A U.S. appeals court panel on Wednesday seemed open to reversing a labor board's ruling that Tesla Inc violated the rights of factory workers by barring them from wearing t-shirts supporting a union campaign.
5th Circuit separately considering Tesla's appeal that said Musk violated federal labor law by tweeting that employees would lose stock options if they joined union.
Sept 6 (Reuters) - A U.S. appeals court panel on Wednesday seemed open to reversing a labor board's ruling that Tesla Inc violated the rights of factory workers by barring them from wearing t-shirts supporting a union campaign.
The NLRB last year said the policy requiring workers at factories in California and Nevada to wear black shirts with Tesla logos was illegal because there were no "special circumstances" warranting restrictions on union attire.
During oral arguments on Wednesday, the 5th Circuit judges suggested that Tesla may not have been required to prove special circumstances justifying its uniform policy, such as public image or safety concerns, because it only prohibited t-shirts and not all union insignia.
Circuit Judge Stephen Higginson similarly suggested that the ban in federal labor law on prohibiting union insignia did not mean employers must allow all union-related apparel.
Michael Kenneally of Morgan Lewis & Bockius, who represents Tesla, told the court that if the board's decision is upheld it would mean that company uniform policies that have been common for decades would be illegal unless employers can justify them.
The full, or en banc, 5th Circuit is separately considering Tesla's appeal of an NLRB decision that said CEO Elon Musk violated federal labor law by tweeting in 2018 that employees would lose stock options if they joined a union.
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