Managerial Strategy Many Companies Have to Revise Their Social Media Policies Ov

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Managerial Strategy
Many Companies Have to Revise Their Social Media Policies Over the past few years, many companies have created social media policies for their employees. For example, Costco’s policy used to read as follows: “Any communication transmitted, stored or displayed electronically must comply with the policies outlined in the Costco Employee Agreement. Employees should be aware that statements posted electronically that damage the company, defame any individual or damage any person’s reputation, or violate the policies outlined in the Costco Employee Agreement, may be subject to discipline up to and including termination of employment.” Since a ruling by the National Labor Relations Board (NLRB) in 2012, however, many companies have had to revise their policies.

The NLRB Rules on Protected “Concerted Activities” Section 7 of the National Labor Relations Act states: “Employees shall have the right to self-organization, to form, join, or assist labor organizations . . . and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.” [Emphasis added.] When employees challenged Costco’s social media policy, the NLRB found that the policy violated the National Labor Relations Act because it was overly broad and did not specifically reference Section 7 activity. The ruling stated: “The broad prohibition against making statements that ‘damage the company, defame any individual or damage any person’s reputation’ clearly encompasses concerted communications protesting the Respondent’s [Costco’s] treatment of its employees.”

The NLRB Continues to Strike Down Broad Prohibitions in Social Media Policies
Since the ruling on Costco’s social media policy, the NLRB has struck down similar policies at several companies, including EchoStar Technologies and Dish Network. The NLRB’s general counsel has also issued three reports concluding that many companies’ social media policies illegally restrict workers’ exercise of their rights.

In one case, Karl Knauz BMW, a car dealership, had told its employees to always be “polite and friendly to our customers, vendors, and suppliers, as well as to your fellow employees.” The NLRB found that this policy, like the one at Costco, was “unlawful because employees would reasonably construe its broad prohibition against disrespectful conduct and language which injures the image or reputation of the dealership” as encompassing Section 7 activity. In other words, the policy was overly broad because it could apply to discussions in which employees objected to their working conditions and sought the support of others in improving those conditions—which are protected activities.

Managerial Implications
All companies that have social media policies should include a statement that any employee communications protected by Section 7 of the National Labor Relations Act are excluded from those policies. Companies can no longer have a policy that states that all social media posts must be “completely accurate and not misleading” because such a policy would be considered overbroad. Note also that companies cannot require their employees to report any unusual or inappropriate internal social media activity.

Business Questions
1. Employees meeting around the water cooler or coffee machine have always had the right to discuss workrelated matters. Is a social media outlet simply a digital water cooler? Why or why not?
2. I f your company instituted a policy stating that employees should “think carefully about ‘friending’ co-workers,” would that policy be lawful? Why or why not?

Explanation / Answer

1. In the traditional model of business setup employees meet around the water cooler or coffee machine to discuss and share work related happenings and matters. with the advent of time this place has been effectively replaced with the social media. employees feel convenient to express and share thier matters with their friendlist be it co-workers or the otherwise. However this has both damage and benefits. without proper control mechanism this might spread like a wild fire through likes and shares in a matter of small time when compared with the traditional model.

2. If the company institutes a policy stating that employees should “think carefully about ‘friending’ co-workers,” - that would not only be unlawful but completely incorrect and misleading. because such a policy would be considered overbroad as it breaches the section 7 of the National Labor Relations Act states: “Employees shall have the right to self-organization, to form, join, or assist labor organizations . . . and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.”

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