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

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

By
Bloomberg
Bloomberg
Down Arrow Button Icon
By
Bloomberg
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
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • 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
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

How HubSpot got all engineers to use AI without any mandates
NewslettersCIO Intelligence
How HubSpot got all engineers to use AI without any mandates
By John KellMay 13, 2026
5 hours ago
NC State graduates showed up for a commencement speech. They left with their senior-year loans paid off
North Americastudent loans and debt
NC State graduates showed up for a commencement speech. They left with their senior-year loans paid off
By Sydney LakeMay 13, 2026
5 hours ago
Scarlett Johansson
Successwork-life balance
Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
By Preston ForeMay 13, 2026
6 hours ago
zach
CommentaryApps
I spent 8 years building Google Sheets. Now I think apps are on their way out
By Zach LloydMay 13, 2026
9 hours ago
Four ways to create a lasting cost advantage from AI
Partner Commentarybusiness leadership
Four ways to create a lasting cost advantage from AI
By Paul GoydanMay 13, 2026
9 hours ago
jeffrey
CommentaryPsychology
Imposter syndrome used to be a lie. AI made it true
By Jeffrey Sanchez-BurksMay 13, 2026
9 hours ago

Most Popular

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
1 day ago
Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers
Travel & Leisure
Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers
By Catherina GioinoMay 12, 2026
1 day ago
It’s not just Canadian tourists snubbing U.S. cities. Business leaders are cancelling more trips to America as geopolitical tensions continue
North America
It’s not just Canadian tourists snubbing U.S. cities. Business leaders are cancelling more trips to America as geopolitical tensions continue
By Sasha RogelbergMay 12, 2026
1 day ago
Anthropic’s Daniela Amodei says entrepreneurs should go on vacation to road test potential cofounders—if they’re a drain, they’re ‘the wrong choice’
Success
Anthropic’s Daniela Amodei says entrepreneurs should go on vacation to road test potential cofounders—if they’re a drain, they’re ‘the wrong choice’
By Emma BurleighMay 12, 2026
1 day ago
Forget U.S. debt, China's total borrowing is in 'a league of its own'—much worse and deteriorating faster, analyst says
Economy
Forget U.S. debt, China's total borrowing is in 'a league of its own'—much worse and deteriorating faster, analyst says
By Jason MaMay 11, 2026
2 days ago
U.S. hotels are calling the World Cup a 'non-event' and 80% warn bookings are falling short of expectations, report finds
North America
U.S. hotels are calling the World Cup a 'non-event' and 80% warn bookings are falling short of expectations, report finds
By Sasha RogelbergMay 12, 2026
2 days ago

© 2026 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.