White Paper

Policies Prohibiting Insubordination/Disrespectful Conduct in Workplace Struck Down by NLRB Majority

 

Once again seemingly appropriate work rules have been under attack by the National Labor Relations Board (“NLRB”). In a recent decision (Component Bar Products, Inc. and James R. Stout, Case 14-CA-145064), two members of a three-member NLRB panel upheld an August 7, 2015 decision by an Administrative Law Judge (“ALJ”) finding that an employer violated the National Labor Relations Act (“NLRA” or the “Act”) by maintaining overly broad handbook rules and terminating an employee who was engaged in “protected, concerted activity” when he called another employee and warned him that his job was in jeopardy. Member Miscimarra concurred in part and dissented in part, arguing that the Board should overrule applicable precedent interpreting the Act.

Factual background
The respondent company is engaged in the manufacture and sale of precision machined products for the automotive and other industries from a facility in Missouri. Respondent maintained a personal conduct and disciplinary action policy in its associate handbook that prohibits “insubordination or other disrespectful conduct,” “unauthorized disclosure of business ‘secrets’ or confidential information,” and “boisterous or disruptive activity in the workplace.”

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Lauri F. Rasnick is a member of Epstein Becker Green’s Employment, Labor, and Workforce Management practice in their New York office, where she co-leads the Financial Services strategic industry group. She is an experienced litigator and trusted advisor to businesses and their executives, with a concentration in handling and advising employers on sexual harassment and misconduct investigations and assisting employers with the movement of employees between competitive businesses and drafting and negotiating employment agreements before, during, and after the conclusion of the employment relationship.

Jonathan L. Shapiro is an associate in the Employment, Labor & Workforce Management practice, in the New York office of Epstein Becker Green. He represents clients in employment-related litigation on a broad array of employment matters, including claims of discrimination, harassment/hostile work environment, retaliation, wrongful termination, retaliation, failure to accommodate disabilities, and breach of employment contracts and restrictive covenants.

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Faculty

Lauri F. Rasnick

Epstein Becker & Green, P.C.

Lauri F. Rasnick is a member of Epstein Becker Green’s Employment, Labor, and Workforce Management practice in their New York office, where she co-leads the Financial Services strategic industry group. She is an experienced litigator and trusted advisor to businesses and their executives, with a concentration in handling and advising employers on sexual harassment and misconduct investigations and assisting employers with the movement of employees between competitive businesses and drafting and negotiating employment agreements before, during, and after the conclusion of the employment relationship.

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