Compulsory Agency Fees for Public Employees Remain Legal Following Supreme Court Split

Lozano Smith Client News Brief
March 2016
Number 17

In a one-sentence decision, an equally divided United States Supreme Court affirmed the Ninth Circuit's ruling in Friedrichs v. California Teachers Association, which upheld the right of states to compel public employees who choose not to join unions to pay "agency fees." "Agency fees" are an equal portion of bargaining costs related to wages, benefits and working conditions. The 4-4 split follows the recent death of Justice Antonin Scalia.

Plaintiffs in this California-based lawsuit, including 10 California public school teachers, sought to overturn the Supreme Court's 1977 decision in Abood v. Detroit Board of Education, which held that state laws compelling public employees to financially support collective bargaining costs does not violate the First Amendment.

The Supreme Court's decision does not impose any new obligations on public employers with respect to agency fees. Rather, existing agency agreements with employee unions remain legal.

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As the information contained herein is necessarily general, its application to a particular set of facts and circumstances may vary. For this reason, this News Brief does not constitute legal advice. We recommend that you consult with your counsel prior to acting on the information contained herein.