Trade unions and employee representation in the United States
Reviewed by Mellow Editorial Team, HR & payroll content team
US workers have a federally protected right to organize, join a union, and engage in collective bargaining — and employers have legally defined obligations when a union is involved. Understanding how that framework works helps you respond to organizing activity lawfully and manage your workforce with fewer surprises.
The legal foundation
The National Labor Relations Act (NLRA), passed in 1935, is the primary federal law governing union activity in the private sector. It is administered by the National Labor Relations Board (NLRB), an independent federal agency.
The NLRA protects "concerted activity" — meaning two or more employees acting together to improve their pay, hours, or working conditions. This protection applies whether or not a formal union is involved. Employees discussing wages with coworkers, for example, is generally protected activity even at a non-union workplace.
The NLRA does not cover all workers. Federal, state, and local government employees are excluded (they have separate frameworks), as are agricultural workers, domestic workers, independent contractors, and supervisors as defined by the Act.
How a union gets recognized
A union typically gains recognition in one of two ways.
Election. A union files a petition with the NLRB after demonstrating that at least 30% of workers in a proposed bargaining unit have signed authorization cards. The NLRB then holds a secret-ballot election. If a majority votes yes, the union is certified as the exclusive bargaining representative.
Voluntary recognition. An employer can choose to recognize a union without an election if it is satisfied the union represents majority support — commonly demonstrated through signed authorization cards. This is sometimes called "card check" recognition.
Once recognized, the employer is legally required to bargain in good faith with the union over wages, hours, and other terms and conditions of employment — collectively called "mandatory subjects of bargaining."
What collective bargaining means in practice
Good-faith bargaining means meeting at reasonable times, exchanging proposals, and genuinely trying to reach agreement. It does not require the employer to accept any particular term.
The result of bargaining is a collective bargaining agreement (CBA) — a contract that governs the employment relationship for workers in the bargaining unit. CBAs typically cover pay rates, overtime, scheduling, benefits, disciplinary procedures, and grievance processes. They usually run for a fixed term, commonly two to four years, after which the parties renegotiate.
A grievance procedure in a CBA gives employees a formal channel to challenge actions they believe violate the agreement. Many CBAs include arbitration as a final step, meaning disputes may be resolved outside of court.
Where a CBA is in place, the terms it sets often supersede individual employment agreements for workers in the unit. This is worth understanding if you manage a mixed workforce of union and non-union employees.
Unfair labor practices
Both employers and unions can commit unfair labor practices (ULPs) under the NLRA. Charges are filed with the NLRB, which investigates and can seek remedies including reinstatement and back pay.
Common employer ULPs include:
- Threatening, interrogating, or surveilling employees because of union activity
- Promising benefits to discourage organizing
- Disciplining or terminating employees for protected concerted activity
- Refusing to bargain in good faith with a certified union
- Making unilateral changes to terms and conditions without bargaining
A common acronym in labor relations training is TIPS — employers should generally avoid Threats, Interrogation, Promises, and Surveillance in connection with union activity.
State-level considerations
The NLRA sets a federal floor, but states add important layers.
Right-to-work laws. About half of US states have right-to-work laws, which prohibit contracts that require union membership or the payment of union fees as a condition of employment. In non-right-to-work states, CBAs can lawfully include provisions requiring workers to pay union dues or fees.
Public sector unions. State and local government employees are not covered by the NLRA. Their rights are governed by state law, which varies considerably. Some states have robust collective bargaining rights for public workers; others have few or none.
Sector-specific rules. Certain industries — rail and airlines, for instance — are covered by the Railway Labor Act rather than the NLRA, and have distinct procedures for bargaining and dispute resolution.
Employee representation without a union
Not all employee voice mechanisms involve a union. Some employers establish non-union employee representation structures — committees or councils that consult on workplace issues. These are legal under the NLRA provided they do not deal with the employer over mandatory subjects of bargaining in a way that mimics collective bargaining. The line is fact-specific, and the NLRB has found some employer-created committees to be unlawful "company unions."
If you operate internationally and are managing cross-border workforce questions alongside your US obligations, understanding how US labor law fits into a wider compliance picture matters — how Mellow runs payroll across six countries gives some context on the moving parts involved.
Understanding these rules does not require becoming a labor law expert. It does require knowing when to call one — particularly if your workplace is facing an organizing campaign or a ULP charge.
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