Foley & Lardner LLP Partner John Birmingham is quoted in the SHRM article, “Employers Can’t End Paycheck Deductions for Unions at Expiration of CBAs,” discussing the National Labor Relations Board’s (NLRB) recent decision in Valley Hospital Medical Center II which held that even after the expiration of a collective bargaining agreement, employers must continue to deduct union dues directly from employees’ paychecks for remittance to the union each month.
“Somewhat remarkably, over a strong dissent, the board held that its decision was retroactive and ordered Valley Hospital to pay the dues without the possibility of recouping them from the bargaining-unit employees,” Birmingham said.
Birmingham commented on the impact of the NLRB decision, saying, “employers who have ceased dues checkoff after contract expiration, in reliance on the previous law, may now need to pay the dues out of the company coffers.”
“Moving forward, employers should continue dues checkoff following contract expiration,” he added.
