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Simple English definitions for legal terms
hot cargo clause
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A quick definition of hot cargo clause:
A hot cargo clause is a rule in a contract between workers and their employer that says the employer can't do business with someone else. This is usually because the workers are having a problem with that other person. It's like a way for the workers to say, "If you don't help us with our problem, we won't help you with your business." This is called a boycott. But, it's against the law to have a hot cargo clause, except in some cases for the construction and garment industries.
A more thorough explanation:
A hot cargo clause is a rule in a labor agreement that prevents an employer from doing business with another person or company. This rule is usually put in place by a union during a labor dispute. It means that the employer cannot work with the other company until the dispute is resolved.
For example, let's say that a union representing truck drivers is in a dispute with a company that makes widgets. The union might put a hot cargo clause in their contract with the trucking company. This would mean that the trucking company cannot transport widgets for the widget company until the dispute is resolved.
Hot cargo clauses are generally considered illegal under U.S. labor law, except in certain industries like construction and garment manufacturing. This is because they can be seen as a way for unions to unfairly pressure employers during a labor dispute.