UPDATE: Are "Worker Centers" Labor Organizations?

A few weeks ago I published an article discussing the potential union organizing threat “worker centers” can pose to companies around the U.S. That post detailed the fact that many business groups have urged the Department of Labor (DOL) to take a closer look at these centers in light of the fact unions seemingly are using them as a potential way to circumvent labor laws. Specifically, the business groups would like the centers to be reclassified as “labor organizations” (i.e., unions) for legal purposes. The Wall Street Journal describes worker centers as: “community groups … [that] are often backed by unions. But they aren’t considered ‘labor organizations’ by law because they don’t have continuing bargaining relationships with employers. That gives them more freedom in their use of picketing and other tactics than unions, which are constrained by national labor laws.”

According to a new report from Bloomberg BNA, the DOL is indeed scrutinizing worker centers, but it does not anticipate adopting a “blanket rule” in terms of whether they should be classified as unions. Rather, the agency will be looking at each situation on a “case-by-case basis.” According to the report, “If the DOL begins regulating some worker centers as labor organizations, it would require them to begin filing detailed financial reports and may divert their attention from targeting such corporations as McDonald’s and Wal-Mart.” This comes on the heels of another Bloomberg report noting the Chamber of Commerce recently has urged more attention be paid to this issue.

To the extent the DOL determines at least some of these centers do in fact constitute labor organizations, it could have a significant ripple effect in light of the fact that there are hundreds of these centers located around the country. Accordingly, this remains an important issue to watch on the union avoidance front.

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