NLRB Update: New Organizing Data and Crackdown on Stay-or-Pay

New union organizing data: New data released by the NLRB  shows that union election petitions increased by 27% from last year, and have more than doubled since FY 2021. Unfair labor practice charges are similarly up, albeit at a lower percentage that union petitions. 

• The data is unsurprising given the current administration’s labor agenda and more favorable public sentiment towards unions. 

• Despite the increase in petitions, actual union membership has decreased year after year. 

General Counsel targets “stay-or-pay provisions: In a recently released memo, General Counsel Abruzzo asserts that “stay-or-pay” provisions - such as those requiring employees to reimburse tuition paid by their employer if they leave during a designated time period - are unlawful under federal labor law unless they are narrowly tailored to avoid infringing on employee rights and advance a legitimate business interest.

• The memo creates a four-prong test that essentially prohibits the use of such provisions - a tack the General Counsel is pushing the Board to restrict non-compete agreements as well.

What’s next: While it remains to be seen whether the Board will adopt the General Counsel’s views (as with non-competes), expect the GC to bring cases involving such provisions before the Board.