While organized labor was dealt a major setback by the Supreme Court in Janus v. AFSCME, the landmark ruling does not impact the legality of union security clauses in the private sector. In Janus, the Supreme Court held that the state’s extraction of union dues from non-consenting public employees violates the First Amendment. The Court overruled Abood v. Detroit Board of Education, 431 U.S. 209 (1977), which held that state and local governments could lawfully require public employees to pay “agency fees” as a condition of continued employment. Agency fees are intended to cover costs related to contract negotiation, grievance processing, and contract administration, but are meant to exclude costs related to union lobbying and political activism. Following Janus, public employees can no longer be compelled to contribute any dues to unions, including so-called agency fees.
On February 20th, the United States Supreme Court ruled that in a collective bargaining agreement, no ambiguities should be interpreted by the absence of a provision concerning the duration of retirees’ healthcare benefits. Benefits clearly expire when the collective bargaining agreement itself expires. The Supreme Court’s decision, CNH Indus. N.V. v. Reese, was unanimous.
Other AALRR Blogs
- Private-Sector Employers Unaffected by the Supreme Court’s Janus Decision on Union Dues
- FAQ re Employees’ Weingarten Rights to Representation
- NLRB Vacates Its Hy-Brand Ruling on Joint Employer Liability
- U.S. Supreme Court Holds That Retirees’ Healthcare Benefits Clearly Expire When the Underlying Collective Bargaining Agreement Expires
- New Memo Reveals NLRB Is Considering Procedural Changes Potentially Beneficial to Employers
- Trump Selects Republican John Ring for the NLRB
- NLRB Overrides Specialty Healthcare and Returns to Prior Bargaining Unit Standard
- NLRB Issues Three Major Rulings Favoring Employers
- Changes at the NLRB: New General Counsel Confirmed and New Chairperson Expected
- Construction Company Liable for $76 Million for Fraudulently Creating Alter Ego Companies to Avoid Its Collective Bargaining Agreements