Apple Executives Reportedly Imposed Rules On Employees Deemed Illegal By Federal Agency

Apple Inc AAPL executives made comments and imposed policies on staff that were illegal, according to prosecutors from U.S. National Labor Relations Board.

What Happened: The NLRB’s general counsel concluded that rules imposed by the Tim Cook-led company "tend to interfere with, restrain or coerce employees” from exercising their right to collective action, according to the agency’s spokesperson Kayla Blado, reported Bloomberg.

NLRB found “merit to a charge alleging statements and conduct by Apple — including high-level executives — also violated the National Labor Relations Act,” according to the report.

The case was brought to the NLRB by a former employee, Ashley Gjovik, who claimed in 2021 that an email from Cook that pledged to punish leakers and that policies in Apple’s employee handbook violated federal law.

The agency cannot impose punitive damages or hold executives liable for violations in a personal capacity, but Apple could be asked to change its workplace policies.  

See Also: How To Buy Apple (AAPL) Shares

Why It Matters: If Apple doesn’t settle, the NLRB’s regional director will issue a complaint against the iPhone maker, according to Blado, reported Bloomberg.

U.S. labor law protects the rights of workers to communicate with each other and engage in collective action, noted Bloomberg.

The Cook email, dating back to September 2021, read: “people who leak confidential information do not belong here.”

Gjovik was fired from Apple in the same month for violating company policies, including disclosing confidential product-related information. 

Price Action: On Monday, Apple shares closed 2.9% lower at $143 in the regular session, according to Benzinga Pro data.

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