Starbucks Ordered to Distribute Workers’ Rights Notices Nationwide

A.J. Peters, Of Counsel

On July 6, 2023, a federal Administrative Law Judge (ALJ) in Ithaca, New York handed down a decision that, in part, ordered Starbucks to post a notice of workers’ rights at each of its facilities nationwide.  Although Starbucks is likely to appeal the ruling, this is not the first of similar victories for labor organizers in their endeavor to organize employees of the world’s largest coffeehouse chain.

Starbucks operates around 9,000 company-owned chain shops in the U.S.  Workers United, a unit of the Service Employees International Union (SEIU), has now organized, petitioned, and won recognition as the exclusive bargaining representative of baristas and shift supervisors at roughly 330 U.S. locations. 

Buffalo, New York

The recent flurry of unionization activities at company-owned Starbucks locations began in late 2021, when a store in Buffalo, New York voted to unionize with Workers United, and another Buffalo store unionized shortly thereafter.  The first store’s employees voted 19 to 8 in favor of representation by Workers United.  The unprecedented surge in unionization activities at Starbucks locations (as well as with other major U.S. companies like Amazon, Google, Apple, Trader Joe’s, etc.) comes in the wake of the COVID-19 pandemic’s impact on American labor relations, generally, as well as the Biden administration’s staunchly pro-union policies and directives. 

While Starbucks has denied opposing efforts of its employees to unionize, last week’s ALJ decision is similar to a decision handed down in March 2023, which consolidated 35 unfair labor practice charges at 21 Starbucks locations in Buffalo.  In that decision, the ALJ found “egregious and widespread misconduct” on the part of the employer, such as threats, spying on employees, and suddenly enforcing strict dress codes and other company policies in response to protected employee activities under the National Labor Relations Act (the "NLRA").  The Buffalo ALJ also ordered a nationwide posting of workers’ rights notices, reopening of a store, as well as the reinstatement of seven employees and financial restitution for 27 employees.

Ithaca, New York

Ithaca, New York is the location of Starbucks’ latest dispute.  Stemming from representation election petitions for three locations in February 2022, Starbucks was found to have illegally shuttered one location in an effort to chill unionization efforts at other locations, as well as unlawfully terminating several employees in violation of the NLRA.  The ALJ rejected Starbucks’ argument that the location was shuttered due to a problem with a grease trap, and ordered the store be reopened and its employees reinstated.

The ALJ’s 49-page decision noted, in part, that "[t]here is no showing . . . that Starbucks would have paid the attention it did to the Ithaca stores and its employees absent its awareness of union organizing."  Based on a finding of “the involvement of individuals at the highest level of Starbucks management," the ALJ ordered Starbucks to post a notice at all its facilities in the U.S., and to share the notice electronically via email, online, or through other electronic ways in which the company "customarily communicates" with workers.  Among other things, the notice informs Starbucks employees that the company will not interfere with employees’ rights under the NLRA or refuse to bargain with Workers United, and will reopen the shuttered Ithaca store and reinstate employees who were unlawfully terminated, with back pay.

Starbucks is expected to file exceptions to the ruling, which may not be finalized for several months or more.  The case is Starbucks Corp. and Workers United, case numbers 03-CA-295470 et al., before the National Labor Relations Board Division of Judges.[1] 

Other Organized Locations

Outside of the United States, Starbucks has portions of its workforce organized in Canada, Chile, and New Zealand.  Within the United States, employees have currently voted in favor of representation by Workers United at locations in over 37 states.  This includes Colorado, with a total of six unionized locations in Denver, Colorado Springs, and Greeley.  Numerous other representation petitions have been filed nationwide.  Presently, none of these locations has reached a first collective bargaining agreement, which can take considerable time.

Campbell Litigation is experienced in all areas of labor law and available to assist employers in navigating workforce organizing concerns.

[1] The decision can be found here: https://www.nlrb.gov/case/03-CA-295470.