Local Union Fees Can Fund National Litigation: Court

Law360, New York (August 9, 2007, 12:00 AM EDT) -- The First Circuit ruled on Wednesday that a local chapter of a union can use fees it collects from nonmembers to pay for litigation involving its national affiliate.

Federal labor law allows unions to collect limited fees from employees who have opted out of union membership, but benefit from the union's collective bargaining. The law is meant to prevent nonmembers from freeloading on the union's efforts.

Unions are allowed to use these fees only for collective bargaining, and are required to give non-union fee-payers notice of...
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