Prohibition of Negative Check-off Act Exposed

The Prohibition of Negative Check-off Act is listed under ALEC's Commerce, Insurance and Economic Development Task Force and was included in the 1996 ALEC Sourcebook of American State Legislation. ALEC has attempted to distance itself from this piece of legislation after the launch of ALECexposed.org in 2011, but it has done nothing to get it repealed in the states where it previously pushed for it to be made into law.

CMD's Bill Summary

This bill would make it more difficult for unions to collect dues. It will outlaw automatic deduction of dues from the paychecks of union-represented workers, unless the workers give an explicit approval. Section 4(B) preempts state public sector labor laws that might allow automatic deduction of union dues. A similar version of this bill was introduced in the Georgia House in 1998.

ALEC Bill Text

Summary

The Prohibition of Negative Check-Off Act delineates the enforcement of financial arrangements that are not entered into by the payer. The Act declares that nonvoluntary payments and negative check-off plans are void as against public policy.

Model Legislation

Section 1. {Short Title.}This Act shall be known as the Prohibition of Negative Check-Off Act.

Section 2. {Legislative Declaration.}

Section 3. {Definitions.}

(A) "negative check-off plan" means a plan whereby a payer, by his or her inaction is deemed to have agreed to a payment or series of payments.

(B) "voluntary" means an action or choice given freely, as evidenced by some affirmative act on the part of the payer. A charitable contribution made by a payer pursuant to authorization given by such payer is deemed to be voluntary.

Section 4. {Negative check-off plans prohibited.}

(A) It shall be a deceptive trade practice to, in the course of one's business, vocation, or occupation, receive funds from an individual whereby such funds are not given on a voluntary basis, unless such an arrangement is required pursuant to a court order. Such involuntary payments are void as against public policy. A payment made pursuant to a negative check-off plan shall not be considered to have been made on a voluntary basis.

(B) Nothing in any other state law shall affect the validity or application of this section as it applies to any employee, including, but not limited to, persons employed by the state or a local government or any governmental subdivision or agency thereof, without exception.

Section 5. {Severability Clause.}

Section 6. {Repealer Clause.}

Section 7. {Effective Date.}

1996 Sourcebook of American State Legislation