EMPLOYERS MAY DISCONTINUE UNION CHECK-OFF ON CONTRACT EXPIRATION

The NLRB also ruled in December that an employer's statutory obligation to check-off union dues ends upon the expiration of the collective bargaining agreement containing the check-off provision.  Valley Hospital Medical Center, Inc., 368 NLRB No. 139.  The decision overturned an Obama-era ruling and returned the NLRB to the rule existing for over 50 years.

This ruling can be very helpful to employers during contract negotiations, as unions often drag out such negotiations attempting to secure a more favorable resolution to the union.  If employers have the right to cut off the collection of union dues, however, there will be much more pressure on the union to conclude negotiations so that dues collection can be restored.  The ruling contemplates that employers can unilaterally stop such dues deductions without bargaining to impasse with the union, once the contract has expired.