Michigan Repeals Right-to-Work Law

• Jurisdiction: Michigan,United States
• Law Firm: Littler Mendelson
• Subject Matter: Employment and HR, Employee Rights/ Labour Relations
• Author: Mr Adam-Paul Tuzzo, Ariel Perez and Jake Thorn
• Published date: 11 April 2023

In 2012, Michigan enacted a right-to-work statute that prevented employees from being forced to join or financially support a labor union as a condition of employment. On Friday, March 24, 2023, Michigan became the first state in 58 years to repeal its right-to-work statute. The repeal will take effect on March 30, 2024, and have a significant impact on employees, employers, and labor unions alike.

Right to Work Briefly Explained

Unions in non-right-to-work states typically negotiate into collective bargaining agreements provisions known as union security clauses, which require employees to join or financially support a union as a condition of employment.

Section 14(b) of the National Labor Relations Act protects the right of states to negate union security clauses by enacting right-to-work statutes. Not counting Michigan, 26 U.S. states have such statutes. Although right-to-work statutes vary from state to state, they generally prohibit unions from enforcing union security clauses. This allows employees in right-to-work states to decline or resign from union membership and avoid paying union dues. Therefore, right-to-work statutes protect free choice and force unions to offer services that employees consider worth the cost of union dues. Labor unions are legally prohibited from discriminating against employees in right-to-work states who decide not to join the union and pay dues. This means they must spend resources on employees without a guarantee of collecting dues in return, which is the primary reason labor unions dislike such statutes and spend considerable time and effort trying to get them repealed.

What Happened in Michigan

Michigan's 2012 right-to-work statute currently prohibits an individual from being required to do any of the following to obtain or continue employment:

• Refrain from or resign from membership in, affiliation with, or financial support of a labor organization.
• Become or remain a member of a labor organization.
• Pay any dues, fees, or other charges to a labor organization.
• 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.

Senate Bill No. 34 ("SB 34") eliminates Michigan's right-to-work legislation entirely. Under SB 34, employees in unionized workplaces will no longer have a statutory right to opt out of union membership or refrain from paying union dues or fees as a condition of employment. SB 34...