Labor Peace Agreement Preemption Act Exposed

The Labor Peace Agreement Preemption Act was adopted by ALEC's Commerce, Insurance and Economic Development Task Force at the Annual Meeting on August 3, 2001, and approved by the ALEC Board of Directors in September, 2001. According to ALEC.org, the Act was re-approved by the Board of Directors on January 28, 2013. (Accessed on 7/17/2015).

CMD's Bill Summary

This bill allows states to prohibit cities or counties from passing "labor peace agreements," where employees give up the right to strike in exchange for certain concessions from the employer that make union organizing and bargaining easier. Some cities have given preferential zoning rights or licenses to businesses that agree to these "labor peace agreements" and the union-bargaining power that accompanies it (cities likely choose to do so because decent wages and job security would benefit the community). This bill would prohibit localities from passing such agreements.

ALEC Bill Text

Summary

Local governments are under constant pressure from labor unions to require employers to adopt "labor peace" agreements as a condition for granting business licenses, zoning variances, waivers, and the like. These agreements force employers to waive their ability to express views in opposition to unionization, to forfeit their employees’ rights to vote in a secret ballot election conducted by the National Labor Relations Board (NLRB), and to forfeit procedural protections of NLRB decisions regarding appropriate bargaining units and other related issues. This legislation declares this a matter of statewide concern and prohibits local governments from establishing such ordinances.

Model Legislation

Section 1. The Labor-Peace Agreement Preemption Act

Section 2. {Statement of Purpose}

The purpose of this legislation is to ensure that employers cannot be compelled by local governments to forfeit rights guaranteed them under the Labor Management Relations Act, the National Labor Relations Act and the Railway Labor Act(the "Acts") in order to obtain zoning variances, waivers, and business licenses.

Section 3. {Definitions}

For the purposes of this Section:

(1) "Employer" means a person, association, legal, or commercial entity receiving services from an employee and, in return, giving compensation of any kind to such employee.

(2) "Federal labor laws" means the National Labor Relations Act, the Labor Management Relations Act and the Railway Labor Act, hereinafter collectively referred to as "the Acts", Presidential Executive Orders issued relating to labor/management or employee/employer issues and the United States Constitution as amended and as construed by the federal courts. The rights protected under the federal labor laws include but are not limited to:

(a) An employer's or employee's right to express views on unionization and any other labor relations issues to the full extent allowed by the First Amendment of the United States Constitution and Section 8(c) of the National Labor Relations Act.

(b) An employer's right to demand, and an employee's right to participate in, a secret ballot election under the Acts, including without limitation, the full procedural protections afforded by the Acts for defining the unit, conducting the election campaign and election, and making any challenges or objections thereto.

(c) An employer’s right not to release employee information and an employee's right to maintain the confidentiality of his or her information to the maximum extent allowed by the Acts.

(d) An employer's right to restrict access to its property or business to the maximum extent allowed by the Acts.

(e) An employer’s right to negotiate over all mandatory and permissive issues of collective bargaining to the maximum extent allowed by the Acts.

(3) "Governmental body" means any local government or its subdivision, including but not limited to cities, parishes, municipalities, and any public body, agency, board, commission or other governmental, quasi governmental, or quasi public body or any body that acts or purports to act in a commercial, business, economic development, or like capacity of local government or its subdivision.

Section 4. {Legislation}

A. Any agreement, contract, understanding or practice, written or oral, implied or expressed, between any employer and any labor organization in violation of the provisions of this Part is hereby declared to be unlawful, null and void, and of no legal effect.

B. No governmental body may pass any law, ordinance, or regulation, or impose any contractual, zoning, permitting, licensing, or other condition on, with employers' or employees' full freedom to act under the federal labor laws. Such prohibited actions shall include but not be limited to:

(1) Conditioning any purchase, sale, lease, loan or other business or commercial transaction with any employer on waiver or limitation of any right the employer may have under the federal labor laws.

(2) Conditioning any regulatory, zoning, permitting, licensing, or any other governmental requirement, or any tax or free abatement, with any employer on waiver or limitation of any right the employer may have under the federal labor laws.

(3) Enacting any ordinance, regulation, or other action that waives or limits any right the employer may have under the federal labor laws.

(4) Conditioning or requiring any employer to not deal with another employer on waiver or limitation of any right either employer may have under the federal labor laws.

C. An employer or employee is entitled to and shall receive injunctive relief necessary to prevent any violations of this Section.

Section 5. {Limitations}

Nothing in this legislation should be construed as limiting the regulatory, legal or preemptive operation of the National Labor Relations Act, the Labor management Relations Act, or the Railway Labor Act.

Section 6. {Effective Date}

Adopted by the CIED Task Force at the Annual Meeting, August 3, 2001.

Approved by the ALEC Board of Directors September 2001.