Congress Advances “Faster Labor Contracts Act,” Imposing Strict Timelines and Binding Arbitration for First Union Agreements

By Jennifer Dunn, Melissa Sobota, R. Jason Patterson, Rachel Domash and Reva Ghadge - Franczek P.C.

June 11, 2026

On June 9, 2026, the U.S. House of Representatives passed the Faster Labor Contracts Act (H.R. 5408), a bipartisan bill aimed at accelerating negotiations for initial collective bargaining agreements under the National Labor Relations Act (NLRA).

If enacted, the legislation would significantly alter the collective bargaining framework by introducing mandatory timelines, federal mediation, and ultimately binding arbitration for initial contracts, marking a substantial shift in federal labor policy in the private sector.

Under current law, while employers and unions must bargain in good faith, the NLRA does not impose a deadline for reaching an initial agreement. As a result, first-contract negotiations can extend for lengthy periods. Recent data indicates that it takes approximately 450–465 days on average to reach a first agreement.

Congressional findings underlying H.R. 5408 emphasize that these delays may undermine employees’ ability to realize the benefits of unionization and may strengthen employer leverage during negotiations.

Key Provisions of the Faster Labor Contracts Act

The legislation would amend Section 8(d) of the NLRA to impose the following structured, multi-step process for negotiating first contracts:

1. Mandatory Bargaining Timelines

 >  Employers would have to commence bargaining within 10 days after receiving a written request to bargain from a union that has been newly recognized or certified as the employees’ exclusive representative.
 >  Parties would be required to make “every reasonable effort” to reach agreement during this initial period.

2. 90-Day Negotiation Period

 >   If no agreement is reached within 90 days, either party could request assistance from the Federal Mediation and Conciliation Service (FMCS).

3. Mandatory Mediation

 >  FMCS would then attempt to facilitate agreement through mediation.
 >  The mediation phase would last at least 30 days (unless extended by agreement of the parties).

4. Binding Arbitration

 >  If mediation fails, the dispute would proceed to a three-member arbitration panel.
 >  The panel would include one employer representative, one union representative, and one neutral member.
 >  The panel would issue a binding decision establishing the terms of the contract terms for a two-year duration.
 >  As part of its decision-making process, the panel would be required to consider factors such as the employer’s financial condition, “the wages and benefits other employers in the same business provide their employees,” cost of living, and employees’ ability to sustain themselves and their families.

5. GAO Study

 >  The Government Accountability Office (“GAO”) would be required to issue a report within one year of enactment of H.R. 5408 assessing average time-to-contract under the new framework.

Practical Implications for Employers

If enacted, H.R. 5408 would represent a fundamental shift in bargaining dynamics, with several immediate implications:

 >  Compressed timelines will require employers to prepare bargaining strategies much earlier and much more quickly during the organizing process.
 >  Employers may face externally imposed contract terms, including wages, benefits, and working conditions determined by arbitrators rather than negotiated outcomes.
 >  Employers historically have generally not been required to disclose detailed financial information to unions absent asserting an inability to pay. Under the proposed language, employers may need to disclose significantly more information, although what exactly that information may be is unclear. What employers can expect are expansive requests for detailed financial information from unions and obligations to produce financial information that may have previously been protected from disclosure.
 >  Given the recent and significant overhaul and reduction in FMCS’s staff and operations, it is unclear whether the agency would be able to provide mediators in a timely manner to meet the ambitious timelines established by this legislation.
 >  Lastly, H.R. 5408 does not give guidance on whether the proposed arbitrator panel has the authority to craft economic proposals, non-economic proposals, or whether it must select a proposal from either the employer or the union on either topic.

Whether any of these gaps in the legislation is addressed remains to be seen.

Status and Key Takeaways

H.R. 5408 passed the House with bipartisan support and now heads to the Senate, where a companion measure has already been introduced. Although its ultimate fate remains uncertain, the bill reflects growing bipartisan interest in strengthening collective bargaining frameworks, particularly in light of increased union activity and evolving workplace dynamics.

The Faster Labor Contracts Act would dramatically accelerate first-contract negotiations and introduce binding arbitration. Employers should anticipate shorter timelines, reduced strategic flexibility, and increased regulatory involvement. Even if not enacted in its current form, H.R. 5408 signals a broader policy trend toward enhancing enforcement and effectiveness of collective bargaining rights.

We will continue to provide updates on H.R. 5408 as it moves forward in Congress.

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