { "text": "change this benefit either for better or worse during the union campaign or", "paragraph_id": "para_195" }, { "text": "during the period of collective bargaining.” Id. The Board further asserts", "paragraph_id": "para_196" }, { "text": "that Starbucks alludes to but misunderstands the exception to that rule that", "paragraph_id": "para_197" }, { "text": "allows employers to postpone expected wage or benefit increases to avoid the", "paragraph_id": "para_198" }, { "text": "appearance of influencing the election’s outcome.", "paragraph_id": "para_199" }, { "text": "Starbucks responds by urging that the NLRB misapprehends the", "paragraph_id": "para_200" }, { "text": "issue. Starbucks states that neither the ALJ nor the Board points to evidence", "paragraph_id": "para_201" }, { "text": "that the pay increase falls into the category of a regularly scheduled wage", "paragraph_id": "para_202" }, { "text": "increase, dooming the Board’s justification. Furthermore, Starbucks claims", "paragraph_id": "para_203" }, { "text": "that the NLRB’s approach, when considered with other NLRB precedents,", "paragraph_id": "para_204" }, { "text": "puts an employer into an impossible bind, where pausing benefits means that", "paragraph_id": "para_205" }, { "text": "they threatened employees, and, on the other hand, extending promised ben-", "paragraph_id": "para_206" }, { "text": "efits results in a holding that the employer unlawfully interfered with the", "paragraph_id": "para_207" }, { "text": "election.", "paragraph_id": "para_208" }, { "text": "The Board’s conclusion that Fuller threatened Sosa is not supported", "paragraph_id": "para_209" }, { "text": "by substantial evidence. As Starbucks rightly states, neither the Board nor", "paragraph_id": "para_210" }, { "text": "the ALJ points to any authority that states that an announced, non-routine,", "paragraph_id": "para_211" }, { "text": "and unimplemented benefit comes within the scope of an established wage or", "paragraph_id": "para_212" }, { "text": "compensation system, nor does anything in the record support such a finding.", "paragraph_id": "para_213" }, { "text": "The ALJ’s asserted reasons are particularly problematic because the ALJ", "paragraph_id": "para_214" }, { "text": "makes reference only to NLRB cases that deal with routine and regularly", "paragraph_id": "para_215" }, { "text": "scheduled pay raises.", "paragraph_id": "para_216" }, { "text": "Case: 24-60651 Document: 137-1 Page: 7 Date Filed: 06/23/2026", "paragraph_id": "para_217" }, { "text": "No. 24-60651", "paragraph_id": "para_218" }, { "text": "8", "paragraph_id": "para_219" }, { "text": "The quoted language in Dothan Eagle reaffirms that point: The rule", "paragraph_id": "para_220", "court_paragraph": 8 }, { "text": "applies only to the “established wage or compensation system.” 434 F.2d", "paragraph_id": "para_221" }, { "text": "at 98 (emphasis added). In justifying the rule, the court in Dothan Eagle", "paragraph_id": "para_222" }, { "text": "emphasized that the wage-increase policy in question “was widely known", "paragraph_id": "para_223" }, { "text": "and had been in effect for a considerable period of time. It had thus become", "paragraph_id": "para_224" }, { "text": "part of the established scheme of compensation and could not be deviated", "paragraph_id": "para_225" }, { "text": "from for purposes of influencing the vote.” Id. at 99. Read in its proper", "paragraph_id": "para_226" }, { "text": "context, Dothan Eagle makes it clear that the application of its rule should be", "paragraph_id": "para_227" }, { "text": "to wage systems that are already in effect and that employees can justifiably", "paragraph_id": "para_228" }, { "text": "rely on, something which both the Board and the ALJ failed to establish and", "paragraph_id": "para_229" }, { "text": "the record does not support.", "paragraph_id": "para_230" }, { "text": "Nothing in the record ties the promised benefits, provided for in the", "paragraph_id": "para_231" }, { "text": "Starbucks letter and subsequent clarification, to an already established sys-", "paragraph_id": "para_232" }, { "text": "tem of compensation rather than a bespoke provision of increased benefits.", "paragraph_id": "para_233" }, { "text": "The “simple but fundamental rule of administrative law that reviewing", "paragraph_id": "para_234" }, { "text": "courts must judge the propriety of [agency] action solely by the grounds", "paragraph_id": "para_235" }, { "text": "invoked by the agency” means that the Board’s conclusion cannot stand.1", "paragraph_id": "para_236" }, { "text": "2. Coercive Threats Against Ramirez and Untaran", "paragraph_id": "para_237" }, { "text": "The NLRB asserts that its decision that Ramirez and Untaran were", "paragraph_id": "para_238" }, { "text": "coercively threatened is supported by substantial evidence. It states that Ful-", "paragraph_id": "para_239" }, { "text": "ler’s message told the employees they would lose certain benefits through", "paragraph_id": "para_240" }, { "text": "negotiation. In particular, it claims that Fuller’s conversation with Ramirez", "paragraph_id": "para_241" }, { "text": "involved an employer’s making a prediction as to the precise effects it be-", "paragraph_id": "para_242" }, { "text": "lieves unionization will have. It cites Gissel for the proposition that any such", "paragraph_id": "para_243" }, { "text": "predictions must “be carefully phrased on the basis of objective fact to con-", "paragraph_id": "para_244" }, { "text": "_____________________", "paragraph_id": "para_245" }, { "text": "1 Calcutt v. FDIC, 598 U.S. 623, 624 (2023) (citation modified); see also Tesla, Inc.", "paragraph_id": "para_246" }, { "text": "v. NLRB, 120 F.4th 433, 439 n.3 (5th Cir. 2024) (applying Calcutt to the NLRB).", "paragraph_id": "para_247" }, { "text": "Case: 24-60651 Document: 137-1 Page: 8 Date Filed: 06/23/2026", "paragraph_id": "para_248" }, { "text": "No. 24-60651", "paragraph_id": "para_249" }, { "text": "9", "paragraph_id": "para_250" }, { "text": "vey [the] employer’s belief as to demonstrably probable consequences", "paragraph_id": "para_251", "court_paragraph": 9 }, { "text": "beyond [its] control.” 395 U.S. at 618. The NLRB concludes by claiming", "paragraph_id": "para_252" }, { "text": "that Fuller suggested that Starbucks would adopt a punitive bargaining", "paragraph_id": "para_253" }, { "text": "strategy, as distinguished from the permissible act of emphasizing the give-", "paragraph_id": "para_254" }, { "text": "and-take of collective action.", "paragraph_id": "para_255" }, { "text": "As to Untaran, the NLRB asserts that the Supreme Court has long", "paragraph_id": "para_256" }, { "text": "held that a unilateral refusal to maintain existing wage and benefit policies", "paragraph_id": "para_257" }, { "text": "during the collective bargaining period is unlawful. It further contends that", "paragraph_id": "para_258" }, { "text": "both statements constitute violations, even if they were framed as possible", "paragraph_id": "para_259" }, { "text": "outcomes, because employees perceive a threat if there is any implication that", "paragraph_id": "para_260" }, { "text": "an employer may retaliate.", "paragraph_id": "para_261" }, { "text": "For its part, Starbucks contends that Fuller’s statements to Ramirez", "paragraph_id": "para_262" }, { "text": "were not coercive because the Board, in reversing the ALJ, took statements", "paragraph_id": "para_263" }, { "text": "from management that emphatically assert a risk and twisted them into", "paragraph_id": "para_264" }, { "text": "claims of absolute certainty. Starbucks further emphasizes that Fuller stated", "paragraph_id": "para_265" }, { "text": "that these benefits could be lost “through negotiations” and that this state-", "paragraph_id": "para_266" }, { "text": "ment indicates that Fuller was attempting to explain nuances, not threatening", "paragraph_id": "para_267" }, { "text": "reprisal, meaning no reasonable factfinder could conclude that Fuller threat-", "paragraph_id": "para_268" }, { "text": "ened reprisal against Ramirez.", "paragraph_id": "para_269" }, { "text": "Starbucks further contends that Untaran gave two conflicting ac-", "paragraph_id": "para_270" }, { "text": "counts of Fuller’s statements about benefits, stating both that certain benefits", "paragraph_id": "para_271" }, { "text": "“were possibly going to be withheld . . . during the negotiations for contracts", "paragraph_id": "para_272" }, { "text": "with Starbucks and the Union” and that “all of that was going to be withheld", "paragraph_id": "para_273" }, { "text": "during the time of negotiations.” Starbucks continues by claiming that all", "paragraph_id": "para_274" }, { "text": "that Fuller communicated was that Starbucks was permitted to extend bene-", "paragraph_id": "para_275" }, { "text": "fits to nonunionized employees while withholding them from unionizing", "paragraph_id": "para_276" }, { "text": "employees during bargaining.", "paragraph_id": "para_277" }, { "text": "Starbucks concludes by asserting that the Board erred by failing to", "paragraph_id": "para_278" }, { "text": "Case: 24-60651 Document: 137-1 Page: 9 Date Filed: 06/23/2026", "paragraph_id": "para_279" }, { "text": "No. 24-60651", "paragraph_id": "para_280" }, { "text": "10", "paragraph_id": "para_281" }, { "text": "consider the fact that Fuller’s statements did not chill Untaran’s union activ-", "paragraph_id": "para_282", "court_paragraph": 10 }, { "text": "ity. Starbucks acknowledges that actual coercion is unnecessary, but it still", "paragraph_id": "para_283" }, { "text": "asserts that an employee’s subjective response can help determine whether a", "paragraph_id": "para_284" }, { "text": "reasonable employee would tend to be coerced.", "paragraph_id": "para_285" }, { "text": "a. Ramirez", "paragraph_id": "para_286" }, { "text": "The Board’s decision on Ramirez is supported by substantial evidence", "paragraph_id": "para_287" }, { "text": "because Fuller’s statement left sufficient ambiguity as to Starbucks’s", "paragraph_id": "para_288" }, { "text": "position. As the Board ably pointed out, it is irrelevant whether Fuller used", "paragraph_id": "para_289" }, { "text": "“could” versus “would” when she talked to Ramirez. Instead, if, under the", "paragraph_id": "para_290" }, { "text": "totality of the circumstances, a reasonable employee could have conceived of", "paragraph_id": "para_291" }, { "text": "Fuller’s statement as a coercive threat then there has been a violation.", "paragraph_id": "para_292" }, { "text": "Although Fuller’s statement could be plausibly understood as highlighting", "paragraph_id": "para_293" }, { "text": "the give-and-take of negotiation, her statement that the benefits could be lost", "paragraph_id": "para_294" }, { "text": "“through negotiation,” paired with reference to benefits that were wholly in", "paragraph_id": "para_295" }, { "text": "Starbucks’s control could be reasonably interpreted as a suggestion that", "paragraph_id": "para_296" }, { "text": "Starbucks was going to take a punitive bargaining position by threatening", "paragraph_id": "para_297" }, { "text": "those benefits. Under the substantial evidence standard, that is sufficient to", "paragraph_id": "para_298" }, { "text": "uphold the Board’s decision.", "paragraph_id": "para_299" }, { "text": "b. Untaran", "paragraph_id": "para_300" }, { "text": "The NLRB’s finding as to Untaran is supported by substantial evi-", "paragraph_id": "para_301" }, { "text": "dence. Fuller’s statements to Untaran can be understood by a reasonable", "paragraph_id": "para_302" }, { "text": "employee, aware of all of the facts and law, as a coercive threat because the", "paragraph_id": "para_303" }, { "text": "statement, even if it was probabilistic, still proposed unlawful conduct.", "paragraph_id": "para_304" }, { "text": "As previously stated, Dothan Eagle stands for the proposition that it is", "paragraph_id": "para_305" }, { "text": "unlawful to fail to maintain existing wage and benefit policies during a union", "paragraph_id": "para_306" }, { "text": "election period. The tuition and health benefits were part of existing wage", "paragraph_id": "para_307" }, { "text": "and benefit policies, as the programs were already established and the", "paragraph_id": "para_308" }, { "text": "benefits conferred upon Starbucks employees. Therefore, Starbucks would", "paragraph_id": "para_309" }, { "text": "Case: 24-60651 Document: 137-1 Page: 10 Date Filed: 06/23/2026", "paragraph_id": "para_310" }, { "text": "No. 24-60651", "paragraph_id": "para_311" }, { "text": "11", "paragraph_id": "para_312" }, { "text": "have had no right to withhold those benefits during negotiations. If Fuller", "paragraph_id": "para_313", "court_paragraph": 11 }, { "text": "was referring exclusively to the new increases to those programs promised in", "paragraph_id": "para_314" }, { "text": "the letter, Untaran’s credited testimony does not make that clear.", "paragraph_id": "para_315" }, { "text": "Starbucks does little to respond, claiming only that Fuller “merely", "paragraph_id": "para_316" }, { "text": "explained that Starbucks was under no obligation to extend an unimple-", "paragraph_id": "para_317" }, { "text": "mented pay bump during a union election.” Starbucks’s failure to respond", "paragraph_id": "para_318" }, { "text": "to Fuller’s statements about tuition and health benefits is telling. Even", "paragraph_id": "para_319" }, { "text": "assuming arguendo that we would take Untaran’s subjective impression into", "paragraph_id": "para_320" }, { "text": "account, that cannot overcome the deference owed under the substantial-", "paragraph_id": "para_321" }, { "text": "evidence standard, especially given that Fuller’s statement plausibly com-", "paragraph_id": "para_322" }, { "text": "municated that Starbucks would violate the law in response to union activity.", "paragraph_id": "para_323" }, { "text": "3. Coercive Threats Against Pichardo", "paragraph_id": "para_324" }, { "text": "The NLRB asserts that there is substantial evidence to support the", "paragraph_id": "para_325" }, { "text": "Board’s finding that Tayarah’s statements to Pichardo constituted coercive", "paragraph_id": "para_326" }, { "text": "threats. The ALJ stated that Tayarah’s statement that the union wouldn’t", "paragraph_id": "para_327" }, { "text": "improve working conditions was the same as stating that union representa-", "paragraph_id": "para_328" }, { "text": "tion would be futile and that her statement that there were other jobs implied", "paragraph_id": "para_329" }, { "text": "that support for the union was incompatible with continued employment.", "paragraph_id": "para_330" }, { "text": "The NLRB highlights that a warning of futility of organization constitutes a", "paragraph_id": "para_331" }, { "text": "violation of Section 8(a)(1). It maintains that Tayarah’s statement signified", "paragraph_id": "para_332" }, { "text": "that Starbucks would refuse to provide the increased support that Pichardo", "paragraph_id": "para_333" }, { "text": "sought.", "paragraph_id": "para_334" }, { "text": "In response, Starbucks points to Brown & Root, Inc. v. NLRB, 333 F.3d", "paragraph_id": "para_335" }, { "text": "628, 634 (5th Cir. 2003), for the proposition that a statement of futility vio-", "paragraph_id": "para_336" }, { "text": "lates Section 8(a)(1) only if it is accompanied by a threat that the employer", "paragraph_id": "para_337" }, { "text": "will do something to make union support futile. Starbucks reasons that", "paragraph_id": "para_338" }, { "text": "Tayarah’s statements contained no such independent threat and cannot", "paragraph_id": "para_339" }, { "text": "qualify as a violation under Section 8(a)(1). Starbucks continues by claiming", "paragraph_id": "para_340" }, { "text": "Case: 24-60651 Document: 137-1 Page: 11 Date Filed: 06/23/2026", "paragraph_id": "para_341" }, { "text": "No. 24-60651", "paragraph_id": "para_342" }, { "text": "12", "paragraph_id": "para_343" }, { "text": "that Tayarah’s acknowledgement that other jobs pay better was not a threat", "paragraph_id": "para_344", "court_paragraph": 12 }, { "text": "and that the Board’s reading of its caselaw is a per se rule that is counter to", "paragraph_id": "para_345" }, { "text": "this court’s precedent, which focuses on contextual analysis, not a “magic-", "paragraph_id": "para_346" }, { "text": "words” rule. Starbucks concludes by arguing that the cases cited by the", "paragraph_id": "para_347" }, { "text": "NLRB all involved direct invitations to quit or statements threatening dis-", "paragraph_id": "para_348" }, { "text": "charge, neither of which Tayarah did.", "paragraph_id": "para_349" }, { "text": "The Board’s decision on futility is not supported by substantial evi-", "paragraph_id": "para_350" }, { "text": "dence, but its decision on Tayarah’s other statement is.", "paragraph_id": "para_351" }, { "text": "As for the futility argument, Starbucks is correct that Brown & Root", "paragraph_id": "para_352" }, { "text": "controls. Brown & Root stated that “this Court has only found comments to", "paragraph_id": "para_353" }, { "text": "be unlawful statements about futility when accompanied by a threat or impli-", "paragraph_id": "para_354" }, { "text": "cation that the employer will take some action to render union support", "paragraph_id": "para_355" }, { "text": "futile.” 333 F.3d at 634. That observation determines the outcome here.", "paragraph_id": "para_356" }, { "text": "Tayarah’s assertion that the union wouldn’t improve working condi-", "paragraph_id": "para_357" }, { "text": "tions is a statement of futility, but there is nothing that indicates that it was", "paragraph_id": "para_358" }, { "text": "accompanied by a threat that Starbucks itself would do something to render", "paragraph_id": "para_359" }, { "text": "support futile. Siding with Pichardo on Tayarah’s other statement does not", "paragraph_id": "para_360" }, { "text": "change this analysis because a reasonable person could find only that the", "paragraph_id": "para_361" }, { "text": "threat was not a threat to make employees’ “selection of a bargaining repre-", "paragraph_id": "para_362" }, { "text": "sentative . . . futile” so much as it was a threat of economic reprisal against", "paragraph_id": "para_363" }, { "text": "Pichardo for her union support. A reasonable person could not conclude", "paragraph_id": "para_364" }, { "text": "what the Board announced, so the ruling lacks substantial evidence.", "paragraph_id": "para_365" }, { "text": "Regarding Tayarah’s statement that there were other jobs that offered", "paragraph_id": "para_366" }, { "text": "better pay, there is substantial evidence to support the Board’s conclusion.2", "paragraph_id": "para_367" }, { "text": "_____________________", "paragraph_id": "para_368" }, { "text": "2 That being said, the NLRB seems to want to have it both ways, relying on Pichar-", "paragraph_id": "para_369" }, { "text": "do’s subjective understanding of Tayarah’s statements while disclaiming our ability to do", "paragraph_id": "para_370" }, { "text": "so in the case of Untaran. This court has not acknowledged the relevance of an employee’s", "paragraph_id": "para_371" }, { "text": "subjective understanding to a Section 8(a)(1) violation, and there is no reason to do so in", "paragraph_id": "para_372" }, { "text": "Case: 24-60651 Document: 137-1 Page: 12 Date Filed: 06/23/2026", "paragraph_id": "para_373" }, { "text": "No. 24-60651", "paragraph_id": "para_374" }, { "text": "13", "paragraph_id": "para_375" }, { "text": "Although the rule from the Board’s caselaw that finds a Section 8(a)(1) vio-", "paragraph_id": "para_376", "court_paragraph": 13 }, { "text": "lation anytime an employer with the power to fire responds to union support", "paragraph_id": "para_377" }, { "text": "with an invitation to quit sweeps too broadly, such circumstances can often", "paragraph_id": "para_378" }, { "text": "withstand substantial-evidence review absent countervailing facts. Pichardo", "paragraph_id": "para_379" }, { "text": "had four previous conversations concerning the union with Fuller before the", "paragraph_id": "para_380" }, { "text": "meeting with Fuller and Tayarah, two of which involved criticism of unioni-", "paragraph_id": "para_381" }, { "text": "zation. With those conversations as background, Tayarah’s negativity", "paragraph_id": "para_382" }, { "text": "toward unionization, and the fact that the statement in question was directly", "paragraph_id": "para_383" }, { "text": "in response to a request for better wages and working conditions, a reasonable", "paragraph_id": "para_384" }, { "text": "employee could conclude that Tayarah was threatening economic reprisal for", "paragraph_id": "para_385" }, { "text": "union support, namely threatening to terminate Pichardo’s employment.", "paragraph_id": "para_386" }, { "text": "4. Coercive Interrogation Against Untaran", "paragraph_id": "para_387" }, { "text": "“To determine whether an interaction between an employer and", "paragraph_id": "para_388" }, { "text": "employee constitutes a coercive interrogation, we examine ‘the totality of the", "paragraph_id": "para_389" }, { "text": "circumstances in which the interrogation occurred. The relevant inquiry is", "paragraph_id": "para_390" }, { "text": "whether the questioning tends to be coercive, not whether the employees are", "paragraph_id": "para_391" }, { "text": "in fact coerced.” Apple, 143 F.4th at 297 (citation modified). We consider", "paragraph_id": "para_392" }, { "text": "eight factors when analyzing whether an interrogation was coercive:", "paragraph_id": "para_393" }, { "text": "(1) the background, or history of employer hostility and dis-", "paragraph_id": "para_394" }, { "text": "crimination; (2) the nature of the information the questioner", "paragraph_id": "para_395" }, { "text": "seeks; (3) the rank of the questioner in the company hierarchy;", "paragraph_id": "para_396" }, { "text": "(4) the place and manner of the interrogation; (5) the truthful-", "paragraph_id": "para_397" }, { "text": "ness of the employee’s reply; (6) whether the employer had a", "paragraph_id": "para_398" }, { "text": "valid purpose in obtaining the information sought about the", "paragraph_id": "para_399" }, { "text": "union; (7) whether a valid purpose, if existent, was communi-", "paragraph_id": "para_400" }, { "text": "cated to the employee; and (8) whether the employer assured", "paragraph_id": "para_401" }, { "text": "the employee that no reprisals would be forthcoming should he", "paragraph_id": "para_402" }, { "text": "_____________________", "paragraph_id": "para_403" }, { "text": "this case. See also Apple, 143 F.4th at 299 n.26.", "paragraph_id": "para_404" }, { "text": "Case: 24-60651 Document: 137-1 Page: 13 Date Filed: 06/23/2026", "paragraph_id": "para_405" }, { "text": "No. 24-60651", "paragraph_id": "para_406" }, { "text": "14", "paragraph_id": "para_407" }, { "text": "or she support the union.", "paragraph_id": "para_408", "court_paragraph": 14 }, { "text": "Renew Home Health, 95 F.4th at 243 (citation modified). These factors are an", "paragraph_id": "para_409" }, { "text": "analytical guide, and no single factor is determinative. Id. at 244. Coercion", "paragraph_id": "para_410" }, { "text": "can be found even where most of the factors favor the employer. Apple,", "paragraph_id": "para_411" }, { "text": "143 F.4th at 298.", "paragraph_id": "para_412" }, { "text": "The ALJ originally held that Fuller’s questioning of Untaran was not", "paragraph_id": "para_413" }, { "text": "a coercive interrogation because Untaran answered truthfully, Fuller was a", "paragraph_id": "para_414" }, { "text": "first-line supervisor, the conversation occurred in a public area, there was no", "paragraph_id": "para_415" }, { "text": "history of employer discrimination at this particular store, and Fuller did not", "paragraph_id": "para_416" }, { "text": "follow up with any coercive statements. The Board reversed, finding that", "paragraph_id": "para_417" }, { "text": "(1) the conversation took place in the midst of Starbucks’s hostility toward", "paragraph_id": "para_418" }, { "text": "employees, (2) Fuller made unlawful threats, (3) Fuller sought information", "paragraph_id": "para_419" }, { "text": "“about core Section 7 rights,” (4) Fuller was Untaran’s direct supervisor,", "paragraph_id": "para_420" }, { "text": "(5) the back of house was an “especially coercive” place to interrogate con-", "paragraph_id": "para_421" }, { "text": "sidering that’s where disciplinary meetings and Untaran’s firing occurred,", "paragraph_id": "para_422" }, { "text": "(6) Untaran did not reply to Fuller’s question completely candidly, and", "paragraph_id": "para_423" }, { "text": "(7) Fuller did not provide Untaran with any assurances that his answers", "paragraph_id": "para_424" }, { "text": "would not be used against him. On appeal, the NLRB largely reiterates those", "paragraph_id": "para_425" }, { "text": "points, adding a series of examples from both inside and outside this circuit", "paragraph_id": "para_426" }, { "text": "to bolster its claims.", "paragraph_id": "para_427" }, { "text": "In comparison, Starbucks, relying on its claims from earlier, contends", "paragraph_id": "para_428" }, { "text": "that Fuller made no statements threatening economic reprisal. Starbucks fur-", "paragraph_id": "para_429" }, { "text": "ther posits that the information that Fuller sought was innocuous and gen-", "paragraph_id": "para_430" }, { "text": "eral, given that Fuller did not probe Untaran’s voting intentions, follow up", "paragraph_id": "para_431" }, { "text": "on Untaran’s answer, or otherwise continue the purported interrogation.", "paragraph_id": "para_432" }, { "text": "Starbucks continues by claiming that the Board’s point that Fuller was a dir-", "paragraph_id": "para_433" }, { "text": "ect supervisor improperly skews that factor against the employer in every", "paragraph_id": "para_434" }, { "text": "case because supervisors are involved in nearly every case of alleged interro-", "paragraph_id": "para_435" }, { "text": "Case: 24-60651 Document: 137-1 Page: 14 Date Filed: 06/23/2026", "paragraph_id": "para_436" }, { "text": "No. 24-60651", "paragraph_id": "para_437" }, { "text": "15", "paragraph_id": "para_438" }, { "text": "gation. Starbucks moreover asserts that the Board identified no evidence that", "paragraph_id": "para_439", "court_paragraph": 15 }, { "text": "the back-of-house was an area that the employees would be intimidated by", "paragraph_id": "para_440" }, { "text": "and claims that the Board ignored the casual nature of the conversation. It", "paragraph_id": "para_441" }, { "text": "closes by pointing out that the ALJ found that Untaran answered the question", "paragraph_id": "para_442" }, { "text": "truthfully, that Fuller had a proper purpose of exercising Starbucks’ right to", "paragraph_id": "para_443" }, { "text": "discuss unionization with employees, and noting that a failure to disclaim", "paragraph_id": "para_444" }, { "text": "reprisal alone cannot support a section 8(a)(1) violation.", "paragraph_id": "para_445" }, { "text": "The Board’s decision is supported by substantial evidence. First, the", "paragraph_id": "para_446" }, { "text": "NLRB is wrong to insist that asking about union support is always moderately", "paragraph_id": "para_447" }, { "text": "coercive. As this court stated in Apple, the Board’s “claim that inquiries", "paragraph_id": "para_448" }, { "text": "about wages or union sentiment are quintessential example[s] of coercive", "paragraph_id": "para_449" }, { "text": "interrogation sweeps too broadly.” Apple, 143 F.4th at 299 (citation modi-", "paragraph_id": "para_450" }, { "text": "fied). As with the employer in Apple, Starbucks did not commit itself to a", "paragraph_id": "para_451" }, { "text": "series of interrogations of a variety of employees; instead, this was a one-off", "paragraph_id": "para_452" }, { "text": "conversation. Unlike in Apple, however, the supervisor here had plausibly", "paragraph_id": "para_453" }, { "text": "displayed anti-union sentiment and proceeded to make a statement that could", "paragraph_id": "para_454" }, { "text": "be perceived as an unlawful threat of withholding benefits in the same con-", "paragraph_id": "para_455" }, { "text": "versation, according to Untaran.3", "paragraph_id": "para_456" }, { "text": "Second, because Fuller did, in fact, make a statement that could be", "paragraph_id": "para_457" }, { "text": "perceived as a threat by a reasonable employee, there is some support for a", "paragraph_id": "para_458" }, { "text": "claim of hostility in the workplace. But one violation of the NLRA does not", "paragraph_id": "para_459" }, { "text": "lend the same credence or support for a coercive interrogation when com-", "paragraph_id": "para_460" }, { "text": "_____________________", "paragraph_id": "para_461" }, { "text": "3 There is arguably some daylight between finding a violation of Section 8(a)(1)", "paragraph_id": "para_462" }, { "text": "and evidence of anti-union sentiment. Because a Section 8(a)(1) violation is taken from the", "paragraph_id": "para_463" }, { "text": "vantage point of a reasonable employee, it need not say anything about the employer’s", "paragraph_id": "para_464" }, { "text": "actual sentiment toward a union. See Renew Home Health, 95 F.4th at 242 (“The analysis", "paragraph_id": "para_465" }, { "text": "is framed from the perspective of the employee and is not contingent on either the motiva-", "paragraph_id": "para_466" }, { "text": "tion behind the remark or its actual effect.” (citation modified)).", "paragraph_id": "para_467" }, { "text": "Case: 24-60651 Document: 137-1 Page: 15 Date Filed: 06/23/2026", "paragraph_id": "para_468" }, { "text": "No. 24-60651", "paragraph_id": "para_469" }, { "text": "16", "paragraph_id": "para_470" }, { "text": "pared to the example provided by the NLRB.4 Although Fuller had many", "paragraph_id": "para_471", "court_paragraph": 16 }, { "text": "conversations with employees about unionization and frequently expressed", "paragraph_id": "para_472" }, { "text": "her skepticism about unionization, those actions, standing alone, are far", "paragraph_id": "para_473" }, { "text": "weaker evidence of hostility.", "paragraph_id": "para_474" }, { "text": "Third, the rank of the questioner favors the NLRB’s interpretation.", "paragraph_id": "para_475" }, { "text": "As Starbucks itself acknowledges, this consideration matters where, among", "paragraph_id": "para_476" }, { "text": "other things, the supervisor paired his or her questions “with threats of", "paragraph_id": "para_477" }, { "text": "reprisal.” Because we found against Starbucks on the issue of coercive", "paragraph_id": "para_478" }, { "text": "threats with regard to Untaran, this issue is relevant and favors the NLRB’s", "paragraph_id": "para_479" }, { "text": "interpretation, as Fuller was the highest-ranking individual at the store.", "paragraph_id": "para_480" }, { "text": "Fourth, the location favors Starbucks: The NLRB’s description of the", "paragraph_id": "para_481" }, { "text": "back-of-house is belied by the evidence, especially as to Untaran. The back", "paragraph_id": "para_482" }, { "text": "of the house was where Untaran broke Starbucks rules and vaped, and the", "paragraph_id": "para_483" }, { "text": "ALJ described it as a “public place,” a point the Board does not reject.5 The", "paragraph_id": "para_484" }, { "text": "Board’s characterization of the back of the house as an intimidating is based", "paragraph_id": "para_485" }, { "text": "on a claim that that is where Fuller holds disciplinary meetings, but it does", "paragraph_id": "para_486" }, { "text": "not engage with contrary evidence that indicates that Untaran felt comforta-", "paragraph_id": "para_487" }, { "text": "ble in the back of the house, nor does the Board point to any evidence that", "paragraph_id": "para_488" }, { "text": "suggests that, at the time of the conversation, Untaran, in particular, would", "paragraph_id": "para_489" }, { "text": "have been intimidated by the location.", "paragraph_id": "para_490" }, { "text": "Fifth, Starbuck’s defense of Fuller’s purpose falls apart when the", "paragraph_id": "para_491" }, { "text": "employer’s intention is unclear, as is the case here. In Delco-Remy Division,", "paragraph_id": "para_492" }, { "text": "_____________________", "paragraph_id": "para_493" }, { "text": "4 See, e.g., NLRB v. Birdsall, 487 F.2d 288, 291 (5th Cir. 1973) (“In view of the", "paragraph_id": "para_494" }, { "text": "totality of the circumstances surrounding the systematic interrogations of employees regard-", "paragraph_id": "para_495" }, { "text": "ing their union sympathies the Board could properly conclude that the employer vio-", "paragraph_id": "para_496" }, { "text": "lated § 8(a)(1) of the Act.”).", "paragraph_id": "para_497" }, { "text": "5 See Apple, 143 F.4th at 298 (finding no coercion when, amongst other points,", "paragraph_id": "para_498" }, { "text": "interrogation occurred in a public place.).", "paragraph_id": "para_499" }, { "text": "Case: 24-60651 Document: 137-1 Page: 16 Date Filed: 06/23/2026", "paragraph_id": "para_500" }, { "text": "No. 24-60651", "paragraph_id": "para_501" }, { "text": "17", "paragraph_id": "para_502" }, { "text": "General Motors Corp. v. NLRB, 596 F.2d 1295, 1311 (5th Cir. 1979), we said", "paragraph_id": "para_503", "court_paragraph": 17 }, { "text": "that no statement of purpose or assurance that there would be no reprisal was", "paragraph_id": "para_504" }, { "text": "required “when it is apparent from the circumstances . . . that the interro-", "paragraph_id": "para_505" }, { "text": "gation is for an innocent purpose and that the questions do not otherwise", "paragraph_id": "para_506" }, { "text": "convey a veiled threat of reprisal.” Id.", "paragraph_id": "para_507" }, { "text": "The situation described in Delco-Remy is different from the one in", "paragraph_id": "para_508" }, { "text": "which Untaran found himself, given that Fuller’s question about Union sup-", "paragraph_id": "para_509" }, { "text": "port was bracketed by a statement acknowledging the filing of a unionization", "paragraph_id": "para_510" }, { "text": "petition and the importance of voting on that petition, on the front end, and", "paragraph_id": "para_511" }, { "text": "what could be reasonably construed as a threat of economic reprisal via", "paragraph_id": "para_512" }, { "text": "withheld benefits, on the back end. Under such circumstances, the failure to", "paragraph_id": "para_513" }, { "text": "reassure the employee of an innocent purpose or a lack of retaliation is rele-", "paragraph_id": "para_514" }, { "text": "vant and favors the NLRB’s interpretation.", "paragraph_id": "para_515" }, { "text": "Sixth, the truthfulness of Untaran’s reply cuts in favor of Starbucks,", "paragraph_id": "para_516" }, { "text": "as he was not particularly evasive in his answer. Though the Board accurately", "paragraph_id": "para_517" }, { "text": "points out that Untaran’s answer is not “completely candid,” insofar as he", "paragraph_id": "para_518" }, { "text": "does not answer the question “how do you feel about unionization” directly", "paragraph_id": "para_519" }, { "text": "and stridently, the fact that his answer still provided Fuller with some indi-", "paragraph_id": "para_520" }, { "text": "cation that he supports the union cuts against a finding of a coercive interro-", "paragraph_id": "para_521" }, { "text": "gation, though it is not dispositive on that point.6", "paragraph_id": "para_522" }, { "text": "There is substantial evidence to support the Board’s conclusion.", "paragraph_id": "para_523" }, { "text": "Though there are factors that cast doubt on its analysis, those factors are not", "paragraph_id": "para_524" }, { "text": "so detrimental to render it impossible for “a reasonable person [to find] what", "paragraph_id": "para_525" }, { "text": "_____________________", "paragraph_id": "para_526" }, { "text": "6 NLRB v. Brookshire Grocery Co., 919 F.2d 359, 367–68 (5th Cir. 1990) (“While it", "paragraph_id": "para_527" }, { "text": "is true that Brookshire was conducting the interviews on its own premises and that its", "paragraph_id": "para_528" }, { "text": "employees answered the questions truthfully, it does appear that there was substantial evi-", "paragraph_id": "para_529" }, { "text": "dence to support the Board’s finding that Brookshire had coercively interrogated its", "paragraph_id": "para_530" }, { "text": "employees . . . .”).", "paragraph_id": "para_531" }, { "text": "Case: 24-60651 Document: 137-1 Page: 17 Date Filed: 06/23/2026", "paragraph_id": "para_532" }, { "text": "No. 24-60651", "paragraph_id": "para_533" }, { "text": "18", "paragraph_id": "para_534" }, { "text": "the ALJ found.” Renew Home Health, 95 F.4th at 239.", "paragraph_id": "para_535", "court_paragraph": 18 }, { "text": "B. Untaran’s Termination for Union Activity", "paragraph_id": "para_536" }, { "text": "The Board erred in concluding that Starbucks terminated Untaran’s", "paragraph_id": "para_537" }, { "text": "employment for union activity. Starbucks asserts that the ALJ’s conclusion", "paragraph_id": "para_538" }, { "text": "regarding animus and the ALJ’s finding that Starbucks wouldn’t have ter-", "paragraph_id": "para_539" }, { "text": "minated Untaran without animus lack substantial evidence. Starbucks is cor-", "paragraph_id": "para_540" }, { "text": "rect that the ALJ’s animus determination lacks substantial evidence.7", "paragraph_id": "para_541" }, { "text": "To succeed in proving that an employee was unlawfully terminated", "paragraph_id": "para_542" }, { "text": "under Section 8(a)(1) “the General Counsel must show, by a preponderance", "paragraph_id": "para_543" }, { "text": "of the evidence, that [1] the employee was engaging in protected activity,", "paragraph_id": "para_544" }, { "text": "[2] the employer had knowledge of the activity, [3] adverse action was taken", "paragraph_id": "para_545" }, { "text": "against the employee, and [4] the activity was a motivating factor in the deci-", "paragraph_id": "para_546" }, { "text": "sion to discharge the employee.” NLRB v. Arkema, Inc., 710 F.3d 308, 320–", "paragraph_id": "para_547" }, { "text": "21 (5th Cir. 2013). The company may then prove an affirmative defense that", "paragraph_id": "para_548" }, { "text": "it would have fired the employee regardless of the protected activity. Cordua", "paragraph_id": "para_549" }, { "text": "Rests., Inc. v. NLRB, 985 F.3d 415, 423–24 (5th Cir. 2021).", "paragraph_id": "para_550" }, { "text": "“For an adverse employment decision to constitute unlawful discrim-", "paragraph_id": "para_551" }, { "text": "ination under section 8(a)(3), anti-union animus must be shown to have been", "paragraph_id": "para_552" }, { "text": "a motivating factor in the employer’s decision.” Tellepsen Pipeline Servs. Co.", "paragraph_id": "para_553" }, { "text": "v. NLRB, 320 F.3d 554, 565 (5th Cir. 2003). Though, in the Fifth Circuit, a", "paragraph_id": "para_554" }, { "text": "“section 8(a)(1) violation does not require a showing of anti-union animus”", "paragraph_id": "para_555" }, { "text": "because the ALJ advances that theory only with respect to the prima facie case", "paragraph_id": "para_556" }, { "text": "and the Board does not explicitly modify that, we are bound to decide this", "paragraph_id": "para_557" }, { "text": "part of the case on that basis.8", "paragraph_id": "para_558" }, { "text": "_____________________", "paragraph_id": "para_559" }, { "text": "7 We decline to reach the subsidiary issue of whether the ALJ erred in finding that", "paragraph_id": "para_560" }, { "text": "Starbucks wouldn’t have terminated Untaran absent anti-union animus.", "paragraph_id": "para_561" }, { "text": "8 Valmont Indus., Inc. v. NLRB, 244 F.3d 454, 463 (5th Cir. 2001); see generally id.", "paragraph_id": "para_562" }, { "text": "Case: 24-60651 Document: 137-1 Page: 18 Date Filed: 06/23/2026", "paragraph_id": "para_563" }, { "text": "No. 24-60651", "paragraph_id": "para_564" }, { "text": "19", "paragraph_id": "para_565" }, { "text": "The ALJ focused exclusively on the timing of the discharge and the", "paragraph_id": "para_566", "court_paragraph": 19 }, { "text": "treatment of comparators when determining that anti-union animus existed", "paragraph_id": "para_567" }, { "text": "for purposes of the prima facie case. The ALJ’s analysis cannot support a", "paragraph_id": "para_568" }, { "text": "finding against Starbucks because his comparator analysis is faulty and with-", "paragraph_id": "para_569" }, { "text": "out it, the ALJ’s conclusion relies exclusively on timing in contravention of", "paragraph_id": "para_570" }, { "text": "our decision in Arkema. “[A]n inference of union animus based upon dispar-", "paragraph_id": "para_571" }, { "text": "ate treatment can be made if the only difference between two differently", "paragraph_id": "para_572" }, { "text": "treated employees is the illegitimate criteria at issue (i.e., union activity).”", "paragraph_id": "para_573" }, { "text": "Asarco, Inc. v. NLRB, 86 F.3d 1401, 1408 (5th Cir. 1996) (citation modified).", "paragraph_id": "para_574" }, { "text": "The comparators picked out by the ALJ do not fit that criterion.", "paragraph_id": "para_575" }, { "text": "The ALJ claims that AP received “two consecutive final warnings,", "paragraph_id": "para_576" }, { "text": "then two consecutive written warnings” before being fired, contradicting", "paragraph_id": "para_577" }, { "text": "Tayarah’s and Fuller’s claim that termination was required after a final writ-", "paragraph_id": "para_578" }, { "text": "ten warning. That was wrong, because AP was terminated after one final", "paragraph_id": "para_579" }, { "text": "warning, something that the NLRB now acknowledges. Additionally, the", "paragraph_id": "para_580" }, { "text": "actual conduct in question differed as well. At the bare minimum, it is undis-", "paragraph_id": "para_581" }, { "text": "puted that Untaran vaped in the back of the store on two separate occasions,", "paragraph_id": "para_582" }, { "text": "was tardy twice, and had to receive verbal coaching on June 13. In compari-", "paragraph_id": "para_583" }, { "text": "son, AP had several tardies, two dress code violations, and an argument with", "paragraph_id": "para_584" }, { "text": "a coworker before termination. The tardies are obviously similar in kind, but", "paragraph_id": "para_585" }, { "text": "whether two dress code violations and an argument with another employee", "paragraph_id": "para_586" }, { "text": "equal two violations of the tobacco policy and a verbal coaching is far from", "paragraph_id": "para_587" }, { "text": "obvious; the ALJ did nothing to explain away those differences.", "paragraph_id": "para_588" }, { "text": "Those differences make AP a poor fit as a comparator because the", "paragraph_id": "para_589" }, { "text": "only difference between her and Untaran is not the illegitimate criterion of", "paragraph_id": "para_590" }, { "text": "_____________________", "paragraph_id": "para_591" }, { "text": "(collapsing a section 8(a)(1) and 8(a)(3) analysis); Calcutt, 598 U.S. at, 624 (“It is ‘a simple", "paragraph_id": "para_592" }, { "text": "but fundamental rule of administrative law’ that reviewing courts ‘must judge the propriety", "paragraph_id": "para_593" }, { "text": "of [agency] action solely by the grounds invoked by the agency.’”).", "paragraph_id": "para_594" }, { "text": "Case: 24-60651 Document: 137-1 Page: 19 Date Filed: 06/23/2026", "paragraph_id": "para_595" }, { "text": "No. 24-60651", "paragraph_id": "para_596" }, { "text": "20", "paragraph_id": "para_597" }, { "text": "union activity. Additionally, the use of AP as a comparator undermines the", "paragraph_id": "para_598", "court_paragraph": 20 }, { "text": "notion that the timing of Untaran’s firing was suspect, as the time between", "paragraph_id": "para_599" }, { "text": "firing and those infractions cited in the notice of separation was two to three", "paragraph_id": "para_600" }, { "text": "weeks, a timeframe similar to Untaran’s firing.", "paragraph_id": "para_601" }, { "text": "As to NQ, she received a written warning for insulting her coworkers", "paragraph_id": "para_602" }, { "text": "multiple times on the same day; she had previously been coached with", "paragraph_id": "para_603" }, { "text": "relation to the mobile devices policy. Unlike both AP and Untaran, NQ did", "paragraph_id": "para_604" }, { "text": "not engage in an extensive pattern of poor behavior; instead, the primary", "paragraph_id": "para_605" }, { "text": "violation occurred on a single day. Id. Consequently, there are differences", "paragraph_id": "para_606" }, { "text": "between NQ and Untaran other than the illegitimate criterion of union activ-", "paragraph_id": "para_607" }, { "text": "ity, making the ALJ’s reliance on NQ inappropriate. All of those facts are", "paragraph_id": "para_608" }, { "text": "sufficient to justify discounting the ALJ’s comparator analysis.9", "paragraph_id": "para_609" }, { "text": "The Board’s defense of the disparate-treatment justification is un-", "paragraph_id": "para_610" }, { "text": "availing for reasons already discussed, and its insistence on the importance of", "paragraph_id": "para_611" }, { "text": "timing fails because the ALJ’s comparator analysis fails. As we stated in", "paragraph_id": "para_612" }, { "text": "Arkema, 710 F.3d at 323, “timing alone . . . is not substantial evidence.”", "paragraph_id": "para_613" }, { "text": "Because the record does not support the use of either comparator, the only", "paragraph_id": "para_614" }, { "text": "portion of the analysis that remains as a basis for concluding that the ALJ’s", "paragraph_id": "para_615" }, { "text": "finding was supported by substantial evidence is the timing of Untaran’s", "paragraph_id": "para_616" }, { "text": "discharge. Because such a finding is insufficient without more, the ALJ’s", "paragraph_id": "para_617" }, { "text": "decision regarding Untaran’s termination cannot stand.", "paragraph_id": "para_618" }, { "text": "Lastly, footnote five of the Board’s opinion cannot save its decision.", "paragraph_id": "para_619" }, { "text": "Footnote five states, in response to a request by the General Counsel to over-", "paragraph_id": "para_620" }, { "text": "rule a case, that because “there is ample direct evidence of respondent’s ani-", "paragraph_id": "para_621" }, { "text": "_____________________", "paragraph_id": "para_622" }, { "text": "9 See Dish Network Corp. v. NLRB, 953 F.3d 370, 377 (5th Cir. 2020), as revised", "paragraph_id": "para_623" }, { "text": "(Mar. 24, 2020) (“Even if that conclusion could be supported by the portions of the record", "paragraph_id": "para_624" }, { "text": "cited by the Board, we held the Board lacked substantial evidence merely because it failed", "paragraph_id": "para_625" }, { "text": "to grapple with countervailing portions of the record.”).", "paragraph_id": "para_626" }, { "text": "Case: 24-60651 Document: 137-1 Page: 20 Date Filed: 06/23/2026", "paragraph_id": "para_627" }, { "text": "No. 24-60651", "paragraph_id": "para_628" }, { "text": "21", "paragraph_id": "para_629" }, { "text": "mus as to employee Untaran’s union activity—there is no need to resort to a", "paragraph_id": "para_630", "court_paragraph": 21 }, { "text": "pretext analysis in determining whether animus is present.” That conclusion", "paragraph_id": "para_631" }, { "text": "is bereft of analysis of what the direct evidence of anti-union animus is or how", "paragraph_id": "para_632" }, { "text": "that direct evidence demonstrates anti-union animus; it still provides no evi-", "paragraph_id": "para_633" }, { "text": "dence that either the Board or the ALJ relied on Section 8(a)(1) in inferring", "paragraph_id": "para_634" }, { "text": "animus; and lastly it is actually focused on a pretext analysis, something that", "paragraph_id": "para_635" }, { "text": "the ALJ scarcely engaged with. See Electrolux Home Prods., Inc., 368 NLRB", "paragraph_id": "para_636" }, { "text": "No. 34 (2019). The ALJ’s determination was not supported by substantial", "paragraph_id": "para_637" }, { "text": "evidence, so enforcement is denied.10", "paragraph_id": "para_638" }, { "text": "III. Union Election Remedy", "paragraph_id": "para_639" }, { "text": "The NLRB avers that we do not have jurisdiction to review its order", "paragraph_id": "para_640" }, { "text": "for a second election. It is correct.", "paragraph_id": "para_641" }, { "text": "“[T]he NLRA provides only for judicial review of ‘final orders’ of", "paragraph_id": "para_642" }, { "text": "the Board in unfair labor practice cases. Though consolidated for hearing", "paragraph_id": "para_643" }, { "text": "with an unfair labor practice proceeding, the Board’s decision in the repre-", "paragraph_id": "para_644" }, { "text": "sentation proceeding does not constitute a final order.” NLRB v. Great W.", "paragraph_id": "para_645" }, { "text": "Coca-Cola Bottling Co., 740 F.2d 398, 405 (5th Cir. 1984). Great Western", "paragraph_id": "para_646" }, { "text": "Coca-Cola Bottling Company controls the outcome here, given that No. 31-", "paragraph_id": "para_647" }, { "text": "RC-296066 was a representation action that was consolidated. That is why", "paragraph_id": "para_648" }, { "text": "the Board severed the case and remanded it for a second election. Star-", "paragraph_id": "para_649" }, { "text": "bucks’s reply to this point is that we should “reexamine” these conclusions,", "paragraph_id": "para_650" }, { "text": "but such a reexamination is proper only before the en banc court. Although", "paragraph_id": "para_651" }, { "text": "we are without jurisdiction to consider this issue, Starbucks will be able to", "paragraph_id": "para_652" }, { "text": "seek review if a future order of the NLRB compels it to bargain after the", "paragraph_id": "para_653" }, { "text": "_____________________", "paragraph_id": "para_654" }, { "text": "10 Because enforcement is denied as to Untaran’s wrongful-discharge claim, we", "paragraph_id": "para_655" }, { "text": "need not address the issue of Thryv remedies.", "paragraph_id": "para_656" }, { "text": "Case: 24-60651 Document: 137-1 Page: 21 Date Filed: 06/23/2026", "paragraph_id": "para_657" }, { "text": "No. 24-60651", "paragraph_id": "para_658" }, { "text": "22", "paragraph_id": "para_659" }, { "text": "second election.11", "paragraph_id": "para_660", "court_paragraph": 22 }, { "text": "Conclusion", "paragraph_id": "para_661" }, { "text": "We GRANT the NLRB’s request for enforcement as to one of the", "paragraph_id": "para_662" }, { "text": "claims of coercive threats against Pichardo, the claim of a coercive threat", "paragraph_id": "para_663" }, { "text": "against Untaran, and Untaran’s unlawful interrogation claim because they", "paragraph_id": "para_664" }, { "text": "are supported by substantial evidence. We DISMISS the appeal of the", "paragraph_id": "para_665" }, { "text": "NLRB’s order of a second election for want of jurisdiction and DENY", "paragraph_id": "para_666" }, { "text": "enforcement of the NLRB’s order as to Untaran’s unlawful discharge claim", "paragraph_id": "para_667" }, { "text": "and Sosa’s and Ramirez’s coercive threat claims as not supported by substan-", "paragraph_id": "para_668" }, { "text": "tial evidence.", "paragraph_id": "para_669" }, { "text": "_____________________", "paragraph_id": "para_670" }, { "text": "11 Boire v. Greyhound Corp., 376 U.S. 473, 477 (1964). 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