Mortgage loan servicer Quicken Loans Inc. ran afoul of the National Labor Relations Act when it adopted a policy prohibiting its mortgage bankers from using or disclosing personnel information or publicly criticizing the company. That was the ruling of the U.S. Court of Appeals for the District of Columbia Circuit in Quicken Loans Inc. v. NLRB, No. 14-1231 (D.C. Cir. 2016), after the National Labor Relations Board had determined that Quicken’s rules unreasonably burdened its employees’ ability to discuss legitimate employment matters, protest employer practices, and organize.
Quicken mortgage bankers were required to sign “proprietary/confidential information” and “non-disparagement” rules. Confidential information included personnel files, rosters, and handbooks. Bankers had to agree not to “publicly criticize, ridicule, disparage, or defame” the company or its management, orally or in writing, including on websites, blogs, or emails.
Lydia G. was a mortgage banker in Quicken’s Scottsdale, Arizona office. After she took a job with one of Quicken’s competitors, Quicken sued her for violating her employment agreement. Lydia filed an unfair labor practice charge with the NLRB alleging that Quicken’s confidentiality and non-disparagement rules interfered with its employees’ rights under the NLRA.
Section 7 of the NLRA protects employees’ rights to discuss the terms and conditions of their employment, criticize or complain about their employer or work conditions, and enlist others in addressing employment matters. Employers that restrict the rights guaranteed by Section 7 commit an unfair labor practice.
Whether workplace rules run afoul of Section 7 turns on whether they “would reasonably tend to chill employees in the exercise of their statutory rights,” either facially, in effect, or in application (Lafayette Park Hotel, 326 NLRB 824 (1998)). Continue reading ›