Employee Free Choice Act, employers (union and non-union) must be prepared

The Employee Free Choice Act (EFCA), also known as the “Card Check bill” has been the top priority of unions throughout this election year. If passed, the EFCA will amend the National Labor Relations Act (NLRA) by removing previous barriers to union organizing.

President elect Barack Obama was a co-sponsor of the bill while a senator and has said that he will sign it into law if the legislation comes across his desk.

If Obama signs the EFCA, it would result in the most “sweeping” changes to the NLRA in the past 40 years. Union and non-union employers must be prepared for this law, which will make it easier for workplaces to unionize and will likely lead to a spike in union organizing activity, according to Mark Mathiason of the Gray Plant Mooty law firm.

In a recent Human Resources Executive Online article, Garry Mathiason, partner and vice chair of Littler Mendelson in San Francisco, advised:

The 2009 agenda for HR professionals must assume EFCA in some form will become law. In anticipation, employers should consider auditing conditions to determine whether they would support an organizing drive; monitoring union-organizing activities within the industry or geographical location; training management about rules associated with union organizing, potentially providing employees with information and arguments about union representation when organizing activity is anticipated and -- in some highly targeted industries -- even before receiving evidence of organizing activity; and, most of all, reviewing overall employment conditions to ensure they are competitive and the needs of employees are being addressed.

The EFCA would amend the NLRA in three major areas:

1. The EFCA would require the National Labor Relations Board (NLRB) to recognize a labor union through authorization cards signed by a majority of employees, without the benefit of a government-supervised, secret-ballot election.
2. It would also require arbitration if an employer and a newly certified union are unable to reach an agreement on an initial contract in a timely fashion.
3. The new law would create significant penalties for remedying employer unfair labor practices. Such penalties would apply during any period when unions are organizing and during negotiations of a first contract.

The G.Neil labor law team will continue to watch the EFCA as President elect Obama prepares to take office in January. Check back regularly for the most up-to-date information to help your business take action and stay in compliance.

Employee Free Choice Act, employers (union and non-union) must be prepared

Obama on labor law: Preparing for change

As President-elect Barack Obama prepares to take his place in the White House, businesses across the country are considering what impact his plans will have on their organizations in the coming years.

In our existing unpredictable market, businesses should be prepared for impending changes related to wages, immigration, taxes, health care, executive compensation and benefits, civil rights and an inevitable increase in worker unionization, according to Littler Mendelson, the nation’s largest employment and labor law firm representing management, in a recent article.

“The combination of President Obama, with an electoral mandate for change from the voters, large Democratic gains in both houses of Congress, and the declining economy, sets the stage for a wave of legislative and regulatory proposals intended to protect workers in these troubled times,” Jay Sumner, a Washington, DC-based attorney at Littler said. “In the first 100 days and over the next four years, American businesses should anticipate significant changes.

“Those companies that educate themselves and prepare to navigate the changed labor and employment landscape will survive and prosper, and they should have a competitive edge over those that are caught unprepared,” said Sumner in a recent Seacoastonline.com article.

Here are the most important employment law issues we’ll be watching after Obama takes office in 2009:

Unions - The Employee Free Choice Act (EFCA), designed to make it easier for unions to organize, is the top item on the labor agenda. Obama has already pledged to sign EFCA into law once passed.

Health care - Experts predict that the Obama Administration will explore avenues to keep the current employer-provided health care system in place. Obama’s health care plan would require employers to provide health care benefits or pay a percentage of payroll to support public health care.

Immigration - The new administration will push to increase enforcement of immigration laws and hold negligent employers accountable for disregard of immigration laws and employing undocumented workers. Obama is likely to agree with past proposals requiring government contractors to use E-Verify and could extend the program if accuracy and funding issues are settled.

Minimum Wage - Obama has pledged to increase minimum wage and index it to inflation.

Time off - The Obama Administration wants to expand the Family and Medical Leave Act (FMLA) to cover smaller employers, those with 25 or more employees, and permit leave for more reasons. Obama and Congress are also considering paid FMLA leave, mandatory sick leave and flexible work arrangements.

Obama on labor law: Preparing for change