As previously communicated by Vensure here, we wanted to remind employers that the Right-To-Work Law Repeal is effective on March 30, 2024.
This repeal not only is historical because Michigan becomes the first state in 58 years to repeal its Right-to-Work statute, but will make non-unionized employees unable to resign union membership and avoid paying union dues, even as a condition of employment.
Therefore, union security clauses might increase or might begin to operate in collective bargaining agreements, which will force employees to pay dues or fees that support unions and that permit them to force employers to discharge employees who refuse to do so through the application of these clauses.
It also removes the financial penalty for using force or intimidation to compel employees to join or not join a union, affiliate with, or financially support a union, and/or 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 union
SB 4 also took preventive measures prohibiting municipalities from enacting their own Right-To-Work laws in the municipality and lower levels.
Employers with a CBA already established should expect the incorporation of these types of clauses once the negotiation time reopens.
Need help understanding how changes to employment laws will affect your business?
Learn more about how Vensure's Michigan PEO services can help you navigate complex employment laws and keep your business compliant.
This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.