Subject: Dress Code Drama, Sticky Fingers, NLRB Remedy Relief: LRI INK

May 22, 2025

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NLRB Pulls Back on Remedy Overreach, Refocuses on Practical Relief

by Kimberly Ricci

In a welcome return to practical enforcement, Acting NLRB General Counsel William Cowen’s latest memo (GC 25-06) signals a strategic pivot in the agency's pursuit of remedies through settlement agreements. And let’s be honest, it’s a pivot that employers and labor practitioners have been hoping for.

Here’s the TL;DR: While remedies remain on the table, regions are told to stop overreaching and prioritize efficiency. This isn’t about going soft; it’s about staying focused, a necessary goal for an agency with a massive case backlog and fewer resources going forward.


What’s Out?

Cowen rescinded earlier guidance that pushed for reflexive inclusion of nonmonetary or novel remedies in settlements. Under the new memo:

  • Nonstandard remedies (like forced apologies or letters of explanation) should only be pursued in widespread, egregious, or severe cases — not as a matter of routine.

  • Regions should no longer treat settlement agreements as Trojan horses for creative enforcement.

What’s In?

  • Discretion is back. Regional Directors can craft case-by-case solutions without being boxed in by prescriptive checklists from HQ.

  • Efficiency matters. The memo recenters settlements as a primary tool for resolving unfair labor practices, reminding us that 96% of meritorious cases are settled.

  • Remedial enthusiasm ≠ effectiveness. The message is clear: don’t let the perfect be the enemy of the timely and the practical.

On Make-Whole Relief

Cowen isn’t throwing out back pay, far from it. Regions should still seek full compensation for actual losses, but they now have the flexibility to settle for less than 100% when it makes strategic sense (as long as it’s not below 80% without sign-off from D.C.).


Think: risk of litigation, shaky evidence, or the value of peace in a contentious shop.


What About Thryv?

Ah, yes — the Board’s infamous 2022 decision in Thryv, Inc. created a new make-whole standard by introducing “direct or foreseeable pecuniary harms.” What is Cowen’s updated take? It’s a doctrinal mess.


The Board wants to avoid using tort law terms like “foreseeable” and “consequential damages” while still invoking... well, exactly that. The memo subtly (but clearly) questions the utility of the Thryv standard, instead urging regions to apply a more workable threshold: only pursue harms with a clear causal link to the ULP.


What’s This Mean for Employers?

This is a shift toward balance. Settlements aren’t going away — and they shouldn’t — but Cowen’s memo reels in aggressive remedial tactics, which could extend to include arguably incidental expenses and turned every ULP into a creative writing exercise.


Smart employers should:


  Continue to take ULP allegations seriously
  Look for early, reasonable off-ramps through settlement
  Push back (respectfully) on excessive or novel remedies that aren’t grounded in precedent
  Stay attuned to how Thryv is (or isn’t) applied in your region


This memo may not have made headlines, but it significantly recalibrates the Board’s enforcement strategy. One that gives the process and all parties involved a better shot at fairness, clarity, and closure.

Dress Codes & Drama: How Not to Handle Workplace Change

by Michael VanDervort

Baristas were walking off the job at unionized stores.  Starbucks just served up a lesson on what happens when following the process takes a backseat to public relations.

This Week in Labor Theater

Nothing says “partners” like an alleged 2,000 baristas walking off the job over a dress code. It was probably a lot less, but the union uses a higher number for the media.


That’s what happened this week at Starbucks, where a new dress code policy requiring black tops and neutral bottoms under the iconic green apron sparked a multi-day strike at over 120 unionized stores nationwide.


The dress code policy changes themselves were pretty tame. Employees were issued two free branded shirts. The goal? Brand consistency and a refresh of in-store appearance as part of CEO Brian Niccol’s “Back to Starbucks” campaign.

But Starbucks Workers United (SWU) jumped on the rollout like it was a breach of human rights. Their claim? The company allegedly failed to bargain over the change, which, they argue, violates labor law.

Let’s Be Honest: It Was Never About the Shirts

This was never about fashion. It’s a pressure tactic.


Contract talks between SWU and Starbucks have gone nowhere for months. The roughly 570 unionized stores still lack a first collective bargaining agreement. Public interest is cooling, and legal setbacks are mounting. The union needed a spark.


Enter the dress code. It’s personal. It’s visible. And for the union, it was the perfect flashpoint. One barista called it dehumanizing, saying it made her feel like a “uniformed cog” in a corporate machine.


The issue wasn’t the fabric. It was the power play. The union saw an opening, and they took it.

So, Did Starbucks Miss a Step?

Maybe. If the dress code impacts represented workers’ terms and conditions of employment, it arguably should have been bargained, at least for unionized stores.


But here’s the real issue: the modern labor playbook is built to manufacture outrage from minor friction. Unions like SWU operate with one clear strategy: turn every operational change into a crisis. It doesn’t have to be big; it just must be loud.


For companies like Starbucks, navigating policies across unionized and non-unionized environments becomes a no-win game of legal and PR whack-a-mole.

In a statement, Starbucks blasted the union for the strike and urged it to return to the bargaining table. The two sides attempted to restart the negotiations in February, but those talks broke down over wage proposals and work conditions.


“It would be more productive if the union would put the same effort into coming back to the table that they’re putting into protesting wearing black shirts to work,” Starbucks said in a statement. “More than 99% of our stores are open today serving customers  and have been all week.”

For Employers Watching This Play Out

Here’s what matters:


📌 Even small changes, like shirt color requirements, can trigger bargaining obligations in a unionized setting.
📌 Unions will weaponize minor issues for organizing and media leverage.
📌 Don’t mistake silence for consent; lack of bargaining is often the match, not the fire.


If you’re an employer with a union presence at some (but not all) locations, the Starbucks situation is a reminder: standardization without segmentation equals risk. Failing to tailor implementation to legal obligations can result in an unfair labor practice charge and a headline.

Final Sip

Starbucks is learning again that optics matter, process matters, and unions are desperate for relevance in today's climate.


Dress codes aren’t inherently controversial, but they become fuel in the context of a stalled organizing campaign. 


The lesson for employers? Don’t get sloppy with the rollout. Don’t skimp on the legal process. Even seemingly “non-substantive” policies deserve procedural scrutiny. Because if you skip the process, someone else will script the story for you.

DriveThruHR: Labor and Employee Relations Glow-up

by Michael VanDervort

Employee and Labor Relations is having a glow-up—and we’re here for it.


In this episode of DriveThruHR, our own Michael VanDervort and his co-host Robin Schooling sit down with Rebecca Trotsky, Chief People Officer at HR Acuity, to unpack the evolution of ER, the rise of talent development as a strategic priority, and how technology is transforming the HR landscape.


But here’s the real magic: community. We’ve teamed up with empowER—HR Acuity’s online network for HR pros—to host a brand-new Labor Relations group inside their employee relations community.


Whether you’re dealing with organizing campaigns, bargaining tables, or just want a place to vent about grievance procedures, we’ve built this group for you.


In this podcast episode, we learn:


✔️ Why communities like empowER are essential for growth (and sanity)

 ✔️ How HR pros are learning on the fly—and thriving

✔️ What the future of employee relations really looks like


Want in? Join the empowER community today → https://empower-er.org/

Then head over to the Labor Relations group and say hey. We’ll be there.


Listen now: Navigating the Future of Employee Relations with Rebecca Trotsky


Free HR Learns Webinar: Unlock Your Leadership Potential with The Leader-Shift Playbook

by Michael VanDervort

A Must-Attend Exclusive Session!


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Sticky Fingers & Sinking Ships: UAW Infighting And A Corruption Roundup

by Kimberly Ricci

From bitter backroom brawls at the UAW to a nationwide roll call of union leaders caught with their hands in the cookie jar, this month proves corruption in labor isn’t just alive—it’s thriving. Buckle up.


There is never a shortage of labor leader misconduct, but this month has been particularly fruitful for news about union corruption.


We’ll begin with the United Auto Workers (UAW) embarrassing themselves with infighting that has curiously exploded weeks after President Shawn Fain, who ran as a “reformer” candidate, received his wish to disband the union’s reform caucus, which was dissolved by a narrow vote in late April. And what is the environment for UAW leaders looking like now?


Very messy.


The Payday Report described how Assistant Director of Communications Rachel Gumpert, who holds over a decade of experience as a union officer and comms pro, resigned while accusing fellow officers of retaliation. She further called out Communications Director Jonah Furman and Chief of Staff Chris Brooks, who hold no prior labor leadership experience.

Gumpert labeled Brooks and Furman, both former writers for the Labor Notes publication, as “egomaniacs” with “no real relationship” to the union or its members. She also designated them as ”sycophants” who have “taken the keys” from Shawn Fain and driven the union “straight off a cliff.”


What has Shawn Fain done or said in the aftermath? Nothing publicly yet, but do not drop your popcorn because here’s more corruption to chew on:

  • Three LA-area International Association of Fire Fighters officers were suspended following an audit that revealed almost $800,000 of damning spending linked to suspicious record keeping.

  • In Philadelphia, UAW officers were ordered to take federal training after pressuring Dometic manufacturing workers to strike. In this case, seven Beck objectors accused union officers of threatening to have them fired if they declined to join the picket line.

  • After Big Labor lobbying resulted in Michigan repealing Right To Work, Triple Canopy security guards fought to stop paying forced dues while seeking a decertification vote to oust the United Government Security Officers of America. After a lengthy struggle, the union read the room and withdrew their unwanted representation.

  • A Rowell Chemical Corporation worker requested that the NLRB overturn a regional labor board’s “blocking” of a decertification election to oust the Teamsters. The worker further argues that a Biden-era rule that allows unions to file blocking charges violates the Administrative Procedure Act (APA).

  • In California, a single mother penned a poignant op-ed about her battle to end forced union withdrawals. She related how the Teamsters bragged about securing contractual 3 percent raises that were wiped out by mandatory contributions to the Teamsters’ “Health and Welfare Trust Retiree Plan.” This worker is asking a federal court to relieve her of paying into a benefit fund that lacks transparency and is managed by a union called out by the feds for running the “most abused, misused pension fund in America.”

To close out this roundup, we will point you toward the Department of Labor’s 2025 mounting list of indictments and convictions of ex-union officers for embezzlement, money laundering, wire fraud, and more. A boundless array of officers couldn’t resist pillaging the cookie jar. Many millions of stolen union dues later, it’s clear that that gravy train of lavish vacations, casino splurges, and luxury goods will not stop until workers collectively realize that union membership does not pay for them.


Stories You May Have Missed


SAG-AFTRA Hits Fortnite With Unfair Labor Practice Over Darth Vader's Voice

Link


Union statement

Link


Starbucks Workers' Attack on NLRB Meets Skeptical D.C. Circuit 

Link


Kennedy Center Administrative Workers Reveal Unionization Push After Trump Overhaul

Link


Two officials fired by Trump return to court to challenge his power

Link


Workers at Sesame Workshop vote to unionize 

Link


About Labor Relations INK

Labor Relations INK is published weekly and is edited by LRI Consulting Services, Inc. Feel free to pass this newsletter on to anyone you think might enjoy it. New subscribers can sign up by visiting here.


If you use content from this newsletter, please attribute it to Labor Relations Institute and include our website: http://www.LRIonline.com 


Contributing editors for this issue: Greg Kittinger, Michael VanDervort, and Kimberly Ricci.


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About Labor Relations Institute

LRI exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 41 years, LRI has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

 

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