labor report

The Battle for Worker Freedom: Grading State Public Sector Labor Laws

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Key Findings

  • The four largest government unions—American Federation of Teachers (AFT), American Federation of State, County and Municipal Employees (AFSCME), National Education Association (NEA), and Service Employees International Union (SEIU)—lost more than 100,000 members since 2022 and a total of 320,421 since the 2018 Janus v. AFSCME Council 31 decision. These membership losses represent $106.8 million in annual dues and fees.
  • To counter these losses, union executives are engaging in aggressive campaigns to change laws that will help them recruit new members and increase union revenue. In this respect, unions gained considerable ground in Illinois, Michigan, and Maryland over the past two years.
  • Florida set a new gold standard for pro-worker, pro-taxpayer public sector labor reform. Arkansas, Kentucky, and Tennessee also made notable efforts to protect workers and taxpayers from government union executives.
  • Public interest law firms are still successfully defending public employees’ Janus rights, and they are finding new, creative ways to litigate for public sector employees against union overreach.
  • Since 2022, three states have had significant legislative developments that changed the landscape of public sector labor relations in these states. As a result, Florida’s grade increased from a “C” to an “A,” Michigan’s grade decreased from a “B” to a “D,” and Illinois fell from a “D-” to an “F.”

The Country’s Biggest Movers

Union executives won significant legislative victories in Illinois, Maryland, and Michigan. Taxpayers and workers achieved victories in Florida, Arkansas, Kentucky, and Tennessee.

In Illinois, voters enacted Amendment 1, a stunning victory for union executives seeking more control over workers and public policy.[1] By creating a “fundamental right” to collective bargaining, Amendment 1 extends collective bargaining to every workplace in the public sector and could allow collective bargaining agreements to trump any provision of state law on any subject. Illinois’ union executives already held significant legal privileges enabling them to overpower workers and taxpayers. With the addition of Amendment 1 and other reforms, these privileges now reach unprecedented levels. Illinois serves as an important case study in understanding the impacts of unchecked union executive power.

Michigan became the first state to repeal a “paycheck protection” law.[2] It also repealed Right to Work protections, enacting a first-of-its-kind trigger law, Public Act 9, that reinstitutes fair share fee obligations for public sector employees in the event of a Janus overturn.[3], [4] Michigan lawmakers continued by adopting legislation guaranteeing union access to public employees and their contact information, important tools for union recruiters.[5] Another new law extends collective bargaining to school administrators.[6]

In Maryland, a new tax deduction for union dues will incentivize employees to become dues-paying members by mitigating the costs of union membership.[7] Maryland also enacted several measures extending public sector collective bargaining into new government workplaces and increasing the share of unionized public employees.

Meanwhile, Florida’s Public Act 2023-35 revives important labor reform concepts—proven successful under Wisconsin’s Act 10.[8], [9] Most notably, the new law requires unions to stand for election when union membership drops below 60 percent of employees in a bargaining unit, already resulting in loss of certification for several unpopular local unions. The remaining unions are learning to stand on their own, collecting dues and fees for themselves after losing the privilege to collect dues and fees through the public payroll system. With the new law, Florida became the sixth state to guarantee workers the right to resign union membership at any time. Other states should look to Florida as an example of how to level the playing field between government unions and the workers and taxpayers they are supposed to serve.

50-State Legislative Trends

Since Janus, seven states have enacted “paycheck protection” legislation that limits when unions can use the public payroll system to collect union dues, political action committee deductions, and other fees.[10] This reform has seen renewed interest over the past two years, with four states (Arkansas, Florida, Kentucky, and Tennessee) enacting legislation to stop taxpayer subsidies for union activity.

Other legislative developments address union access to employee contact information, striking, collective bargaining, and union executive accountability. Since 2022, 23 states enacted 57 public sector labor reform bills.

While union executives saw significant legislative victories in certain states, public sector union membership continues to decline. In the past two years alone, the four largest government unions combined lost over 100,000 members. Moreover, since the 2018 Janus decision, AFT, AFSCME, NEA, and SEIU have lost 379,869 fee payers and 320,421 members, representing a combined loss of $106.8 million in annual dues and fees.[11]

Litigation for Public Employees

Public interest law firms remain active in litigation over the meaning and extent of the 2018 Janus decision. Although not necessarily precedent-setting, continued individual victories keep union executives accountable in states dominated by union interests. Without them, Janus and other cases have little practical relevance for workers. At the same time, public interest law firms are taking creative approaches to helping public employees in litigation independent of Janus. This includes suits related to the duty of fair representation, Title VII of the Civil Rights Act, union release time, and the doctrine of exclusive representation.

Conclusion

Six years after the landmark Janus Supreme Court decision, public sector labor reforms continue to advance in state legislatures throughout the country. In Florida, where union influence is already limited, the economy is booming, making it one of the fastest-growing states in the country.[12] The state’s new union reforms will continue to keep government unions in check, empowering individual employees, protecting educational choice, maintaining low tax rates, and keeping Florida an attractive, affordable place to live.

In contrast, Illinois’ Amendment 1 is likely to constrain individual employees’ freedom, drive up government budgets, and force officials to raise taxes in what is already the highest-taxed state in the nation.[13] Illinois has seen consistent population loss, driven by residents fleeing to economically prosperous states like Florida.[14]

In this research, now in its fourth edition, the lesson is clear: government union executives use their power to build immense political machines—controlling workplaces and lobbying against beneficial fiscal and educational reforms. These union executives appear more concerned with achieving their organizational and political goals than helping the workers they are supposed to represent. Protecting and empowering public employees—and safeguarding them from union overreach—is foundational to creating a more prosperous state.

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[1]Ballotpedia, “Illinois Amendment 1, Right to Collective Bargaining Measure (2022), December 31, 2022, https://ballotpedia.org/Illinois_Amendment_1,_Right_to_Collective_Bargaining_Measure_(2022).

[2]To the reader, in 2018, Missouri passed a comprehensive labor reform bill that included “paycheck protection” that the Missouri Supreme Court later struck down.

[3]Rep. Regina Weiss et al., Public Act 9 of 2023 (House Bill 4004), Michigan Legislature, March 23, 2023, https://legislature.mi.gov/Bills/Bill?ObjectName=2023-HB-4004.

[4]Lawmakers in Kentucky have already introduced similar legislation. See: Rep. Al Gentry, House Bill 487, Kentucky General Assembly, 2023 Regular Session, https://apps.legislature.ky.gov/record/23RS/hb487.html#actions; BillTrack50, “KY HB487: An Act Relating to Employment,” accessed July 2, 2024, https://www.billtrack50.com/billdetail/1581549/22322.

[5]Sen. John Cherry, Public Act 236 of 2023 (Senate Bill 169), Michigan Legislature, December 29, 2023, https://legislature.mi.gov/Bills/Bill?ObjectName=2023-SB-0169.

[6]Sen. Jeff Irwin et al, Public Act 237 of 2023 (Senate Bill 185), “Michigan Legislature, December 29, 2023, https://legislature.mi.gov/Bills/Bill?ObjectName=2023-SB-0185.

[7]Del. Jazz Lewis, Chapter 513 (House Bill 2), Maryland General Assembly, 2023 Regular Session, May 8, 2023, https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0002?ys=2023RS.

[8]Sen. Blaise Ingoglia, “2023 CS/CS/SB 256: Employee Organizations Representing Public Employees (Chapter 2023-25),” Florida Senate, May 10, 2023, https://www.flsenate.gov/Session/Bill/2023/256/?Tab=BillText.

[9]Elizabeth Stelle and Nathan Benefield, “Why Pennsylvania Needs Wisconsin-Style Government Union Reform,” Commonwealth Foundation, February 24, 2022, https://www.commonwealthfoundation.org/research/pennsylvania-needs-wisconsin-style-government-union-reform/.

[10]Missouri, one of the seven states, had its “paycheck protection” law deemed unconstitutional after passage.

[11]U.S. Department of Labor, Office of Labor-Management Standards (OLMS) – LM Reports and Constitutions and Bylaws, LM-2 reports 2017–23, accessed June 20, 2024, https://olmsapps.dol.gov/olpdr/?_ga=2.255663628.569172960.1656187953-1772710097.1656040378.

[12]Kristie Wilder and Paul Mackun, “Sunshine State Home to Metro Areas Among Top 10 U.S. Population Gainers From 2022 to 2023,” United States Census Bureau, March 14, 2024, https://www.census.gov/library/stories/2024/03/florida-and-fast-growing-metros.html.

[13]Dylan Sharkey, “Illinois Families Pay Highest State, Local Taxes in Nation,” Illinois Policy Institute, March 21, 2023, https://www.illinoispolicy.org/illinois-families-pay-highest-state-local-taxes-in-nation/.

[14]Bryce Hill, “Every Illinois Metro Area Lost People In 2023; Chicago 3rd Worst in Nation,” Illinois Policy Institute, March 15, 2024, https://www.illinoispolicy.org/every-illinois-metro-area-lost-people-in-2023-chicago-3rd-worst-in-nation/.