The Faster Labor Contracts Act - "Here We Go Again"

By Richard Lehr - Lehr Middlebrooks Vreeland & Thompson, P.C.

June 5, 2026

When a union is certified as the election winner and the employees’ bargaining representative, it is protected for 12 months from an employee petition to decertify the union and return to union-free status.  This initial 12-month period is known as the “election bar.”  When a collective bargaining agreement is in place, the union is protected from decertification for a contract length of up to three years – this is known as the “contract bar.”  In considering a first contract, employers know that they have only one opportunity to negotiate a good first contract, which means that reaching an agreement – if at all – can go well beyond the 12-month election bar.  According to data from Bloomberg Law, the average time from the beginning of first contract negotiations to ratification is over 500 days.  You may recall that the first Starbucks stores to unionize did so in December 2021 – and still have no contract. 

The Faster Labor Contracts Act, like its failed predecessor Employee Free Choice Act (“EFCA”), would require that after as few as 120 of days of negotiations and mediation, a first contract’s terms would be decided by a three-person arbitration panel.  This approach is known as “interest arbitration,” and most often occurs where there are public sector unionization rights.  The three-person panel’s determination would be binding for two years.  In my view, this Act would diminish a union’s interest to compromise for a first agreement.  After all, the union knows it will get a contract so why not take a chance on the terms the arbitration panel may decide.  In states where union security is permitted – join or pay dues or your fired – will the panel include that in a first contract?  How will a panel treat seniority for overtime, job openings and layoffs compared to skills and work record?   Will an arbitration panel include dues deduction language – most likely – and union PAC contributions language? Not likely but possible.  Ironically, the Faster Labor Contracts Act is not necessarily such a good deal for employees – they would lose their current right to vote on contract ratification. 

This bill would strengthen unions and their organizing opportunities by guaranteeing a first contract within months of winning the election.  Thus far, it appears there is enough bipartisan support to pass the House; the Senate is less certain and who knows where President Trump may land on this.  Republican Senators Hawley (MO), Moreno (OH) and Marshall (KS) are among the lead sponsors of the bill, joined by Democrats Booker (NJ), Peters (MI) and Merkley (OR).  Employers should consider two actions to deal with the possible passage of this bill: (1) notify your congressperson and senator of your opposition and why, and (2) conduct an employee workplace climate assessment – is your organization vulnerable to union organizing and if so, what will you do about it? 

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