FEDERAL LAW UPDATE: THE EMPLOYEE FREE CHOICE ACT

In March, the Employee Free Choice Act (H.R. 800, S. 1041) was passed by the U.S. House of Representatives. The bill is now pending in the Senate. This legislation would make several significant amendments to the National Labor Relations Act. First, the ACt would do away with the requirement of secret ballot elections allowing the certification of a union if a majority of employees in the unit sign authorization cards. Second, the Act would provide that if an employer and a union are engaged in bargaining for their first contract and are unable to reach an agreement within 90 days, either party may refer the dispute for mediation. If the mediation is not successful within 30 days, the dispute will be referred to binding arbitration. Third, the Act would create stricter penalties against employers for any violations of the National Labor Relations Act during any period while employees are attempting to organize a union or negotiate a first contract with the employer, such as making it mandatory for the Board to seek an injunction against an employer whenever there is reasonable cause to believe that the employer has discharged or discriminated against employees or engaged in conduct that significantly interferes with employee rights during an organizing or first contract drive, triples the amount of back pay an employer is required to pay when an employee is discharged or discriminated against during an organizing campaign or first contract drive, and provdes for civil fines of up to $20,000 per violation against employers found to have willfully or repeatedly violated employees' rights during an organizing campaign or first contract drive.