Indiana Seeks to Become 23rd State to Pass "Right to Work" Legislation

Recently, the Indiana legislature introduced House Bill 1028 (HB 1028), which would make compulsory unionism unlawful. Should it pass, HB 1028 - introduced by State Representatives Wes Culver and Jerry Torr - would make Indiana the 23rd state to pass such legislation.

Right to Work Laws - Legal & Practical Impact

Right to work laws prohibit agreements between labor unions and employers that make union membership and/or payment of union dues or fees a condition of employment. In practice, right to work laws invalidate union security clauses in collective bargaining agreements and prohibit employers and unions from requiring their work forces to pay union dues or fees as a condition of employment.

Because many employees would rather not pay costly union dues, union presence and overall strength in right to work states are significantly lower than in non-right to work states. Employers also generally prefer right to work legislation because weakening organized labor reduces the work stoppages, restrictive hiring practices and burdensome labor costs that are so often associated with unions.

Indiana's Law

Indiana's proposed right to work law makes it a Class A misdemeanor to require an individual, as a condition of employment, to:

• Become or remain a member of a labor organization;
• Pay dues, fees or other charges to a labor organization; or
• Pay to a charity or another third party an amount that represents dues, fees or other charges required of members of a labor organization.

Indiana's proposed law would also establish a separate private cause of action for individuals who are required to pay union dues as a condition of employment.

Unionized Employers

While most non-union employers obviously support right to work legislation, unionized Indiana employers will need to independently consider whether passage of HB 1028 would have a positive or negative impact on their business. Interested employers can direct inquiries to the offices of Representatives Culver and Torr, and they also can contact their local representatives. Baker & Daniels' labor and employment team will keep you up-to-date on the status of Indiana's Right to Work legislation.