Update for Mid-Sized Employers: Coronavirus Stimulus Bill Conditions Neutrality in Union Organizing to Receive Financial Relief

Neal, Gerber & Eisenberg LLP
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Neal, Gerber & Eisenberg LLP

One provision of the coronavirus stimulus bill is a somewhat hidden provision that would require mid-sized businesses (between 500 and 10,000 employees) that receive a loan from the federal government to remain neutral in any union organizing drive that occurs during the term of the loan.

The bill does not define "neutrality." Would it require the employer to remain silent during the organizing drive? Would it allow the employer to meet with employees and communicate with employees about their rights? Would it allow employers to answer employee questions with factual answers and information? Can the employer campaign aggressively prior to the filing of the petition?

These and other questions not specifically addressed in the bill but critical to the rights of employers during organizing drives will be addressed in upcoming posts as soon as some clarity emerges.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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