State laws that prohibit requiring union membership or union dues payment as a condition of employment.
Right-to-work laws prohibit employers and unions from making union membership (or payment of union dues) a condition of employment. About 27 states have right-to-work laws. In non-RTW states, union security clauses in collective bargaining agreements can require non-member employees to pay agency fees covering the cost of representation.
RTW status affects union dynamics in industries with organized labor — manufacturing, construction, transportation, healthcare. In RTW states, union membership rates tend to be lower; in non-RTW states, union presence is often stronger.
PEO arrangements generally don't change union dynamics — the co-employment doesn't replace existing collective bargaining agreements, and PEOs typically don't take on heavily unionized workforces because of the contractual complexity.
State laws that prohibit requiring union membership or union dues payment as a condition of employment.
Right-to-work laws prohibit employers and unions from making union membership (or payment of union dues) a condition of employment.
Most PEO buying decisions touch several related concepts at once. Right-to-work typically comes up alongside the other terms in this category. Closely related terms include Fair Labor Standards Act (FLSA), Employer mandate.
This is one entry from our PEO glossary covering payroll, benefits, workers comp, HR compliance, and PEO mechanics. Browse all terms.
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