Michigan: Repeal of Right-to-Work Statute

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APPLIES TO

All Employers with MI Employees

EFFECTIVE

March 31, 2024

  

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Quick Look

  • Michigan repealed its right-to-work statute in its entirety which means employees in unionized workplaces will no longer have a right to opt out of union membership or refrain from paying union dues or fees as a condition of their employment.
  • A similar law allows union security clauses to apply to public sector employees; however, it will only apply in the event the Supreme Court’s decision in Janus v. AFSCME is overturned.
  • Private employers with union workforces should anticipate their unions will attempt to bargain back security clauses during the next negotiation cycle.

Discussion

SB 34 repeals Michigan’s ten-year old law that prohibited requiring an employee, as a condition of employment, to join a union or pay any fees to a union. In addition, the prior law prohibited employees from being required to do any of the following: 1) refrain from or resign from membership in, affiliation with, or financial support of a labor organization; 2) become or remain a member of a labor organization; 3) pay any dues, fees, or other charges to a labor organization; and 4) pay a charitable organization or another third party an amount of money equivalent to dues, fees, or other charges that are required to be represented by a labor organization. Section 14(b) of the National Labor Relations Act protects states’ rights to enact such laws (right-to-work statutes) that negate union security clauses.

SB 34 repeals the previous right-to-work law entirely. This means employees with unionized workplaces will no longer have a right to opt out of union membership or refrain from paying union dues or fees as a condition of their employment. Union security clauses in collective bargaining agreements that require dues, fees, assessments, or expenses supporting unions will therefore be lawful. Unions can also force employers to terminate employees who refuse to pay such fees. SB 34 also removed the financial penalty for using force, intimidation, or threats to compel an employee to join or not join a union. Local governments will also be prohibited from enacting any right-to-work ordinance in opposition to the new law. HB 4004 was simultaneously enacted and also allows union security clauses to apply to employees in the public sector. This law is largely symbolic since the Supreme Court in Janus v. AFSCME ruled it unlawful for unions or government employers to compel government employees to pay union dues. Private sector employers with union workforces should anticipate their unions will attempt to bargain back security clauses during the next negotiation cycle.

 

Action Items

  1. Review collective bargaining agreements with security clauses with legal counsel.
  2. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

 

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2023 ManagEase