Taking Care of HR Business
        A blog from the attorneys of Verrill

        Supreme Court Hears Oral Argument on Whether Agency Fees Paid to Public Sector Unions Constitute Compelled Speech in Violation of the First Amendment

        January 12, 2016

        On Monday, the Supreme Court heard oral argument in a case that could significantly inhibit public unions’ abilities to collect dues from non-members. Since the Supreme Court’s decision in Abood v. Detroit Board of Education in 1977, the courts have distinguished between fees charged by unions for representing public sector workers (“agency fees”) and fees charged by unions for financing their political activities. While public unions may not charge non-members fees associated with their political activities, they are permitted under current law to charge non-members for agency fees. The plaintiffs in Friedrichs v. California Teachers Association seek to change that.

        The rationale for distinguishing between agency fees and political activity fees finds its root in the First Amendment. In Abood, the Supreme Court held that requiring employees who are non-members of the union to pay a political activity fee would result in “compelled speech,” i.e. the non-members would be paying for the union to make political statements on their behalf that they did not agree with. Thus, non-members are permitted under current law to opt-out from paying the political activity fee. On the other hand, the Court in Abood permitted unions to charge non-members agency fees associated with the costs of bargaining, contract administration, and grievance adjustment because the non-members benefitted from the union’s actions on their behalf whether or not they were members of the union.

        In Friedrichs, however, the plaintiffs claim that Abood was wrongly decided because everything that public unions bargain over implicates public policy and therefore has First Amendment implications. For example, public unions determine how much money the government will spend and how it will spend it. Therefore the plaintiffs ask the Supreme Court to do one of two things: (1) overrule Abood and hold that public unions may not charge non-members agency fees; (2) if the Court does not overrule Abood, require that unions give non-members an opportunity to opt-in to paying political activity fees, as opposed to the current state of the law where non-members must only be given an opportunity to opt-out.

        At oral argument on Monday, the Court spent the majority of the time asking questions focused on whether Abood should be overruled; little time was spent on the opt-in/opt-out distinction. Those opposed to overruling Abood emphasized that the plaintiffs in the case have a heavy burden in seeking to overturn 40 year old precedent. They also emphasized that the Supreme Court’s recent decisions have given states more leeway on First Amendment issues when the state acts as an employer. Those in favor of overruling Abood focused on the fact that agency fees require non-members to subsidize a union taking positions contrary to their beliefs.

        Based on the statements made by the Justices at oral argument, we expect that the Supreme Court’s decision on this issue will be a close one, and we will keep you updated as the case develops. In the mean time, if you have questions about the payment or collection of union dues, contact a member of Verrill Dana’s Labor & Employment Group.

        Taking Care of HR Business

        Human resource professionals, supervisors, and company executives are constantly confronted with a changing legal landscape. Verrill’s Taking Care of HR Business blog is designed to keep you informed about the latest and most significant legal developments that affect employers.

        Subscribe

        Looking for more great content? Subscribe for regular legal updates and information delivered right to your inbox.

        Firm Highlights

        Blog

        Phil Bartlett to Step Down as Chair of the Maine Public Utilities Commission

        On September 15, 2026, Governor Janet Mills announced that Phil Bartlett will step down as Chair of the Maine Public Utilities Commission (PUC)...
        Published Works

        Jay McCormack and Michael Fee Co-Author AHLA Article on Skin Substitute Enforcement Trends

        Verrill Partners Jay McCormack and Michael Fee co-authored an article for the American Health Law Association's Fraud and Abuse Practice Group...
        Press Releases

        Verrill Welcomes Health Care & Life Sciences Attorney Elpida Velmahos

        BOSTON, Massachusetts – Verrill is pleased to announce that Elpida Velmahos has joined the firm’s Health Care & Life Sciences Group as an...
        Press Releases

        Verrill Welcomes Litigation & Trial Attorney Emma Pooler

        PORTLAND, Maine – Verrill is pleased to announce that Emma Pooler has joined the firm’s Litigation & Trial Group as an Associate, resident in...
        Published Works

        Four Verrill Attorneys Co-Author Massachusetts Trends and Developments Chapter for Chambers and Partners Child Relocation 2026 Guide

        Verrill attorneys Mary H. Schmidt, Rachel A. Deering, Hannah R. Zukoff, and Mariah G. Tappan co-authored the “Trends and Developments” chapter...
        Blog

        A New Protected Class in Maine: Holders of Final Protection Orders

        In the lead-up to Domestic Violence Awareness Month in October, employers may be taking a closer look at how their policies and practices respond to...
        Alerts and Newsletters

        Verrill Secures SJC Victory for Boston Legacy FC in White Stadium Litigation

        Verrill has secured a significant appellate victory for Boston Legacy FC in the litigation challenging the redevelopment of White Stadium in...
        Blog

        Hurry Up and Wait

        This is the third in a series of Verrill blog posts on Maine’s packaging extended producer responsibility (“EPR”) law[1]. In July we reported...
        Media Mentions

        Robert Keach Discusses First Brands Chapter 11 Case in Law360

        Verrill attorney Robert Keach was recently quoted in a Law360 article examining the rejection of First Brands Group's Chapter 11 plan and the...
        Media Mentions

        Cybersecurity and AI Governance: Scott Anderson Featured in Massachusetts Lawyers Weekly

        Verrill Managing Partner Scott Anderson was recently featured in Massachusetts Lawyers Weekly discussing how law firms can build attorney buy-in for...
        Blog

        Section 530A Account Update: ERISA Status of Trump Accounts

        The Department of Labor has issued important guidance addressing whether employer programs that permit contributions to Section 530A accounts (and...
        Press Releases

        97 Verrill Attorneys Recognized by Best Lawyers® 2027, Including Four Named Lawyers of the Year

        AUGUSTA, Maine, BANGOR, Maine, BOSTON, Mass., PORTLAND, Maine, and WESTPORT, Conn., (August 20, 2026) – Verrill is proud to announce that 97...