What You Need to Know about Right-to-Work Legislation

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Michigan, last week, became the 24th state to pass right-to-work legislation. A bit of a misnomer, the term “right-to-work” does not guarantee anyone’s right to work per se. What it does guarantee is that when employees choose not to join a union, they cannot be compelled to pay any union dues or fees as a condition of their employment.

In contrast, a “closed shop” would require that all workers join the union, and hence pay dues, as a condition of being hired.

While such completely closed shops were outlawed decades ago, the modified form that exists today permits a mandated fee payment to the union by those who choose not to join.

An argument against right-to-work is that all employees enjoy higher wages and better benefits as a result of the union and thus should contribute. The counter argument, and basis for right-to-work laws, is that choosing to join a union and pay dues to it, or not, is each individual employee’s basic right.

The passage of the right-to-work law in Michigan, and one earlier this year in Indiana, is significant because the mid-West has historically been a stronghold for union activity.

Right-to-work laws tend to have a weakening effect on unions. Many companies have relocated jobs to states that have right-to-work laws; it has been argued that the laws, therefore, have a positive effect on the economies and unemployment rates in those states.

For further information on right-to-work laws, subscribers to HRSentry may simply type right to work in the Search Box from their dashboard.

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This page contains a single entry by Jill Muhr published on December 18, 2012 7:11 PM.

Do Your Franchisees Make These Mistakes at Tax Time? was the previous entry in this blog.

See How Easily You Can Have Great Marketing Performance is the next entry in this blog.

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