• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Leadership

U.S. Supreme Court Rules Against Unions on Mandatory Fees

By
Bloomberg
Down Arrow Button Icon
By
Bloomberg
Down Arrow Button Icon
June 27, 2018, 10:26 AM ET

A divided U.S. Supreme Court said government employees have a constitutional right not to pay union fees in a ruling that affects 5 million workers and deals a heavy blow to the labor movement.

The 5-4 decision overturns a 1977 Supreme Court ruling that had let public-sector unions collect so-called agency fees from non-members to help cover the cost of collective bargaining. The court’s newest member, Neil Gorsuch, joined his conservative colleagues in the majority.

Writing for the court, Justice Samuel Alito said mandatory fees violated the free speech rights of workers who disagree with the union’s positions.

“The idea of public-sector unionization and agency fees would astound those who framed and ratified the Bill of Rights,” Alito wrote.

The case split the court along ideological lines. Justices Ruth Bader Ginsburg, Elena Kagan, Stephen Breyer and Sonia Sotomayor dissented.

“There is no sugarcoating today’s opinion,” Kagan wrote for the group. “The majority overthrows a decision entrenched in this nation’s law — and in its economic life — for over 40 years. As a result, it prevents the American people, acting through their state and local officials, from making important choices about workplace governance.”

President Donald Trump, on Twitter, called the ruling a “Big loss for the coffers of the Democrats!”

Scalia’s Death

The ruling was years in the making for right-to-work advocates and the court’s conservative wing. In 2016 the court had appeared poised to overturn the 1977 ruling, but Justice Antonin Scalia’s unexpected death left the conservatives one vote short.

The 1977 ruling, Abood v. Detroit Board of Education, said states could let public-sector unions demand agency fees, as long as the money covered representational work like collective bargaining and not ideological or political activities like lobbying.

The Abood court said agency fees could promote “labor peace” by buttressing a union’s status as the exclusive representative of a workforce.

The clash was as much about the value of unions as it is about constitutional rights. Union leaders said the ultimate goal of those pressing the case was to undermine the clout of the labor movement. Agency fees had been legal in about two dozen states.

Public-sector unions could now see their ranks shrink. The nonprofit Illinois Economic Policy Institute estimated before the ruling that membership among state and local government employees would decline by 8 percent, while others say the number is likely to be higher. Unionization levels in states with right-to-work laws have been less than half what they are in the rest of the country.

Right-to-work groups, backed by the Trump administration, contended that public-sector unions are engaging in political speech when they negotiate with the government. The groups said workers have a constitutional right not to associate themselves with that speech.

Supporters of agency fees said they ensure employees don’t become “free riders,” benefiting from collective bargaining without paying for it.

The case is Janus v. American Federation of State, County and Municipal Employees, Council 31, 16-1466.

About the Author
By Bloomberg
See full bioRight Arrow Button Icon

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

Most Popular

placeholder alt text
Personal Finance
Trump turns government into giant debt collector with threat to garnish wages on millions of Americans in default on student loans
By Annie Ma and The Associated PressDecember 24, 2025
1 day ago
placeholder alt text
Real Estate
Mark Zuckerberg gifted noise-canceling headphones to his Palo Alto neighbors because of the nonstop construction around his 11 homes
By Dave SmithDecember 25, 2025
9 hours ago
placeholder alt text
Success
Chinese billionaire who has fathered more than 100 children hopes to have dozens of U.S.-born boys to one day take over his business
By Emma BurleighDecember 25, 2025
10 hours ago
placeholder alt text
Retail
Trump just declared Christmas Eve a national holiday. Here’s what’s open and closed
By Dave SmithDecember 24, 2025
1 day ago
placeholder alt text
Success
Billionaire philanthropy's growing divide: Mark Zuckerberg stops funding immigration reform as MacKenzie Scott doubles down on DEI
By Ashley LutzDecember 22, 2025
3 days ago
placeholder alt text
Economy
Obama's former top economic advisor says he feels 'a tiny bit bad' for Trump because gas prices are low, but consumer confidence is still plummeting 
By Sasha RogelbergDecember 24, 2025
1 day ago

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Latest in Leadership

Kiara Nirghin, the co-founder and CTO of the applied AI lab Chima
AIBrainstorm AI
Gen Z founder on ‘AI anxiety’ and being pigeonholed as generation shortcut: that’s the ‘biggest misconception’
By Nick LichtenbergDecember 25, 2025
8 hours ago
SuccessMillionaires
Meet the millionaires living the ‘underconsumption’ life: They drive secondhand cars, batch cook, and never buy new clothes
By Eleanor PringleDecember 25, 2025
9 hours ago
Baby in hospital
SuccessBillionaires
Chinese billionaire who has fathered more than 100 children hopes to have dozens of U.S.-born boys to one day take over his business
By Emma BurleighDecember 25, 2025
10 hours ago
Butch Meily
Commentaryempathy
The global empathy crisis that confronts us this Christmas
By Butch MeilyDecember 25, 2025
11 hours ago
Telluride
North AmericaLabor
Telluride resort owner rips into ski patrol union after strikes shuts down slopes on Christmas
By Mead Gruver and The Associated PressDecember 25, 2025
13 hours ago
C-Suitechief executive officer (CEO)
From Kohl’s CEO ousting to Kroger chief’s sudden resignation, 2025 a tumultuous year for the C-suite. Here are the 5 most dramatic exits this year
By Erin Cabrey and Retail BrewDecember 25, 2025
13 hours ago