What is the term for a labor agreement where new hires must join the union within a certain period?

A labor agreement that requires new employees to join a union within a specified timeframe, typically 30 to 90 days after hiring, is known as a union shop. Under this arrangement, while an employer can hire individuals who are not yet union members, continued employment is contingent upon becoming a member or, at minimum, paying union dues or equivalent fees. This ensures that all employees who benefit from the union's collective bargaining efforts contribute to its operational costs.

Historically, the landscape of labor agreements has seen several forms. Before 1947, "closed shops" were common, mandating that employers hire only individuals who were already union members. However, the Taft-Hartley Act of 1947 outlawed closed shops in the United States, deeming them an unfair labor practice. The same act, while prohibiting closed shops, explicitly permitted union shops as a less restrictive alternative, aiming to balance union security with individual worker choice.

The primary motivation for unions to seek union shop agreements is to address the "free rider" problem. This occurs when non-union employees benefit from the wages, benefits, and working conditions negotiated by the union without contributing financially to the union's efforts. However, the legality of union shops is not universal across the U.S. The Taft-Hartley Act also allowed individual states to pass "right-to-work" laws, which prohibit mandatory union membership or the payment of union dues as a condition of employment, effectively banning union shops in those states. As of 2024, 27 states have such right-to-work statutes in effect.