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

One provision of the coronavirus stimulus bill that just passed the Senate and is headed for the House 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.

If you have any questions regarding the coronavirus stimulus bill or other Labor and Employment issues, please do not hesitate to contact Howard Bernstein, Jason Kim, Alexis Dominguez or your Neal Gerber Eisenberg attorney.

The content above is based on information current at the time of its publication and may not reflect the most recent developments or guidance. Neal Gerber Eisenberg LLP provides this content for general informational purposes only. It does not constitute legal advice, and does not create an attorney-client relationship. You should seek advice from professional advisers with respect to your particular circumstances.