SHRM Statement on the NLRB's Starbucks Ruling

ALEXANDRIA, Va. –Emily M. Dickens, SHRM Chief of Staff and Head of Government Affairs, issued the following statement in response to the NLRB's ruling on the former Starbucks CEO comment.

CEOs are tasked not only with driving business growth but with fostering a workplace culture that reflects the company’s values and strategic goals. To operate efficiently, laws and regulations governing the workplace must be fair, balanced and reasonably applied. This balance will afford organizations and workers alike with the certainty they need to understand their rights and obligations granted under federal, state and local laws. 

The legal framework governing employer-employee relationships, including employment contracts and labor laws, recognizes this mutual benefit. The National Labor Relations Act (NLRA) ensures private-sector employees' rights to improve wages and working conditions but doesn’t guarantee indefinite employment if the relationship isn't mutually beneficial. At-will employment allows either party to end the relationship, as long as labor laws aren't violated. Howard Schultz's remarks reflect this principle: if an employee’s personal values or aspirations no longer align with the company’s, they have the right to seek employment elsewhere, just as the company has the right to foster a workforce that contributes positively to its mission.

While the NLRB focuses on balancing workplace power dynamics, companies must retain the right to maintain cultures that support legitimate business objectives. Employers can't be expected to comply with the NLRA when unfair labor practice enforcement turns on arbitrary factors or is inconsistent. Even under the broadest of interpretations, the NLRB has held that the primary question is whether the act in question has a “reasonable tendency to chill” employees’ Section 7 rights, not whether employees like them.

SHRM's position has always reflected a nuanced approach to the legal landscape in which both employers and employees operate. Transparency in workplace culture is not only a moral responsibility but also essential for legal compliance, helping to prevent disputes over wrongful termination, hostile work environments, and other workplace claims. SHRM advocates for maintaining a balance that enables companies like Starbucks to innovate and support their workforce in alignment with their values, while ensuring all workplaces are free from unlawful harassment, discrimination, and retaliation. Additionally, SHRM promotes transparency in company culture, empowering prospective and current employees to choose workplaces that align with their personal and professional goals.

About SHRM

SHRM is a member-driven catalyst for creating better workplaces where people and businesses thrive together. As the trusted authority on all things work, SHRM is the foremost expert, researcher, advocate, and thought leader on issues and innovations impacting today’s evolving workplaces.  With nearly 340,000 members in 180 countries, SHRM touches the lives of more than 362 million workers and their families globally. Discover more at SHRM.org