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Appellate - 5th Circuit
The Fifth Circuit appeared to embrace Tesla's arguments Wednesday to reverse a National Labor Relations Board decision that determined the electric carmaker illegally barred workers from wearing United Auto Workers T-shirts, with judges questioning if the company's policy is legal since stickers could display union support.
The Fifth Circuit shouldn't back the National Labor Relations Board's decision saying Tesla violated federal labor law by preventing workers from wearing union shirts, the electric carmaker argued, doubling down on the company's claim that its uniform policy is lawful.
The United Auto Workers urged the Fifth Circuit to back a National Labor Relations Board decision that found Tesla unlawfully barred workers from wearing union shirts, arguing Tesla has failed to raise special circumstances to justify its dress code policy.
The National Labor Relations Board on Wednesday defended its precedent-shifting ruling that Tesla illegally barred production workers from wearing union shirts, telling the Fifth Circuit that its approach follows decades of case law set there and elsewhere.
Business groups including the U.S. Chamber of Commerce and the National Retail Federation have backed Tesla in its fight to overturn a National Labor Relations Board ruling that limited the company's ability to ban union apparel, saying the ruling treads on employers' right to require on-the-job uniforms.
The National Labor Relations Board overreached with its August decision that limited employers' ability to prevent workers from wearing union apparel on the job, Tesla told the Fifth Circuit, saying the decision misread U.S. Supreme Court precedent and ignored valid reasons employers have for insisting on specific uniforms.