T-Mobile USA, Inc. v. National Labor Relations Board
865 F.3d 265 (2017)
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Rule of Law:
An employer's workplace rule violates Section 8(a)(1) of the National Labor Relations Act if it explicitly restricts Section 7 activity, or if employees would reasonably construe the language to prohibit Section 7 activity, or if it was promulgated in response to union activity, or if it has been applied to restrict Section 7 rights, when assessed from the perspective of a reasonable employee who interprets rules as they apply to their everyday job.
Facts:
- T-Mobile USA, Inc. and MetroPCS Communications, Inc. are telecommunications companies.
- T-Mobile's employee handbook contained a 'workplace conduct' policy encouraging employees to 'maintain a positive work environment' by communicating professionally.
- T-Mobile's employee handbook included a 'commitment-to-integrity' policy that expected professional conduct and listed 'arguing or fighting,' 'failing to treat others with respect,' and 'failing to demonstrate appropriate teamwork' as unacceptable acts.
- T-Mobile's employee handbook contained a 'recording' policy that broadly prohibited employees from photographing or recording people or confidential information (audio or video) in the workplace without prior permission.
- T-Mobile's employee handbook contained an 'acceptable use' policy stating users could not 'permit non-approved individuals access to information or information resources' without prior written approval, and specified that it applied to 'all non-public T-Mobile information'.
Procedural Posture:
- The Communications Workers of America filed charges against T-Mobile in 2014.
- The National Labor Relations Board (NLRB) brought a complaint against T-Mobile, alleging several provisions of its employee handbook violated the National Labor Relations Act (NLRA).
- An Administrative Law Judge (ALJ) found that T-Mobile's commitment-to-integrity policy and acceptable use policy violated the NLRA, but its workplace conduct policy and recording policy did not.
- T-Mobile appealed and the NLRB General Counsel cross-appealed to the National Labor Relations Board.
- A three-member panel of the NLRB affirmed the ALJ's findings on the commitment-to-integrity and acceptable use policies, but reversed the ALJ's findings on the workplace conduct and recording policies, concluding that all four policies violated the NLRA and issuing an order.
- T-Mobile petitioned the United States Court of Appeals for the Fifth Circuit for review of the NLRB’s decision.
- The NLRB filed a cross-application for enforcement of its order with the Fifth Circuit.
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Issue:
Does an employer's maintenance of workplace rules, such as those concerning a positive work environment, respectful conduct, recording in the workplace, and access to non-public information, violate Section 8(a)(1) of the National Labor Relations Act by chilling a reasonable employee's exercise of Section 7 rights?
Opinions:
Majority - Jolly, Circuit Judge
No, T-Mobile's workplace conduct, commitment-to-integrity, and acceptable use policies do not violate Section 8(a)(1) of the NLRA because a reasonable employee would not construe them to prohibit protected activity. Yes, the recording policy does violate Section 8(a)(1) because its broad language would be reasonably construed to prohibit protected activity. Reasoning: 1. Workplace Conduct Policy: The court held that a reasonable employee would interpret the 'workplace conduct' policy, which encourages a 'positive work environment' and 'effective working relationships,' as a general guide for professional conduct in a normal workplace, rather than as a restriction on Section 7 protected activities, which can involve candid or contentious discussions. The Board erred by interpreting how a reasonable employee could conceivably read the policy instead of how they would reasonably read it, which is contrary to the Lutheran Heritage framework and D.C. Circuit precedent. 2. Commitment-to-Integrity Policy: Similarly, the court found the 'commitment-to-integrity' policy, which prohibits 'arguing or fighting,' 'failing to treat others with respect,' or 'failing to demonstrate appropriate teamwork,' to be a common-sense civility guideline. A reasonable employee would understand this policy, prefaced by an expectation of 'integrity, common sense, good judgment, and . . . professional manner,' to refer to general misconduct, akin to other examples like theft. Employees can engage in vigorous debate over union activity without violating these standards. 3. Recording Policy: The court determined that T-Mobile's recording policy, which broadly prohibited any and all photography or recording on corporate premises without permission, was too broad. A reasonable employee, aware of their legal rights, would interpret this policy as forbidding forms of protected concerted activity, such as photographing a wage schedule posted in the workplace. The employer's stated business justifications (preventing harassment, protecting privacy) do not negate the fact that the operative language directly prohibits a means of engaging in protected Section 7 activity. 4. Acceptable Use Policy: The court concluded that the 'acceptable use' policy, which prohibited employees from sharing 'non-public T-Mobile information' without approval, does not violate the NLRA. The policy explicitly limits its scope to 'non-public T-Mobile information' without defining it to include protected wage and benefit information. Absent such an explicit definition, courts presume such policies are designed to protect proprietary business information, not information that may be properly used in protected activity, distinguishing it from cases where 'confidential information' was specifically defined to include 'personnel information'.
Analysis:
This case significantly clarifies the application of the Lutheran Heritage standard, emphasizing the objective 'reasonable employee' perspective in assessing workplace rules' impact on Section 7 rights. It provides critical guidance for employers by affirming the legality of generally worded civility rules and confidentiality policies for proprietary business information, provided they are not overly broad or explicitly restrict protected activity. Conversely, the ruling underscores that blanket prohibitions, like the recording policy, are likely unlawful if they can reasonably be construed to prohibit common forms of protected concerted activity. This decision helps delineate the boundaries between legitimate employer interests in maintaining order and confidentiality, and employees' fundamental rights to organize and engage in concerted action under the NLRA.
