NLRB General Counsel Crystal Carey has issued GC Memo 26‑04, providing employers with the clearest statement to date of the Board precedents she is actively challenging and those she intends to challenge when the right case arises. While the memo does not change current law, it provides employers with a clear preview of the doctrines likely to be tested in upcoming litigation.

Carey also highlighted her focus on restoring timely case processing, noting that investigations in 9,247 pending cases have been completed, reducing the backlog by more than 50%. As she states: “My focus remains on providing efficient service to the parties before us.”

What’s Under Review

The Memo identifies several major areas in which the General Counsel is already seeking changes, including:

• Severance agreements
• Work rules and handbook standards
• Employer communications during organizing campaigns
• Dress code and uniform policies
• Bargaining rights and waiver standards

She also signals plans to challenge additional doctrines related to:

• Bargaining orders
• Pre implementation bargaining obligations
• Union dues and checkoff rules
• Protected concerted activity and misconduct standards
• Enhanced remedies for unfair labor practices

For hospitality employers, these categories touch nearly every aspect of daily operations.

What This Means for Hospitality Employers

Although no rules have changed yet, the Memo serves as an important roadmap. Several standards may shift in the coming months, affecting how hotels, restaurants, resorts, and asset teams manage workforce issues.

1. Handbooks & Workplace Policies

Potential changes to the Board’s work rule standard could affect:

• Confidentiality and civility policies
• Social media and recording rules
• Guest interaction expectations
• Safety and conduct requirements

Employers may eventually gain more flexibility but should continue applying current law until the Board acts.

2. Severance Agreements

If the Board revisits McLaren Macomb, 372 NLRB No. 58 (Feb. 21, 2023), employers may see:

• Broader confidentiality and non disparagement options
• More traditional release language
• Fewer restrictions on standard severance terms

This is relevant for hospitality employers managing seasonal staffing or restructuring.

3. Dress Codes & Uniform Standards

A challenge to Tesla, Inc., 371 NLRB No. 131 (2022), could expand employers’ ability to:

• Enforce branded uniforms
• Restrict union insignia in guest facing roles
• Maintain appearance standards tied to brand identity

Luxury and lifestyle properties may benefit from clearer authority to preserve brand presentation.

4. Organizing Activity & Employer Communications

Changes to rules governing captive audience meetings and employer predictions could reshape:

• How management communicates during organizing
• What constitutes coercive or unlawful statements
• The tools available to respond to union campaigns

Given the hospitality industry’s high contact environment, these shifts could be significant.

5. Bargaining Obligations & Operational Flexibility

Potential revisions to bargaining order and pre implementation bargaining standards may affect:

• When employers must bargain before changing terms
• How quickly management can adjust staffing, scheduling, or service models
• The likelihood of bargaining orders during organizing campaigns

Hotels and restaurants that rely on rapid operational changes should monitor this closely.

6. Dues Checkoff & Union Administration

Future challenges may impact:

• Whether dues checkoff continues after contract expiration
• How objector fees are calculated and administered

This could affect financial and administrative obligations during negotiations.

7. Remedies for Unfair Labor Practices

If enhanced remedies return, employers may face:

• Broader consequential damage awards
• Additional affirmative obligations
• Expanded notice posting requirements

This would increase the stakes of routine labor disputes.

Conclusion

Carey’s Memo does not require immediate policy changes. The Memo provides advance notice of where the NLRB may shift doctrine. Hospitality employers should stay alert as these issues directly affect handbooks, severance agreements, dress codes, communications, bargaining obligations, and union related administration.

Stokes Wagner will continue monitoring developments and is available to assist with (1) handbook and policy reviews; (2) union-readiness assessments; (3) bargaining guidance; (4) training for HR teams, managers, and ownership groups.

Stokes Wagner will continue to monitor updates and will provide additional updates as they become available. If you have any questions, do not hesitate to contact a Stokes Wagner attorney.

For a printable PDF of this article, Click here.

THIS DOCUMENT PROVIDES A GENERAL SUMMARY AND IS FOR INFORMATIONAL/EDUCATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO BE COMPREHENSIVE, NOR DOES IT CONSTITUTE LEGAL ADVICE. PLEASE CONSULT WITH COUNSEL BEFORE TAKING OR REFRAINING FROM TAKING ANY ACTION.