Union: What It Means for Employers

What it means in practice

The legal definition. The NLRA defines a labor organization broadly as "any organization of any kind, or any agency or employee representation committee or plan," in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours or conditions of work (29 U.S.C. 152(5)). An employee committee that deals with management on working conditions can meet the definition. That matters because it is an unfair labor practice for an employer to dominate or interfere with the formation or administration of any labor organization, or to contribute financial or other support to it (29 U.S.C. 158(a)(2)).

Who is covered. The Act defines "employee" broadly but excludes agricultural laborers, people in domestic service of a family or person at home, individuals employed by a parent or spouse, independent contractors, supervisors and workers under the Railway Labor Act (29 U.S.C. 152(3)). A supervisor is anyone with authority, in the employer's interest, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward or discipline other employees, responsibly direct them, adjust their grievances or effectively recommend such action, where that authority requires independent judgment rather than routine or clerical work (29 U.S.C. 152(11)). Worker classification therefore matters; see our independent contractor entry.

Which employers are covered. The definition of "employer" excludes the United States, wholly owned government corporations, Federal Reserve Banks, states and their political subdivisions, and employers subject to the Railway Labor Act (29 U.S.C. 152(2)). The NLRB's jurisdictional standards page says the Board takes jurisdiction over retail businesses with gross annual volume of $500,000 or more and over non-retail businesses with at least $50,000 in annual inflow or outflow across state lines.

Section 7 rights, with or without a union. Section 7 protects concerted activities "for the purpose of collective bargaining or other mutual aid or protection" (29 U.S.C. 157), so it does not depend on a union being present. The NLRB's concerted activity page gives examples such as talking with co-workers about wages, benefits or other working conditions, circulating a petition asking for better hours, and joining a concerted refusal to work in unsafe conditions. It says an employer cannot discharge, discipline or threaten employees for this activity. Employers in an at-will employment relationship are still bound by these limits.

Employer unfair labor practices. Section 8(a) bars employer interference with Section 7 rights, discrimination to encourage or discourage union membership, retaliation for filing charges or testifying, and refusal to bargain (29 U.S.C. 158(a)). The NLRB's page on interfering with employee rights lists examples: threatening employees with consequences such as closing the workplace or loss of benefits, coercively questioning employees about their own or co-workers' union activities, promising benefits if they reject the union, and spying on union activities. Section 8(c) adds that an employer's views, argument or opinion are not evidence of an unfair labor practice if they contain no threat of reprisal or force or promise of benefit. For related rules, see our retaliation entry.

Union unfair labor practices. Under Section 8(b), a union may not restrain or coerce employees in exercising Section 7 rights, cause an employer to discriminate against an employee, refuse to bargain when it is the representative, or charge an excessive initiation fee under a union-security agreement (29 U.S.C. 158(b)). Section 8(b)(7) limits recognitional picketing, including picketing for over 30 days without a petition.

How a union becomes the representative. The NLRB's right to form a union page describes two paths. In the first, at least 30 percent of workers sign cards or a petition, the NLRB conducts an election, and if a majority of those voting choose the union, the NLRB certifies it as the representative for collective bargaining. In the second, the employer voluntarily recognizes a union based on evidence, typically signed authorization cards, that a majority of employees want it. A petition may also come from an employer that has received a claim for recognition (29 U.S.C. 159(c)(1)(B)). The Board decides the appropriate bargaining unit (29 U.S.C. 159(b)). The representative chosen by a majority in the unit is the exclusive representative of all employees in that unit (29 U.S.C. 159(a)).

The election process. The NLRB's conduct elections page says a petition goes to the nearest Regional Office with support from at least 30 percent of employees, and the employer must post a Notice of Petition for Election, and distribute it electronically if it communicates with the unit that way. Objections are due within 7 days of the tally, and results may be set aside if conduct created an atmosphere of confusion or fear of reprisals. After voluntary recognition, the recognition bar applies only if the Regional Office is notified and the employer posts and distributes a notice giving employees 45 days to file a petition.

Cemex and its status. In Cemex Construction Materials Pacific, LLC, decided August 25, 2023, the Board held that when a union requests recognition based on majority support, an employer must either recognize and bargain or promptly file its own (RM) petition for an election, and that if the employer then commits an unfair labor practice that would require setting the election aside, the Board will order it to recognize and bargain instead (NLRB news release). On February 14, 2025, the Acting General Counsel rescinded the General Counsel's Cemex guidance memo, GC 24-01 (GC 25-05). On April 21, 2026, the Ninth Circuit enforced the order in Cemex itself on Gissel grounds without reaching the new standard (NLRB weekly summary), and the case docket lists a petition for certiorari filed with the Supreme Court on August 19, 2026. Check the NLRB's site for current status before relying on the framework.

Who decides cases. Three Board members constitute a quorum (29 U.S.C. 153(b)). On October 27, 2026, the NLRB's Board page listed four members, led by Chairman James R. Murphy, and General Counsel Crystal Carey had been sworn in on January 7, 2026.

The duty to bargain. To bargain collectively means the employer and the representative must meet at reasonable times and confer in good faith on wages, hours and other terms and conditions of employment; neither side is compelled to agree to a proposal or make a concession (29 U.S.C. 158(d)). The NLRB's page on bargaining in good faith says an employer may not change wages, hours or other mandatory subjects before reaching agreement or a valid overall impasse, bypass the union to deal directly with employees, refuse or unreasonably delay information the union requests that is relevant to bargaining, or withdraw recognition from a union with majority support. An employer may change the scope and direction of its enterprise without bargaining over the decision, but it must bargain over the effects on unit employees. The same limit applies to employee handbook changes that alter mandatory subjects for unit employees.

Changing or ending a contract. A party that wants to end or modify a contract must give the other side written notice 60 days before it expires, offer to meet, notify the Federal Mediation and Conciliation Service within 30 days after that notice if no agreement is reached, and keep the contract in effect without a strike or lockout for 60 days after the notice or until expiration, whichever is later (29 U.S.C. 158(d)). For a June 30 expiration, notice is due by May 1. Health care institutions have longer periods.

Union security and right-to-work. Federal law allows an agreement requiring union membership as a condition of employment on or after the 30th day following hire or the agreement's effective date, whichever is later (29 U.S.C. 158(a)(3)), but Section 14(b) lets states prohibit such agreements (29 U.S.C. 164(b)). The NLRB's employer and union rights and obligations page says employees who object to full membership may pay only the share of dues used for representation, such as collective bargaining and contract administration, known as Beck rights, and unions must tell covered employees about this option.

Where states differ. Right-to-work rules come from state law. As one example, North Carolina's General Statutes Chapter 95, Article 10 says no person may be required to become or remain a union member, or to pay dues, fees or other charges to a union, as a condition of employment (G.S. 95-80 and 95-82), and a person denied employment in violation may sue for damages (G.S. 95-83). Public employment is separate again: Article 12, on public employees, declares contracts between North Carolina government units and unions acting as bargaining agents for public employees void (G.S. 95-98) and makes strikes by public employees illegal (G.S. 95-98.1). Federal employees fall under the Federal Service Labor-Management Relations Statute, 5 U.S.C. 7101-7135, administered by the Federal Labor Relations Authority, which says the Statute allows certain federal employees, excluding the Postal Service, to organize and bargain collectively.

Weingarten rights. The NLRB's Weingarten rights page says that, under current Board law, union-represented employees may request a representative at an investigatory interview they reasonably believe could lead to discipline. The employer may grant the request and delay the interview, deny it and end the interview, or let the employee choose whether to proceed alone. Continuing to question after denying the request, or disciplining an employee for refusing to answer without a representative, can be an unfair labor practice. The right does not cover instructional meetings, meetings about disciplinary decisions already made, or questioning an employee about another employee's conduct. See our disciplinary action entry.

LMRDA reporting. The Labor-Management Reporting and Disclosure Act requires employers to report certain payments to unions and union officials and agreements with consultants to persuade employees about organizing or gather information about union activity in a labor dispute (29 U.S.C. 433(a)). OLMS's employer and consultant reporting page says Form LM-10 is filed electronically within 90 days after the end of the employer's fiscal year, while the consultant files Form LM-20 within 30 days of entering a persuader agreement. Advice alone is exempt (29 U.S.C. 433(c)); OLMS says the usual sign is that the consultant has no direct contact with employees. Unions file their own annual reports; under an OLMS rule effective July 1, 2026, Form LM-2 applies from $350,000 in annual receipts, up from $250,000, for fiscal years beginning on or after that date.

What the data show. The Bureau of Labor Statistics release Union Members - 2025, published February 18, 2026, reports a 2025 membership rate of 10.0 percent, compared with 9.9 percent in 2024 and 20.1 percent in 1983. Local government had the highest rate, 37.8 percent, and utilities led private industries at 17.8 percent. Another 1.8 million nonmembers were covered by a union contract, so 16.5 million workers, or 11.2 percent, were represented by a union. Median weekly earnings for full-time workers were $1,404 for union members and $1,174 for nonunion workers. BLS notes that 2025 figures are 11-month averages because October 2025 data were not collected during the shutdown. See our labor force entry for related data.

Example 1: the 30 percent showing. A union seeks to represent a unit of 40 employees. It needs signed cards or petition signatures from at least 12 of them (30 percent of 40) to support a petition. If 35 eligible employees vote and 18 choose the union, it wins, because 18 is a majority of the 35 votes cast. A 17-17 tie is not a majority.

Example 2: LM-10 due date. An employer with a calendar fiscal year signs a persuader agreement with a consultant in August. Its Form LM-10 for that year is due within 90 days after December 31, which is March 31 in a non-leap year (OLMS).

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