Labor

Supreme Court lets Macy’s labor ruling stand, signaling risk for retailers

The Supreme Court left Macy’s labor penalty in place, a sign retailers can face costly make-whole remedies after firing workers in a labor fight.

Derek Washington··2 min read
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Supreme Court lets Macy’s labor ruling stand, signaling risk for retailers
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A retailer that fires workers in a labor dispute can end up owing far more than back pay. The U.S. Supreme Court declined on June 15 to hear Macy’s challenge to a National Labor Relations Board order, leaving in place a ruling that could make employers pay for related financial losses when they break labor law.

The Macy’s case grew out of a 2020 contract fight with unionized building engineers and craftsmen at stores in Northern California and Reno, Nevada. After bargaining stalled, the union rejected Macy’s final offer, went on strike and later ended the strike after about three months, offering to return unconditionally. The NLRB later found in 2023 that Macy’s unlawfully locked out and dismissed about 60 workers after they ended the strike, and it also ordered the company to post notices telling employees about their rights. A Ninth Circuit panel enforced that order in January 2025, and the Supreme Court’s refusal to take the case left that ruling standing.

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For Dollar General employees, the legal lesson is straightforward: labor disputes do not stay abstract once they reach the NLRB and the courts. When a company is fighting over whether it illegally disciplined, locked out or fired people, the remedies can become expensive and long-lasting. That matters in retail, where workers already worry about scheduling, write-ups and retaliation for speaking up about pay, safety or organizing. It also means management attention and money can get pulled into legal defense instead of stores, training or staffing.

Dollar General has already faced its own labor-law findings. On July 17, 2023, NLRB Administrative Law Judge Arthur Amchan found that Dolgen Corporation, LLC, doing business as Dollar General, violated the National Labor Relations Act in a Connecticut case by firing a pro-union worker, illegally surveilling and interrogating employees, soliciting grievances and granting benefits, and threatening to close a store where a union petition had been filed.

The Macy’s ruling stands as a warning shot because it shows how broad labor remedies can survive appellate and Supreme Court scrutiny. That is especially relevant for a chain like Dollar General, which worker-focused reporting has described as operating roughly 20,000 stores and which had at least 13 open unfair-labor-practice charges as recently as April 2025, with additional docket activity continuing into 2026 in Wentzville, Missouri. For store workers, the message is not theoretical: when a labor dispute turns into a legal case, the consequences can follow a company well beyond the shift when the conflict started.

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