S2984-119

What This Bill Does

The Employee Rights Act reforms federal labor law to significantly restructure the relationship between workers, employers, and labor unions. The bill requires secret ballot elections for union representation, restricts how union dues can be spent, and makes it easier for businesses to classify workers as independent contractors rather than employees. It also excludes undocumented workers from participating in union elections and exempts tribal enterprises from National Labor Relations Act coverage.

Who Benefits and How

Employers and businesses benefit substantially from this legislation. The expanded independent contractor definition allows companies to classify more workers outside of employment protections without triggering employee status based on common factors like requiring insurance, meeting deadlines, or following safety standards. The tightened joint-employer standard protects franchisors and parent companies from being held responsible for labor law violations at franchisee or subsidiary locations. Employers in right-to-work states gain additional advantages as employees who leave unions can negotiate individually, potentially undermining collective bargaining power.

Indian Tribes and tribal enterprises benefit from explicit exemption from NLRA coverage, giving them sovereignty over labor relations on tribal lands without federal labor law requirements.

Who Bears the Burden and How

Labor unions face significant new constraints. They must obtain annual written authorization to use member dues for any activities beyond direct collective bargaining, and they are prohibited from including diversity, equity, and inclusion provisions in collective bargaining agreements. Unions also face liability for misusing employee personal information obtained during organizing drives.

Workers seeking union representation face higher barriers. Secret ballot requirements replace card-check organizing methods. Undocumented workers are completely excluded from union elections and organizing petitions. In right-to-work states, workers who leave unions can negotiate independently, which may fragment collective bargaining units.

Gig economy workers and independent contractors may lose access to labor protections as the expanded independent contractor definition makes it harder to establish employee status and the associated benefits like minimum wage, overtime, and the right to organize.

Key Provisions

• Secret ballot requirement: All union elections must be conducted by secret ballot through the NLRB, eliminating card-check procedures
• Independent contractor test: Creates a new legal standard making it easier to classify workers as independent contractors if they have entrepreneurial opportunity and the employer does not control how work is performed
• Joint-employer restrictions: Limits joint-employer liability to situations where both employers directly and immediately exercise significant control over essential employment terms
• Union dues restrictions: Requires annual written authorization for unions to use dues for any purpose beyond direct collective bargaining and contract administration
• Immigration status voting ban: Prohibits workers without lawful immigration status from voting in union elections or being counted in organizing petitions
• Tribal sovereignty: Exempts Indian Tribes and their enterprises on tribal lands from NLRA coverage
• Independent negotiating: In right-to-work states, allows workers who leave unions to negotiate directly with employers outside the collective bargaining agreement
• DEI prohibition: Makes it an unfair labor practice for unions to include diversity, equity, or inclusion mandates in collective bargaining agreements unless required by law