Supreme Court Rules That Non-Union Members Must Consent to Use of Dues for Political Purposes

Author: Melissa Gonzalez Boyce, XpertHR Legal Editor

The US Supreme Court has ruled in Knox v. SEIU, Local 1000, +2012 U.S. LEXIS 4663 (U.S. June 21, 2012) that a public sector union violated the First Amendment rights of its nonmembers when it assessed extra fees to fund a political campaign in California. The Knox Court further held that the union had a duty to seek approval from its nonmembers before using their dues for a special political fund.

Typically, a union has a right to collect dues from nonmembers for collective bargaining costs, but may not use such funds for political or "nonrepresentational purposes" without providing nonmembers with appropriate notice and the opportunity to "opt out" of paying their share of dues earmarked for political causes.

In the Knox case, the union had initially complied with its obligation under another US Supreme Court case, Chicago Teachers Union v. Hudson, +475 U.S. 292 (1986), by providing its employees an annual dues notice setting forth and estimating the percentages of dues that were to be used for collective bargaining and representational expenses and giving nonmembers 30 days to opt-out of the dues that were not related to such expenses. However, one month later, the union announced a dues increase aimed at funding a new political campaign without issuing a new Hudson notice and providing its nonmembers the opportunity to opt-out of contributing to a political cause they may or may not support.

In reviewing the case, the Court determined that under the First Amendment a new notice should have been issued for the special dues assessment and that the union may not exact any funds from nonmembers without their affirmative consent. Nonmembers may not be merely given the option to "opt-out" of paying towards special assessments, but must affirmatively "opt-in" and agree to pay towards the funds. See Knox v. SEIU, Local 1000, +2012 U.S. LEXIS 4663 (U.S. June 21, 2012).

This ruling makes clear that unions must now issue a new dues notice when imposing a special assessment and may not charge their nonmembers extra dues for political purposes without their affirmative consent.

Continue to check XpertHR for the latest news on this and other key HR compliance issues.