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House File 400 - IntroducedA Bill ForAn Act 1providing for fair share agreements relating to
2collective bargaining and including effective date
3provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 20.3, Code 2017, is amended by adding the
2following new subsection:
3 NEW SUBSECTION. 4A. “Fair share fee” means the amount
4charged to an employee in a bargaining unit who is not a member
5of the employee organization certified by the board as the
6exclusive bargaining representative for the public employees
7in that bargaining unit, to cover the costs incurred by the
8employee organization on behalf of the employee for collective
9bargaining, contract administration, the adjustment of
10grievances, and the pursuit of other matters affecting wages,
11hours, and other conditions of employment.
12 Sec. 2. Section 20.8, subsection 4, Code 2017, is amended
13to read as follows:
144. Refuse to join or participate in the activities of
15employee organizations, including the payment of any dues, fees
16or assessments or service fees of any type, except as provided
17in section 20.9A.
18 Sec. 3. Section 20.9, unnumbered paragraph 1, Code 2017, is
19amended to read as follows:
20The public employer and the employee organization shall meet
21at reasonable times, including meetings reasonably in advance
22of the public employer’s budget-making process, to negotiate in
23good faith with respect to wages, hours, vacations, insurance,
24holidays, leaves of absence, shift differentials, overtime
25compensation, supplemental pay, seniority, transfer procedures,
26job classifications, health and safety matters, evaluation
27procedures, procedures for staff reduction, in-service training
28and other matters mutually agreed upon. Negotiations shall
29also include whether a fair share fee shall be charged to
30nonmembers of the employee organization, terms authorizing
31dues checkoff for members of the employee organization, and
32grievance procedures for resolving any questions arising under
33the agreement, which shall be embodied in a written agreement
34and signed by the parties. If an agreement provides for dues
35checkoff, a member’s dues may be checked off only upon the
-1-1member’s written request and the member may terminate the dues
2checkoff at any time by giving thirty days’ written notice.
3Such obligation to negotiate in good faith does not compel
4either party to agree to a proposal or make a concession.
5 Sec. 4. NEW SECTION. 20.9A Fair share fee procedures.
61. When a collective bargaining agreement between a public
7employer and a certified employee organization, which provides
8that a fair share fee shall be charged to nonmembers of the
9employee organization, is reached by ratification of the
10agreement or by issuance of an arbitration award under section
1120.22, the public employer shall, within ten days of the date
12the agreement is reached, provide the employee organization
13with a list of the names and addresses of all employees in the
14bargaining unit represented by the employee organization. If a
15collective bargaining agreement providing for fair share fees
16has a term of more than one year, the list shall be provided by
17the public employer annually, not later than thirty days prior
18to the commencement of the next full year of the agreement’s
19term.
202. a. Following receipt by the employee organization of
21a list of employees pursuant to subsection 1, the employee
22organization shall provide the public employer with the name
23of each nonmember of the employee organization and the amount
24of the fair share fee. In addition, the employee organization
25shall provide the labor commissioner with the amount of the
26fair share fee and any supporting documentation utilized in
27determining the amount of the fair share fee. Commencing on
28the effective date of the collective bargaining agreement which
29provides for a fair share fee or the public employer’s receipt
30of the names and amounts from the employee organization,
31whichever occurs later, the public employer shall deduct once
32each month from the wages or salaries of each nonmember the
33amount of the fair share fee specified for that nonmember by
34the employee organization and transmit the amounts deducted
35to the employee organization within fourteen days of the
-2-1deduction. If a collective bargaining agreement includes a
2retroactive effective date, the public employer shall make
3deductions for fair share fees prospectively only.
4b. For purposes of determining the fair share fee, the
5amount of the fair share fee shall not exceed the regular
6membership dues paid by members of the employee organization
7and shall not include any share of the costs incurred by the
8employee organization for fraternal, ideological, political, or
9other activities not germane to collective bargaining, contract
10administration, the adjustment of grievances, or the pursuit
11of other matters affecting wages, hours, and other conditions
12of employment. Costs that shall be excluded from the fair
13share fee include but are not limited to costs for social
14events; lobbying on issues or for purposes other than the
15negotiation, ratification, or implementation of a collective
16bargaining agreement; voter registration training; efforts to
17increase voting; political campaign techniques; supporting or
18contributing to charitable organizations; and supporting or
19contributing to religious or other ideological causes.
203. As a precondition to the collection of a fair share fee,
21the employee organization shall establish and maintain a full
22and fair procedure that conforms with the requirements of the
23Constitution of the United States and the Constitution of the
24State of Iowa and does all of the following:
25a. Provides nonmembers of the employee organization with
26an annual notice which informs them of the amount of the
27fair share fee to be charged, provides them with sufficient
28information to gauge the propriety of that amount, and informs
29them of the procedure by which a nonmember may challenge that
30amount.
31b. Permits challenges by nonmembers to the amount of the
32fair share fee.
33c. Provides for the consolidation of all timely challenges
34and for an impartial hearing, before an arbitrator appointed by
35the American arbitration association pursuant to its rules for
-3-1impartial determination of union fees, conducted in accordance
2with those rules and paid for by the employee organization.
3d. Provides that the burden of proof relating to the
4propriety of the amount of the fair share fee is on the
5employee organization.
6e. Provides that all fair share fees reasonably in dispute
7while a challenge is pending shall be held by the employee
8organization in an interest-bearing escrow account until a
9final decision is issued by the arbitrator, at which time such
10funds shall be disbursed in accordance with the arbitrator’s
11decision.
124. The employee organization shall notify the public
13employer of any arbitrator’s award issued pursuant to the
14challenge procedure specified in subsection 3 which reduced the
15amount of a fair share fee and the public employer shall adjust
16its deduction from the wages or salaries of the challenging
17nonmembers accordingly.
185. This section shall be enforced through an action in a
19court of competent jurisdiction.
20 Sec. 5. Section 731.3, Code 2017, is amended to read as
21follows:
22731.3 Contracts to exclude unlawful.
23It Except as provided in sections 20.8, 20.9A, and 731.4A,
24it shall be unlawful for any person, firm, association,
25corporation or labor organization to enter into any
26understanding, contract, or agreement, whether written or
27oral, to exclude from employment members of a labor union,
28organization, or association, or persons who do not belong
29to, or who refuse to join, a labor union, organization, or
30association, or because of resignation or withdrawal therefrom.
31 Sec. 6. Section 731.4, Code 2017, is amended to read as
32follows:
33731.4 Union dues as prerequisite to employment — prohibited.
34It Except as provided in sections 20.8, 20.9A, and 731.4A,
35it shall be unlawful for any person, firm, association, labor
-4-1organization or corporation, or political subdivision, either
2directly or indirectly, or in any manner or by any means as a
3prerequisite to or a condition of employment to require any
4person to pay dues, charges, fees, contributions, fines or
5assessments to any labor union, labor association, or labor
6organization.
7 Sec. 7. NEW SECTION. 731.4A Fair share fee agreements.
8A labor union, labor association, labor organization, or
9employee organization, which is the certified or recognized
10exclusive representative for collective bargaining under
11applicable federal law, may enter into an agreement with the
12employer of the employees it is certified or recognized to
13represent in collective bargaining that, as a condition of
14continued employment, requires employees, after thirty days
15of employment, either to become a member of the certified or
16recognized labor union, labor association, labor organization,
17or employee organization, or to pay a fair share fee to the
18extent permitted by the Constitution of the United States,
19the Constitution of the State of Iowa, and federal law. This
20section shall not be deemed to require an employee to become a
21member of a labor union, labor association, labor organization,
22or employee organization. In addition, the requirements of
23a fair share agreement shall not apply to an employee whose
24initial date of employment with the employer occurs on a date
25when a fair share fee agreement as authorized by this section
26is not in effect.
27 Sec. 8. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
28immediate importance, takes effect upon enactment.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32This bill authorizes the negotiating of fair share fees in
33collective bargaining agreements.
34Code chapter 20, concerning collective bargaining for public
35employees, is amended to authorize fair share fees.
-5- 1Code section 20.9 is amended to provide that the scope of
2negotiations for purposes of a collective bargaining agreement
3includes negotiating whether a fair share fee shall be charged
4to nonmembers of an employee organization.
5New Code section 20.9A establishes the procedures to follow
6if a fair share fee is included in a collective bargaining
7agreement. The new Code section provides that once an
8agreement is ratified or an arbitration award is issued that
9includes a fair share fee, the public employer shall, within
1010 days, provide the employee organization with a list of
11employees covered by the agreement. If the agreement has a
12term of more than one year, the employer shall provide the list
13on an annual basis. Once the employee organization receives
14the list, the employee organization shall provide the employer
15with a list of each nonmember of the employee organization and
16the amount of the fair share fee. The employee organization
17shall also inform the labor commissioner of the amount of the
18fair share fee and how it was determined. The bill provides
19that the fee shall not exceed the regular membership dues
20paid by members and shall not include costs of the employee
21organization that are not germane to collective bargaining,
22contract administration, the adjustment of grievances, and
23the pursuit of other matters affecting wages, hours, and
24other conditions of employment. The bill provides that the
25public employer shall begin deducting the fair share fee
26from nonmembers upon the later of the effective date of the
27collective bargaining agreement or the date the public employer
28receives the list of nonmembers and the amount of the fair
29share fee. The bill provides that no retroactive deductions
30for fair share fees are allowed.
31The bill also establishes several additional conditions for
32the collection of a fair share fee from public employees. The
33bill provides that nonmembers be given an annual notice of the
34amount of the fair share fee and their rights as to challenging
35the amount. The bill also provides that nonmembers shall be
-6-1permitted to challenge the amount of the fair share fee at
2an impartial hearing before an arbitrator appointed by the
3American arbitration association. The bill provides that the
4employee organization has the burden of proof relating to the
5amount of the fee to be charged. The bill provides that the
6employee organization shall notify the public employer of any
7arbitrator’s award and the public employer shall adjust the
8deduction from wages of the nonmembers who challenged the fair
9share fee amount. The bill provides that the requirements of
10this new Code section shall be enforced in a court of competent
11jurisdiction.
12Code chapter 731, concerning labor union membership, is
13also amended to authorize fair share agreements. New Code
14section 731.4A provides that a labor union, certified as the
15bargaining representative of a private sector employer under
16federal law, may enter into an agreement with an employer that,
17as a condition of continued employment, requires employees whom
18the union is certified to represent to become a member of the
19labor union or to pay a fair share fee to the extent permitted
20by the United States Constitution, the Iowa Constitution, and
21applicable federal law. The new Code section provides that
22this Code section shall not be deemed to require an employee
23to become a member of a labor union and also provides that
24the requirement to pay a fair share fee shall not apply to an
25employee whose initial date of employment occurred on a date
26when a fair share agreement was not in effect.
27The bill takes effect upon enactment.
-7-je/rj
2collective bargaining and including effective date
3provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 20.3, Code 2017, is amended by adding the
2following new subsection:
3 NEW SUBSECTION. 4A. “Fair share fee” means the amount
4charged to an employee in a bargaining unit who is not a member
5of the employee organization certified by the board as the
6exclusive bargaining representative for the public employees
7in that bargaining unit, to cover the costs incurred by the
8employee organization on behalf of the employee for collective
9bargaining, contract administration, the adjustment of
10grievances, and the pursuit of other matters affecting wages,
11hours, and other conditions of employment.
12 Sec. 2. Section 20.8, subsection 4, Code 2017, is amended
13to read as follows:
144. Refuse to join or participate in the activities of
15employee organizations, including the payment of any dues, fees
16or assessments or service fees of any type, except as provided
17in section 20.9A.
18 Sec. 3. Section 20.9, unnumbered paragraph 1, Code 2017, is
19amended to read as follows:
20The public employer and the employee organization shall meet
21at reasonable times, including meetings reasonably in advance
22of the public employer’s budget-making process, to negotiate in
23good faith with respect to wages, hours, vacations, insurance,
24holidays, leaves of absence, shift differentials, overtime
25compensation, supplemental pay, seniority, transfer procedures,
26job classifications, health and safety matters, evaluation
27procedures, procedures for staff reduction, in-service training
28and other matters mutually agreed upon. Negotiations shall
29also include whether a fair share fee shall be charged to
30nonmembers of the employee organization, terms authorizing
31dues checkoff for members of the employee organization, and
32grievance procedures for resolving any questions arising under
33the agreement, which shall be embodied in a written agreement
34and signed by the parties. If an agreement provides for dues
35checkoff, a member’s dues may be checked off only upon the
-1-1member’s written request and the member may terminate the dues
2checkoff at any time by giving thirty days’ written notice.
3Such obligation to negotiate in good faith does not compel
4either party to agree to a proposal or make a concession.
5 Sec. 4. NEW SECTION. 20.9A Fair share fee procedures.
61. When a collective bargaining agreement between a public
7employer and a certified employee organization, which provides
8that a fair share fee shall be charged to nonmembers of the
9employee organization, is reached by ratification of the
10agreement or by issuance of an arbitration award under section
1120.22, the public employer shall, within ten days of the date
12the agreement is reached, provide the employee organization
13with a list of the names and addresses of all employees in the
14bargaining unit represented by the employee organization. If a
15collective bargaining agreement providing for fair share fees
16has a term of more than one year, the list shall be provided by
17the public employer annually, not later than thirty days prior
18to the commencement of the next full year of the agreement’s
19term.
202. a. Following receipt by the employee organization of
21a list of employees pursuant to subsection 1, the employee
22organization shall provide the public employer with the name
23of each nonmember of the employee organization and the amount
24of the fair share fee. In addition, the employee organization
25shall provide the labor commissioner with the amount of the
26fair share fee and any supporting documentation utilized in
27determining the amount of the fair share fee. Commencing on
28the effective date of the collective bargaining agreement which
29provides for a fair share fee or the public employer’s receipt
30of the names and amounts from the employee organization,
31whichever occurs later, the public employer shall deduct once
32each month from the wages or salaries of each nonmember the
33amount of the fair share fee specified for that nonmember by
34the employee organization and transmit the amounts deducted
35to the employee organization within fourteen days of the
-2-1deduction. If a collective bargaining agreement includes a
2retroactive effective date, the public employer shall make
3deductions for fair share fees prospectively only.
4b. For purposes of determining the fair share fee, the
5amount of the fair share fee shall not exceed the regular
6membership dues paid by members of the employee organization
7and shall not include any share of the costs incurred by the
8employee organization for fraternal, ideological, political, or
9other activities not germane to collective bargaining, contract
10administration, the adjustment of grievances, or the pursuit
11of other matters affecting wages, hours, and other conditions
12of employment. Costs that shall be excluded from the fair
13share fee include but are not limited to costs for social
14events; lobbying on issues or for purposes other than the
15negotiation, ratification, or implementation of a collective
16bargaining agreement; voter registration training; efforts to
17increase voting; political campaign techniques; supporting or
18contributing to charitable organizations; and supporting or
19contributing to religious or other ideological causes.
203. As a precondition to the collection of a fair share fee,
21the employee organization shall establish and maintain a full
22and fair procedure that conforms with the requirements of the
23Constitution of the United States and the Constitution of the
24State of Iowa and does all of the following:
25a. Provides nonmembers of the employee organization with
26an annual notice which informs them of the amount of the
27fair share fee to be charged, provides them with sufficient
28information to gauge the propriety of that amount, and informs
29them of the procedure by which a nonmember may challenge that
30amount.
31b. Permits challenges by nonmembers to the amount of the
32fair share fee.
33c. Provides for the consolidation of all timely challenges
34and for an impartial hearing, before an arbitrator appointed by
35the American arbitration association pursuant to its rules for
-3-1impartial determination of union fees, conducted in accordance
2with those rules and paid for by the employee organization.
3d. Provides that the burden of proof relating to the
4propriety of the amount of the fair share fee is on the
5employee organization.
6e. Provides that all fair share fees reasonably in dispute
7while a challenge is pending shall be held by the employee
8organization in an interest-bearing escrow account until a
9final decision is issued by the arbitrator, at which time such
10funds shall be disbursed in accordance with the arbitrator’s
11decision.
124. The employee organization shall notify the public
13employer of any arbitrator’s award issued pursuant to the
14challenge procedure specified in subsection 3 which reduced the
15amount of a fair share fee and the public employer shall adjust
16its deduction from the wages or salaries of the challenging
17nonmembers accordingly.
185. This section shall be enforced through an action in a
19court of competent jurisdiction.
20 Sec. 5. Section 731.3, Code 2017, is amended to read as
21follows:
22731.3 Contracts to exclude unlawful.
23It Except as provided in sections 20.8, 20.9A, and 731.4A,
24it shall be unlawful for any person, firm, association,
25corporation or labor organization to enter into any
26understanding, contract, or agreement, whether written or
27oral, to exclude from employment members of a labor union,
28organization, or association, or persons who do not belong
29to, or who refuse to join, a labor union, organization, or
30association, or because of resignation or withdrawal therefrom.
31 Sec. 6. Section 731.4, Code 2017, is amended to read as
32follows:
33731.4 Union dues as prerequisite to employment — prohibited.
34It Except as provided in sections 20.8, 20.9A, and 731.4A,
35it shall be unlawful for any person, firm, association, labor
-4-1organization or corporation, or political subdivision, either
2directly or indirectly, or in any manner or by any means as a
3prerequisite to or a condition of employment to require any
4person to pay dues, charges, fees, contributions, fines or
5assessments to any labor union, labor association, or labor
6organization.
7 Sec. 7. NEW SECTION. 731.4A Fair share fee agreements.
8A labor union, labor association, labor organization, or
9employee organization, which is the certified or recognized
10exclusive representative for collective bargaining under
11applicable federal law, may enter into an agreement with the
12employer of the employees it is certified or recognized to
13represent in collective bargaining that, as a condition of
14continued employment, requires employees, after thirty days
15of employment, either to become a member of the certified or
16recognized labor union, labor association, labor organization,
17or employee organization, or to pay a fair share fee to the
18extent permitted by the Constitution of the United States,
19the Constitution of the State of Iowa, and federal law. This
20section shall not be deemed to require an employee to become a
21member of a labor union, labor association, labor organization,
22or employee organization. In addition, the requirements of
23a fair share agreement shall not apply to an employee whose
24initial date of employment with the employer occurs on a date
25when a fair share fee agreement as authorized by this section
26is not in effect.
27 Sec. 8. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
28immediate importance, takes effect upon enactment.
29EXPLANATION
30The inclusion of this explanation does not constitute agreement with
31the explanation’s substance by the members of the general assembly.
32This bill authorizes the negotiating of fair share fees in
33collective bargaining agreements.
34Code chapter 20, concerning collective bargaining for public
35employees, is amended to authorize fair share fees.
-5- 1Code section 20.9 is amended to provide that the scope of
2negotiations for purposes of a collective bargaining agreement
3includes negotiating whether a fair share fee shall be charged
4to nonmembers of an employee organization.
5New Code section 20.9A establishes the procedures to follow
6if a fair share fee is included in a collective bargaining
7agreement. The new Code section provides that once an
8agreement is ratified or an arbitration award is issued that
9includes a fair share fee, the public employer shall, within
1010 days, provide the employee organization with a list of
11employees covered by the agreement. If the agreement has a
12term of more than one year, the employer shall provide the list
13on an annual basis. Once the employee organization receives
14the list, the employee organization shall provide the employer
15with a list of each nonmember of the employee organization and
16the amount of the fair share fee. The employee organization
17shall also inform the labor commissioner of the amount of the
18fair share fee and how it was determined. The bill provides
19that the fee shall not exceed the regular membership dues
20paid by members and shall not include costs of the employee
21organization that are not germane to collective bargaining,
22contract administration, the adjustment of grievances, and
23the pursuit of other matters affecting wages, hours, and
24other conditions of employment. The bill provides that the
25public employer shall begin deducting the fair share fee
26from nonmembers upon the later of the effective date of the
27collective bargaining agreement or the date the public employer
28receives the list of nonmembers and the amount of the fair
29share fee. The bill provides that no retroactive deductions
30for fair share fees are allowed.
31The bill also establishes several additional conditions for
32the collection of a fair share fee from public employees. The
33bill provides that nonmembers be given an annual notice of the
34amount of the fair share fee and their rights as to challenging
35the amount. The bill also provides that nonmembers shall be
-6-1permitted to challenge the amount of the fair share fee at
2an impartial hearing before an arbitrator appointed by the
3American arbitration association. The bill provides that the
4employee organization has the burden of proof relating to the
5amount of the fee to be charged. The bill provides that the
6employee organization shall notify the public employer of any
7arbitrator’s award and the public employer shall adjust the
8deduction from wages of the nonmembers who challenged the fair
9share fee amount. The bill provides that the requirements of
10this new Code section shall be enforced in a court of competent
11jurisdiction.
12Code chapter 731, concerning labor union membership, is
13also amended to authorize fair share agreements. New Code
14section 731.4A provides that a labor union, certified as the
15bargaining representative of a private sector employer under
16federal law, may enter into an agreement with an employer that,
17as a condition of continued employment, requires employees whom
18the union is certified to represent to become a member of the
19labor union or to pay a fair share fee to the extent permitted
20by the United States Constitution, the Iowa Constitution, and
21applicable federal law. The new Code section provides that
22this Code section shall not be deemed to require an employee
23to become a member of a labor union and also provides that
24the requirement to pay a fair share fee shall not apply to an
25employee whose initial date of employment occurred on a date
26when a fair share agreement was not in effect.
27The bill takes effect upon enactment.
-7-je/rj