Flex Frac Logistics, L.L.C. v. National Labor Relations Board
2014 U.S. App. LEXIS 5429
| 5th Cir. | 2014Background
- Flex Frac Logistics, L.L.C. and Silver Eagle Logistics, L.L.C. are non-union trucking companies based in Fort Worth, Texas.
- They require employees to sign a confidentiality clause covering confidential information, including costs and personnel information.
- The clause prohibits sharing Confidential Information outside the organization or removing copies of records, with potential termination for violations.
- In 2010 Kathy Lopez was fired and filed an NLRB charge alleging the rule prohibited discussing employee wages.
- An ALJ found the clause violated §8(a)(1) for being overly broad and restricting §7 rights; the NLRB affirmed the ruling.
- Flex Frac challenged the NLRB order in this petition for review; the court ultimately enforces the NLRB order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the confidentiality rule violate §8(a)(1) by chilling §7 rights? | Flex Frac argues the clause is overly broad and restricts wage discussion. | NLRB contends the rule would reasonably chill §7 activity and is not allowed. | Yes; the rule violates §8(a)(1). |
Key Cases Cited
- NLRB v. Brookshire Grocery Co., 919 F.2d 359 (5th Cir. 1990) (workplace rules that prohibit wage discussion infringe §8(a)(1))
- Lutheran Heritage Village-Livonia, 343 N.L.R.B. 646 (NLRB 2004) (nonexplicit rules evaluated for impact on §7 rights)
- Lafayette Park Hotel, 326 N.L.R.B. 824 (9th Cir. 1998) (chilling effect standard for workplace rules)
- K-Mart Corp., 330 N.L.R.B. 263 (5th Cir. 1999) (rule similarity to Lafayette Park Hotel scrutinized)
- Mediaone of Greater Fla., Inc., 340 N.L.R.B. 277 (NLRB 2003) (intellectual-property framing distinguished from wages)
- Cintas Corp. v. NLRB, 482 F.3d 463 (D.C. Cir. 2007) (distinguishes scope of confidentiality vs. protected activity)
- D.R. Horton, Inc. v. NLRB, 737 F.3d 344 (5th Cir. 2013) (jurisdictional/constitutional considerations in NLRB review)
