Employment Law Report
National Labor Relations Board v. Starbucks: 6th Circuit Strikes Thryv Remedies
On November 5, 2025, the 6th Circuit Court of Appeals handed down its decision in National Labor Relations Board v. Starbucks. Joining the 3rd and 5th Circuits, the 6th Circuit rejected the National Labor Relations Board’s (NLRB) 2022 expansion of remedies under the National Labor Relations Act (NLRA). The Court held that under Section 10(c) of the NLRA, the NLRB may only award “equitable” remedies in its administrative proceedings.
Background
In its 2022 administrative decision in Thryv, Inc., the NLRB concluded that the text of Section 10(c) allowed them to award compensatory damages to employees who were terminated in violation of the NLRA. This included damages for “any direct or foreseeable pecuniary harm” resulting from the violation. In practice, Thryv allowed the NLRB to require employers who terminated employees in violation of the NLRA to pay those employees for expenses such as credit card late fees, early retirement withdrawal penalties, or the cost of defending an eviction if those expenses were a result of a wrongful termination. Prior to Thryv, it was understood that the NLRB only had the power to issue equitable relief such as reinstatement and back pay when employers violated the NLRA.
The 6th Circuit viewed this expansion as not only a violation of the text of the NLRA itself, but a violation of the statute’s intent. The court reasoned that Section 10(c) authorized only “affirmative action” necessary to remedy unfair labor practices. Historically, the phrase “affirmative action” has referred to equitable relief rather than monetary damages. Allowing the NLRB to award consequential monetary damages would contravene the purpose of the statute, the Court said, and would effectively turn NLRB proceedings into trials without a jury in violation of the 7th Amendment.
Other Federal Circuits
The 6th Circuit’s decision to strike down the NLRB’s Thryv remedies brings it in line with the 3rd and 5th Circuits’ recent decisions holding the same. The 9th Circuit, however, recently held the opposite and has allowed Thryv’s remedies to be applied within the 9th Circuit’s territorial limits. This is yet another labor and employment circuit split that looks destined for Supreme Court review in the near future.
What does this mean for employers?
At least in the 6th Circuit, which includes Kentucky, Ohio, Michigan, and Tennessee, employers will not be responsible for consequential monetary damages to former employees terminated in violation of the NLRA. For more information on defending claims before the NLRB or any other labor and employment dispute, contact the Labor and Employment Team at Wyatt Tarrant & Combs.
