Opinion

T-Mobile USA, Inc. v. National Labor Relations Board

  • 865 F.3d 265
Court
Court of Appeals for the Fifth Circuit
Filed
Jul 25, 2017
Status
Published
Author
Jolly
On the bench
King, Jolly, Prado
Nature of suit
Agency
Cited by
2 cases
Authority
More cited than 55.8%

The opinion

Case: 16-60284 Document: 00514086892 Page: 1 Date Filed: 07/25/2017

IN THE UNITED STATES COURT OF APPEALS

FOR THE FIFTH CIRCUIT

United States Court of Appeals

Fifth Circuit

No. 16-60284 FILED

July 25, 2017

T-MOBILE USA, INCORPORATED,

Lyle W. Cayce

Clerk

Petitioner - Cross Respondent

v.

NATIONAL LABOR RELATIONS BOARD,

Respondent - Cross Petitioner

Consolidated with 16-60497

NATIONAL LABOR RELATIONS BOARD,

Petitioner

v.

METROPCS COMMUNICATIONS, INCORPORATED,

Respondent

On Petitions for Review and Cross-Application for Enforcement of

an Order of the National Labor Relations Board

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Before KING, JOLLY, and PRADO, Circuit Judges.

E. GRADY JOLLY, Circuit Judge:

In this appeal, the National Labor Relations Board (“NLRB” or “Board”)

challenges certain T-Mobile 1 workplace rules, which it contends prohibit

employees from exercising unionizing rights.

T-Mobile’s employee handbook (1) encouraged employees to “maintain a

positive work environment”; (2) prohibited “[a]rguing or fighting,” “failing to

treat others with respect,” and “failing to demonstrate appropriate teamwork”;

(3) prohibited all photography and audio or video recording in the workplace;

and (4) prohibited access to electronic information by non-approved

individuals. The Board determined that all four provisions violated the

National Labor Relations Act because each of them discouraged unionizing or

other concerted activity protected by the Act. T-Mobile resists and seeks

review of the Board’s order.

We hold that the Board erred in finding that a reasonable employee

would construe policies (1), (2), and (4) to prohibit protected activity. However,

we will not upset the Board’s finding that a reasonable employee would

construe policy (3) to prohibit protected activity. Accordingly, we grant in part

and deny in part enforcement of the Board’s order.

I.

T-Mobile and MetroPCS are telecommunications companies that market

cell phones and related services, with offices and retail locations located

throughout the United States. In 2014, based on charges filed by the

1 We refer to petitioner T-Mobile USA, Inc., and cross-respondent MetroPCS

Communications, Inc., collectively as “T-Mobile.” T-Mobile and MetroPCS are affiliated

companies; T-Mobile acquired MetroPCS in 2013.

2

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Communication Workers of America, 2 the NLRB brought a complaint against

T-Mobile alleging that several of the provisions of T-Mobile’s employee

handbook violated the National Labor Relations Act (“NLRA”), 29 U.S.C. § 151

et seq. This appeal concerns four provisions of the handbook that the NLRB

determined were forbidden under the NLRA. 3

A.

The “workplace conduct” policy is found under the “Standards of

Conduct” heading in the employee handbook. The policy provides:

[T-Mobile] expects all employees to behave in a professional

manner that promotes efficiency, productivity, and cooperation.

Employees are expected to maintain a positive work environment

by communicating in a manner that is conducive to effective

working relationships with internal and external customers,

clients, co-workers, and management. 4

2The Communications Workers of America is an intervenor in this case and has filed

a separate brief in support of the NLRB’s position.

3 The NLRB originally alleged that eleven other provisions of the employee handbook

also violated the NLRA. T-Mobile did not contest the administrative law judge’s (“ALJ’s”)

finding that these eleven provisions violated the NLRA, and does not challenge on appeal the

Board’s summary affirmance of the ALJ’s findings regarding those provisions. Rather, T-

Mobile maintains that it chose to focus its appeal efforts on only what it considers the most

“egregious” errors by the NLRB. Accordingly, the Board is granted summary enforcement of

the order as it pertains to those eleven provisions. See Sara Lee Bakery Grp., Inc. v. NLRB,

514 F.3d 422, 429 (5th Cir. 2008) (“[W]hen an employer does not challenge a finding of the

Board, the unchallenged issue is waived on appeal, entitling the Board to summary

enforcement.”).

4 Although the entire policy was struck, the General Counsel never alleged that the

first sentence of the policy violated the Act; he only alleged that the second sentence was

improper.

3

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The “commitment-to-integrity” policy 5 is found under the “Conducting

Business” heading in the code of business conduct. The policy begins with the

preface:

At T-Mobile, we expect all employees, officers and directors to

exercise integrity, common sense, good judgment, and to act in a

professional manner. We do not tolerate inconsistent conduct.

While we cannot anticipate every situation that might arise or list

all possible violations, the acts listed below are unacceptable.

The commitment-to-integrity policy then lists seventeen non-inclusive

examples of “unacceptable” acts, including, in relevant part:

Arguing or fighting with co-workers, subordinates or supervisors;

failing to treat others with respect; or failing to demonstrate

appropriate teamwork. 6

The “recording” policy is found under the “Workplace Expectations”

heading of the employee handbook. The policy provides:

To prevent harassment, maintain individual privacy, encourage

open communication, and protect confidential information

employees are prohibited from recording people or confidential

information using cameras, camera phones/devices, or recording

devices (audio or video) in the workplace. Apart from customer

calls that are recorded for quality purposes, employees may not

tape or otherwise make sound recordings of work-related or

workplace discussions. Exceptions may be granted when

participating in an authorized [T-Mobile] activity or with

permission from an employee’s Manager, HR Business Partner, or

the Legal Department. If an exception is granted, employees may

5 The parties use the term “commitment to integrity policy” as shorthand for this

policy.

Other listed examples include destroying company property, dishonesty, criminal

6

conduct, inappropriate dress, and sleeping on the job. One of the other examples, “[m]aking

slanderous or detrimental comments about the Company,” was found to be improper by the

ALJ; T-Mobile has not contested that finding.

4

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not take a picture, audiotape, or videotape others in the workplace

without the prior notification of all participants.

Finally, the “acceptable use” policy is found under the “Security” heading

of T-Mobile’s “Acceptable Use Policy for Information and Communication

Resources.” The policy provides:

Users may not permit non-approved individuals access to

information or information resources, or any information

transmitted by, received from, printed from, or stored in these

resources, without prior written approval from an authorized T-

Mobile representative. 7

B.

The ALJ and the Board differed in their respective conclusions. The

ALJ, ruling on a stipulated record, found that both the commitment-to-

integrity policy and the acceptable use policy violated the NLRA, but that the

workplace conduct policy and the recording policy did not. T-Mobile appealed,

and the General Counsel cross-appealed, to the Board. A three-member panel

of the Board held that the ALJ correctly found that the commitment-to-

integrity policy and the acceptable use policy violated the NLRA, but that the

ALJ had erred in finding that the other two policies did not. The Board thus

held that all four of the challenged policies violated the NLRA and issued an

order to that effect.

T-Mobile timely petitioned this Court for review of the NLRB’s decision.

The Board has filed a cross-application for enforcement of its order. See 29

U.S.C. §§ 160(e), (f).

7 The “Security” section otherwise provides that employees must help keep T-Mobile

information resources secure; that employees must secure resources and not disclose their

passwords; that employees are required to use passwords, etc. The ALJ found that other

parts of the “Acceptable Use Policy,” including parts limiting use of information resources to

“legitimate business purposes,” to be invalid; T-Mobile has not contested that finding.

5

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II.

A.

Section 7 of the NLRA provides a declaration of statutory policy:

“[e]mployees shall have the right to self-organization, to form, join, or assist

labor organizations, to bargain collectively through representatives of their

own choosing, and to engage in other concerted activities for the purpose of

collective bargaining or other mutual aid or protection.” 29 U.S.C. § 157.

Section 8(a)(1) of the Act in turn provides enforcement of that policy by stating

that it shall be an “unfair labor practice” to “interfere with, restrain, or coerce

employees in the exercise of the rights” protected by Section 7. 29 U.S.C.

§ 158(a)(1). Here, the “appropriate inquiry” is whether T-Mobile’s rules for

workplace conduct violate § 8(a)(1) by chilling a reasonable employee in the

exercise of his or her Section 7 rights. See Flex Frac Logistics, L.L.C. v. NLRB,

746 F.3d 205, 209 (5th Cir. 2014). Indeed, our precedent has previously noted

that “[w]here the rules are likely to have a chilling effect, the Board may

conclude that their maintenance is an unfair labor practice, even absent

evidence of enforcement.” Id. (quoting Lafayette Park Hotel, 326 NLRB 824,

825 (1998)) (ellipses omitted).

In order to determine whether a workplace rule violates Section 8(a)(1),

this Court applies the two-part Lutheran Heritage framework. First, the Court

decides “whether the rule explicitly restricts activities protected by Section 7.”

Flex Frac, 746 F.3d at 208-09 (quoting Lutheran Heritage Village-Livonia, 343

NLRB 646, 646 (2004)); see also NLRB v. Arkema, Inc., 710 F.3d 308, 318 (5th

Cir. 2013). Second, even if the restriction is not explicit, the rule may still

violate Section 8(a)(1) where “(1) employees would reasonably construe the

language to prohibit Section 7 activity; (2) the rule was promulgated in

6

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response to union activity; or (3) the rule has been applied to restrict the

exercise of Section 7 rights.” Id. at 209 (quoting Lutheran Heritage, 343 NLRB

at 647). 8 When construing a work rule, the Board must “give the rule a

reasonable reading.” Lutheran Heritage, 343 NLRB at 646. Additionally, the

Board “must refrain from reading particular phrases in isolation” and “must

not presume improper interference with employee rights.” Id. The

appropriate, objective inquiry is not whether the rules “could conceivably be

read to cover Section 7 activity, even though that reading is unreasonable,” but

rather whether “a reasonable employee reading the[] rules would . . . construe

them to prohibit conduct protected by the Act.” Id. at 647 (emphasis added).

The “reasonable employee,” although not specifically defined in Lutheran

Heritage or subsequent jurisprudence, refers to a hypothetical, objective

standard analogous to the “reasonable person” in tort law. Cf. Restatement

(Second) of Torts § 283 (1965) (“[T]he standard of conduct to which [an actor]

must conform to avoid being negligent is that of a reasonable man under like

circumstances.”). In this case, where the record does not suggest that the rules

have been applied in the context of union or collective activity, the “reasonable

employee” is a T-Mobile employee aware of his legal rights but who also

interprets work rules as they apply to the everydayness of his job. The

reasonable employee does not view every employer policy through the prism of

the NLRA. Indeed, “[the Board] must not presume improper interference with

employee rights.” Lutheran Heritage, 343 NLRB at 646. The question is

8 Here, there is no contention that the rule explicitly restricts protected activity, or

that the rule was promulgated in response to union activity, or that the rule has been applied

to restrict the exercise of protected activity; the NLRB only alleges generally that employees

would reasonably construe the language to prohibit protected activity.

7

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whether a reasonable T-Mobile employee “would reasonably construe the

language to prohibit Section 7 activity.” Lutheran Heritage, 343 NLRB at 647

(emphasis added).

B.

The Board’s findings of fact are conclusive if supported by substantial

evidence. 29 U.S.C. §§ 160(e)-(f); Flex Frac, 746 F.3d at 207. Courts also defer

to the Board’s interpretation of the NLRA “so long as it is rational and

consistent with the Act.” D.R. Horton, Inc. v. NLRB, 737 F.3d 344, 349 (5th

Cir. 2013) (citations and quotations omitted). “Our deference extends to our

review of both the Board’s findings of fact and its application of the law. It

does not, however, extend to the Board’s legal conclusions . . . which we review

de novo.” J. Vallery Elec., Inc. v. NLRB, 337 F.3d 446, 450 (5th Cir. 2003). 9

Still, “[a]lthough we accord Board findings a measure of deference, our review

is more than a mere rubber stamp of the decision.” Arkema, 710 F.3d at 314

(citations and quotations omitted).

III.

The NLRB found that each of the four policies at issue—the workplace

conduct policy, the commitment-to-integrity policy, the recording policy, and

9 It is unclear whether the Board’s findings in this case are entitled to deference. The

Board did not engage in any factfinding or interpretation of the provisions of the NLRA; it

only made legal determinations based on a stipulated record as to whether the hypothetical

“reasonable employee” would be discouraged from protected activity based on the text of the

policies at issue. See NLRB v. Yeshiva Univ., 444 U.S. 672, 691 (1980) (refusing to defer to

Board order decided “on the basis of conclusory rationales rather than examination of the

facts of each case”); cf. Dresser-Rand Co. v. NLRB, 838 F.3d 512, 519 (5th Cir. 2016) (noting

that Board conclusion that worker misconduct was objectively “serious enough” to deny

reinstatement is a legal conclusion entitled to de novo review (citations and quotations

omitted)). Because both parties appear to assume that the NLRB’s findings are entitled to a

degree of deference, we will assume, without deciding, that they are.

8

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the acceptable use policy—violated the Act because “employees would

reasonably construe the language to prohibit Section 7 activity.” Lutheran

Heritage, 343 NLRB at 647. We address each policy in turn.

A.

We first address the workplace conduct policy. 10 The Board found that

the workplace conduct policy, which encouraged employees to maintain a

“positive work environment,” violated the NLRA because a reasonable

employee would read the language to discourage protected activity, including

candid, potentially contentious discussions of unionizing. This finding is

unreasonable. 11

To a “reasonable employee,” context matters in the interpretation of

these rules. The policy is titled “Workplace Conduct.” The rule refers to a

positive work environment and effective working relationships, and requires

employees to behave in a way that “promotes efficiency, productivity, and

cooperation,” with the obvious implication “with respect to work.” In the

context of the workplace presented in the record, this rule addresses a normal

workplace, on a normal workday.

A reasonable employee of T-Mobile would interpret the policy as

requiring professional manners, positive work environment, effective and

10 As earlier noted, the policy provided, in full:

[T-Mobile] expects all employees to behave in a professional manner that

promotes efficiency, productivity, and cooperation. Employees are expected to

maintain a positive work environment by communicating in a manner that is

conducive to effective working relationships with internal and external

customers, clients, co-workers, and management.

11 Indeed, The Late Show host Stephen Colbert mocked the Board’s decision in this

case, joking that “the government says I can’t legally ask [my employees] to be happy.” See

https://www.youtube.com/watch?v=O2LNUOelJx4&feature=youtu.be&t=5m26s.

9

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courteous communications, getting along with everybody, common sense, and

people skills. The reasonable T-Mobile employee would understand the rule to

express a universally accepted guide for conduct in a responsible workplace.

Indeed, the Board itself admonishes that these rules must be given a

“reasonable reading.” Lutheran Heritage, 343 NLRB at 646; see also id. (“[We]

must not presume improper interference with employee rights.”). In other

words, the NLRB erred by interpreting the rule as to how the reasonable

employee could, rather than would, interpret these policies—an analysis

eschewed by the Board’s own precedent. See Lutheran Heritage, 646 NLRB at

647.

This reading of these workplace rules is consistent with the only other

circuit to have spoken on the matter. The DC Circuit in Adtranz ABB Daimler-

Benz Transportation, N.A., Inc. v. NLRB, 253 F.3d 19 (D.C. Cir. 2001),

addressed a policy similar to the ones at issue. There, asserting expected

conduct from employees such as “[t]rust and respect for self and others,”

“[t]eamwork and cooperation,” and “[e]ffective communication,” the company

prohibited “abusive or threatening language to anyone on company premises.”

Id. at 25. The NLRB had declared this rule in violation of the NLRA on the

grounds that it prohibited an employee from engaging in heated labor

discussions. Id. at 25-26. The DC Circuit did not buy in: “This position is not

‘reasonably defensible.’ It is not even close.” Id. at 26. The court further

rejected the NLRB’s argument that the company’s “effort to maintain a civil

and decent workplace is an unfair labor practice that threatens the statutory

rights of [its] employees under the NLRA.” Id. at 25. The DC Circuit was in

no mood for temporizing, saying that “it is preposterous that employees are

10

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incapable of organizing a union or exercising their other statutory rights under

the NLRA without resort to abusive or threatening language.” Id. at 25-26.

Still further, in Community Hospitals of Central California v. NLRB, 335

F.3d 1079, 1087-88 (D.C. Cir. 2003), the DC Circuit continued to reject the

Board’s displacement of facially-neutral work rules. The court held that a rule

prohibiting “insubordination . . . or other disrespectful conduct,” “read in

context,” “applies to incivility and outright insubordination, in whatever

context it occurs.” Id. at 1088. Furthermore, it held, such a rule would not

restrict protected activity, including “vigorous proselytizing for or against a

union.” Id. 12

In sum, we conclude that a reasonable employee would not construe a

requirement to “maintain a positive work environment by communicating in a

manner that is conducive to effective working relationships” to restrict Section

7 activity. We therefore deny enforcement of the Board’s order as to the

workplace conduct policy.

12 Accord, e.g., Care One at Madison Ave., LLC v. NLRB, 832 F.3d 351, 363 (D.C. Cir.

2016) (“[U]rging employees to behave with ‘dignity and respect’ would not be unlawful on its

own, but for the unlawful implication [from other context].” (emphasis added)); see also Palms

Hotel & Casino, 344 NLRB 1363, 1367-68 (2005) (approving of ban on “conduct which is or

has the effect of being injurious, offensive, threatening, intimidating, coercing, or interfering”

and noting that “reasonable employees would be []capable of grasping the expectation that

they comport themselves with general notions of civility and decorum in the workplace”);

Lutheran Heritage, 343 NLRB at 648-49 (upholding rule banning “harassment” and noting

that “both employees and employers have a substantial interest in promoting a workplace

that is ‘civil and decent’”); Care One, 832 F.3d at 363 (“We have made clear that employers

have the prerogative of demanding employees comply with generally accepted notions of

civility [without running afoul of the NLRA].” (citations and quotations omitted)).

11

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B.

The Board 13 also found that the commitment-to-integrity policy 14

violated the NLRA because the policy would inhibit robust discussion of labor

issues. The rule, like the workplace conduct rule, is on its face, only a common

sense civility guideline. See Lutheran Heritage, 646 NLRB at 646-47; Adtranz,

253 F.3d at 25-26; Community Hospitals, 335 F.3d at 1087-88.

The policy, which prohibits “arguing or fighting,” “failing to treat others

with respect,” and “failing to demonstrate appropriate teamwork,” is prefaced

by the conventional, common-sense admonition that T-Mobile expects its

employees to “to exercise integrity, common sense, good judgment, and to act

in a professional manner.” These acts appear in a long, non-inclusive list of

prohibited activity, including theft, fraud, dishonesty, and sleeping on the job.

These examples that define the parameters of the rule address misconduct. As

the DC Circuit noted in addressing such a rule, “[a]lthough [reasonable]

employees are perhaps unlikely to know the term ejusdem generis, they no

doubt grasp as well as anyone the concept it encapsulates.” Community

Hospitals, 335 F.3d at 1088.

Here, a reasonable employee would understand the language of the

commitment-to-integrity policy to refer to similar misconduct. Furthermore, a

13 The Board adopted the opinion of the ALJ as to the commitment-to-integrity policy.

14 The policy provided, in full:

At T-Mobile, we expect all employees, officers and directors to exercise

integrity, common sense, good judgment, and to act in a professional manner.

We do not tolerate inconsistent conduct. While we cannot anticipate every

situation that might arise or list all possible violations, the acts listed below

are unacceptable . . .

Arguing or fighting with co-workers, subordinates or supervisors; failing to

treat others with respect; or failing to demonstrate appropriate teamwork.

12

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reasonable employee would be fully capable of engaging in debate over union

activity or working conditions, even vigorous or heated debate, without

inappropriately “arguing or fighting,” “failing to treat others with respect,” or

“failing to demonstrate appropriate teamwork.” As the Board delineated in

Lutheran Heritage, we view the rule from the perspective of the reasonable

employee, not from the point of view of the exceptions to reasonableness. See

646 NLRB at 646-47.

Accordingly, we decline to enforce the Board’s order as to the

commitment-to-integrity policy.

C.

The Board next found that T-Mobile’s recording policy 15 violates the

NLRA because it would discourage workers from engaging in protected

activity.

We are primarily concerned with the broad reach of the recording ban.

The ban, by its plain language, encompasses any and all photography or

recording on corporate premises at any time without permission from a

supervisor. This ban is, by its own terms alone, stated so broadly that a

reasonable employee, generally aware of employee rights, would interpret it to

15 The policy provided, in full:

To prevent harassment, maintain individual privacy, encourage open

communication, and protect confidential information employees are prohibited

from recording people or confidential information using cameras, camera

phones/devices, or recording devices (audio or video) in the workplace. Apart

from customer calls that are recorded for quality purposes, employees may not

tape or otherwise make sound recordings of work-related or workplace

discussions. Exceptions may be granted when participating in an authorized

[T-Mobile] activity or with permission from an employee’s Manager, HR

Business Partner, or the Legal Department. If an exception is granted,

employees may not take a picture, audiotape, or videotape others in the

workplace without the prior notification of all participants.

13

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discourage protected concerted activity, such as even an off-duty employee

photographing a wage schedule posted on a corporate bulletin board. Cf. Flex

Frac, 746 F.3d at 208 (“A workplace rule that forbids the discussion of

confidential wage information between employees patently violates section

8(a)(1).” (citations, quotations, alterations, and ellipses omitted)); accord Whole

Foods Mkt. Grp., Inc. v. NLRB, No. 16-0002-AG, --- F. App’x ---, 2017 WL

2374843, at *2 (2d Cir. June 1, 2017) (holding that where “no-recording policies

prohibited all recording without management approval, employees would

reasonably construe the language to prohibit recording protected by Section 7”

(citations and quotations omitted)).

T-Mobile argues that the ban’s stated purposes—“[t]o prevent

harassment, maintain individual privacy, encourage open communication, and

protect confidential information”—are legitimate business interests that

ordinarily would justify the ban. But merely reciting such justifications does

not alter the fact that the operative language of the rule on its face prohibits

protected Section 7 activity, including Section 7 activity wholly unrelated to

those stated interests.

Unlike the “workplace conduct” policy and the “commitment-to-

integrity” policy, the recording policy forbids certain forms of clearly protected

activity. We have earlier held that held those two policies would not be

interpreted by a reasonable T-Mobile employee as forbidding protected

activity. By contrast, a reasonable T-Mobile employee, aware of his legal

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rights, would read the language of the recording policy as plainly forbidding a

means of engaging in protected activity. 16

Because a reasonable employee would construe the recording policy to

prohibit forms of protected activity, we hold that the Board’s determination

that the recording policy violated the NLRA is supported by a reasonable

interpretation of the record. Its order will be enforced in that respect.

D.

Finally, the Board 17 found that the acceptable use policy 18 violated the

NLRA because a reasonable employee would construe it to prohibit protected

activity such as accessing and sharing wage and benefit information contained

in his or her e-mail.

16 The parties dispute whether a right to photograph and record the workplace exists

under the NLRA in certain circumstances. Compare, e.g., Whole Foods Mkt., Inc., 363 NLRB

No. 87 at nn.7-8 (Dec. 24, 2015) (“[O]ur case law illustrates a wide array of protected uses for

[electronic recording] devices.”), with Flagstaff Med. Ctr., Inc., 357 NLRB 659, 683 (2011)

(“[T]he specific right to take photos in the workplace would not reasonably seem to come to

mind as an inherent component of the more generalized fundamental rights of employees set

forth in Section 7 of the Act.”). We need not decide whether and to what extent such a right

exists; we are satisfied that, as in the example provided above, there are circumstances in

which taking photographs or recordings may be protected activity, and that T-Mobile has not

provided any legitimate reason why its ban ought to be allowed to encompass such activity.

The Board filed a motion to strike a section of T-Mobile’s reply brief, arguing that T-

Mobile waived any argument that no NLRA right to photograph and record existed by failing

to address the argument in its principal brief. Because we decline to address the argument,

the Board’s motion is DENIED as moot.

17 The Board adopted the opinion of the ALJ.

18 The policy provided, in full:

Users may not permit non-approved individuals access to information or

information resources, or any information transmitted by, received from,

printed from, or stored in these resources, without prior written approval from

an authorized T-Mobile representative.

15

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The NLRB’s decision, however, disregards the context in which the

acceptable use policy is to be read and understood. The “Scope” section of the

acceptable use policy explicitly states that the policy “applies to all non-public

T-Mobile information.” 19 Thus the policy only prohibits employees from

sharing non-public information.

Where a company policy prohibits the disclosure of non-public

information, courts presume that a reasonable employee would not construe

the policy to prohibit the disclosure of information that may be properly used

in protected activity, such as wage and benefit information, so long as the

policy does not explicitly state that it encompasses such information. See

Lafayette Park Hotel, 326 NLRB at 826 (“Although the term ‘hotel-private’ is

not defined in the rule, employees in our view reasonably would understand

that the rule is designed to protect that [proprietary business information]

interest rather than to prohibit the discussion of their wages.”); accord K-Mart,

330 NLRB 263, 263 (1999); cf. Flex Frac, 746 F.3d at 210 (finding non-

disclosure policy violated NLRA where the policy specifically defined

“Confidential Information” to include “personnel information,” i.e., wage and

benefit information). Here, as in Lafayette Park and unlike in Flex Frac, the

policy does not define “non-public T-Mobile information” in a way that would

lead a reasonable worker to believe that it includes protected wage and benefit

19 The limiting language states, in full, “This policy applies to all non-public T-Mobile

information and any communication resource owned, leased, or operated by or for T-Mobile,

and computers or devices, including those belonging to employees or contractors to the extent

that these resources are used for T-Mobile business purposes. All information created in

connection with T-Mobile business is the property of T-Mobile.” In other words, the policy

explicitly states that it applies only to non-public information and other resources pertaining

to that non-public information.

16

Case: 16-60284 Document: 00514086892 Page: 17 Date Filed: 07/25/2017

No. 16-60284

Cons. w/ No. 16-60497

information. 20 Instead, the policy only applies to the sort of proprietary

business information that an employer may properly restrict its employees

from sharing outside of the company. See Lafayette Park Hotel, 326 NLRB at

826 (“[B]usinesses have a substantial and legitimate interest in maintaining

the confidentiality of private information, including . . . trade secrets, contracts

with suppliers, and a range of other proprietary information.”).

Thus the NLRB’s finding that a reasonable worker would construe the

acceptable use policy to discourage protected activity is unreasonable, and we

deny enforcement as to that part of its order.

IV.

To sum up: We hold that the Board’s findings regarding the workplace

conduct policy, the commitment-to-integrity policy, and the acceptable use

policy are unreasonable. The Board’s order is denied enforcement as to those

policies. However, the Board’s findings regarding the recording policy is

reasonable, and the Board’s order is enforced as to that policy. The Board’s

order is also summarily enforced as to the eleven polices not challenged by T-

Mobile on appeal.

Accordingly, T-Mobile’s petition is GRANTED IN PART and DENIED

IN PART and the NLRB’s cross-application is correspondingly DENIED IN

PART and GRANTED IN PART. 21

20 In an earlier version of a confidential information policy contained in a separate

document, T-Mobile did suggest that non-public information includes protected wage and

benefit information. The NLRB found that this provision violated the NLRA and struck it

down, and T-Mobile did not contest this finding. Accordingly, with respect to the acceptable

use policy now on appeal, we do not consider the now-invalidated definition of confidential

information.

21 The Board’s motion to strike portions of T-Mobile’s reply brief is DENIED as moot.

17

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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