Federal judge strikes down part of Georgia’s right-to-work law

Unions in Georgia are declaring victory after Senior United States District Judge William C. O’Kelley struck down part of Georgia’s right-to-work statute as contrary to the National Labor Relations Act.

Specifically, the judge granted a summary judgment in favor of Georgia State AFL-CIO Truck Drivers & Helpers Local No. 728, and United Food and Commercial Workers Local 1996, which had challenged the state law that allowed employees to revoke their union membership at any time.

The judge struck down sections 3(d), 4, and 5 of Georgia’s right-to-work statute (Act No. 192 of the Georgia 2013 Session Laws, O.C.G.A. §§ 34-6-21, 34-6-25, and 34-6-26) as unenforceable because it conflicted with the NLRA.

The labor organizations asserted the right to engage in the collective bargaining process without state interference as well as the ability to enter into temporarily irrevocable checkoff authorization agreements pursuant to an enumerated exception in federal law.

According to the National Labor Relations Board web site,

“The NLRA allows employers and unions to enter into union-security agreements, which require all employees in a bargaining unit to become union members and begin paying union dues and fees within 30 days of being hired.

Even under a security agreement, employees who object to full union membership may continue as 'core' members and pay only that share of dues used directly for representation, such as collective bargaining and contract administration. Known as objectors, they are no longer full members but are still protected by the union contract. Unions are obligated to tell all covered employees about this option, which was created by a Supreme Court ruling and is known as the Beck right.

An employee may object to union membership on religious grounds, but in that case, must pay an amount equal to dues to a nonreligious charitable organization.

24 states have banned union-security agreements by passing so-called "right to work" laws. In these states, it is up to each employee at a workplace to decide whether or not to join the union and pay dues, even though all workers are protected by the collective bargaining agreement negotiated by the union.”

Even in those circumstances, Judge O’Kelley found that union members in Georgia could not arbitrarily stop paying union dues at will.

New Georgia law protects franchisors from being treated as joint employers

Governor Nathan Deal has signed Georgia Senate Bill 277, the “Protecting Georgia Small Business Act.”

The one-page bill amends the Official Code of Georgia to provide that “neither a franchisee nor a franchisee’s employee shall be deemed to be an employee of the franchisor for any purpose,” excepting as it relates to workers’ compensation.

Sponsors of the new law are listed as State Senators John Albers (56^th District), Charlie Bethel (54^th), William Ligon, Jr. (3rd), David Shafer (48th), Fran Millar (40th), and Mike Crane (28th).

The law comes as the National Labor Relations Board continues to consider whether McDonald’s USA (a franchisor) should be regarded as a joint employer with certain McDonald’s franchisees and therefore responsible for any unfair labor practices of its franchisees. 

McDonald’s USA has argued that it did not exercise sufficient control over franchisees’ employment policies and practices to be regarded as a joint employer.

While the NLRB has not yet issued a final ruling, the current board seems to be headed towards a decision to treat McDonald’s USA as a joint employer, although changes to the Board that may come after the November Presidential and Senate elections may result in changes to the Board's composition and alter this course of action. 

Labor unions reportedly involved in this case include the Service Employees International Union (SEIU), Fast Food Workers Committee, Pennsylvania Workers Organizing Committee, Workers Organizing Committee of Chicago, Los Angeles Organizing Committee, and Western Workers Organizing Committee.

While most franchisors and franchisees oppose the joint-employer concept, some individuals have argued that making franchisors joint employers strengthens the bargaining hand of franchisees.

Franchisee lawyer Robert Zarco is quoted on the Blue MauMau web site as saying to Dunkin' Donuts franchisees that with the potential NLRB ruling "You can level the playing field. Here is your opportunity to level the playing field on a silver platter. Franchisors, many of them have crossed the line. They have crossed the line from giving you guidance and recommendations and suggestions to dictating, mandating and requiring what you should do as an independent business owner."

Zarco argues that up until the NLRB ruling, most franchisors had the best of both worlds. They were able to effectively control everything from hiring to how a tomato is sliced at their franchised locations, yet – at the same time – could claim they were not at fault when injuries or things went wrong at their restaurants.

The state’s new law is largely symbolic as it does not apply to federal decisions, such as those of the NLRB, but places the state squarely on the side of franchisors.

Georgia is home to several corporate fast-food franchisors, not the least being Chick-fil-A.

You can read the text of the new law here.