The U.S. Supreme Court on Monday declined to review Macy’s challenge to a National Labor Relations Board (NLRB) ruling that requires the retailer to compensate employees it terminated following a labor dispute. Macy’s had sought to overturn a lower court decision affirming the NLRB’s authority to mandate such remedies.

The dispute stems from a 2023 NLRB finding that Macy’s acted unlawfully by locking out and firing approximately 60 unionized building engineers in Nevada and California. The employees had recently concluded a strike concerning stalled contract negotiations when the company took the contested actions. The board determined that Macy’s conduct violated federal labor laws by retaliating against workers for union activity.

Macy’s appealed the NLRB’s ruling, arguing that the agency exceeded its authority by ordering the company to provide compensation to the discharged employees. The retailer’s position reflected a broader effort to limit the scope of the NLRB’s power to impose remedies in labor disputes.

Lower courts upheld the agency’s decision, maintaining that the board’s rulings were consistent with existing labor law precedents. The Supreme Court’s refusal to hear the appeal effectively leaves the NLRB’s orders intact, reinforcing the board’s ability to require employers to compensate workers wrongfully terminated in connection with union activities.

The outcome marks a significant affirmation of the NLRB’s enforcement role in protecting workers’ rights to engage in collective bargaining and strike activity without employer retaliation. It underscores the continuing legal protections afforded to unionized employees involved in contract negotiations and related labor actions.