January 25, 2012

Indiana House Passes Right-To-Work Bill

Indiana has taken a significant step toward becoming the nation's twenty-third right-to-work state. On the afternoon of January 25, the Indiana House of Representatives passed right-to-work legislation by a vote of 54-44 after lengthy debate on the House floor. The right-to-work law forbids companies and unions from agreeing on a contract that makes union membership and payment of union dues a condition of employment.

The Indiana Senate passed right-to-work legislation earlier this week, so the next step is for one chamber of the General Assembly to vote on the bill passed by the other. Indiana Democrats have strenuously opposed right-to-work legislation and have the ability to shut down business in the House.  So, it is likely that the Senate will vote on the House's version of the law, which would avoid the House having to vote on the law again. If the Senate passes the House's version, it would then go to Governor Mitch Daniels to be signed into law. Governor Daniels has previously stated he supports right-to-work legislation, so it is highly likely that he would sign the bill into law within the coming days.

If passed by the General Assembly and signed by Governor Daniels, the law would take effect on March 14, 2012. This means it would apply to all contracts that are entered into, modified, renewed, or extended after that date.

Other states with right-to-work laws on the books are Alabama, Arizona, Arkansas, Florida, Georgia, Idaho, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Nevada, North Carolina, North Dakota, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, and Wyoming. 

If you have questions about right-to-work's impact on your business, please contact any of Faegre Baker Daniels' labor lawyers

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