Macy's

12 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD Macy’s, Inc. and Local 1445, United Food and Com- mercial Workers Union. Case 01–RC–091163 July 22, 2014 DECISION ON REVIEW AND ORDER BY CHAIRMAN PEARCE AND MEMBERS HIROZAWA, MISCIMARRA, AND SCHIFFER On November 8, 2012, the Acting Regional Director for Region 1 issued a Decision and Direction of Election in which he found that a petitioned-for departmental unit of cosmetics and fragrances employees, including coun- ter managers, employed by the Employer at its Saugus, Massachusetts store, was appropriate. Thereafter, in ac- cordance with Section 102.67 of the Board’s Rules and Regulations, the Employer filed a timely request for re- view. The Employer contends that the smallest appro- priate unit must include all employees at the Saugus store or, in the alternative, all selling employees at the store. The Petitioner filed an opposition. On December 4, 2012, the Board granted the Employer’s request for re- view. Thereafter, the Employer and Petitioner filed briefs on review. Several amici curiae were also granted special permission to file briefs.1 The Board has carefully considered the entire record in this proceeding, including the briefs on review and ami- cus briefs.2 For the reasons set forth below, we affirm the Acting Regional Director’s finding that, under Spe- cialty Healthcare & Rehabilitation Center of Mobile, 357 NLRB 934 (2011), enfd. sub nom. Kindred Nursing Cen- ters East, LLC v. NLRB, 727 F.3d 552 (6th Cir. 2013), the employees in the petitioned-for unit are a readily identifiable group who share a community of interest, and that the Employer has not met its burden of demon- strating that the other selling and nonselling employees it seeks to include share an overwhelming community of interest with the petitioned-for employees so as to require their inclusion in the unit. Our decision today is based solely on the facts before us in this case, and we do not 1 The National Retail Federation (NRF) filed an amicus brief. A joint amicus brief was filed by Retail Industry Leaders Association and Retail Litigation Center (RILA-RLC). A joint amicus brief was also filed by the Chamber of Commerce of the United States of America, Coalition for a Democratic Workplace, American Hotel & Lodging Association, HR Policy Association, International Council of Shopping Centers, International Foodservice Distributors Association, Interna- tional Franchise Association, National Association of Manufacturers, National Association of Wholesale-Distributors, National Council of Chain Restaurants, National Federation of Independent Business, and Society for Human Resource Management (Chamber of Commerce et al.). Pursuant to Reliant Energy, 339 NLRB 66 (2003), the Petitioner filed a postbrief letter calling the Board’s attention to recent case au- thority. 2 Member Johnson is recused from participating in this case, and he took no part in the consideration or disposition of this case. reach the question of whether other subsets of selling employees at this, or any other, retail department store may also constitute appropriate units. Facts The Employer operates a national chain of department stores, including one in Saugus. Store Manager Danielle McKay is the highest executive at the Saugus store, and she oversees 7 sales managers who oversee 11 primary sales departments:3 juniors, ready-to-wear, women’s shoes, handbags, furniture (also known as big ticket), home (also referred to as housewares), men’s clothing, bridal, fine jewelry, fashion jewelry, and cosmetics and fragrances.4 Kelly Quince is the sales manager for cos- metics and fragrances.5 Quince has no regular responsi- bilities for the other primary sales departments, nor do the other sales managers have any regular responsibilities for the cosmetics and fragrances department.6 Of 150 total employees at the store, 120 are selling employees, and of these, 41 work in cosmetics and fragrances. The Petitioned-For Unit: Cosmetics and Fragrances Employees The Petitioner seeks to represent all full-time, part- time, and on-call employees employed in the Saugus store’s cosmetics and fragrances department, including counter managers, beauty advisors, and all selling em- ployees in cosmetics, women’s fragrances, and men’s fragrances. The parties agree that these employees should be included in the unit.7 Of the 41 employees in 3 These primary sales departments are subdivided into other “de- partments,” but these sub-departments are not separately supervised. Instead, employees in these subdepartments report to their primary sales department’s sales manager. For the purposes of this decision, we use “department” to refer to the 11 primary sales departments. 4 The ready-to-wear, home/housewares, men’s, big ticket, and cos- metics and fragrances departments have their own individual sales manager. A sixth sales manager oversees women’s shoes and hand- bags, and a seventh sales manager oversees juniors and fine jewelry. The record does not indicate which, if any, sales managers oversee fashion jewelry and bridal. In addition to the sales managers, the rec- ord refers to a selling floor supervisor “whose responsibility is also fine jewelry,” but there is no additional information about how this position fits within the store’s management structure. 5 The dissent states that Quince oversees “more than one functional area” and at several points refers to the petitioned-for employees as a “combined cosmetics and fragrances group.” We emphasize that the Employer treats cosmetics and fragrances as a single primary selling department with its own sales manager. 6 Sales managers may cover for each other due to absences, but the record does not indicate whether this happens with any frequency. 7 The parties also agreed that the unit should exclude MAC employ- ees, sprayers, the cosmetics fragrances manager, the store manager and assistant store managers, department managers, account coordinators, selling floor supervisor, merchandise team managers, receiving team manager, visual manager, administrative team manager, human re- 361 NLRB No. 4 MACY’S, INC. 13 the petitioned-for unit, 8 are counter managers, 7 are on- call employees, and the remaining employees are cos- metics or fragrances beauty advisors.8 The cosmetics and fragrances department is situated in two areas. The first, which consists of cosmetics and women’s fragrances, is located on the first floor. It is framed on one side by the store entrance, which it faces, and on the other by escalators that lead up to the second floor. Surrounding the escalator bank on the second floor is the second area, which consists of men’s fra- grances. In addition to the women’s fragrances counter, the first floor cosmetics area is divided into eight coun- ters, each of which is dedicated to selling products from one of the eight primary cosmetics vendors: Shiseido, Elizabeth Arden, Chanel, Clarins, Lancôme, Clinique, Estée Lauder, and Origins.9 As shown on the store’s floor plan, each of these two selling areas is spatially distinct from—although adjacent to several of—the other primary sales departments.10 Cosmetics beauty advisors are specifically assigned to one of the eight cosmetics vendor counters. They typi- cally sell only that vendor’s products, although from time to time they may sell other cosmetics vendors’ products (for example, an Estée Lauder beauty advisor might as- sist customers at the Clinique counter when the Clinique beauty advisor is on break). Cosmetics beauty advisors demonstrate products by giving customers makeovers and by otherwise applying products to a customer’s skin. Fragrances beauty advisors are assigned to either the men’s or women’s fragrances counter, and sell all availa- ble men’s or women’s products, regardless of the vendor. The Shiseido, Chanel, Lancôme, Clinique, Estée Lauder, Origins, women’s fragrances, and men’s fragrances counters each have a counter manager who, in addition to selling products, helps organize promotional events, monitor the counter’s stock, coach beauty advisors on customer service and selling technique, ensure that their counter is properly covered by beauty advisors, and schedule visits by vendor employees (such as sprayers source manager, operations manager, loss prevention manager, clerical employees, guards, and supervisors as defined in the Act. 8 The record does not break down how many beauty advisors work in cosmetics and how many work in fragrances. It appears that there are more cosmetics beauty advisors, as there are eight total cosmetics coun- ters and two fragrances counters. 9 There is also a cosmetics counter for MAC in this area, but that counter is staffed entirely by individuals employed directly by Estée Lauder. 10 Although the map is not clear, it appears that the first floor cos- metics and fragrances area is adjacent to the juniors, fine jewelry, women’s shoes, and ready-to-wear departments. The second floor men’s fragrances counter is adjacent to men’s clothing. and makeup artists).11 Counter managers also assist Quince in evaluating beauty advisors. Although cosmet- ics and fragrances beauty advisors do not usually work at each others’ counters, the seven on-call employees may work at any of the ten counters. Besides the petitioned-for employees, two types of vendor representatives—account coordinators and ac- count executives—are frequently present in the cosmet- ics and fragrances department. Most of the primary cosmetics vendors have account coordinators, who are employed by Macy’s.12 Account coordinators coach beauty advisors on selling and customer service, provide in-store training for beauty advisors who work at that vendor’s counter, and forward product-related training materials to their beauty advisors. The highest volume cosmetics vendors also have account executives— employed directly by the vendors—who visit the Saugus store to ensure that their beauty advisors have what they need; they also organize off-site training for beauty advi- sors who sell that vendor’s products.13 Fragrances ven- dors also have vendor representatives, but it appears that they do not visit the store as frequently as the cosmetics vendor representatives. Account coordinators and executives are also involved in hiring cosmetics beauty advisors. Typically, a vendor representative will interview an applicant along with the Employer, and the Employer will consult the vendor rep- resentative to ensure that mutually acceptable applicants are hired. Vendor representatives are not, however, in- volved in hiring fragrances beauty advisors or on-call employees. With respect to the petitioned-for employ- ees, prior experience in selling cosmetics or fragrances is desirable, but not required. The in-store and offsite training provided to beauty advisors covers selling techniques and product knowledge. For fragrances beauty advisors, product knowledge training involves topics such as ingredients, scents, and notes.14 For cosmetics beauty advisors, product knowledge training mainly involves products in their vendor’s line, but they also receive training in in- 11 Sprayers, who are employed directly by fragrances vendors, dis- pense fragrance samples to customers. Makeup artists, who are em- ployed directly by cosmetics vendors, train cosmetics beauty advisors and give customers makeovers at special events. 12 Elizabeth Arden apparently does not have an account coordinator for the Saugus store. 13 It is not clear in the record exactly which vendors have account executives, but the record shows that Clinique, Estée Lauder, and Lancôme do. 14 The Employer’s Brief on Review states that fragrances beauty ad- visors do not receive offsite training. Store Manager McKay, however, expressly testified that fragrances beauty advisors may receive onsite or offsite training from vendor representatives. DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 14 terselling so that they can assist customers at another vendor’s counter. Cosmetics beauty advisors are also trained in skin tones, skin types, skin conditions, and use of color. Unlike the beauty advisors, on-call employees receive no training beyond what they learn on the selling floor. Beauty advisors are paid an hourly wage, plus a 3 per- cent commission on products sold from their own coun- ter. Cosmetics beauty advisors receive a 2-percent com- mission when they sell cosmetics from other counters. Counter managers also receive an hourly wage plus a 3- percent commission, as well as a .5 percent commission on all sales made at their counter. On-call employees receive a 2-percent commission regardless of what they sell. The exact mechanism by which the commission is paid depends on the vendors and is negotiated between the store and the vendor. The record does not contain any details of specific commission arrangements differ- ent vendors have with the store. Petitioned-for employ- ees may, on occasion, ring up items from other sales de- partments, but they receive no commission on these items. Cosmetics beauty advisors keep lists of their regular customers.15 These lists are used to book appointments to give customers makeovers, to invite them to try new products, to presell products, and to notify them of spe- cial promotions or events. Customers may also contact their cosmetics beauty advisor to ask for product refills or to schedule a makeover. One cosmetics beauty advi- sor specified that she calls her regular customers about five times a year to tell them about new products, to ask if they need any products replenished, and to offer them free gifts. Fragrances beauty advisors also keep client lists, which they use to invite customers to new fragrance launches. The record does not indicate whether on-call employees maintain client lists. Most of the cosmetics vendors provide distinctive uni- forms for the beauty advisors who staff their counters. Clinique, Origins, Estée Lauder, Lancôme, Clarins, and Elizabeth Arden beauty advisors all have their own uni- forms. The remaining (Shiseido and Chanel) cosmetics beauty advisors and the fragrances beauty advisors, how- ever, simply follow the Employer’s “basic black” dress requirement. Other Employees The Employer argues that the only appropriate unit must include all other employees of the Saugus store, or 15 The two cosmetics beauty advisors who testified estimated that they had lists of 200 and 400 clients, respectively. at least all of the selling employees at the Saugus store.16 The record contains scant evidence regarding the 30 non- selling employees employed at the store: there is a re- ceiving team (with its own manager) and a merchandis- ing team (with two managers), who are collectively re- ferred to as stock employees, and there are also staffing employees. The evidence concerning selling employees in other primary sales departments is also generally less specific than the evidence concerning the petitioned-for employ- ees. There is, for example, no indication of how the 80 remaining selling employees are distributed across the 10 primary sales departments. Similarly, there is far less information on how these other selling departments are structured. In this regard, the record reveals only that most (but not all) primary sales departments have their own sales manager, and that at least some of them are divided into subdepartments, which do not have supervi- sion separate from the sales manager. There is no indica- tion that the other primary sales departments have the equivalent of counter managers, and the record is unclear as to whether the other primary sales departments utilize the equivalent of on-call employees.17 Certain other primary sales departments do, however, have some specialist sales employees who, like the cos- metics beauty advisors, specialize in selling a particular vendor’s products. For instance, specialists sell Guess products in shoes and men’s clothing, North Bay in shoes, and Polo in men’s clothing. Levi’s, Lacoste, Buf- falo, and INC (the Employer’s private brand) also have specialists who sell their products. Likewise, vendor representatives operate in certain other sales departments, monitoring stock and training selling employees on sell- ing technique and product knowledge. Guess, Polo, Buf- falo, North Face, Nautica, Lacoste, and Hilfiger all have vendor representatives operating in sales departments that sell their products, and Lenox has representatives who operate in the home/housewares department. Ven- dors including Polo, North Face, and Levi’s have con- ducted both in-store and offsite training for those special- ists who sell their products.18 16 The Petitioner is unwilling to proceed in an election in any unit other than the petitioned-for unit. 17 The record is clear that the cosmetics and fragrances on-call em- ployees do not work in other departments. The only other testimony about the use of on-call employees (or their equivalent) in other de- partments consists of Human Resources Director Gina DiCarlo’s state- ment that there are no on-call employees “specifically assigned to those departments” that sell North Face products (which apparently include the juniors, men’s clothing, and ready-to-wear departments). 18 Although there are specialist selling employees scattered across some other primary selling departments, the record does not establish how many other primary selling departments have specialist sales em- MACY’S, INC. 15 Aside from specialists, employees in other sales de- partments receive training through product information sheets, conversations with management, and offsite ven- dor training. Selling employees are also trained in rele- vant product-related matters. For example, employees who sell shoes are trained on fit, type, fabric, and color, and employees who sell dresses are trained on silhouette, fabrics, and fit. Further, other sales departments hold various seminars during the year that train employees in their departments in selling technique, product knowledge, and related topics. For example, juniors conduct back-to-school and newborn training seminars; big ticket has biannual training seminars where vendor representatives instruct employees on product knowledge, selling technique, clientelling, and selling protection plans; and fine jewelry conducts at least three annual seminars on product knowledge, clarity, cut, col- or, and weight. In hiring, there are situations in which other sales de- partments consult with vendor representatives in select- ing an applicant. Specifically, the Employer consults Levi’s, Polo, Buffalo, and Guess vendor representatives when hiring sales specialists in those brands, and these representatives also interview applicants for specialist positions. As in cosmetics and fragrances, prior selling experience in the department’s product is desirable, but not required. Not all selling employees are paid on the base-plus- commission formula used in cosmetics and fragrances, but selling employees in the fine jewelry, men’s clothing, men’s shoes, and big ticket departments are paid on that basis.19 At least some specialists in other departments also receive a base wage plus commission, but specific arrangements vary. For instance, the record suggests that Guess and Buffalo specialists are paid a base wage plus commission, but Levi’s specialists receive a bonus rather than a commission, and Polo specialists receive no com- mission at all. As with the cosmetics beauty advisors, the precise mechanism by which a commission is paid to specialist selling employees varies by vendor. Some selling employees outside of cosmetics and fra- grances also keep customer lists. Selling employees in the fine jewelry, men’s clothing, big ticket, and bridal ployees; further, there is no indication as to how many selling employ- ees in any of those departments are specialists. Additionally, although there is evidence that selling employees (specialist and otherwise) outside of cosmetics and fragrances interact with vendor representa- tives, the record does not establish that a significant number of these other selling employees do so, insofar as it does not reveal the number of other specialist employees or the number of employees who interact with vendor representatives. 19 Not all of these employees specialize in selling a particular ven- dor’s products. departments all maintain such lists,20 which are apparent- ly used to invite customers to special events, such as a particular vendor event in the jewelry or bridal depart- ment. Shared Community of Interest Factors and Bargaining History There is some degree of contact between the cosmetics and fragrances department and other sales departments. As noted above, from time to time merchandise from other sales departments may be rung up in cosmetics and fragrances. But because various employees earn com- mission, the Employer does not “like to make a habit” of merchandise from one department being rung up in an- other; there is no evidence as to how frequently it oc- curs.21 Although various witnesses indicated that they had seen merchandise from other departments occasion- ally being rung up in cosmetics and fragrances (usually due to long lines in adjacent departments), two cosmetics beauty advisors stated that they had never seen cosmetics or fragrances rung up in a different department.22 There is some incidental contact between cosmetics and fragrances employees and other selling employees, given the proximity of the cosmetics and fragrances counters to other departments,23 as well as daily morning rallies attended by all employees whose shifts correspond with the store’s opening. These rallies—which review the previous day’s sales figures and any in-store events taking place that day—are no longer than 15 minutes, and at times individual departments will have their own meetings in place of the rally. The record indicates that selling employees are expected to help each other out and to assist customers, and that this may lead to contact be- tween the petitioned-for and other selling employees, but there is no indication of how often this happens or how extensive these interactions may be. Similarly, the rec- ord refers to cosmetics and fragrances personnel recruit- 20 The dissent states that these four departments have “already” used client lists to invite customers to special events. The record does not suggest that these four departments use these lists to the degree the cosmetics beauty advisors do (i.e., these other departments apparently do not use their client lists to book appointments, replenish products, or presell items). Contrary to the dissent, we do not think that Store Man- ager McKay’s testimony suggests that there is any imminent plan to use client lists in the remaining primary sales departments 21 In this regard, McKay testified that nobody receives commission if a cosmetics item is rung up in the shoe department. The Employer accordingly prefers to have each department ring up its own products so that commission is properly allocated. 22 One beauty advisor commented that if customers want to purchase products, but also want to look in other departments, the beauty advi- sors will hold the cosmetics products for the customers until they are ready to check out. 23 As noted above, the cosmetics and fragrances selling areas are ad- jacent to several other departments. DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 16 ing customers in other areas of the store (such as wom- en’s shoes), but the testimony on this count was vague and limited, so it is not clear how regularly this takes place, nor is it clear how much actual contact between petitioned-for and other selling employees results from these customer recruitment efforts.24 There is little evidence of temporary interchange be- tween the petitioned-for employees and other selling employees. Petitioned-for employees are neither asked nor required to work in other departments, aside from assisting in periodic inventory.25 Other selling employ- ees are “not regularly” asked to work in cosmetics and fragrances, and although one witness stated that other selling employees might occasionally do so, her subse- quent testimony limits such interchange to other selling employees helping out from a “recovery standpoint” or to assist a customer when a cosmetics or fragrances counter is temporarily unattended. There are no exam- ples of (1) other selling employees actually assisting the cosmetics and fragrances department, (2) cosmetics and fragrances employees actually assisting other depart- ments, or (3) a selling employee from one department picking up shifts in another department. In the last 2 years, there have been eight permanent transfers from other areas of the store into the cosmetics and fragrances department,26 and one permanent transfer out of the de- partment to a supervisory position. The petitioned-for employees as well as the other sell- ing employees work shifts during the same time periods, use the same entrance, have the same clocking system, and use the same break room. As noted above, there is no prior experience required for any selling position. All selling employees who are present at the start of the day attend the morning rallies. All selling employees enjoy the same benefits, are subject to the same employee 24 It is not even clear that such activity involves petitioned-for em- ployees. The relevant testimony begins with a discussion of sprayers— who are not among the petitioned-for employees—recruiting customers in other areas of the store, followed by the unelaborated statement that “cosmetics associates go into the shoe department to recruit.” 25 All employees participate in inventory, which consists of count- ing, scanning, and organizing products. Cosmetics and fragrances employees may be assigned to inventory work in other departments, or may end up conducting inventory in other departments if they finish their own inventory work early. Cosmetics and fragrances employees may, and have, requested inventory work in other departments as well. As inventory work involves no selling, cosmetics and fragrances em- ployees receive only their base wage when performing such work. The record does not indicate the frequency of inventory work, which in any event is clearly incidental to the primary function of both the peti- tioned-for and other selling employees. 26 Seven of these transfers involved an employee from another sales department transferring into cosmetics and fragrances; the eighth in- volved a staffing, i.e., nonselling, employee transferring to the Lancôme counter. handbook, and have access to the same in-store dispute resolution program. All selling employees are evaluated based on the same criteria (their “sales scorecard,” cus- tomer service, and teamwork).27 And all selling employ- ees are coached through My Products Activities, a pro- gram consisting of exercises designed to improve selling techniques and product knowledge. There is no bargaining history at the Saugus store. The Employer and Petitioner have two collective-bargaining agreements covering employees at six other stores. One agreement covers selling, support, and alterations em- ployees at a store in Boston, but does not cover that store’s cosmetics and fragrances department. The Peti- tioner organized the Boston store sometime before 1970, when it was a Jordan Marsh store, but the record contains no further evidence as to how that unit came into exist- ence. The second agreement covers employees at the Employer’s stores in Braintree, Natick, Peabody, and Belmont, Massachusetts, as well as one in Warwick, Rhode Island. That unit apparently has existed for dec- ades, but was organized under Filene’s, whose parent company the Employer acquired through a stock acquisi- tion in 2005, and there is also no indication how this unit came into existence. This unit appears to include selling and support employees at the five stores, but does not cover cosmetics and fragrances employees at any of the stores,28 with the exception of the Warwick cosmetics and fragrances employees, who had been historically excluded and voted to unionize and join the existing five- store unit in 2005 (when the store was still a Filene’s location). The Warwick cosmetics and fragrances em- ployees are now covered by the five-store contract, alt- hough the contract sets forth a number of provisions ap- plicable only to the Warwick cosmetics and fragrances employees. On March 24, 2011, the Petitioner filed a petition seek- ing a self-determination election to determine whether Saugus employees wished to join the existing five-store unit; the petition covered all full-time and regular part- time employees at the Saugus store. See Macy’s, Inc., Case 01–RC–022530 (2011) (not reported in Board vol- umes).29 The Employer, however, argued that adding the 27 The precise evaluation forms differ from department to depart- ment, and each department has its own sales goals (which are factored into the “sales scorecard”). Within the cosmetics and fragrances de- partment, cosmetics beauty advisors and counter managers have their own evaluation forms. The “scorecard” is less heavily weighted for counter managers (55 percent) than for other employees (70–80 per- cent). 28 Unlike the other four stores, there apparently are no cosmetics and fragrances employees at the Belmont store. 29 Although not part of the record in this case, we take administrative notice of the Decision and Direction of Election in Case 01–RC– MACY’S, INC. 17 Saugus employees to the existing five-store unit would be inappropriate. The Regional Director agreed with the Employer, and instead directed an election to determine whether the Saugus employees wished to be represented in a single-store unit. The Petitioner agreed to move forward with the election, but lost.30 THE ACTING REGIONAL DIRECTOR’S DECISION Applying Specialty Healthcare, supra, the Acting Re- gional Director first found that the employees in the peti- tioned-for unit are readily identifiable as a group and that they share a community of interest because the peti- tioned-for employees work in one of two distinct areas of the store, they work in one of two job classifications (beauty advisor and counter manager), and cosmetics beauty advisors can substitute for one another. Further, the Acting Regional Director found that the unit was not a “fractured” unit because it tracks a departmental line drawn by the Employer. The Acting Regional Director also found that this departmental line was further reflect- ed by differences between the petitioned-for and other selling employees. The Acting Regional Director then found that although the petitioned-for employees share some common inter- ests with other selling employees, the Employer had not established that they share an overwhelming community of interest because there are “meaningful differences” between the petitioned-for employees and other selling employees. The Acting Regional Director found that the petitioned-for employees are paid differently, hired dif- ferently, trained differently, make heavier use of client lists, constitute their own department, are not functional- ly integrated with other selling employees, are subject to a different supervisory structure because they answer to counter managers, have little contact or interchange with other selling employees, and for the most part wear dis- tinctive uniforms. The Acting Regional Director found that these differences distinguished this case from Wheel- ing Island Gaming, 355 NLRB 637 (2010), cited by the Employer. The Acting Regional Director also distin- guished this case from a line of retail industry cases the Employer contends are relevant, stating that those cases predated Specialty Healthcare, applied a different stand- ard from that in Specialty Healthcare, and that even be- fore Specialty Healthcare the petitioned-for unit would have been appropriate as it is a departmental unit. Final- 022530, which fully explains the nature of the unit sought in that case and the unit the Regional Director found appropriate. 30 The Petitioner’s willingness to proceed to an election in that case does not suggest that it did not believe that a separate unit of cosmetics and fragrances employees would also be an appropriate unit. ly, the Acting Regional Director stated that because any relevant bargaining history was imprecise and nonbind- ing, he was not basing his decision on that factor.31 Position of the Parties and Amici The Employer contends that the petitioned-for em- ployees do not constitute an appropriate unit. Regarding Specialty Healthcare, the Employer argues that the peti- tioned-for employees are not “readily identifiable as a group” and do not share a community of interest. The Employer further argues that even if the petitioned-for employees are readily identifiable as a group and share a community of interest, they share an overwhelming community of interest with selling employees in other sales departments because they are otherwise a “frac- tured” unit. The Employer acknowledges that there are differences between the petitioned-for employees and other selling employees, but the Employer asserts that, under Wheeling Island Gaming, supra, these differences are too minor to render the petitioned-for unit appropri- ate. Aside from Specialty Healthcare, the Employer con- tends that in the retail industry, a storewide unit is pre- sumptively appropriate, and that although the Board has deviated from this standard to allow units of selling em- ployees, it has never “approved a unit which departs from the storewide presumption as dramatically as the unit sought here.” The Employer also suggests that by deviating from the storewide presumption, the Acting Regional Director essentially allowed the extent of or- ganization to control his decision, in violation of Section 9(c)(5) of the National Labor Relations Act. Finally, for the first time in its brief on review, the Employer argues that the Board should overrule Specialty Healthcare, or at least should not apply it to the retail industry, because applying it here will allow “a proliferation of micro- units” based solely on the product sold by employees, which will in turn lead to “competitive” bargaining among these small units, potentially leading to “chaos and disruption of business.” The Employer therefore contends that the only appropriate unit would be a store- wide unit, or else a unit of all selling employees. The Petitioner argues that the Acting Regional Direc- tor’s decision should be affirmed because the parties have treated cosmetics employees separately from other selling employees at other unionized stores, because the 31 The Acting Regional Director also found that the facts of this case are “indistinguishable” from those of Neiman Marcus Group, Inc. d/b/a Bergdorf Goodman, Case 02–RC–076954 (May 4, 2012), a case that involved a petitioned-for unit of employees who sold shoes. As the Board granted review in that case on May 30, 2012, and the case re- mains pending before the Board, neither the Acting Regional Director’s discussion of Bergdorf Goodman nor the Employer’s attempts to dis- tinguish it play any role in our analysis and conclusions in this case. DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 18 petitioned-for employees are readily identifiable as a group and share a community of interest, and because the petitioned-for employees share no “significant” commu- nity of interest with employees in other departments. The Petitioner contends that because the petitioned-for unit tracks an employer-created departmental line, find- ing it appropriate would not be out of step with pre- Specialty Healthcare cases involving retail department stores. Finally, the Petitioner states that decisions since Specialty Healthcare “have followed the historic trend of Board decisions finding less than a wall to wall unit ap- propriate.” Amici curiae Chamber of Commerce et al. argue that the Board should overrule Specialty Healthcare.32 In particular, they assert that applying Specialty Healthcare to this case will depart from Board precedent holding that a storewide unit is presumptively appropriate in the retail industry, and that applying Specialty Healthcare to the retail industry will result in proliferation that will in turn cause administrative burdens, allow “gerrymander- ing,” negatively impact employee skill development and customer service, and create employee dissatisfaction that will lead to work stoppages that could “cripple” re- tail establishments. Amicus curiae NRF also joins the Employer in arguing that Specialty Healthcare should be overruled and that the Acting Regional Director’s decision is contrary to retail industry precedent. NRF concedes that the peti- tioned-for unit is readily identifiable as a group within the meaning of Specialty Healthcare, but asserts that the overwhelming community of interest standard, as applied here, shows that Specialty Healthcare should not be ap- plied to the retail industry because it contradicts the pre- sumptive appropriateness of storewide units and will lead to “destructive factionalization” of the retail work force. Amici curiae RILA-RLC similarly argue that Specialty Healthcare should be reversed or limited to the nonacute healthcare context. RILA-RLC also suggest that the pe- titioned-for unit is not readily identifiable as a group, and expressly contend that the petitioned-for employees share an overwhelming community of interest with other sell- 32 All amici, as well as our dissenting colleague, contend that the standard articulated in Specialty Healthcare (1) runs counter to Sec. 9(b)’s requirement that the Board determine the appropriate unit “in each case”; (2) is at odds with Sec. 9(b)’s statement that unit determina- tions must “assure to employees the fullest freedom in exercising the rights guaranteed” by the Act because it disregards the right of employ- ees to refrain from organizing; and (3) is contrary to Sec. 9(c)(5)’s requirement that “the extent to which the employees have organized shall not be controlling.” Amici Chamber of Commerce et al. and NRF also contend that Specialty Healthcare represents an abuse of discretion because the standard articulated therein should have been adopted through rulemaking instead of adjudication. ing employees. Finally, RILA-RLC argue that the Act- ing Regional Director improperly disregarded retail in- dustry precedent, and predict that approving units like the petitioned-for unit will have a harmful effect on the retail industry by decreasing employee flexibility, in- creasing tension among employees, and permitting “harmful gerrymandering.” Analysis The Board’s decision in Specialty Healthcare sets forth the principles that apply in cases like this one, in which a party contends that the smallest appropriate bar- gaining unit must include additional employees beyond those in the petitioned-for unit. As explained in that de- cision, when a union seeks to represent a unit of employ- ees, “who are readily identifiable as a group (based on job classifications, departments, functions, work loca- tions, skills, or similar factors), and the Board finds that the employees in the group share a community of interest after considering the traditional criteria, the Board will find the petitioned-for unit to be an appropriate unit ….” 357 NLRB 934, supra at 945. If the petitioned-for unit satisfies that standard, the burden is on the proponent of a larger unit to demonstrate that the additional employees it seeks to include share an “overwhelming” community of interest with the petitioned-for employees, such that there “is no legitimate basis upon which to exclude cer- tain employees from” the larger unit because the tradi- tional community of interest factors “overlap almost completely.” Id., slip op. at 11–13, fn. 28 (quoting Blue Man Vegas, LLC v. NLRB, 529 F.3d 417, 422 (D.C. Cir. 2008)). Applying this framework to the particular facts of this case,33 we find that the petitioned-for unit is an appropriate unit. A. Cosmetics and Fragrances Employees are a Readily Identifiable Group and Share a Community of Interest The cosmetics and fragrances employees are “readily identifiable as a group.” They are all the employees in the three nonsupervisory classifications in the cosmetics and fragrances department—beauty advisors, counter managers, and on-call employees—who perform the function of selling cosmetics and fragrances at the Sau- 33 This is in contrast to our dissenting colleague, who states that he “would refrain from applying Specialty Healthcare in this or any other case,” although he acknowledges that (1) Specialty Healthcare was enforced by the U.S. Court of Appeals for the Sixth Circuit, see Kin- dred Nursing Centers East, supra, and (2) the D.C. Circuit has also upheld the “overwhelming community of interest” standard. See Blue Man Vegas, supra. In its decision, the Sixth Circuit considered argu- ments, similar to those presented by our dissenting colleague, that the Specialty Healthcare test constituted a material change in the law, and concluded that “this is just not so.” 727 F.3d at 561. MACY’S, INC. 19 gus store. Thus, the petitioned-for employees are readily identifiable based on classifications and function. More- over, the petitioned-for unit is coextensive with a de- partmental line that the Employer has drawn. Cf. Northrop Grumman Shipbuilding, Inc., 357 NLRB 2015, 2017 (2011) (finding petitioned-for employees “readily identifiable as a group” because they belonged to the same department and performed a unique function), enf. denied on other grounds sub nom. NLRB v. Enterprise Leasing Co. Southeast, LLC, 722 F.3d 609 (4th Cir. 2013), petition for writ of cert. filed, No. 13–671 (2013). Significantly, this is a primary selling department, not a sub-department within a primary selling department. The petitioned-for employees also share a community of interest. In determining whether employees in a pro- posed unit share a community of interest, the Board ex- amines: whether the employees are organized into a separate department; have distinct skills and training; have dis- tinct job functions and perform distinct work, including inquiry into the amount and type of job overlap be- tween classification; are functionally integrated with the Employer’s other employees; have frequent contact with other employees; interchange with other employ- ees; have distinct terms and conditions of employment; and are separately supervised. Specialty Healthcare, supra, at 942 (quoting United Opera- tions, 338 NLRB 123, 123 (2002)). Here, all of the petitioned-for employees work in the same selling department and perform their functions in two connected, defined work areas. They have common supervision, as they are all directly supervised by Sales Manager Kelly Quince. Their work also has a shared purpose and functional integration, as they all sell cos- metics and fragrances products to customers. This func- tional integration is exemplified by the on-call employ- ees, who sell both cosmetics and fragrances products throughout the department, depending on staffing needs. Further, the petitioned-for employees are the only em- ployees who sell cosmetics and fragrances. The only regular contact the petitioned-for employees have with other employees appears to be limited to the brief morn- ing “rallies.” What other daily contact they have is inci- dental, as they are not expected to work in other depart- ments, apart from periodic inventory assistance. As the Employer does not “like to make a habit” of merchandise from one department being rung up in another, it does not appear that the petitioned-for employees come into frequent contact with the products sold in other depart- ments. Additionally, there are only nine examples of permanent transfers into, or out of, the cosmetics and fragrances department over the last 2 years. And all of the petitioned-for employees are paid on a base-plus- commission basis, receive the same benefits, and are subject to the same Employer policies. The Employer and amici RILA-RLC contend that the petitioned-for employees are not readily identifiable as a group and do not share a community of interest, but the Employer and amici offer no support for this argument aside from pointing to the fact that the cosmetics and fragrances department is split between two separate floors and that there are certain differences among the petitioned-for employees. It is true that the cosmetics and fragrances department is split between two floors, but the two areas that house the department are neverthe- less connected by a bank of escalators. More important- ly, a petitioned-for unit is not rendered inappropriate simply because the petitioned-for employees work on different floors of the same facility. See D.V. Displays Corp., 134 NLRB 568, 569 (1961).34 Although there are some differences among the peti- tioned-for employees, we find, in contrast to our dissent- ing colleague, that they are insignificant compared to the strong evidence of community of interest that they share. On-call employees earn a slightly smaller commission than beauty advisors and counter managers, but minor differences in compensation among petitioned-for em- ployees do not render a petitioned-for unit inappropriate. Cf. Hotel Service Group, 328 NLRB 116 (1999) (peti- tioned-for unit did not possess separate community of interest from other employees despite difference in hour- ly pay rates, commissions, gratuities). Beyond this in- significant difference, cosmetics beauty advisors sell one vendor’s products and give makeovers whereas fragranc- es beauty advisors sell all vendors’ products and do not give makeovers; on-call employees do not attend training events that other beauty advisors attend; most cosmetics beauty advisors wear distinct uniforms; and vendor rep- resentatives are consulted in hiring cosmetics beauty advisors, but not fragrances or on-call employees. In most other respects, however, the interests of the peti- tioned-for employees are identical.35 See DTG Opera- tions, Inc., 357 NLRB 2122, (2011); see also Guide Dogs for the Blind, Inc., 359 NLRB 1412, 1416 (2013) (peti- tioned-for employees readily identifiable as a group and 34 The fact that the petitioned-for employees also work at different counters is therefore also analytically insignificant. 35 Unlike our dissenting colleague, we do not regard the fact that the two selling areas are adjacent to different departments as a “substantial” dissimilarity in working conditions among the petitioned-for employ- ees. They share common supervision and function and constitute all of the selling employees within the Employer’s separately-defined de- partment. DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 20 shared a community of interest where unit consisted of all employees in two classifications of same administra- tive department).36 B. Other Employees do not Share an Overwhelming Community of Interest with Cosmetics and Fragrances Employees In Specialty Healthcare, the Board held that two groups share an overwhelming community of interest when their community-of-interest factors “overlap al- most completely.” Specialty Healthcare, supra at 944. The Employer has failed to establish that the petitioned- for employees and the nonselling employees share an overwhelming community of interest; in fact, there is virtually no record evidence concerning the nonselling employees. The Employer alternatively argues that the smallest appropriate unit must include all selling em- ployees. Accordingly, we consider next whether the Employer has met its burden to establish that the peti- tioned-for employees share an overwhelming community of interest with the other selling employees. Contrary to our dissenting colleague, we find that the Employer has not done so. It is readily apparent that there are clear distinctions between the petitioned-for employees and other selling employees. First and foremost, there is no dispute that the petitioned-for employees work in a separate depart- ment from all other selling employees and that the peti- tioned-for unit consists of all nonsupervisory employees in that department. The fact that the petitioned-for unit tracks a dividing line drawn by the Employer is particu- larly significant. See Fraser Engineering Co., 359 NLRB 681, 681 (2013); Specialty Healthcare, supra, at 942 fn. 19 (quoting International Paper Co., 96 NLRB 295, 298 fn. 7 (1951)). In the context of this case, it is also significant that the cosmetics and fragrances de- partment is structured differently than other primary sales departments, as there is no evidence that other de- partments have the equivalent of counter managers.37 36 Amici RILA-RLC argue, and our dissenting colleague appears to agree, that the fact that different petitioned-for employees work under different counter managers is a “significant” difference among the petitioned-for employees. As the counter managers are included in the petitioned-for unit, that argument is meritless. Further, it is undisputed that counter managers are not supervisors, and it is also undisputed that all petitioned-for employees report directly to Sales Manager Quince. Thus, the counter managers provide no evidence of separate supervi- sion among the petitioned-for employees. As stated above, the shared community-of-interest factors outweigh any other distinction among the petitioned-for employees that could be based on the counter manag- ers. 37 To be clear, and in contrast to the Acting Regional Director, we do not find that counter managers constitute a separate level of supervi- sion. Likewise, there is no evidence that other departments have the equivalent of on-call employees. Second, there is no dispute that the petitioned-for employees are sepa- rately supervised by Sales Manager Quince. Although the petitioned-for employees and the other selling em- ployees are commonly supervised at the second (and highest) level by Store Manager McKay, such common upper-level supervision can be—and in this case is— outweighed by other factors favoring a separate unit. See, e.g., Grace Industries, 358 NLRB 502, 507 (2012).38 Third, there is no dispute that the petitioned- for employees work in their own distinct selling areas. Cf. DTG Operations, supra at 2126 (finding no over- whelming community of interest where, inter alia, peti- tioned-for employees worked behind sales counters in rental buildings “separate from virtually all of the other hourly employees”).39 Taken together, the fact that the petitioned-for employees work in a separate department, report to a different supervisor, and work in separate physical spaces supports our finding that the petitioned- for employees do not share an overwhelming community of interest with other selling employees. Cf. Guide Dogs for the Blind, supra at 1417 (finding factors did not “overlap almost completely” where employees sought to be added to petitioned-for unit worked in separate admin- istrative departments, reported to different managerial chains, and worked in separate physical spaces). Further, the record before us does not show any signif- icant contact between the petitioned-for employees and other selling employees. The Employer claims that there is “regular” contact because the petitioned-for employees recruit customers in other sales departments, work in close proximity to other departments, and all store em- ployees attend daily morning rallies. The testimony re- garding customer recruitment, however, is exceptionally vague and consists of a single statement, never elaborat- ed upon, that “cosmetics associates go into the shoe de- partment to recruit.”40 Further, there is no indication how frequently petitioned-for employees engage in such recruitment, nor is there any indication that this leads to anything more than incidental contact with other selling 38 Although the dissent states that Store Manager McKay “exercises control over and oversees all salespeople across the store, both directly . . . and indirectly,” aside from her role in leading the morning “rallies,” the record is almost entirely silent as to McKay’s day-to-day interac- tions with cosmetics and fragrances or any other selling employees. 39 The fact that the cosmetics and fragrances selling areas are adja- cent to other selling areas does not, in our view, reduce the significance of the fact that the petitioned-for employees have their own distinct selling areas. 40 As noted above, this statement also appears in the context of a dis- cussion about how fragrance vendor-employed sprayers recruit custom- ers in other departments. MACY’S, INC. 21 employees. Likewise, notwithstanding the possibility of some informal contact with selling employees in neigh- boring departments, there is no record evidence as to the frequency or extent of any such interactions. As for the 15-minute rallies at the start of the day, there is no indi- cation of any employee interaction beyond simply being in attendance, and the rallies do not involve the employ- ees performing their main selling function. Thus, the record simply does not support a finding of regular, sig- nificant contact between the petitioned-for employees and other selling employees. Likewise, the record does not show significant inter- change between the petitioned-for employees and other selling employees. The Employer asserts that there is significant interchange based on nine permanent transfers into and out of the cosmetics and fragrances department over the last 2 years, and also claims that the petitioned- for employees assist other departments. We do not agree. Nine permanent transfers over a 2-year period do not establish significant interchange between petitioned- for and nonpetitioned-for employees, particularly in this relatively large unit of 41 employees, as all but one of those transfers was into the petitioned for unit, and the sole transfer out was to a supervisory position. Further, evidence of permanent interchange is a less significant indicator of whether a community of interest exists than is evidence of temporary interchange. See, e.g., Bashas’, Inc., 337 NLRB 710, 711 fn. 7 (2002). As for temporary interchange, the record is clear that cosmetics and fra- grances employees are never asked to sell in other de- partments, nor are other selling employees asked to sell in the cosmetics and fragrances department. The peti- tioned-for employees do assist other departments with inventory, but there is no indication that this involves a significant portion of the petitioned-for employees’ time, and in any event inventory work is incidental to the peti- tioned-for employees’ selling function. Further, there is no evidence that other selling employees assist the cos- metics and fragrances department with inventory. Alt- hough there was, as the dissent points out, testimony that other selling employees might be expected to assist cus- tomers at a temporarily unattended cosmetics or fra- grances counter, there was no indication that this occurs more than sporadically.41 Accordingly, the available evidence shows that any temporary interchange is infre- quent, limited, and one-way. Such “interchange” does 41 Similarly, the evidence regarding cosmetics and fragrances prod- ucts being rung up in other departments, and other products being rung up in cosmetics and fragrances, is at best inconclusive. McKay testi- fied that this happens from “time to time,” but two beauty advisors claimed that they were not aware of cosmetics ever being rung up in other departments. not require including the other selling employees in the petitioned-for unit. See DTG Operations, supra, at 2128. Regarding functional integration, the Employer and our dissenting colleague are correct that in Wheeling Is- land Gaming, the Board found significant functional in- tegration between poker dealers and other table games dealers because they were “integral elements of the Em- ployer’s gaming operation,” as reflected in common se- cond-level supervision. 355 NLRB at 642. But the sig- nificance of functional integration is reduced where, as here, there is limited interaction between the petitioned- for employees and those that the employer seeks to add. The Board has emphasized this point in two recent cases applying Specialty Healthcare.42 In DTG Operations, the Board stated that the employer’s facility was func- tionally integrated as “all employees work[ed] toward renting vehicles to customers,” but that because each classification had a separate role in the process, the clas- sifications had only limited interaction with each other, thus reducing the significance of the functional integra- tion. DTG Operations, supra at 2128. Similarly, in Guide Dogs for the Blind, the Board specified that func- tional integration does not establish an overwhelming community of interest where each classification has a separate role in the process and only limited interaction and interchange with each other. See Guide Dogs for the Blind, supra at 1417–1418. Accordingly, even if the pe- titioned-for employees are functionally integrated with the other selling employees, the petitioned-for employees have a separate role in the process, as they sell products no other employees sell, and they have limited interac- tion and interchange with other selling employees. Thus, in this case, the Employer “has failed to demonstrate” that the petitioned-for employees and all other selling employees “are so functionally integrated as to blur” the differences between the two groups. Id. at 1418. Nor does the fact that the petitioned-for employees perform tasks similar to those performed by other selling employees—i.e., selling merchandise—establish an overwhelming community of interest. In Guide Dogs for the Blind, the Board observed that certain petitioned-for employees provided physical care to dogs in a manner that resembled dog care provided by excluded kennel employees, but the Board found that the similarity of function was offset by the fact that these two groups of employees worked in different departments under differ- ent managers, dealt with different dog populations, and had little formal contact or interchange. See id. at 1417. The Board also found that other petitioned-for employees 42 Wheeling Island Gaming predated Specialty Healthcare, and did not apply the framework of that decision. DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 22 performed training duties similar to those performed by excluded field service managers, but found that this func- tional similarity was also offset because the two groups of employees worked toward distinct goals in disparate locations, and worked in distinct departments under dif- ferent managers. See id. Here, too, we find that alt- hough the petitioned-for employees and the other selling employees perform similar, related duties, this overlap is offset by the fact that the petitioned-for employees work in different departments, report to different immediate supervisors, have their own distinct work areas, and have little formal contact or interchange with the other selling employees. The factors we have discussed to this point demon- strate that, contrary to the Employer and amici, the peti- tioned-for unit is not a “fractured” unit. A unit is “frac- tured” when it is an “arbitrary segment” of what would be an appropriate unit, or is a combination of employees for which there is “no rational basis.” Specialty Healthcare, supra at 946. In Odwalla, Inc., 357 NLRB 1608, 1611–1613 (2011), the Board applied Specialty Healthcare and found the petitioned-for unit was frac- tured because it did not track any lines drawn by the em- ployer, such as classification, departmental, or functional lines, and also was not drawn according to any other community-of-interest factor. Here, by contrast, the peti- tioned-for unit tracks a departmental line drawn by the Employer itself. See, e.g., Fraser Engineering, supra at 688. Similarly, the petitioned-for unit contains all beauty advisors and counter managers, rather than a subset of these classifications. Cf. Specialty Healthcare, supra at 946 (unit might be fractured if it included only a select group of a given classification, such as CNAs who work on the first floor). The Employer and amici argue that the petitioned-for unit is fractured because it is smaller than the “presumptively appropriate” storewide unit; we address this alleged presumption below, but for now it is sufficient to reiterate that a unit is not fractured simply because a larger unit might also be appropriate, or even more appropriate. See id. To be sure, there are—as the dissent emphasizes— similarities between the petitioned-for employees and other selling employees. The petitioned-for employees and all other selling employees work shifts during the same store hours, are subject to the same handbook, are evaluated based on the same criteria, are subject to the same dispute-resolution procedure, receive the same ben- efits, use the same entrance and break room, attend brief morning rallies (although some are departmental), and use the same clocking system. It is also true that no prior experience is required for any selling position. But the fact that two groups share some community of interest factors does not, by itself, render a separate unit inappro- priate. Cf. Specialty Healthcare, supra at 943 (once Board has determined petitioned-for employees share a community of interest, “it cannot be that the mere fact that they also share a community of interest with addi- tional employees renders the smaller unit inappropri- ate”). Given the distinctions we have noted above, we do not find that these similarities establish an “almost com- plet[e]” overlap, and thus they do not establish an over- whelming community of interest. Id. at 944. We agree with the Employer that several of the “mean- ingful differences” identified by the Acting Regional Director are not fully supported by the record, insofar as they do not distinguish all petitioned-for employees from all other selling employees. In this regard: (1) vendor representatives play a role in hiring some specialist sell- ing employees, just as they play a role in hiring (most, but not all) cosmetics beauty advisors; (2) vendor repre- sentatives provide training to some (but not all) other selling employees (including specialist selling employ- ees), just as they provide training to cosmetics beauty advisors, and all such training involves selling technique and product knowledge; (3) some (but not most) of the other sales departments and certain specialist selling em- ployees are paid a base wage plus commission, as are all of the petitioned-for employees; (4) some other selling employees maintain client lists, just as most of the peti- tioned-for employees, and the record does not support a finding that petitioned-for employees’ use of these lists differs from those kept by other selling employees;43 and (5) some (but not necessarily most) of the petitioned-for employees are subject to the same dress code as the other selling employees.44 These circumstances do not, however, assist the argu- ment that the selling employees share an overwhelming community of interest with the cosmetics employees. In this regard, we emphasize that the Employer does not argue that some, but not all, of the other selling employ- ees share an overwhelming community of interest with the cosmetics and fragrances employees; rather, the Em- 43 That said, as described above, it appears that the cosmetics beauty advisors make heavier use of these lists than do other selling employ- ees, insofar as they use them not just to inform clients of special events, but also to presell products, offer them free gifts, and book makeover appointments. 44 The Acting Regional Director also found that the petitioned-for employees differ from other selling employees because counter manag- ers provide an extra level of supervision. As the counter managers are not supervisors, but are instead part of the petitioned-for unit, the rec- ord does not support a finding that they provide an extra level of super- vision. But as we have explained above, the presence of counter man- agers in the cosmetics and fragrances department is by itself a factor that distinguishes the petitioned-for employees from other selling em- ployees, even if the counter managers are not supervisors. MACY’S, INC. 23 ployer argues that the smallest appropriate unit includes all selling employees—i.e., that all selling employees share an overwhelming community of interest with all of the petitioned-for employees. See DTG Operations, su- pra, at 2126. The factors just enumerated, however, show only that some petitioned-for employees share sim- ilarities with some other selling employees. Thus, it is not the case that all selling employees have vendor input in hiring, or receive training from vendor representatives. Similarly, although some employees are, like the peti- tioned-for employees, paid on a base-plus-commission basis, it is undisputed that other selling employees are compensated by other methods.45 Likewise, not all other selling employees maintain client lists. And although some petitioned-for employees are subject to the same dress code as all other selling employees, it remains the case that many petitioned-for employees do wear distinc- tive uniforms. In sum, the mere fact that all petitioned- for employees share certain community of interest factors with some (but not all) other selling employees, or that some (but not all) petitioned-for employees share simi- larities with some (but not all) other selling employees, does not demonstrate the “almost complet[e]” overlap of factors required to establish an overwhelming communi- ty of interest between all the petitioned-for employees and all the other selling employees. Specialty Healthcare, supra at 944.46 In any event, even if we were to find that all of the foregoing considerations do support the Employer’s argument, we would nevertheless find that they are outweighed by the separate department, the structure of the department that includes counter managers, separate supervision, separate work areas, and lack of significant contact and meaningful interchange. These considerations alone clearly show that the com- munity of interest factors do not “overlap almost com- pletely,” and therefore the Employer has not established that the petitioned-for employees and other selling em- ployees share an overwhelming community of interest. Id. 45 Even if all employees were paid in the same manner, similarity of wages does not render a separate petitioned-for unit inappropriate. See id. at 7. 46 This is especially so where, as here, the record contains no break- down of the number of other selling employees who, for instance, are compensated on a base-plus-commission basis. That is, because we do not know how many other selling employees are paid base-plus- commission, or are subject to vendor input in hiring, or maintain client lists, we cannot draw firm conclusions as to whether these circumstanc- es establish the requisite overwhelming community of interest. This state of affairs must be construed against the Employer, as the party arguing that an overwhelming community of interest exists. See id. at 12–13. Finally, Wheeling Island Gaming, supra, does not war- rant a different result.47 In that case, the majority found that a unit limited to poker dealers was inappropriate because the poker dealers were not sufficiently distinct from other table games dealers. See id. at 637. More specifically, the Wheeling Island Gaming Board found that although poker dealers and other table games dealers had separate immediate supervision, an absence of daily interchange, and little permanent interchange, these dis- tinctions were outweighed by other factors showing the two groups shared a community of interest. See id. at 641–642. Wheeling Island Gaming is relevant here in- asmuch as the Specialty Healthcare Board adopted, as an “integral part of [its] analysis,” Specialty Healthcare, supra at 946 fn. 32, several well-established legal princi- ples articulated in Wheeling Island Gaming: (1) “the Board looks first to the unit sought by the petitioner, and if it is an appropriate unit, the Board’s inquiry ends;” (2) “[t]he issue . . . is not whether there are too few or too many employees in the unit;” (3) the Board “never ad- dresses, solely and in isolation, the question whether the employees in the unit sought have interests in common with one another” but also determines “whether the in- terests of the group sought are sufficiently distinct from those of other employees;” and (4) a unit might be frac- tured if it is limited to the members of a classification working on a particular floor or shift. Id. at 945, fn. 28; 11; 8; 13. These legal principles, articulated in Wheeling Island Gaming and reaffirmed in Specialty Healthcare, are con- sistent with our decision today. Moreover, the applica- tion of those principles to the particular facts of Wheeling Island Gaming is also consistent with our conclusion in this case. The Employer and our dissenting colleague contend that the distinctions between the petitioned-for employees and the other selling employees in this case are no greater than those between the poker dealers and other table games dealers in Wheeling Island Gaming. We do not agree. Wheeling Island Gaming, decided be- fore Specialty Healthcare, did not apply the Specialty Healthcare framework, and Specialty Healthcare gave 47 The Employer has also cited two unpublished, and therefore non- precedential, Regional decisions that the Employer claims show that the petitioned-for employees cannot be separate from other selling employ- ees. Both of these cases are clearly factually distinguishable from this case, as they indicate evidence of interchange and/or common supervi- sion of the cosmeticians and other selling employees, and both cases involved a different issue (whether cosmeticians should be excluded from a petitioned-for unit) than the current case (whether cosmetics and fragrances employees constitute an appropriate unit. See Jordan Marsh Co., Case 01–RC–019262 (1989) (not reported in Board volumes); Jordan Marsh Co., Case 01–RC–015563 (1978) (not reported in Board volumes). DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 24 no indication how the overwhelming community of in- terest framework might have been applied in Wheeling Island Gaming. More important, Wheeling Island Gam- ing is distinguishable on its facts from this case – unsur- prisingly, perhaps, given the differences between a gam- ing operation and a retail store.48 In Wheeling Island Gaming, the only significant dis- tinctions between the poker dealers and the other table games dealers were separate immediate supervision, sep- arate work locations, and an absence of significant inter- change. See id at 640, 642. Here, however, there are two further important distinctions. First, the petitioned- for unit in this case is not simply separately supervised, but also conforms to a separate, Employer-drawn de- partment. By contrast, there is no indication that the poker dealers in Wheeling Island Gaming constituted a separate administrative department. Although the poker dealers were separately supervised, there was according- ly a much less defined demarcation between the poker dealers and other dealers than is the case between the petitioned-for employees and the other selling employees here. Second, the cosmetics and fragrances department is itself structured differently from other departments, in that there is no evidence that other selling departments have the equivalent of a counter manager. Accordingly, Wheeling Island Gaming does not require finding that an overwhelming community of interest exists in this case.49 For all the foregoing reasons, we find that the Employ- er has failed to establish that the petitioned-for employ- ees share an overwhelming community of interest with the other selling employees. Due to the fact that the peti- tioned-for employees work in a separate department un- der separate supervision, have only limited interchange and contact with other selling employees, have distinct work areas, and work in a differently-structured depart- ment, it simply cannot be said that their community of interest factors “overlap almost completely” with those of the other selling employees.50 48 Unlike the Acting Regional Director, we do not distinguish Wheel- ing Island Gaming merely on the ground that it predated Specialty Healthcare. See Fraser Engineering, supra, slip op. at 2 fn. 4. 49 The Acting Regional Director distinguished Wheeling Island Gaming on several other factual grounds, but not all of his distinctions (method of compensation, vendor input in hiring and training, different uniforms) are, as discussed above, fully supported by the record. 50 In addition to the foregoing, the Petitioner argues that bargaining history favors finding the petitioned-for unit appropriate. The relevant bargaining history does not involve the employees at the Saugus store and does not necessarily implicate the Employer as it is currently con- stituted, so it is not binding. Even so, this bargaining history may be regarded as evidence of area practice and the history of bargaining in the industry, which are relevant considerations. See Grace Industries, supra, at 508. As noted above, the cosmetics employees are excluded from agreements covering other selling employees at the Employer’s C. Board Precedent Concerning the Retail Industry does not Require a Unit of all Employees, or of all Selling Employees Our inquiry, however, does not end here. In Specialty Healthcare, supra at 946 fn. 29, the Board noted that there are “various presumptions and special industry and occupational rules,” and stated that its holding “is not intended to disturb any rules applicable only in specific industries.” The Employer contends—and amici, as well as our dissenting colleague, argue at length—that there is a line of precedent setting forth unit determination con- siderations specific to the retail industry. More specifi- cally, the Employer, amici, and our dissenting colleague argue that in the retail industry, a storewide unit is pre- sumptively appropriate and that finding the petitioned-for unit appropriate would be an unprecedented departure from the Board’s approach to this industry. We agree that there is a line of cases dealing with unit determina- tions in retail department stores. Under Specialty Healthcare, this line of cases remains relevant. That said, we find that the retail industry precedent does not mandate finding the petitioned-for unit inappropriate. Instead, the “presumption” the Employer, amici, and our dissenting colleague refer to has evolved into a standard for retail unit determinations that, in this case, comple- ments the Specialty Healthcare analysis set forth above. To begin, the Board has referred to a “presumptively appropriate” storewide unit in two retail industry con- texts. The first involves situations where a petitioner seeks a unit consisting of all employees at one store in a retail chain and another party argues that the unit must include other stores. In such cases, the petitioned-for storewide unit is presumptively appropriate, although this presumption can be rebutted by a showing that the day-to-day interests of the employees in a particular store have merged with those of employees of other stores. Haag Drug, 169 NLRB 877 (1968); Sav-On Drugs, 138 NLRB 1032 (1962).51 This line of cases, which refer- ences a “presumptively appropriate” storewide unit, does not apply here, however, because the Petitioner is not requesting a storewide unit, nor is there any contention Boston, Natick, Belmont, Braintree, and Peabody stores, and the cos- metics and fragrances employees at the Warwick store were organized separately from the other employees at that location. As the evidence shows that cosmetics and fragrances employees have been treated as a distinct group at other area retail department stores, we find that the bargaining history provides limited additional support for the Petition- er’s position. We would find the petitioned-for unit appropriate with- out that evidence. 51 Of course, the single-facility presumption is applied outside the re- tail store context. See, e.g., Rental Uniform Service, 330 NLRB 334, 335 (1999). MACY’S, INC. 25 that employees at other stores must be included in the petitioned-for unit.52 There are also cases in which the Board has referred to a “presumptively appropriate” storewide unit when a petitioner seeks a unit limited to only certain employees at a retail department store. See Sears, Roebuck & Co., 184 NLRB 343, 346 (1970); G. Fox & Co., 155 NLRB 1080, 1081 (1965); Bamberger’s Paramus, supra at 751; Montgomery Ward, supra at 600. Even in these cases, however, the Board has emphasized that a storewide unit is not the only appropriate unit.53 And subsequent to all 52 The dissent’s reliance on Haag Drug and related cases is mis- placed. None of those cases addressed whether a subset of employees at a single store could be an appropriate unit. The issue, rather, was whether a single store, apart from other stores, was an appropriate unit. See NLRB v. J. W. Mays, Inc., 675 F.2d 442 (2d Cir. 1982), enfg. 253 NLRB 717 (1980); Gimbels Midwest, Inc., 226 NLRB 891 (1976); Davison-Paxon Co., 185 NLRB 21 (1970); Hochschild, Kohn & Co., 184 NLRB 636 (1970); Allied Stores of Ohio, Inc., 175 NLRB 966 (1969); M. O’Neil Co., 175 NLRB 514 (1969). Although the dissent properly acknowledges that Haag Drug and related cases involve an issue not present in this case, he nevertheless argues that these cases “remain relevant in the instant case because they recognize that em- ployees in a storewide unit are likely to share a community of interests that renders such a unit presumptively appropriate.” As we explain below, under Board law, the rule that a certain unit is presumptively appropriate in a single store does not entail that a different unit is not also appropriate. Tellingly, none of the cases involving a petitioned-for unit consisting of a subset of employees at a single department store discussed below—or cited by the dissent—rely on the Haag Drug passage that the dissent quotes. For example, as further explained below, Charrette Drafting Supplies, 275 NLRB 1294 (1985), cited by the dissent, like Haag Drug, involved the issue of whether employees at a second location had to be included in the single-location petitioned- for unit. Although several cases we discuss below cite Sav-On Drugs, they do so either in the context of a party arguing that a single-location unit is inappropriate, see J. W. Mays, Inc., 147 NLRB 968, 970 fn. 3 (1964), or for reasons unrelated to any retail industry presumptions. See John’s Bargain Stores Corp., 160 NLRB 1519, 1522 fn. 6 (1966) (Board considers “all relevant factors” for unit determinations “in a variety of industries”); Bamberger’s Paramus, 151 NLRB 748, 751 fn. 9 (1965) (labor organization not compelled to seek representation in most comprehensive grouping of employees unless that is only appro- priate unit); Montgomery Ward & Co., Inc., 150 NLRB 598, 601 fn. 9 (1964) (same). 53 For example, in Montgomery Ward, supra at 600, the Board ob- served that because Sec. 9(b) of the Act empowers the Board to decide the appropriate unit in each case and directs it to make unit determina- tions that will “assure to employees the fullest freedom” in exercising their rights, the Act accordingly “does not compel labor organizations to seek representation in the most comprehensive grouping of employ- ees”—that is, just because a storewide unit might be appropriate does not mean that other, smaller units might not also be appropriate. Fur- ther, the precedent these cases cite for the “presumptive appropriate- ness” of a storewide unit does not use that phrase, but instead refers to the storewide unit as “basically appropriate” or the “optimum unit.” See, e.g., Stern’s, Paramus, 150 NLRB 799, 803 (1965); Polk Brothers, Inc., 128 NLRB 330, 331 (1960); I. Magnin & Co., 119 NLRB 642, 643 (1957); May Department Stores Co., 97 NLRB 1007, 1008 (1952); see also Sears, Roebuck & Co., 227 NLRB 1403, 1404 (1977); Sears, Roebuck & Co., 178 NLRB 577, 577 (1969). these cases, the Board has made clear that if there ever was a presumption that “only a unit of all employees” is appropriate, it is “no longer applicable to department stores.” Saks Fifth Avenue, 247 NLRB 1047, 1051 (1980). Indeed, the Board has not applied a presumption of appropriateness to storewide units in department stores since Saks Fifth Avenue.54 Even during the period when the Board expressed a policy or preference favoring storewide units in retail department stores, it nevertheless always permitted less- than-storewide units. And over time, the overall trend has been an unmistakable relaxation of a presumption in favor of a storewide unit. In older cases, the Board stat- ed that in the absence of storewide bargaining history or a labor organization seeking to represent employees on a storewide basis, a less-than-storewide unit was appropri- ate if the employees shared “a mutuality of employment interests not shared by other department store employees, which existed by reason of their singularly different work and training skills” or if the employees constituted a “homogenous group” possessing “sufficiently distinctive skills.” May Department Stores, supra at 1008. This focus on skills was soon softened: In I. Magnin, supra at 643, the Board stated that a smaller unit was appropriate “when comprised of craft or professional employees or where departments composed of employees having a mutuality of interests not shared by other store employ- ees are involved” (emphasis added). In other words, a smaller unit, not limited to a craft or professional unit, was appropriate so long as the interests of the employees in that unit were “sufficiently different” from those of other employees. Id. The Board employed similar for- mulations for several years,55 but also emphasized that in determining whether a less-than-storewide petitioned-for unit was appropriate, the issue was whether such a unit “is appropriate in the circumstances of this case and not whether another unit consisting of all employees . . . would also be appropriate, more appropriate, or most 54 In one case, the Board adopted an administrative law judge’s deci- sion that mentioned the presumptive appropriateness of storewide units in a case involving meatcutters in a grocery store context. Wal-Mart Stores, Inc., 348 NLRB 274, 287 (2006), enfd. 519 F.3d 490 (D.C. Cir. 2008). Even if the dissent is correct in inferring that the Board there “reaffirmed the presumptive appropriateness of storewide units in the retail industry”—a view we do not share—the case in no way suggests that a less-than-storewide unit is presumptively inappropriate. 55 See, e.g., J. W. Mays, Inc., 147 NLRB at 972 (unit must “comprise a homogenous group which can justifiably be established as a separate appropriate unit”); Lord & Taylor, 150 NLRB 812, 816 (1965) (unit must be “sufficiently distinct, homogenous, and identifiable”); Stern’s, Paramus, supra at 802 (employees in less-than-storewide units must be “sufficiently different from each other as to warrant establishing sepa- rate units”). DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 26 appropriate.” Bamberger’s Paramus, supra at 751 (cit- ing Montgomery Ward, supra at 601). Then, in John’s Bargain Stores, supra at 1522, the Board clarified that it had “reexamined and revised” the “previous policy favoring” storewide units in the retail industry, and the “new policy,” articulated in cases such as Stern’s, Paramus, supra, “calls for a careful evaluation of all relevant factors in each case.” Shortly thereafter, in Sears, Roebuck & Co., 160 NLRB 1435, 1436 (1966), the Board further commented that cases such as Lord & Taylor, supra: have applied the long-established principles that the appropriate unit for self-organization among the em- ployees of a given employer is generally based upon a community of interest . . . as manifested, inter alia, by their common experiences, duties, organization, super- vision, and conditions of employment. In other words, by 1966 the Board had essentially stated that less-than-storewide units were appropriate so long as such units were based on the usual community-of-interest con- siderations and sufficiently distinct from other employees. The Board went still further in Sears, Roebuck & Co., 261 NLRB 245, 246 (1982), stating, when confronted with a petitioned-for unit limited to automotive center employees at a retail department store, that “the sole inquiry here is whether” the petitioned-for unit “is appropriate in the cir- cumstances of this case.” After reiterating that “it is irrele- vant whether another unit would also be appropriate, more appropriate, or most appropriate,” the Board went on to find that the petitioned-for unit was appropriate because the peti- tioned-for employees had limited contact with other em- ployees and constituted a “functionally integrated group working in a recognized product line under separate super- vision who share a community of interest that sufficiently differentiates them from other store employees and func- tions.” Id. at 246-247. Aside from a few cases dealing with separate units of warehouse employees, which are governed by a standard not applicable here,56 this is the Board’s latest word on the standard for finding a less-than-storewide unit appropriate in the retail department store setting.57 56 See A. Harris & Co., 116 NLRB 1628, 1631-1632 (1956). Con- trary to amici RILA-RLC, the Board has never held that A. Harris articulates an overall test for deviating from a storewide unit. That case applies to “the establishment of warehouse units in retail department stores only.” See Lily-Tulip Cup Corp., 124 NLRB 982, 984 fn. 2 (1959) (emphasis omitted). 57 Our dissenting colleague suggests that the “competitive challeng- es” retail establishments face “should render inappropriate any bargain- ing unit consisting of less than a storewide selling unit, especially where the record does not contain compelling evidence of distinctions unique to a particular subset of retail store salespeople.” The Board has never articulated such a restrictive standard applicable to retail estab- Considering these unit determination cases as a whole, it is evident that the Board has moved away from any presumption favoring storewide units in retail department stores. Similarly, if the standard for deviating from a storewide unit was ever, as amicus NRF suggests, “fairly strenuous,” that is clearly no longer the case. Rather, the Board has, over time, developed and applied a standard that allows a less-than-storewide unit so long as that unit is identifiable, the unit employees share a community of interest, and those employees are sufficiently distinct from other store employees. That, of course, is almost precisely the standard articulated in Specialty Healthcare.58 As we have explained above, the peti- tioned-for employees in this case are identifiable as a separate group, they share a community of interest, and because they do not share an overwhelming community of interest with other selling employees, they are also sufficiently distinct from other selling employees to con- stitute an appropriate unit. See Specialty Healthcare, supra, slip op. at 13 (explaining “overwhelming commu- nity of interest” standard clarifies “what degree of differ- ence renders the groups’ interests ‘sufficiently dis- tinct’”). Further, our foregoing analysis shows that the peti- tioned-for unit is appropriate under retail department store precedent even without reference to Specialty Healthcare. The petitioned-for unit appears to meet the standard articulated in I. Magnin, supra at 643, as the petitioned-for employees have a “mutuality of interests” not shared by all other selling employees (they share most community-of-interest factors, work in their own department, the department is structured unlike other departments due to the presence of counter managers, and have separate supervision), and are “sufficiently dif- ferent” from the other selling employees so as to justify representation on a separate basis (in addition to the foregoing, they work in distinct areas and also have little contact or interchange with the other employees). Fur- ther, our analysis comports with John’s Bargain Stores, supra at 1522, as we have found that the petitioned-for unit is appropriate based on a careful evaluation of all the relevant factors of this case. And as in Sears, Roebuck, 261 NLRB at 246–247, the petitioned-for unit in this case is a “functionally integrated group working in a rec- ognized product line under separate supervision who lishments, and we decline our colleague’s invitation to impose such a standard here. 58 Furthermore, Specialty Healthcare clarified that—contrary to the position argued by NRF—“[a] party petitioning for a unit other than a presumptively appropriate unit . . . bears no heightened burden to show that the petitioned-for unit is also an appropriate unit.” Supra, slip op at 7. MACY’S, INC. 27 share a community of interest that sufficiently differenti- ates them” from other selling employees. To summarize, Board precedent regarding retail de- partment stores has evolved away from any presumptions favoring storewide units, and the current standard for determining whether a less-than-storewide unit comports with, and is in fact complementary to, the framework articulated in Specialty Healthcare. Both the retail in- dustry standard and Specialty Healthcare are concerned with ensuring that petitioned-for employees are separate- ly identifiable and share a community of interest, and that they are also sufficiently distinct from other employ- ees. We therefore do not agree with the claims of amici and our dissenting colleague that applying Specialty Healthcare to find this petitioned-for unit appropriate is directly contrary to retail industry precedent, undermines that body of precedent, or is otherwise inconsistent with it.59 In discussing the storewide “presumption,” the Em- ployer, amici, and our dissenting colleague argue that the Board has never deviated from a storewide unit to the extent it is being asked to do here. But as in Sears, Roe- buck, 261 NLRB at 247, the sole question here is wheth- er the petitioned-for unit is appropriate in the circum- stances of this case. So long as the petitioned-for unit is appropriate—as we have found that it is—it is not signif- icant that in other cases, based on different facts, the Board has previously approved units of all selling or nonselling employees,60 or that other less-than-storewide units have involved groups of employees not involved in selling merchandise.61 See Specialty Healthcare, supra at 939 fn. 11. Further, the various cases cited by the Employer, amici, and our dissenting colleague do not demonstrate that the Board has rejected a petitioned-for unit similar to the one at issue here. Indeed, there are no published decisions involving a petitioned-for unit lim- 59 We also reject NRF’s argument that Specialty Healthcare should not be applied to the retail industry because tests for unit determination should not be applied outside the specific industry at issue. As Special- ty Healthcare made clear, it was articulating generally applicable unit determination principles, not principles limited to a particular industry. 357 NLRB 934, 941. 60 See, e.g., Wickes Furniture, 231 NLRB 154, 154–155 (1977) (ap- proving unit of selling employees); Lord & Taylor, supra at 816 (direct- ing election in unit of nonselling employees); Stern’s, Paramus, supra at 808 (approving separate units of selling, nonselling, and restaurant employees). 61 See, e.g., Super K Mart Center, 323 NLRB 582, 586–589 (1997) (approving separate meat department unit); W & J Sloane, Inc., 173 NLRB 1387, 1389 (1968) (finding display employees need not be in- cluded in nonselling unit due to distinct community of interest); Arnold Constable Corp., 150 NLRB 788, 795 (1965) (approving separate units of office, cafeteria, and selling employees); Foreman & Clark, Inc., 97 NLRB 1080 (1952) (approving unit of tailor shop/alterations employ- ees). ited to a cosmetics and fragrances department. Amici RILA-RLC cite a case in which cosmetics demonstrators were included in a larger unit, but in that case, the peti- tioned-for unit was a storewide unit and the issue was whether cosmetics demonstrators were employees of the employer, which the Board found they were. Burrows & Sanborn, Inc., 81 NLRB 1308, 1309 (1949).62 Similarly, the Employer, amici, and our dissenting colleague have not cited a case that rejects a departmental unit like the one sought here. In I. Magnin, supra at 643, the store in question was a clothing store with 105 departments, four of which were shoe selling departments scattered through the store.63 The petitioner sought a unit covering the 23 employees in the four shoe selling departments. See id. In finding the petitioned-for unit inappropriate, the Board particularly emphasized that employees from other de- partments had been assigned to work as shoe sellers and that shoe sellers were actively encouraged to sell items throughout the store. See id. Thus, I. Magnin is distin- guishable based on the contours of the unit, which was not defined as a single primary selling department, as well as the significant interchange between petitioned-for and other selling employees, which is absent in this case.64 Further, it is telling that even in I. Magnin, the Board did not dismiss the petitioned-for unit out of hand, but instead proceeded to consider the usual community- of-interest factors.65 62 RILA-RLC also cite R. H. Macy & Co., 81 NLRB 186 (1949), claiming that here, too, cosmetic demonstrators were included in a broader unit. In that case, however, the Board found—in “substantial agreement” with the parties—that the appropriate unit included “all staff employees,” but excluded a variety of other classifications, one of which was “demonstrators (except those who demonstrate cosmetics and beauty preparations).” See id. at 186–187. 63 I. Magnin does not reveal whether these four departments were each separately supervised. 64 I. Magnin overruled May Department Stores Co., 39 NLRB 471 (1942), in which the Board found appropriate a unit limited to the shoe department. The Board’s factual findings in May Department Stores are vague and limited to stating that (1) “the shoe department is distinct from the other departments;” (2) “the retail sale of shoes is often oper- ated as a separate business by many companies”; (3) the duties and skills of shoe sellers are different from other employees; and (4) the “self-organization of the employees” favored a separate unit of shoe sellers. Id. at 477. As the foregoing discussion makes clear, our hold- ing in this case is based on a more specific discussion of the communi- ty-of-interest factors than, and relies on many community-of-interest considerations not present in, May Department Stores. 65 Indeed, the analysis in I. Magnin generally comports with the con- temporary use of presumptions in Board representation case law. That a unit is presumptively appropriate in a particular setting does not mean that a different unit is presumptively inappropriate. Specifically, when a petition is filed in a “presumptively appropriate” unit, the burden is on the party contesting the unit to show why it is not appropriate. In contrast, when a petitioned-for unit does not fit within an existing pre- sumption, the petitioner must demonstrate why the unit is appropriate, but does not bear a heightened burden to do so because of the presump- DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 28 Our dissenting colleague cites, and several amici dis- cuss at length, the Board’s decision in Kushins and Pa- pagallo Divisions of U.S. Shoe Retail, Inc., 199 NLRB 631 (1972) (U.S. Shoe). However, that decision does not warrant a different result here. U.S. Shoe involved a store that mainly sold shoes, rather than a variety of products such as the Employer’s Saugus store. See id. at 631. Further, in U.S. Shoe, the store was divided into four selling areas, three operated by the Kushins division, one by the Papagallo division. All four areas primarily sold shoes and related accessories, although the Papagal- lo division also sold dresses. The Kushins and Papagallo divisions had separate sales managers, different compen- sation, slightly different benefits, and minimal inter- change. See id. Although Papagallo employees had a separate sales manager, a Kushins manager set the hours, holidays, and regulations for all store employees and could require the discharge of Papagallo employees. See id. At the time the store opened (February 1971), Kushins and Papagallo were separate corporate entities, but by the time the petition was filed (sometime before May 12, 1972), this was no longer the case. See id. at 631 fn. 2. In rejecting a unit limited to the Kushins divi- sion employees, the Board acknowledged the foregoing differences but found that there was no basis to exclude the Papagallo employees because “consistent with our unit policy in department store cases, the unit must be broadened in scope to include all store employees.” Id. at 631–632. This statement is, of course, out of step with the Board’s earlier statement in John’s Bargain Stores, and is also at odds with the Board’s subsequent statement that the presumption that “only a unit of all employees” is appropriate is “no longer applicable to department stores.” Saks Fifth Avenue, supra at 1051. Accordingly, U.S. Shoe appears to have misarticulated the relevant policy.66 But in any event, although not explicitly stated, the Board’s rationale in U.S. Shoe appears to have turned on the fact that most of the differences between the Kushins and Papagallo employees were based on histori- cal accident. That is, the differences existed only be- tion. See, e.g., Capital Coors Co., 309 NLRB 322 fn. 1 (1992), citing NLRB v. Carson Cable TV, 795 F.2d 879, 886–887 (9th Cir. 1986). 66 We note that U. S. Shoe has never been cited by another Board de- cision. One of the cases it cites for the “unit policy in department store cases” does not even involve the issue of whether a less-than-storewide unit is appropriate. See Zayre Corp., 170 NLRB 1751 (1968) (finding respondent violated Section 8(a)(5) by refusing to bargain with the union and clarifying the unit to include several formerly leased depart- ments). The other case it cites merely states that a less-than-storewide unit is appropriate so long as the excluded employees have a separate and distinct community of interest. See Bargain Town U.S.A. of Puerto Rico, Inc., 162 NLRB 1145, 1147 (1967). And Member Jenkins con- curred in the result, but did not rely on either of these cases. 199 NLRB at 632 fn.3. cause the two divisions had once been, but no longer were, separate corporate entities. Setting aside the dif- ferences in compensation and benefits, and considering the fact that the Kushins sales manager dictated certain terms and conditions for the Papagallo employees, the only distinction between the two groups was that they had different sales areas and some sold dresses in addi- tion to shoes. On a fundamental level, however, all of the employees were shoe sellers. This is clearly distin- guishable from the situation in this case, where there are various differences between the petitioned-for employees and other selling employees, who may all be engaged in sales, but are nevertheless selling different types of prod- ucts in different departments. The remaining cases cited by the Employer and amici are easily reconcilable with our decision today. In Sears, 191 NLRB 398, 399–400 (1971), the Board refused to divide a store into three separate units, in part because all employees worked in close proximity to each other and attended regular storewide meetings. But unlike this case, there was also substantial integration and overlap between the three petitioned-for groups; further, the Board found that the Sears store at issue was smaller and more highly integrated than a typical Sears location, and there is no basis for making a similar finding about the Macy’s store at issue here. See id. at 404–406.67 In Levitz Furniture Co., 192 NLRB 61, 62 (1971), the Board found petitioned-for units68 limited to certain non- selling employees at a retail furniture store inappropriate, in part because all store employees shared the same bene- fits and participated in inventory. But unlike this case, there was frequent regular and temporary interchange between the petitioned-for employees and the store’s other employees, such that nonselling employees would occasionally perform selling functions and selling em- ployees would perform nonselling functions. See id. at 62–63. And in Saks & Co., 204 NLRB 24, 25 (1973), there was similarly evidence of close integration between 67 Contrary to amici RILA-RLC, the Board in Sears did not simply accept the conclusory statement that the store should not be divided into separate units because a high degree of compartmentalization could not be utilized in “this kind of retail operation.” Id. at 403. Alt- hough the Board agreed with the employer’s position, it also examined the interchange and overlap of employees in the three proposed units in detail (finding, for example, that the selling employees also performed warehouse functions and regularly relieved nonselling employees). See id. at 404–406. 68 One petitioner sought what amounted to a warehouse unit, which the Board found inappropriate based on an application of the A. Harris test. See id. at 62–63. A second petitioner sought a unit limited to truckdrivers and helpers, and both petitioners argued that a combined “nonselling” unit of both petitioned-for units would also be appropriate. See id. at 61. MACY’S, INC. 29 the petitioned-for nonselling employees69 and the store’s selling employees, as transfers between the two groups were common.70 We need only briefly address the remaining arguments advanced by the Employer and amici. First, we decline the invitation to revisit or overrule Specialty Healthcare. The Employer did not raise this argument in its request for review. Moreover, the Employer does not articulate any persuasive grounds for overruling Specialty Healthcare, and the arguments advanced by amici and the dissent were recently rejected by the Sixth Circuit in Kindred Nursing Centers, 727 F.3d at 559–565.71 In any event, as our analysis makes clear, our decision in this case fully complies with Section 9(b)’s requirement that the Board decide the appropriate unit “in each case,” as well as Section 9(c)(5)’s command that a unit determina- tion not be controlled by “the extent to which the em- ployees have organized.”72 Additionally, the fact that the 69 In addition, the Board also found that the petitioned-for unit in Saks & Co. was inappropriate because although it was claimed to be a unit of nonselling employees, it in fact excluded a number of nonselling employees. See id. at 25. The petitioner also contended that the peti- tioned-for employees shared a common function, but the Board found this was not so because the petitioned-for employees had disparate interests and were not even commonly supervised. See id. at 24–25. Saks & Co. is therefore also distinguishable on these grounds. 70 Amici RILA-RLC also contend that Charrette Drafting Supplies, 275 NLRB 1294, shows that the petitioned-for unit is inappropriate, and the dissent also mentions that case. Charrette Drafting Supplies, however, involved a petitioned-for warehouse unit, and the Board ac- cordingly analyzed the unit under the A. Harris standard, which is not applicable here. See id. at 1295–1296. Further, Charrette Drafting Supplies also implicated Haag Drug, because the employer contended that employees at a second location should be included in the peti- tioned-for unit. See id. at 1296–1297. And even if Charrette Drafting Supplies applied to this case, there too the petitioned-for employees and the employees the employer sought to add performed each other’s functions, unlike in this case. See id. at 1297. 71 The Sixth Circuit explicitly rejected arguments that Specialty Healthcare violates Sec. 9(c)(5) and that the Board abused its discre- tion by making policy through adjudication rather than rulemaking. See id. at 563–565. Further, the Sixth Circuit rejected the argument that Specialty Healthcare represented a material change to the Board’s jurisprudence and was therefore an abuse of discretion. In rejecting this argument, the court cited with approval the same statement by the Board that amici here mistakenly invoke to argue that Specialty Healthcare ignored the right of employees to refrain from organizing. See id. at 560–561 (quoting Specialty Healthcare, supra, slip op. at 12 (the “first and central right set forth in Section 7 of the Act is the em- ployees’ ‘right to self-organization’”)). Finally, the Sixth Circuit ob- served that the Board must decide the appropriate unit “in each case,” id. at 559, but at no point suggested that the standard in Specialty Healthcare runs afoul of this statutory command, as argued by the employer in Kindred Nursing Centers. See Br. of Petitioner Cross- Respondent at 55–56, Kindred Nursing Centers, 727 F.3d 552. 72 The dissent likewise asserts that Specialty Healthcare is “irrecon- cilable” with the requirement that the Board decide the appropriate unit “in each case” and that, in doing so, the Board assure employees the “fullest freedom” in exercising their statutory rights. The framework Petitioner was previously a party to an election involving a storewide unit, but in this case has petitioned for a smaller unit, in no way runs afoul of Section 9(c)(5) or any other statutory requirement. Indeed, this situation was also present in Stern’s, Paramus, a case cited by the Employer, our dissenting colleague, and all amici. 150 NLRB at 808–809 (Member Jenkins, dissenting) (noting that petitioner lost a 1960 election in a storewide unit before filing petitions for separate units of selling, non- selling, and restaurant employees sometime between mid-1962 and 1964); see also Fraser Engineering, supra at 681 (stipulation for larger unit in previous election union lost does not invalidate appropriateness of smaller unit subsequently sought) (citing Macy’s San Francisco, 120 NLRB 69, 71–72 (1958)).73 See generally Overnite Transportation Co., 322 NLRB 723 (1996) and 325 NLRB 612 (1998) (finding of different units in the same factual setting does not mean that the decision is based on extent of organization); Specialty Healthcare, supra, slip op. at 6 fn. 11 (“prior precedent holding a different unit to be appropriate in a similar setting is not persua- sive”). We are not persuaded that applying Specialty Healthcare to retail department stores, or finding the petitioned-for unit appropriate, will, as the Employer and for unit determinations in Specialty Healthcare is fully consistent with these requirements, and we have, consistent with Sec. 9(b), applied the Specialty Healthcare framework to the particular facts of this case. See generally American Hospital Assn. v. NLRB, 499 U.S. 606, 610– 614 (1991) (“in each case” simply means that whenever parties disa- gree over unit appropriateness, Board shall resolve the dispute, and imposition of rule defining appropriate units in acute care hospitals does not run afoul of “in each case” command so long as Board applies the rule “in each case”). We also reject the dissent’s view that by ac- cording the petitioned-for employees their fullest freedom to organize, we have somehow denied the excluded employees (who have not sought representation) their fullest freedom. The proper understanding of the statutory language on which the dissent relies has been explained in detail by the Board in Specialty Healthcare and by the U.S. Court of Appeals for the Sixth Circuit in its decision enforcing the Board’s or- der. See Specialty Healthcare, supra, slip op. at 8 and fn. 18; Kindred Nursing Centers East, supra, 727 F.3d at 563–565. Those discussions are reprinted in full in Member Hirozawa’s concurring opinion, with which we agree. 73 May Department Stores Co. v. NLRB, 454 F.2d 148, 150 (9th Cir. 1972), cert denied 409 U.S. 888 (1972), cited by the Employer, in- volved refusal-to-bargain charges. In the underlying representation case (May Department Stores Co., 186 NLRB 86 (1970)), the Board had approved a unit of warehouse employees, but three years earlier the union had lost an election in a larger unit. 454 F.2d at 149–150. The Ninth Circuit criticized the Board for failing to provide any explanation for why both units were appropriate, rejected the Board’s “after-the-fact attempts to explain the record,” and held that the Board had allowed the extent of organization to control its decision. Id. at 150–151. Here, of course, we have explained why this smaller unit is appropriate. Thus, contrary to the Employer, there is no “compelling inference” that we have allowed the extent of unionization to control our decision. DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 30 amici predict, harm the retail industry through “destruc- tive factionalization.” First, our only finding today is that, based on the particular facts of this case, this peti- tioned-for unit is appropriate. Whether any other subset of selling employees at this store, or any other retail de- partment store, constitutes an appropriate unit is a ques- tion we need not and do not address.74 As always, such determinations will depend on the individual circum- stances of individual cases. Second, we find it signifi- cant that this petitioned-for unit consists of 41 employ- ees, more than one-third of all selling employees, and nearly one-third of all employees, at the Saugus store. This unit is also significantly larger than the median unit size from 2001 to 2010, which was 23 to 26 employees. See Specialty Healthcare, supra, slip op. at 10 fn. 23 (cit- ing 76 Fed. Reg. 36821 (2011)). These statistics belie amicus NRF’s description of the petitioned-for unit as a “micro-union,” and refute the Employer’s and amici’s assertion that finding this unit appropriate will result in “dozens” of units within a single store. Third, neither the Employer nor amici have offered any evidence in support of their claims that finding the petitioned-for unit appro- priate will result in administrative burdens, “competitive bargaining,” destructive work stoppages, or reduced em- ployee productivity, opportunity, and flexibility. All of these arguments are pure speculation and many of them rely on characterizations of the retail industry that are not supported by the record here, such as frequent employee interchange. Finally, we note that the Board has long approved multiple units in a single department store, apparently without the harmful effects forecast by the Employer and amici. See, e.g., Stern’s, Paramus, supra (approving separate units of selling, nonselling, and res- taurant employees). CONCLUSION For the reasons explained above, we find that the cos- metics and fragrances employees are a readily identifia- ble group who share a community of interest among themselves. We further find that the Employer has not demonstrated that its other selling employees share an overwhelming community of interest with the cosmetics and fragrances employees. Under Specialty Healthcare, the petitioned-for unit thus constitutes an appropriate unit for bargaining. This result is consistent with Board prec- edent concerning retail department stores. 74 We note, however, that many of the scenarios predicted by RILA- RLC—such as units of “second floor designer men’s socks” or “third floor TVs”—might well involve fractured units, which the Board has always rejected. ORDER The Acting Regional Director’s Decision and Direc- tion of Election is affirmed. This proceeding is remand- ed to the Regional Director for appropriate action con- sistent with the Decision and Order. MEMBER HIROZAWA, concurring. In this decision, the Board correctly applies the analyt- ical framework set forth in Specialty Healthcare & Re- habilitation Center, 357 NLRB 934 (2011), enfd. sub nom. Kindred Nursing Centers East, LLC, v. NLRB, 727 F.3d 552 (6th Cir. 2013), to the question whether the petitioned-for unit is appropriate. I concur in the Board’s decision in all respects. I write separately to offer a brief observation apropos of the dissent. It might surprise a reader of the dissent to learn that the provisions of the Act for unit determinations in represen- tation cases are short and simple. The Act’s direction to the Board concerning unit determinations for most em- ployees covered by the Board’s jurisdiction, unchanged since 1947, consists of a single sentence: “The Board shall decide in each case whether, in order to assure to employees the fullest freedom in exercising the rights guaranteed by this Act, the unit appropriate for the pur- poses of collective bargaining shall be the employer unit, craft unit, plant unit, or subdivision thereof.”1 The in- 1 NLRA, § 9(b), 29 U.S.C. § 159(b). In 1947, Congress added to Sec. 9(b) provisos applicable to professional employees, guards, and craft units that include employees covered by a prior unit determina- tion, along with a new subdivision, Sec. 9(c)(5), discussed below, limit- ing the weight to be given to the extent of organization in making unit determinations. These two subdivisions of section 9, reprinted here in full, constitute the entirety of the Act’s provisions concerning unit determinations: (b) [Determination of bargaining unit by Board] The Board shall de- cide in each case whether, in order to assure to employees the fullest freedom in exercising the rights guaranteed by this Act [subchapter], the unit appropriate for the purposes of collective bargaining shall be the employer unit, craft unit, plant unit, or subdivision thereof: Provid- ed, That the Board shall not (1) decide that any unit is appropriate for such purposes if such unit includes both professional employees and employees who are not professional employees unless a majority of such professional employees vote for inclusion in such unit; or (2) de- cide that any craft unit is inappropriate for such purposes on the ground that a different unit has been established by a prior Board de- termination, unless a majority of the employees in the proposed craft unit votes against separate representation or (3) decide that any unit is appropriate for such purposes if it includes, together with other em- ployees, any individual employed as a guard to enforce against em- ployees and other persons rules to protect property of the employer or to protect the safety of persons on the employer’s premises; but no la- bor organization shall be certified as the representative of employees in a bargaining unit of guards if such organization admits to member- ship, or is affiliated directly or indirectly with an organization which admits to membership, employees other than guards. MACY’S, INC. 31 quiry mandated by this sentence, whether a proposed unit is “appropriate for the purposes of collective bargaining,” is aptly framed in the Board’s community-of-interest test, applied in Specialty Healthcare and innumerable deci- sions going back over 60 years, which essentially asks whether the employees in the proposed unit have enough in common for it to make sense for them to bargain to- gether as a group. To the extent that the dissent’s objec- tions are based on the text of the Act, they rely on the requirement, contained in the Act’s directive sentence, that the Board designate a unit that will “assure to em- ployees the fullest freedom in exercising the rights guar- anteed by this Act,” or on Section 9(c)(5). In both in- stances, the dissent misconstrues the statutory language. The Board’s decision does not address this language in detail, appropriately since it has already been explicated authoritatively in Specialty Healthcare and elsewhere and is fully accounted for in the Specialty Healthcare standard that the Board has applied in this decision. For the convenience of the reader, the Board’s explanation from Specialty Healthcare follows: The Act . . . declares in Section 9(b) that “[t]he Board shall decide in each case whether, in order to assure to employees the fullest freedom in exercising the rights guaranteed by this Act, the unit appropri- ate for the purposes of collective bargaining shall be the employer unit, craft unit, plant unit, or subdivi- sion thereof.” The first and central right set forth in Section 7 of the Act is employees’ “right to self- organization.” As the Board has observed, “Section 9(b) of the Act directs the Board to make appropriate unit determinations which will ‘assure to employees the fullest freedom in exercising rights guaranteed by this Act.’ i.e., the rights of self-organization and collective bargaining.” Federal Electric Corp., 157 NLRB 1130, 1132 (1966). The Board has historically honored this statutory command by holding that the petitioner’s desire concerning the unit “is always a relevant considera- tion.” Marks Oxygen Co., 147 NLRB 228, 229 (1964). See also, e.g., Mc-Mor-Han Trucking Co., 166 NLRB 700, 701 (1967) (reaffirming “polic[y] . . . of recognizing the desires of petitioners as being a relevant consideration in the making of unit deter- minations”); E. H. Koester Bakery Co., 136 NLRB 1006, 1012 (1962). Section 9(c)(5) of the Act pro- vides that “the extent to which the employees have organized shall not be controlling.” But the Su- (c)(5) In determining whether a unit is appropriate for the purposes specified in subsection (b) the extent to which the employees have or- ganized shall not be controlling. preme Court has made clear that the extent of organ- ization may be “consider[ed] . . . as one factor” in determining if the proposed unit is an appropriate unit. NLRB v. Metropolitan Life Insurance Co., 380 U.S. 438, 442 (1965). In Metropolitan Life, the Court made clear that “Congress intended to over- rule Board decisions where the unit determined could only be supported on the basis of the extent of organization.” Id. at 441 (emphasis added). In other words, the Board cannot stop with the observation that the petitioner proposed the unit, but must pro- ceed to determine, based on additional grounds (while still taking into account the petitioner’s pref- erence), that the proposed unit is an appropriate unit. Thus, both before and after the adoption of the 9(c)(5) language in 1947, the Supreme Court had held, “[n]aturally the wishes of employees are a fac- tor in a Board conclusion upon a unit.” Pittsburgh Plate Glass Co. v. NLRB, 313 U.S. 146, 156 (1941). We thus consider the employees’ wishes, as ex- pressed in the petition, a factor, although not a de- terminative factor here.2 2 357 NLRB 934, 941–942 (fn. omitted). In enforcing the Board’s Specialty Healthcare decision, to which it referred as “Specialty Healthcare II,” the United States Court of Appeals for the Sixth Circuit further discussed Sec. 9(c)(5): We now turn to [the employer]’s argument that Specialty Healthcare II’s application of either the American Cyanamid community-of-interest test, or of the overwhelming-community- of interest test, violates section 9(c)(5) of the Act by making it impossible for an employer to challenge the petitioned-for unit. In section 9(c)(5), Congress provided a statutory limit on the Board’s discretion to define collective-bargaining units. Section 9(c)(5) states that “the extent to which the employees have orga- nized shall not be controlling” in determining whether a unit is appropriate. 29 U.S.C. § 159(c)(5). The Supreme Court has in- terpreted section 9(c)(5) as showing Congress’ intent to prevent the Board from determining bargaining units based solely upon the extent of organization, while at the same time allowing the Board to consider “the extent of organization as one factor, though not the controlling factor, in its unit determination.” N.L.R.B. v. Metro. Life Ins. Co., 380 U.S. 438, 441–42, 85 S.Ct. 1061, 13 L.Ed.2d 951 (1965) (footnote omitted; emphasis added). But courts have struggled with what Congress meant by this provision; one court even famously commented that “[s]ection 9(c)(5), with its ambiguous word ‘controlling,’ contains a warning to the Board almost too Delphic to be characterized as a stand- ard.” Local 1325, Retail Clerks Int’l Ass’n, AFL–CIO v. N.L.R.B., 414 F.2d 1194, 1199 (D.C.Cir.1969). Nevertheless, the court add- ed, section 9(c)(5) “has generally been thought to mean that there must be substantial factors, apart from the extent of union organi- zation, which support the appropriateness of a unit, although ex- tent of organization may be considered by the Board and, in a close case, presumably may make the difference in the outcome.” Id. at 1199–[1200]. Section 9(c)(5) appears to have been added to prevent the Board from deciding cases like Botany Worsted Mills, 27 NLRB 687 (1940), in which the Board deemed a bargaining unit appro- DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 32 priate without applying any kind of community-of-interest analy- sis, but solely on the basis that the workers wanted to organize a union. The Board at that time acted as a union partisan, encour- aging organizing. In Botany Worsted Mills, the Board explained, in the course of deeming that a bargaining unit of workers in two job classifications (wool sorters and trappers) constituted an ap- propriate bargaining unit, that “[w]herever possible, it is obvious- ly desirable that, in a determination of the appropriate unit, [it] render collective bargaining of the [c]ompany’s employees an immediate possibility.” Botany Worsted Mills, 27 NLRB at 690. The Board thus made clear that it based its determination that the bargaining unit was appropriate on the mere fact that the employ- ees wanted to engage in collective bargaining. The Board ob- served that there was “no evidence that the majority of the other employees of the [c]ompany belong[ed] to any union whatsoever; nor has any other labor organization petitioned the Board for cer- tification as representative of the [c]ompany’s employees on a plant-wide basis.” Id. The Board said that “[c]onsequently, even if, under other circumstances, the wool sorters or trappers would not constitute the most effective bargaining unit, nevertheless, in the existing circumstances, unless they are recognized as a sepa- rate unit, there will be no collective bargaining agent whatsoever for these workers.” Id. The Board concluded by stating that “in view of the existing state of labor organization among the em- ployees of the [c]ompany, in order to insure to the sorters or trap- pers the full benefit of their right to self-organization and collec- tive bargaining and otherwise to effectuate the policies of the Act,” it found that the wool sorters or trappers of the company “constituted an appropriate bargaining unit.” Id. [The employer] characterizes Specialty Healthcare II‘s certification of a CNA- only unit as “a throw-back to the discredited Botany Worsted Mills analysis.” But [the employer]’s argument misses the mark, because here, in Specialty Healthcare II, the Board did not assume that the CNA-only unit was appropriate. Instead, it applied the communi- ty-of-interest test from American Cyanamid to find that there were substantial factors establishing that the CNAs shared a community of interest and therefore constituted an appropriate unit—aside from the fact that the union had organized it. Indeed, nowhere in its briefs, nor before the Board, did [the employer] dispute that the CNAs shared a community of interest. Therefore, the Board’s approach in Specialty Healthcare II did not violate section 9(c)(5). Nor does the overwhelming-community-of-interest test vio- late section 9(c)(5). In this regard, we find persuasive the District of Columbia Circuit’s analysis in Blue Man, which Specialty Healthcare II relied upon and quoted as holding that “ ‘[a]s long as the Board applies the overwhelming community of interest standard only after the proposed unit has been shown to be prima facie appropriate, the Board does not run afoul of the statutory in- junction that the extent of the union’s organization not be given controlling weight.’ ” Specialty Healthcare II, 357 NLRB No. 83, 2011 WL 3916077 at *20 n. 25 (quoting Blue Man, 529 F.3d at 423) (emphasis added). Here, in Specialty Healthcare II, the Board followed the Blue Man approach, conducting its community-of-interest inquiry be- fore requiring [the employer] to show that the other employees shared an overwhelming community of interest with the CNAs. It would appear, then, that Specialty Healthcare II does not violate section 9(c)(5) of the Act. Kindred Nursing Centers East, LLC v. NLRB, 727 F.3d 552, 563–565 (6th Cir. 2013). The dissent regards with suspicion the approval of any unit requested by a petitioner, discerning therein a dere- liction of the Board’s imagined duty to find fault with any grouping that a petitioner might choose, simply be- cause the petitioner chose it. I take a different view. The commands of the Act in this area are short and simple. While they are general, and meant to be elaborated, the Board ought to be able to do that in a manner simple enough to permit a reasonably intelligent lay person to identify a grouping of workers that makes sense for col- lective bargaining. I believe Specialty Healthcare does that by clearing away needlessly confusing variations in the standard for answering a common question, and set- tling on a formulation that is relatively easy to under- stand and apply. If the result is that parties are better able to predict which potential units will be found appro- priate, and consequently more petitioned-for units are approved, we should view that not as suspicious, but as a success. MEMBER MISCIMARRA, dissenting. My colleagues find that a petitioned-for bargaining unit limited to department-store salespeople who sell cosmetics and fragrances, and excluding all other sales- people in a Macy’s full-service department store, consti- tutes an “appropriate” bargaining unit.1 I dissent be- cause, in my view, the facts establish that such a bargain- ing unit is not appropriate under any standard. More generally, I believe this case illustrates the frailties asso- ciated with the Specialty Healthcare2 standard regarding what constitutes an appropriate bargaining unit. Accord- ingly, for the reasons expressed below, I would refrain from applying Specialty Healthcare in this or any other case. Unlike the majority, I believe the smallest “appropri- ate” unit here consists of all salespeople in the Employ- er’s Saugus, Massachusetts department store. In my view, finding a combined cosmetics and fragrances unit excluding all other salespeople (a “C&F unit”) to be an appropriate unit has a triple infirmity: (a) such a unit disregards wide-ranging similarities that exist among sales employees generally throughout the store; (b) the unit focuses on distinctions between C&F unit employ- ees and other salespeople while disregarding the same types of distinctions that exist between sales employees who work within the C&F unit; and (c) the unit would be irreconcilable with the structure of the work setting where all salespeople are employed and would give rise to unstable bargaining relationships. In my opinion, the 1 NLRA Sec. 9(a), 29 U.S.C. § 159(a). 2 357 NLRB 934 (2011), enfd. sub nom. Kindred Nursing Centers East, LLC v. NLRB, 727 F.3d 552 (6th Cir. 2013). MACY’S, INC. 33 outcome here departs from the Board’s long-held retail industry standards that ostensibly were left undisturbed by Specialty Healthcare. More generally, as demonstrat- ed by the majority’s application of Specialty Healthcare in the instant case, I believe Specialty Healthcare affords too much deference to the petitioned-for unit in deroga- tion of the mandatory role that Congress requires the Board to play “in each case” when making bargaining- unit determinations. FACTS The Employer’s full-service, two-story department store in Saugus, Massachusetts, is an extremely complex operation. While broadly sharing many common work- ing conditions throughout the store, there are also many differences between and among salespeople in many different departments, including substantial differences between and among salespeople in the C&F unit. The differences are driven by the wide variety of products, customers, and types of information needed to address customer needs and questions. In 2011, the Petitioner Union and the Board took the position that a bargaining unit consisting of all salespeo- ple in the Saugus store was appropriate (there was a 2011 election among these employees, and the Union lost).3 There are 11 sales departments in the Saugus store, collectively overseen by 7 sales managers who report to a single store manager. The 11 sales departments consist of (1) juniors, (2) ready-to-wear, (3) women’s shoes, (4) handbags, (5) furniture (also known as big ticket), (6) home (also referred to as housewares), (7) men’s cloth- ing, (8) bridal, (9) fine jewelry, (10) fashion jewelry, and (11) cosmetics and fragrances. The store has a total of 120 salespeople, of whom 41 work in the cosmetics and fragrances department.4 A. Shared Working Conditions and Benefits Common to all Salespeople All salespeople at the store are subject to the same pol- icies set forth in the same employee handbook, they par- ticipate in the same benefit plans, they staff shifts that occur during the same time periods, they use the same employee entrance(s), they use the same timeclock sys- tem, they share the same breakroom(s), and they are sub- ject to the same in-store dispute resolution program. 3 The Union represents sales employees at other Macy’s stores in Massachusetts. At the Belmont store, the Union represents a bargain- ing unit consisting of all salespersons, although there are no cosmetics employees at that store. At the Braintree, Natick, and Peabody stores, the Union represents salespersons, except cosmetics sales employees are excluded from the units. 4 Employees in the petitioned-for unit are primarily known as “beau- ty advisors.” All selling employees, including sales managers, at- tend daily rallies typically conducted by Store Manager Danielle McKay, the purpose of which is to motivate employees and to inform them of the previous day’s sales totals, special events, and any other pertinent news. All salespersons throughout the store receive perfor- mance evaluations under the same storewide evaluation system, based on the same criteria (sales, customer feed- back, and teamwork). Each department utilizes the same “sales scorecard” to rate employees’ overall sales per- formance. These scorecards measure four criteria: the number of items sold per customer transaction, average sale amount per customer transaction, overall sales per hour, and the number of store credit cards opened. The most heavily weighted criterion is actual sales (i.e., their “sales scorecard” performance).5 Although non-C&F salespeople do not regularly work in the cosmetics and fragrances department, and vice versa, McKay testified that there are “opportunities” for selling employees to “help out” in other departments. More generally, the record reveals that the Employer expects selling employees to assist all customers regard- less of the customer’s needs, even if the customer’s re- quest does not pertain to the particular employee’s as- signed department.6 McKay testified that there are occa- sions where C&F employees conduct inventory for non- C&F departments.7 During the past 2 years, the Employer has permanently transferred nine employees from other sales positions into C&F sales positions, and one C&F employee (who worked in cosmetics) was promoted to a supervisory position in a different department. B. Similarities and Differences Between and Among C&F Employees As my colleagues note, the Employer maintains a cosmetics and fragrances “department,” but the record also demonstrates that substantial dissimilarities in com- 5 The Employer’s 2012 performance reviews reveal that 70–80 per- cent of an employee’s overall appraisal is based on their “sales score- card.” Scorecard performance carries less weight (55 percent) for counter managers, who account for only 9 of the 140 selling employ- ees. 6 McKay further testified that all selling departments, including the cosmetics and fragrances department, had rung up products from other departments. McKay explained, however, that the Employer’s policy provided that departments should ring up only their own products so that the Employer could properly track sales for commission purposes. 7 For example, McKay explained that the Employer granted a beauty counter employee’s request to perform inventory in a noncosmetics area, and cosmetics beauty advisor Maria Francisco testified that, dur- ing the past year, a manager in the jewelry department asked that a few cosmetics employees assist with that department’s inventory. DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 34 pensation and working conditions exist among and be- tween these employees. (a) Physical Locations. For starters, the C&F sales- people work in the same store, but they are separated into two different areas located on two different floors. Cos- metics and women’s fragrances are located on the first floor. Men’s fragrances are located on the second floor. (b) Layout/Organization. The first floor cosmetics area is divided into eight counters, each of which is dedicated to selling products from a specific vendor. Cosmetics “beauty advisors” work at specific counters and typically only sell products associated with their assigned vendor. Fragrances “beauty advisors” sell all products, regardless of vendor. Seven of the cosmetics counters and the two fragrance areas (women’s and men’s fragrances, respec- tively) also have “counter managers” who, in addition to selling, coach beauty advisors on service and selling techniques. The Employer utilizes seven “on-call” em- ployees who are assigned as needed to any of the cosmet- ics counters or fragrance areas. (c) Proximity to Different Salespeople/Departments. The first-floor cosmetics and women’s fragrances area is surrounded by several other departments: women’s and juniors’ clothing, fine jewelry, and fine watches. The second-floor men’s fragrances area is surrounded by the men’s clothing department. (d) Complex On-Site “Vendor” Relationships and Training. Cosmetics “beauty advisors” have frequent contact with two types of “vendor” representatives: ven- dor account executives (who are employed by vendors) and vendor account coordinators (who are employed by the Employer). These vendor representatives provide in- store and offsite training for beauty advisors assigned to their brands. Training sessions cover product knowledge and selling techniques, and may deal with topics such as skin tones, skin types, use of color, and for fragrances, ingredients, scents, and notes. Because each cosmetics “beauty advisor” typically sells only one vendor’s prod- ucts, the advisor has significant interaction with that vendor’s representatives while other cosmetics “beauty advisors” have significant interaction with others, creat- ing further differences in working conditions within the C&F unit. (e) Hiring. Significantly, vendor account coordinators and executives participate in hiring cosmetics beauty advisors. They typically interview job candidates along with the Employer. The Employer and these vendor rep- resentatives then consult with each other to ensure that mutually acceptable applicants are hired. There are also vendor representatives associated with fragrances, but the record suggests they do not visit the store as consist- ently as cosmetics vendor representatives. Unlike the hiring process applicable to “cosmetics” beauty advisors, vendor representatives do not participate in the hiring of “fragrances” beauty advisors or on-call employees. For all beauty advisor applicants, however, prior experience in selling relevant products is desirable, but not required. (f) Attire. Several of the cosmetics vendors provide distinctive uniforms for their beauty advisors. All other beauty advisors adhere to the Employer’s storewide “basic black” uniform policy. (g) Compensation. Beauty advisors receive an hourly wage, plus a 3 percent commission on all sales. “Cos- metics” beauty advisors (but not “fragrances” beauty advisors) receive a 2 percent commission when they sell cosmetics outside of their assigned product line, which happens on occasion. “Counter managers” also receive an hourly wage, a 3 percent commission on their own sales, and a .5 percent commission on all sales made at their counter. “On-call” employees receive a 2 percent commission regardless of what they sell. The Employer negotiates with vendors to determine the exact mecha- nism by which beauty advisors receive commissions. The record does not reveal specific information about the details of these arrangements, save that vendors generally pay these commissions. (h) Importance of Customer Relationships. Cosmetics beauty advisors maintain lists of their regular customers, which they use to track customer purchases and to call customers to book appointments for makeovers, invite them to try new products, or notify them of special pro- motions or events. Fragrances beauty advisors also maintain customer lists, which they utilize to invite cus- tomers to new fragrance launches. C. Comparable Similarities and Distinctions Among Non-C&F Sales Employees The remaining selling employees work in ten other de- partments: women’s shoes, handbags, women’s cloth- ing, men’s clothing and shoes, juniors, fine jewelry, fash- ion jewelry, home, furniture, and bridal. The record re- veals that these other sales employees (non-C&F sales- people) have responsibilities, working conditions, hiring procedures, and compensation arrangements that are comparable and dissimilar in varying degrees, in line with the similarities and distinctions that exist among C&F sales employees. (a) Physical location. The non-C&F salespeople are located on the first or second floor of the Saugus store. (b) Layout/Organization. The 10 non-C&F depart- ments feature products made by a variety of vendors or manufacturers, including both “vendor specific” and “Macy’s private brand” products such as “Levi’s; INC.; MACY’S, INC. 35 Buffalo; Polo; LaCoste; Guess shoes; [and] North Bay shoes.”8 As noted above, the salespeople are managed by at least six managers who, like the C&F department manager, report to the single store manager; and also like the C&F department manager, it appears that at least two of the six other managers oversee more than one func- tional area.9 (c) Proximity to Other Salespeople/Departments. Like the C&F salespeople, the non-C&F sales employees work in designated locations on the first and second floors. As one would expect in any full-service depart- ment store, the different sales areas are adjacent to one another. The record reveals that four or five of the non- C&F product areas are physically adjacent either to the first floor cosmetics and women’s fragrances area or the second floor men’s fragrances area. (d) Complex On-Site “Vendor” Relationships and Training. As the Regional Director found, “like cosmet- ics employees,” selling employees in other departments (referred to as specialists) are also assigned to sell a spe- cific vendor’s products, which requires specialized famil- iarity with that vendor’s product lines. These specialists sell Guess shoes and men’s clothing, North Bay shoes, and Polo men’s clothing. Levi’s, Lacoste, Buffalo, INC, the North Face, Lenox, and Hilfiger also have specialists at the Saugus store. As the Regional Director further found, “like their colleagues in Cosmetics/Fragrances,” selling employees in other departments also have contact with vendor representatives. These representatives monitor stock and conduct onsite and offsite training for both specialists and nonspecialist employees who sell their products. Selling employees also receive training through product information sheets and conversations with management. District Human Resources Director Gina DiCarlo testified that the Employer and its many vendors organize this training for “virtually . . . every category of associates within our organization.” De- partments also hold special seminars during the year concerning product knowledge, selling techniques, and other related topics.10 8 Employer Macy’s, Inc.’s Brief on Review, at 3 (citing Hearing Transcript at 104–109). 9 A single manager is responsible for the juniors and fine jewelry salespeople, and a single manager is responsible for women’s shoes and handbags salespeople. 10 DiCarlo testified that the Employer and its vendors, during the first 10 months of 2012, held 47 of these training seminars. And, much like cosmetics beauty advisors are trained on skin types and fragrance scents, selling employees who deal with dresses are trained on silhou- ette, fabrics, and fit; selling employees in shoes are trained on fit, type, fabric, and color; and fine jewelry employees are trained on clarity, cut, color, and weight of gemstones. McKay testified that the Employer regularly utilizes a storewide coaching program (My Product Activi- (e) Hiring. Like cosmetics vendors, multiple non-C&F vendors are involved in hiring the sales specialists as- signed to their particular products. Store Manager McKay testified that the Employer and these vendors jointly interview applicants to ensure that they hire the best specialists. Again, prior experience in selling a giv- en department’s products is desirable, but not required. (f) Attire. As noted above, the Employer maintains a storewide “basic black” uniform policy, and there were no other required uniforms for C&F or non-C&F em- ployees, with the exception of some (but not all) cosmet- ics salespeople who were required, by certain vendors, to wear a vendor-specific uniform. (g) Compensation. Selling employees outside the cosmetics and fragrances department also receive sales- based incentives. Selling employees in fine jewelry, men’s clothing and shoes, furniture, and bridal receive commissions. Specialists selling products for Levi’s, Guess, Buffalo, and Polo receive bonuses from their as- signed vendors. The record does not reveal the precise details of these arrangements. (h) Importance of Customer Relationships. Non-C&F salespeople also maintained customer lists. McKay testi- fied that the Employer has developed a program called “My Client” to facilitate such lists because they have “become much more of a focus to the company.” Selling employees in fine jewelry, men’s clothing, big ticket,11 and bridal have already utilized these lists to invite cus- tomers to special events.12 Analysis The starting point for evaluating the Board’s role in bargaining-unit determinations is the Act itself. Here, three points are clear from the statute and its legislative history. First, Section 9(a) provides that employees have a right to representation by a labor organization “designated or selected for the purposes of collective bargaining by the majority of the employees in a unit appropriate for such purposes.”13 Thus, questions about unit appropriateness ties) to ensure that all selling employees maintain the highest level of product knowledge and sales techniques. 11 The record reveals that big ticket items are sold in the furniture department. 12 My colleagues state that the Employer has no “imminent plan to use client lists in the remaining primary sales departments,” but McKay’s testimony suggests otherwise. McKay testified that it was important to have client lists “throughout the store” (emphasis added). 13 29 U.S.C. § 159(a) (emphasis added). The Supreme Court has in- dicated that Section 9(a) “suggests that employees may seek to organize ‘a unit’ that is ‘appropriate’—not necessarily the single most appropri- ate unit.” American Hospital Assn. v. NLRB, 499 U.S. 606, 610 (1991) (emphasis in original; citations omitted). See also Serramonte Oldsmo- DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 36 are to be resolved by reference to the “purposes” of rep- resentation, should a unit majority so choose—namely, “collective bargaining.” Second, Congress contemplated that whenever unit appropriateness is questioned, the Board would conduct a meaningful evaluation. Section 9(b) states: “The Board shall decide in each case whether, in order to assure to employees the fullest freedom in exercising the rights guaranteed by this Act, the unit appropriate for the pur- poses of collective bargaining shall be the employer unit, craft unit, plant unit, or subdivision thereof.”14 Referring to the “natural reading” of the phrase “in each case,” the Supreme Court has stated that whenever there is a disagreement about the appropri- ateness of a unit, the Board shall resolve the dispute. Under this reading, the words “in each case” are syn- onymous with “whenever necessary” or “in any case in which there is a dispute.” Congress chose not to enact a general rule that would require plant unions, craft un- ions, or industry-wide unions for every employer in every line of commerce, but also chose not to leave the decision up to employees or employers alone. Instead, the decision “in each case” in which a dispute arises is to be made by the Board.15 Third, the language in Section 9(b) resulted from in- tentional legislative choices made by Congress over time. Regarding unit determinations, earliest versions of the Wagner Act legislation, introduced in 1934, did not con- tain the phrase “in each case,” nor did they state that the Board must “assure to employees the fullest freedom in exercising the rights guaranteed by this Act.” The initial wording simply stated: “The Board shall determine whether eligibility to participate in elections shall be de- termined on the basis of the employer unit, craft unit, plant unit, or other appropriate grouping.”16 When reintroduced in 1935, the legislation added a statement that unit determinations were “to effectuate the policies of this Act.”17 When reported out of the Senate bile, Inc. v. NLRB, 86 F.3d 227, 236 (D.C. Cir. 1996) (the NLRB “need only select an appropriate unit, not the most appropriate unit”). 14 29 U.S.C. § 159(b) (emphasis added). 15 American Hospital Assn. v. NLRB, 499 U.S. at 611 (emphasis added). See also id. at 614 (Section 9(b) requires “that the Board de- cide the appropriate unit in every case in which there is a dispute”). 16 See, e.g., S. 2926, 73d Cong. § 207 (1934), reprinted in 1 NLRB, Legislative History of the National Labor Relations Act, 1935 (herein- after “NLRA Hist.”) 11 (1949). See also S. 2926, 73d Cong. § 10(a) (1934), reprinted in 1 NLRA Hist. 1095 (“The Board shall decide whether eligibility to participate in a choice of representatives shall be determined on the basis of employer unit, craft unit, plant unit, or other appropriate unit.”). 17 See S. 1958, 74th Cong. § 9(b) (1935), reprinted in 1 NLRA Hist. 1300 (“The Board shall decide whether, in order to effectuate the poli- Labor Committee, the legislation stated that the Board “shall decide in each case” the appropriateness of the unit.18 Regarding this language, a House report stated: Section 9(b) provides that the Board shall determine whether, in order to effectuate the policy of the bill . . . , the unit appropriate for the purposes of collective bar- gaining shall be the craft unit, plant unit, employer unit, or other unit. This matter is obviously one for determi- nation in each individual case, and the only possible workable arrangement is to authorize the impartial governmental agency, the Board, to make that determi- nation.19 Section 9(b) in the final enacted version of the Wagner Act stated that the Board’s unit determinations “in each case” were “to insure to employees the full benefit of their right to self-organization, and to collective bargaining, and other- wise to effectuate the policies of this Act.”20 In 1947, as part of the Labor Management Relations Act,21 Congress devoted more attention to the Board’s unit determinations. The LMRA amended Section 7 so that, in addition to protecting the right of employees to engage in protected activities, the Act protected “the cies of this Act, the unit appropriate for the purposes of collective bar- gaining shall be the employer unit, craft unit, plant unit, or other unit.”). 18 See S. 1958, 74th Cong. § 9(b) (1935), reprinted in 2 NLRA Hist. 2291 (emphasis added). The full provision stated: “The Board shall decide in each case whether, in order to effectuate the policies of this Act, the unit appropriate for the purposes of collective bargaining shall be the employer unit, craft unit, plant unit, or other unit.” Id. See also H.R. 7937, 74th Cong. § 9(b), reprinted in 2 NLRA Hist. 2850 (same); H.R. 7978, 74th Cong. § 9(b), reprinted in 2 NLRA Hist. 2862 (same). The Senate report accompanying S. 1958 explained: “Obviously, there can be no choice of representatives and no bargaining unless units for such purposes are first determined. And employees themselves cannot choose these units, because the units must be determined before it can be known what employees are eligible to participate in a choice of any kind.” S. Rep. 74–573, at 14 (1935), reprinted in 2 NLRA Hist. 2313 (emphasis added). The language remained unchanged when adopted by the Senate. See S. 1958, 74th Cong. § 9(b) (1935), reprinted in 2 NLRA Hist. 2891 (version of S. 1958 passed by the Senate and referred to the House Committee of Labor). The same language was contained in H.R. 7978, 74th Cong. § 9(b) (1935), reprinted in 2 NLRA Hist. 2903 (version of Wagner Act legislation reported by the House Com- mittee on Education and Labor). 19 H.R. Rep. 74–969, at 20 (1935), reprinted in 2 NLRA Hist. 2930 (emphasis added). 20 S. 1958, 74th Cong. § 9(b) (1935), reprinted in 2 NLRA Hist. 3039 (emphasis added) (Senate-passed bill reported by the House Committee on Education and Labor). The same language was con- tained in the version adopted by the House, see S. 1958, 74th Cong. § 9(b) (1935), reprinted in 2 NLRA Hist. 3244, in the version adopted by the Conference Committee, see H.R. Rep. 74–1371, at 2, reprinted in 2 NLRA Hist. 3253–3254, and in the version that was enacted. See 49 Stat. 449, S. 1958, 74th Cong. § 9(b) (1935), reprinted in 2 NLRA Hist. 3274. 21 Labor Management Relations Act (Taft-Hartley Act or LMRA), 61 Stat. 136 (1947), 29 U.S.C. §§ 141 et seq. MACY’S, INC. 37 right to refrain from any or all of such activities.”22 The LMRA added Section 9(c)(5) to the Act, which states: “In determining whether a unit is appropriate . . . the ex- tent to which the employees have organized shall not be controlling.”23 A House report—though recognizing the Board had “wide discretion in setting up bargaining units”—explained that this language strikes at a practice of the Board by which it has set up as units appropriate for bargaining whatever group or groups the petitioning union has organized at the time. Sometimes, but not always, the Board pretends to find reasons other than the extent to which the employees have organized as ground for holding such units to be appropriate. . . . While the Board may take into consid- eration the extent to which employees have organized, this evidence should have little weight, and . . . is not to be controlling.24 Finally, the LMRA also amended Section 9(b) to state—as it presently does—that the Board shall make bargaining-unit decisions “in each case” in “order to assure to employees the fullest freedom in exercising the rights guaranteed by [the] Act.”25 This legislative history demonstrates that Congress in- tended that the Board’s review of unit appropriateness would not be perfunctory. In the language quoted above, Section 9(b) mandates that the Board determine what constitutes an appropriate unit “in each case,” with the additional mandate that the Board only approve a unit configuration that “assures” employees their “fullest freedom” in exercising protected rights. Although more than one “appropriate” unit might exist, the statutory language plainly requires that the Board “in each case” consider multiple potential configurations—i.e., a possi- ble “employer unit,” “craft unit,” “plant unit” or “subdi- vision thereof.” 22 NLRA Sec. 7, 29 U.S.C. § 157 (emphasis added). See also H.R. Rep. 80–245, at 27 (1947), reprinted in 1 NLRB, Legislative History of the Labor Management Relations Act, 1947 (hereinafter LMRA Hist.) 318 (1948) (“A committee amendment assures that when the law states that employees are to have the rights guaranteed in section 7, the Board will be prevented from compelling employees to exercise such rights against their will . . . . In other words, when Congress grants to em- ployees the right to engage in specified activities, it also means to grant them the right to refrain from engaging therein if they do not wish to do so.”). 23 29 U.S.C. § 159(c)(5). 24 H.R. Rep. 80–245, at 37 (1947), reprinted in 1 LMRA Hist. 328 (emphasis added), citing Matter of New England Spun Silk Co., 11 NLRB 852 (1939); Matter of Botany Worsted Mills, 27 NLRB 687 (1940). 25 29 U.S.C. § 159(b) (emphasis added). See, e.g., S. 1126, 80th Cong. § 9(b), reprinted in 1 LMRA Hist. 117; H.R. 3020, 80th Cong. § 9(b), reprinted in 1 LMRA Hist. 244–245. It is also well established that the Board may not certi- fy petitioned-for units that are “arbitrary” or “irration- al”—for example, where integration and similarities be- tween two employee groups “are such that neither group can be said to have any separate community of interest justifying a separate bargaining unit.”26 However, it ap- pears clear that Congress did not intend that the peti- tioned-for unit would be controlling in all but a few ex- traordinary circumstances when contrary evidence is overwhelming, nor did Congress anticipate that every petitioned-for unit would be accepted unless it is “arbi- trary” or “irrational.” Congress placed a much higher burden on the Board “in each case,” which was to deter- mine whether and which unit configuration(s) satisfy the requirement of assuring employees their “fullest free- dom” in exercising protected rights. A. The C&F Salespeople are not Sufficiently Distinct from Non-C&F Sales Employees to be an Appropriate Unit The record uniformly establishes two things that, in my view, preclude an “appropriate” unit determination other than one consisting of all salespeople storewide. First, the evidence shows that salespeople across all de- partments have multiple important interests in common (including the Employer’s rules and policies as reflected in the employee handbook, the same evaluation system, the same or similar compensation arrangements, partici- pation in the same daily rallies regarding storewide sales issues, and—most important—the overriding responsibil- ity to sell assigned products and create an environment encouraging customers to purchase products throughout the store). Second, to the extent there are dissimilarities between the working conditions of sales employees in a combined cosmetics and fragrances group and those of sales employees outside cosmetics and fragrances, these same dissimilarities exist between and among the sales- people within the combined cosmetics/fragrances group. In short, as the Board has held in numerous other retail cases (see part B below), the record demonstrates here that a unit other than all salespeople storewide is not “appropriate” for purposes of the Act. A bargaining-unit analysis in any retail setting must re- late to the nature of the business. In Allied Stores of New York, Inc.,27 the Board recognized the importance of a retail employer’s overriding business objective— 26 Trident Seafoods, Inc. v. NLRB, 101 F.3d 111, 120 (D.C. Cir. 1996). See generally Kindred Nursing Centers East, LLC v. NLRB, 727 F.3d 552, 558–559 (6th Cir. 2013); Mitchellace, Inc. v. NLRB., 90 F.3d 1150, 1157 (6th Cir. 1996); Bry–Fern Care Ctr., Inc. v. NLRB, 21 F.3d 706, 709 (6th Cir. 1994); NLRB. v. Hardy-Herpolsheimer, 453 F.2d 877, 878 (6th Cir. 1972). 27 150 NLRB 799 (1965). DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 38 selling—when evaluating what constitutes an “appropri- ate” bargaining unit in a retail setting. The Board stated: “We perceive a great difference between a retail store, like the Employer, that employs salespeople to serve the public and one where the public serves itself without the aid of sales personnel.”28 The Board rejected the em- ployer’s argument for a combined unit of selling and nonselling employees and reasoned: The Employer’s argument . . . minimizes the signifi- cance of the Employer’s main venture—to sell—and the salespeople whose ability to sell plays a large part in the success of its business. Certainly the obvious job qualifications of the competent salesperson—pleasing personality, poise, self-confidence, ease in dealing with strangers, imagination, ability to speak well, and to per- suade—are not demanded of nonselling personnel. The latter’s work is largely manual in bringing merchandise in and out of the store, does not involve meeting the public, knowing desirable features and construction of merchandise, and showing initiative in marketing a product. Failure to appreciate the difference between a salesperson’s job and that of other store employees is to disregard the obvious.29 Allied Stores was decided more than 50 years ago, which was long before bricks-and-mortar retail stores faced anything resembling modern-day competitive pres- sures resulting from Internet sales, global price competi- tion, and smartphone price-matching. In the present day, these competitive challenges confront retail employers and their sales employees alike, and these challenges constitute an overriding common concern that should render inappropriate any bargaining unit consisting of less than a storewide selling unit, especially where the record does not contain compelling evidence of distinc- tions unique to a particular subset of retail store sales- people.30 The specific facts here reveal that all selling employ- ees share significant common interests and working con- ditions. If the following matters involved differences, there is no doubt that they would be emphasized and dis- cussed prominently in any discussion of the “appropri- ate” unit (i.e., as evidence that a discrete subset of em- 28 Id. at 804. 29 Id. (emphasis added). 30 The instant case does not present any issue regarding the appropri- ateness of a single-store retail salesperson unit in comparison to a mul- tistore, regional or nationwide salesperson units, and I do not express any view regarding issues that may be relevant in these other contexts. Likewise, because I would find that the petitioned-for unit is not appro- priate, I do not reach the Employer’s alternative argument regarding the appropriateness of a unit consisting of all selling and nonselling em- ployees. See, e.g., Sears, Roebuck & Co., 184 NLRB 343, 346 (1970). ployees, rather than a storewide unit, should be deemed appropriate). The significance of these factors is not diminished merely because they undermine rather than support the petitioned-for unit: • Within and outside the C&F area, some salespeo- ple participated in a hiring process that involved outside vendors, and other salespeople were hired without input from outside vendors. • All salespeople across the store—within and out- side the C&F area—are covered by the same poli- cies expressed in the same employee handbook. • All salespeople storewide participate in the same benefits plans that are administered by the same human resources representatives and plan adminis- trators. • All salespeople storewide receive the same types of performance evaluations, based on the same cri- teria, and the same “sales scorecard” is used for rating purposes.31 • All salespeople storewide are subject to the same in-store dispute resolution procedure. • All salespeople share other important matters as- sociated with their day-to-day existence at work, including the time periods they work, the timeclock system, the breakroom(s), and participa- tion in the same “daily” rallies regarding sales- related totals and special events. The nature of the employer’s business leaves no doubt why all salespeople storewide have so many of these things in common: these shared working conditions are consistent with the Employer’s singular focus, which is to ensure that all salespeople—working separately and in coordination with one another—can maximize sales across the store. To the extent there are distinctions be- tween a combined C&F salespeople unit and the non- C&F salespeople who work at the same store, (i) such distinctions also exist between and among the C&F salespeople, and (ii) any distinctions pale in comparison to the interests that all salespeople storewide have in common. As noted previously, C&F and non-C&F selling em- ployees perform the same basic job function of selling 31 This weakens the Petitioner’s request to represent just C&F em- ployees. See Wheeling Island Gaming, 355 NLRB 637, 642 (2010) (poker dealers not distinguishable from other table game dealers where they were “evaluated using the same performance appraisal”); TDK Ferrites Corp., 342 NLRB 1006, 1009 (2004) (petitioned-for unit inap- propriate where the employer evaluated the performance of included and excluded employees “based on the same factors”). MACY’S, INC. 39 merchandise to customers, without a requirement that the salespeople have specific selling experience before work- ing for the Employer. Within and outside the C&F group, many salespeople are assigned to sell particular vendor brands, and other salespeople sell multiple vendor brands. Salespeople across the store must have special- ized, technical knowledge about the products they sell. Regarding compensation, the record reveals that C&F salespeople have a variety of commission arrangements, salespeople in at least 4 of the remaining 10 departments (fine jewelry, men’s clothing and shoes, furniture, and bridal) also receive commissions, and sales-related bo- nuses are provided to non-C&F salespeople employed to sell four major brands (Levi’s, Guess, Buffalo, and Po- lo). Although C&F and non-C&F salespeople do not all receive the same commission rates, the Board has held that differences in commissions and related pay incen- tives are insufficient to render inappropriate a bargaining unit that is otherwise appropriate.32 The important over- riding factor here is that salespeople across the store— not just C&F salespeople—receive sales-based incentive pay that significantly supplements their base wages.33 The record further reveals that salespeople within and outside the C&F department participate in training and other storewide programs designed to maximize sales, and have significant interaction with the many vendors that sell products in the store. This shared emphasis on training reinforces the appropriateness of a unit of all salespersons storewide rather than the petitioned-for sub- set of salespersons. See Boeing Co., 337 NLRB 152, 153 (2001) (petitioned-for unit deemed inappropriate where, among other things, included and excluded employees shared “similarity in training” and attended the same employer-provided classes). There is also evidence of integration and interaction among salespeople within and outside the C&F group. Most important, salespeople across the store develop customer relationships and maintain customer lists—undoubtedly involving many of the same customers—to maximize sales. The facts also reveal that the Union and the Board—at this same store—have deemed a storewide salesperson unit appropriate. In Allied Stores of New York, Inc.,34 the 32 See, e.g., Wheeling Island Gaming, 355 NLRB at 642 (“fact that poker dealers keep individual tips and the other table games dealers share tips appear to be a minor difference”); Hotel Services Group, 328 NLRB 116, 117 (1999) (petitioned-for unit of salon’s massage thera- pists did not possess a separate community of interest because, among other things, they had “similar” compensation as other salon employees despite differences in commission and gratuity rates). 33 See Coca-Cola Bottling Co., 229 NLRB 553, 554–555 (1977) (unit limited to certain salesmen deemed inappropriate where all sales- men were paid on “a salary-plus-commission basis”). 34 150 NLRB at 804. Board supported its unit determination in part by evaluat- ing the “pattern of organizing” in the retail industry. The Petitioner Union in the instant case itself previously at- tempted (unsuccessfully) to organize a storewide sales- person unit that the Board deemed appropriate, and the same Union represents employees in other storewide or multidepartment salesperson units. This pattern, though not controlling, “demonstrates the understanding” of the Union and the Employer that “singular differences” have not been relied upon in the past in favor of a unit limited to a narrow subset of selling employees who share broad commonalities with sales colleagues storewide. In the instant case, the record compels a conclusion that the petitioned-for subset of C&F salespeople is inap- propriate because the unit would arbitrarily include some salespeople and exclude others, when the included and excluded are all engaged in selling merchandise to the same customers in a full-service department store. This conclusion is reinforced by the fact that all salespeople, throughout the store, are covered by the same or similar hiring procedures, the same handbook and policies, the same dispute resolution procedure, the same performance evaluation criteria and tools, and similar commission arrangements (with pay differences that exist both within and outside the petitioned-for unit). In these respects, the Employer’s operation resembles that of the employer in Wheeling Island Gaming,35 where a petitioned-for group consisting of poker dealers was deemed inappropriate because excluded employees (other table game dealers) were “integral elements of the Employer’s business of operating a casino.”36 Here, as in Trident Seafoods, Inc. v. NLRB,37 the integration and similarities between C&F and non-C&F salespeople “are such that neither group can be said to have any separate community of interest justifying a separate bargaining unit.”38 35 355 NLRB at 642. Specialty Healthcare explicitly reaffirmed Wheeling Island Gaming. See 357 NLRB 934, 946 fn. 32. 36 355 NLRB at 642. See also Allied Stores, 150 NLRB at 804 (sell- ing employees’ ability to sell, an employer’s “main venture,” “plays a large part in the success of its business”). 37 101 F.3d at 111. 38 Id. at 120 (emphasis added). Two considerations emphasized by my colleagues—the fact that the C&F salespeople comprise a single “department” presided over by a single supervisor—do not in my view adequately support a C&F-only unit. The complexity of the Employ- er’s store clearly requires some delineation of particular product areas, and department stores traditionally delineate those areas by depart- ments; but the considerations that directly bear on unit “appropriate- ness” are those that directly affect employees, and as noted in the text at length, (i) broad commonalities in terms and conditions of employment among all selling employees storewide favor a storewide salespersons unit, and (ii) to the extent that differences exist between C&F salespeo- ple and those in other “departments,” the same types of differences exist between and among salespeople working within the combined C&F unit. For similar reasons, although common immediate supervi- DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 40 For these reasons alone, even if Specialty Healthcare were applied, I would find that C&F employees do not constitute an appropriate unit. Using the language of Specialty Healthcare, the record establishes that the ex- cluded non-C&F salespeople share an “overwhelming” community of interests with the C&F salespeople em- ployed in the petitioned-for unit.39 I would find that the smallest appropriate unit in the instant case must include all salespeople at the Employer’s store.40 B. A Unit Limited to C&F Salespeople Contradicts Longstanding Board Standards Regarding the Retail Industry In Specialty Healthcare, the Board dealt with the ap- propriateness of a particular bargaining unit in a nonacute healthcare setting. However, the Board acknowledged the existence of “various” presumptions and rules governing other industries, and it expressly stated that Specialty Healthcare was “not intended to disturb” those standards.41 Some of these standards, which reflect the develop- ment of Board law over many decades, relate specifically sion is relevant to the appropriate-unit determination, it is only one factor, and it is outweighed here by the common working conditions that cut across departmental lines, as well as the fact that Store Manag- er McKay exercises control over and oversees all salespeople across the store, both directly (through the daily rallies) and indirectly (through her oversight of the store’s sales managers, who report to McKay). See Hotel Services, 328 NLRB at 117 (multiple supervisors does “not nec- essarily mandate excluding differently supervised employees” from a unit); Haag Drug Co., 169 NLRB 877, 877–888 (1968) (“the commu- nity of interest of the employees in a single store takes on significance” when the store is “under the immediate supervision of a local store manager”). Moreover, counter managers oversee the work of discrete groups of employees within the C&F group, and there are other signifi- cant differences in working conditions between and among C&F em- ployees, as detailed above. 39 Specialty Healthcare, 357 NLRB 934, 945–946. 40 My colleagues cite a single case—Sears, Roebuck & Co., 261 NLRB 245 (1982)—for the proposition that the Board has found a subset of salespeople within a department store to be an appropriate unit. However, Sears is plainly distinguishable because the unit there was limited to auto center employees who were physically separated from other retail departments (the repair shop was separated from the main store by a wall), they had different working hours and vacation schedules, and they were only encouraged to attend monthly storewide meetings. Id. at 246–247. The Board noted that interaction between auto center salespeople and other salespeople was isolated to “rare situations,” which reflected the “absence of any close relationship” between the two groups of employees. Id. at 247. Most importantly, the Board in Sears emphasized that the petitioned-for unit centered around “a nucleus of craft employees (the mechanics) around whom the other auto center employees are organized,” and only 7 people in the 33-employee unit were “sales employees.” Id. at 245. Therefore, Sears involved a traditional “craft” exception to the retail industry presump- tion of a storewide bargaining unit, and a majority of the unit employ- ees were not even salespeople. These considerations are completely absent in the instant case. 41 Specialty Healthcare, supra at 946 fn. 29. to the retail industry. Specifically, the Board has held that “storewide” bargaining units are presumptively ap- propriate in the retail industry.42 There are substantial reasons for the Board’s presump- tion in so many cases that storewide retail units are ap- propriate. In Haag Drug Co.,43 the Board explained: The employees in a single retail outlet form a homoge- neous, identifiable, and distinct group, physically sepa- rated from the employees in the other outlets of the chain; they generally perform related functions under immediate supervision apart from employees at other locations; and their work functions, though parallel to, are nonetheless separate from, the functions of employ- ees in the other outlets, and thus their problems and grievances are peculiarly their own and not necessarily shared with employees in the other outlets. The presumed appropriateness of a storewide unit can be especially clear where, as in the instant case, “a local store manager . . . is involved in rating employee performance, or in performing a significant portion of the hiring and firing of the employees, and is personally involved with the daily matters which make up their grievances and routine prob- lems.”44 The Board elaborated in Haag Drug: “It is in this framework that the community of interest of the employees in a single store takes on significance.”45 See also Allied Stores of New York, 150 NLRB at 804 (Board finds store- wide unit of retail sales employees appropriate based on “pattern of organiz[ing]” and given the “great difference between a retail store . . . that employs salespeople to serve the public and one where the public serves itself without the aid of sales personnel”). The Board’s cases regarding unit appropriateness in the retail industry involve a number of issues that have been handled in a consistent manner. First, as noted previously, the Board has indicated that unique characteristics shared by sales employees have warranted findings that storewide sales employee bar- 42 See May Department Stores Co., 97 NLRB 1007, 1008 (1952) (“storewide unit” called “the optimum unit for the purposes of collec- tive bargaining”); I. Magnin & Co., 119 NLRB 642, 643 (1957) (the Board regards storewide unit “as a basically appropriate unit in the retail industry”); Sears, Roebuck & Co., 184 NLRB at 346 (calling a storewide unit “presumptively appropriate”). 43 169 NLRB at 877–878 (1968) (emphasis added). 44 Id. at 878. 45 Id. (emphasis added). Although cases such as Haag Drug arose in the context of evaluating whether a storewide unit was appropriate, rather than a multistore unit, these cases remain relevant in the instant case because they recognize that employees in a storewide unit are likely to share a community of interests that renders such a unit pre- sumptively appropriate. See also Dixie Belle Mills, Inc., 139 NLRB 629, 631 (1962). MACY’S, INC. 41 gaining units are appropriate.46 In I. Magnin,47 the Board found that a union was not justified in seeking to repre- sent a unit limited to a retail clothing store’s shoe sales- men.48 Like all the store’s salespeople, the shoe sales- men were hired through the same personnel department, worked the same number of hours, enjoyed the same benefits, and shared the same general sales skills. The Board found that the shoe salesmen were not craft or professional employees and thus were not “sufficiently different” from other selling employees to warrant their segregation in a separate unit. Likewise, in Kushins & Papagallo,49 the Board held that a petitioned-for unit was not appropriate where it was limited to one division of sales employees in a multidepartment retail store that sold shoes, dresses, and accessories.50 Second, the Board has found less-than-storewide retail units of “craft or professional employees” to be appropri- ate.51 46 See, e.g., Allied Stores of New York, Inc., 150 NLRB at 804. See also Wickes Furniture, 231 NLRB 154, 154–155 (1977) (“selling em- ployees have a sufficiently distinct community interest apart from other [nonselling] store employees . . . [t]hey are under separate immediate supervision, spend the large majority of their time on the selling floor initiating virtually all sales, alone receive commissions for their sales, and have minimal contacts with warehouse employees”); Sears, Roe- buck & Co., 174 NLRB 941, 941–942 (1969) (because “display de- partment employees, receivers, shippers, stockmen, unit control em- ployees, auditing department, and credit department employees . . . do no selling . . . we shall exclude them from the unit” of petitioned-for salesmen). 47 119 NLRB at 642. 48 Id. at 643. 49 199 NLRB 631, 631 (1972). 50 The Board has also been unwilling to separate selling employees into separate bargaining units in other industries where the employer’s primary goal is to sell its products. See, e.g., Coca-Cola Bottling Co., 229 NLRB at 553–555 (separate unit comprised of a subset of an em- ployer’s soft drink and vending machine product salesmen inappropri- ate; all sales employees had the same duty “to sell and/or deliver the Employer’s products”); Larry Faul Oldsmobile Co., Inc., 262 NLRB 370, 371 (1982) (finance and insurance salespersons should be included in a petitioned-for unit of automobile salespersons because both groups of employees were “primarily engaged in selling”); Liberty Mutual Insurance Co., 185 NLRB 734, 735 (1970) (personal and business insurance salesmen belonged in a single unit). 51 I. Magnin, 119 NLRB at 643. See, e.g., Goldblatt Bros., Inc., 86 NLRB 914, 915–916 (1949) (window and interior display personnel warranted a separate unit; they exercised artistic ability, used special- ized tools, and completed a 2-year training program before beginning work); May Department Stores Co., 97 NLRB at 1008–1009 (hair stylists, beauticians, and manicurists constituted an appropriate, sepa- rate unit; they completed training, obtained licenses, and had special- ized knowledge); Foremen & Clark, Inc., 97 NLRB 1080, 1081–1082 (1952) (tailor shop employees warranted a separate unit; they “engaged in manual work, much of it highly skilled, which is easily differentiated from the duties of selling personnel”); J. L. Hudson Co., 103 NLRB 1378, 1380–1383 (1953) (carpet and upholstery installers warranted separate units because they composed functional groups “possessing The Supreme Court has indicated that the Board’s bar- gaining-unit determinations can appropriately “be guided not simply by the basic policy of the Act but also by the rules that the Board develops to circumscribe and to guide its discretion . . . in the process of case-by-case adjudication,” and “the Board has created many such rules in the half-century during which it has adjudicated bargaining unit disputes.”52 In the circumstances pre- sented here, a bargaining unit limited to C&F salespeople is not only inappropriate given the facts of this case, such a unit is contrary to standards developed and recognized by the Board in numerous other retail industry cases. These retail industry standards have been applied con- sistently and exist for good reasons.53 Like the rules developed by the Board for other industries, our retail industry standards should “circumscribe” and “guide” our resolution of the instant case. C. Specialty Healthcare As noted above, a wide array of undisputed facts ren- ders inappropriate a bargaining unit limited to C&F em- ployees. My colleagues, like the Acting Regional Direc- tor, reach a contrary conclusion based on the Board’s decision in Specialty Healthcare.54 In most cases, under Specialty Healthcare, the petitioned-for unit of employ- ees will be deemed appropriate, instead of a larger unit, unless the opposing party proves that the excluded em- ployees “share an overwhelming community of interest” with the petitioned-for group.55 predominantly craft skills”); Rich’s, Inc., 147 NLRB 163, 164–165 (1964) (bakery employees constituted an appropriate unit). 52 American Hospital Assn. v. NLRB, 499 U.S. at 611–612 (emphasis added; citations omitted). 53 Unlike my colleagues, I do not believe Saks Fifth Avenue, 247 NLRB 1047, 1051 (1980), supports the proposition that the presump- tion favoring storewide units is “no longer applicable to department stores.” This statement in Saks Fifth Avenue related to a successorship situation, where the new employer argued it could refuse to recognize and bargain with the union that previously represented a preexisting unit of “alterations” employees. These employees were employed in a less-than-storewide “craft” unit that traditionally has been considered appropriate by the Board. See cases cited in fn. 50, supra. Moreover, the above-quoted statement from Saks Fifth Avenue was accompanied by a citation to Allied Stores, 150 NLRB at 803, where the Board up- held the appropriateness of a storewide salesperson unit. Neither Saks Fifth Avenue nor Allied Stores supports a less-than-storewide unit that selectively includes some salespeople and excludes other salespeople at the same store. Also, as my colleagues concede, subsequent to Saks Fifth Avenue, the Board has reaffirmed the presumptive appropriateness of storewide units in the retail industry. See Wal-Mart Stores, 348 NLRB 274, 287 (2006), enfd. 519 F.3d 490 (D.C. Cir. 2008). See also Charrette Drafting Supplies, 275 NLRB 1294, 1297 (1985). 54 357 NLRB 934. 55 Id., slip op. at 1. In addition to the holding that a petitioned-for unit will be accepted unless the opposing party proves that excluded employees share an “overwhelming” community of interest with em- ployees in the proposed unit, Specialty Healthcare also states that, DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 42 Contrary to my colleagues, I would not apply Specialty Healthcare here or in any other decision. Three consid- erations, in my view, suggest that Specialty Healthcare is inconsistent with the role that the Board has been admon- ished to play “in each case” when deciding the appropri- ate unit. First, Specialty Healthcare constitutes an unwarranted departure from standards developed over the course of decades that have long governed the Board’s bargaining- unit determinations. Rather than upholding petitioned- for units except when there is proof that excluded em- ployees share an “overwhelming” community of interest with employees in the proposed unit, I believe the Board’s responsibility is to evaluate whether a unit’s appropriateness is supported based on a careful examina- tion of what interests are shared within and outside the proposed unit. The Board reaffirmed this approach in Wheeling Island Gaming,56 which, though cited with approval in Specialty Healthcare,57 examined “whether the interests of the group sought are sufficiently distinct from those of other [excluded] employees to warrant establishment of a separate unit.”58 I believe the same type of examination, if conducted here, warrants a con- clusion that the petitioned-for unit is not appropriate. within the proposed unit, employees must be “readily identifiable as a group (based on job classifications, departments, functions, work loca- tions, skills, or similar factors),” and they must “share a community of interest” based on “traditional criteria.” Id., slip op. at 12 (citing Wheeling Island Gaming, 355 NLRB at 637 fn. 2) (other citations omit- ted). These other standards existed long before the Board issued its Specialty Healthcare decision, and I agree with them. 56 355 NLRB at 641–642. 57 357 NLRB at 946 fn. 32. 58 355 NLRB at 637 fn. 2 (emphasis in original). My colleagues quote the Sixth Circuit appeal of Specialty Healthcare for the proposi- tion that it is “just not so” that Specialty Healthcare represented a mate- rial change in the law. Yet although the Sixth Circuit indicated that the phrase “overwhelming community of interest” appeared in some Board decisions, see Kindred Nursing Centers East, LLC v. NLRB, 727 F.3d 552, 561–562 (6th Cir. 2013) (citing two examples), the Board in Spe- cialty Healthcare acknowledged that other prior cases had used “differ- ent words” when describing when excluded employees rendered inap- propriate the petitioned-for unit, or evaluated whether employee inter- ests were “sufficiently distinct,” or even failed to articulate “any clear standard,” Specialty Healthcare, supra at 944–945, and the Fourth Circuit squarely rejected the “overwhelming community of interest” standard in NLRB v. Lundy Packing Co., 68 F.3d 1577, 1581 (4th Cir. 1995). Additionally, my colleagues suggest the Sixth Circuit rejected arguments “similar to those presented” in this dissent, but nothing in Kindred suggests that the Sixth Circuit evaluated the considerations expressed here—especially that Specialty Healthcare improperly limits the Board’s statutory role, contrary to the Act and its legislative history, by affording too much deference to the petitioned-for unit in derogation of Sec. 9(b)’s requirement that the Board “in each case” undertake a broader and more refined analysis, play a more active role, and consid- er the Sec. 7 rights of included and excluded employees when deter- mining the appropriate unit. See fns. 60–67 and accompanying text, infra. Second, the Board in Specialty Healthcare stated that its decision was “not intended to disturb” rules developed by the Board regarding particular industries.59 Yet, the instant case involves precisely the type of industry—and a classification of employees within that industry— warranting a continuation of the consistent treatment that the Board has applied to similar facts in other cases. As applied in the instant case, Specialty Healthcare detracts from the type of employer and industry-specific stand- ards that remain applicable to bargaining unit determina- tions, particularly since the Board in Specialty Healthcare expressly stated that these standards remain intact. Third, and most important, I believe the Specialty Healthcare standard is irreconcilable with the role that Congress intended that the Board would play “in each case” regarding bargaining unit questions,60 and Special- ty Healthcare renders “controlling” the “extent to which the employees have organized” contrary to Section 9(c)(5).61 As recited at some length above, the Act and its legislative history indicate that Congress requires the Board—as reflected in mandatory statutory language—to undertake an active inquiry that is twofold: (a) the Board “shall decide in each case whether” the appropriate unit “shall be the employer unit, craft unit, plant unit, or sub- division thereof”;62 and (b) when making such a decision in each case, the Board must determine which of these competing groupings operates “to assure to employees the fullest freedom in exercising the rights guaranteed by [the] Act.”63 By its terms, Specialty Healthcare appears to guarantee that the Board will not “in each case” decide which of the unit configurations enumerated in the stat- ute (i.e., the “employer unit,” “craft unit,” “plant unit,” or “subdivision thereof”) operates to “assure employees the fullest freedom in exercising the rights” associated with union elections. Under Specialty Healthcare, the peti- tioned-for unit “in each case” will govern, except in the rare and unusual situation where an opposing party proves the existence of an “overwhelming community of interests” between excluded employees and those in the proposed unit. I believe Congress has required that the Board “in each case” will undertake a broader and more refined analysis, and play a more active role, when de- termining whether or not a unit is “appropriate” than is permitted under the Specialty Healthcare standard. 59 357 NLRB at 946 fn. 29. 60 NLRA Sec. 9(b), 29 U.S.C. § 159(b). 61 29 U.S.C. § 159(c)(5). See NLRB v. Lundy Packing Co., 68 F.3d at 1581 (“overwhelming community of interest” requirement “effec- tively accorded controlling weight to the extent of union organization”). 62 NLRA Sec. 9(b), 29 U.S.C. § 159(b) (emphasis added). 63 Id. (emphasis added). MACY’S, INC. 43 In my view, the “overwhelming community of inter- ests” standard also improperly focuses solely on the Sec- tion 7 rights of employees in the petitioned-for unit, and it disregards the Section 7 rights of excluded employees except in a rare case where the excluded employees’ in- terests “overlap almost completely” with those of includ- ed employees.64 All statutory employees have Section 7 rights, whether or not they are initially included in the petitioned-for unit. And the Act’s two most important core principles governing elections—the concepts of “exclusive representation” and “majority rule,” both set forth in Section 9(a)—are completely dependent on the scope of the unit. For these reasons, the Board’s unit determinations must, in part, consider whether the rights of nonpetitioned-for employees warrant their inclusion in any bargaining unit. Yet, such inquiry is effectively pre- cluded under Specialty Healthcare. As stated in the dis- senting opinion authored by former Member Hayes, Spe- cialty Healthcare makes “the relationship between peti- tioned-for unit employees and excluded coworkers irrel- evant in all but the most exceptional circumstances.”65 In short, the Act requires the Board to approach unit determinations with vigilance and some reasonably broad range of vision regarding alternative unit configurations. In this regard, Specialty Healthcare affords too much deference to the petitioned-for unit in derogation of the mandatory role that Congress requires the Board to play. I believe this will necessarily result in bargaining units not decided upon by the Board based on criteria specified in the Act, but instead units will mostly result from “whatever group or groups the petitioning union his or- ganized at the time,”66 contrary to Section 9(c)(5) and Sections 9(a) and 9(b) of the Act.67 64 Specialty Healthcare, 357 NLRB at 944 (quoting Blue Man Ve- gas, LLC v. NLRB, 529 F.3d 417, 422 (D.C. Cir. 2008)) (internal quota- tion marks omitted). 65 Id., at 948 (Member Hayes, dissenting). See also DTG Operations, Inc., 357 NLRB 2122, 2129–2130 (2011) (Member Hayes, dissenting); Northrop Grumman Shipbuilding, Inc., 357 NLRB 2015, 2020–2023 (2011) (Member Hayes, dissenting). In my view, the mere possibility that excluded employees may seek separate representation in one or more separate bargaining units does not solve the problem caused by the Board’s failure to give reasonable consideration to their inclusion in a larger unit. The Act’s requirement that the Board “assure to employ- ees the fullest freedom” in exercising protected rights requires the Board “in each case” to consider the interests of all employees— whether or not they are included in the petitioned-for unit—so the Board can “decide” whether the unit should be the “employer unit, craft unit, plant unit, or subdivision thereof.” NLRA Sec. 9(b), 29 U.S.C. § 159(b). 66 H.R. Rep. 80–245, supra fn. 23, at 37. 67 I recognize that Specialty Healthcare was enforced by the Court of Appeals for the Sixth Circuit, which held—as did the D.C. Circuit in Blue Man Vegas, LLC v. NLRB, 529 F.3d 417 (D.C. Cir. 2008)—that the Board’s “overwhelming community of interest” standard does not Conclusion The Employer here—like countless others in the retail industry—operates a store that involves enormous com- plexity: an array of products and brands, with salespeo- ple who have overlapping relationships with customers and one another, with innumerable additional details re- garding commissions and compensation, common per- formance criteria, onsite vendor representatives, and nonsales personnel. The record reveals that all salespeo- ple storewide have the same or similar working condi- tions, employment policies, job responsibilities, perfor- mance criteria, benefit plans, and commission and com- pensation arrangements. To the extent that cosmetics and fragrances salespeople are dissimilar from other salespeople in the same store, there are comparable dis- similarities among and between the C&F employees themselves. Moreover, if a unit limited to C&F sales- people is deemed appropriate, that will raise the prospect of one or more additional separate bargaining units for other segments of sales personnel at the same store, and the resulting multiplicity of bargaining relationships would create even more complexity that would be at odds with the Employer’s overriding business objective: to attract and retain customers who purchase products throughout the store. violate Section 9(c)(5). As referenced in fn. 58, supra, and with due respect for these court decisions, I believe Specialty Healthcare affords too much deference to the petitioned-for unit in derogation of the role that Congress requires the Board to play when making unit determina- tions, contrary to Section 9(c)(5), Section 9(a) and Section 9(b). How- ever, to the extent that Specialty Healthcare is considered to be within the discretion that Congress prescribed for the Board, I would still decline to apply or rely on that decision for the reasons stated in the text. DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 44 I would find that the petitioned-for C&F salesperson unit is not appropriate, and that the smallest potential appropriate unit would consist of all salespeople store- wide. I believe the contrary result my colleagues reach is inconsistent with the Board’s traditional standards gov- erning retail operations. Finally, I believe the Specialty Healthcare standard, as applied in the instant case, high- lights important shortcomings that render Specialty Healthcare inappropriate and contrary to the Act, and I would refrain from applying or relying on Specialty Healthcare in any case. Accordingly, I respectfully dissent.