Prohibiting future economic incentive recipients from voluntarily recognizing unions is now law

Act No. 2024-340
By Sen. Arthur Orr, R-Decatur, and Rep. Scott Stadthagen, R-Hartselle
Effective as of 10 a.m. May 13, 2024

Companies that enter into economic development incentive agreements after Jan. 1, 2025, will be required to repay those incentives if they voluntarily recognize a union under legislation signed into law Monday.

Businesses receiving incentives must opt for a secret ballot election when a majority of its workforce supports unionization, under Act No. 2024-340.  The law “requires any business that receives incentives to hold an election by secret ballot,” Gov. Kay Ivey said in a statement issued in Huntsville shortly after signing the legislation. The act became effective when she signed it.

>> Read the governor’s complete statement

Under previous labor law, companies could recognize unions voluntarily if a majority of the workers in a workplace signed union cards.

Under the act, an employer is required to repay all economic development incentives received over the life of a project, if the employer voluntarily discloses an employee’s personal contact information to a labor organization, or third party acting on behalf of a labor organization, without the employee’s prior written consent and other conditions.

The legislation applies to companies that receive state, county or city incentives after Jan. 1, 2025. It also does not apply to any employer that enters into a collective bargaining agreement with a labor union or that holds a secret ballot election before May 13, 2024. It also excludes employers or subcontractors that do not directly receive economic development incentives.

What my bill does is make the vote on organizing a union a secret ballot if you’re going to receive state funds,” said Sen. Arthur Orr, R-Decatur, the primary author.


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