Second Circuit Limits NLRB’s Tesla Framework to Dress Codes, Uniforms
The Second Circuit rejected applying the NLRB's Tesla framework to dress code and uniform policies.
Why it matters: Labor and employment lawyers must rethink strategies for cases involving workplace dress codes and union insignia protections. This decision requires balancing employee rights with employer business interests differently than under the Tesla standard.
- On Sept. 2, 2026, the Second Circuit ruled against the NLRB’s application of the Tesla framework to dress codes and uniforms.
- The Tesla decision presumes employer policies restricting union insignia unlawful unless special circumstances justify them.
- The Second Circuit found this presumption overly burdensome and failed to consider business interests like brand image and uniformity.
- The case was remanded to the NLRB to apply a balancing test weighing employee rights against employer interests.
- This ruling aligns with the Fifth Circuit’s Nov. 14, 2023, Tesla v. NLRB decision, which also limited NLRB’s reach.
On September 2, 2026, the U.S. Court of Appeals for the Second Circuit issued a pivotal ruling in Siren Retail Corporation, d/b/a Starbucks Reserve Roastery v. NLRB, rejecting the National Labor Relations Board's (NLRB) attempt to use its 2022 Tesla framework for workplace dress code and uniform policies.
The Tesla decision established a presumption that employer policies restricting employees from displaying union insignia, such as buttons or t-shirts, are unlawful unless the employer proves special circumstances justify those restrictions. NLRB Chair Lauren McFerran emphasized, "Wearing union insignia, whether a button or a t-shirt, is a critical form of protected communication."
However, the Second Circuit found this framework improperly tilted the balance against employers by imposing an overly demanding standard. The court highlighted the importance of legitimate business interests, including brand image, uniformity, and workplace operations — factors the Tesla approach did not sufficiently consider.
The court remanded the dispute over Starbucks' dress code policies for reconsideration under a balancing test that weighs the intrusion on employee rights against these employer concerns, rather than applying a presumption against the employer.
This decision follows the Fifth Circuit’s similar November 14, 2023 ruling in Tesla v. NLRB, which vacated the NLRB’s decision against Tesla’s uniform policy. Employment law expert Daniel Pasternak noted this trend: "The decision is another in a growing line of cases in which federal courts have rejected or limited recent NLRB doctrinal changes."
By the numbers:
- September 2, 2026 — Date of Second Circuit decision
- August 29, 2022 — Date of NLRB's Tesla decision
- November 14, 2023 — Date of Fifth Circuit's Tesla v. NLRB ruling