Legal Definitions - shop

In legal terms, the word "shop" often refers to a place of business or employment, but it also has specific meanings related to labor union agreements. These terms describe the relationship between an employer, its employees, and any labor unions involved.

• Shop

  A general term for any business establishment or place where work is performed. This can include a factory, an office, a retail store, or any other location where commercial or professional activities take place.

  • Example 1: A software development company's headquarters, where engineers and designers work on new applications, is considered a "shop."

    Explanation: This illustrates "shop" as an office environment where business operations and employment activities occur.

  • Example 2: A local bakery that produces and sells bread and pastries is also a "shop."

    Explanation: This shows "shop" as a retail and production establishment where goods are made and sold.

• Agency Shop

  An arrangement where a labor union acts as the collective bargaining representative for all employees in a workplace, regardless of whether those employees are official union members. Non-union employees are typically required to pay a fee (often equivalent to union dues) to the union to cover the costs of collective bargaining and representation, as they benefit from the union's negotiated wages, benefits, and working conditions.

  • Example 1: At a large public university, the faculty union negotiates salaries and benefits for all professors. While some professors choose not to join the union, they are still required to pay an agency fee to the union because they benefit from the union's bargaining efforts.

    Explanation: This demonstrates an agency shop where the union represents all faculty, and non-members contribute financially for the services received.

  • Example 2: A city's sanitation department operates as an agency shop. The sanitation workers' union bargains for improved safety equipment and higher pay for all workers. Employees who opt not to become full union members still pay a service fee to the union.

    Explanation: Here, the union's advocacy benefits all sanitation workers, necessitating a fee from non-members in an agency shop setup.

• Closed Nonunion Shop

  A workplace where the employer restricts employment exclusively to individuals who are *not* affiliated with any labor union. This means the employer will only hire and retain workers who are not union members.

  • Example 1: A small, family-owned manufacturing business has a policy that it will only hire individuals who are not members of any labor union, and employees must agree not to join a union during their employment.

    Explanation: This illustrates a closed nonunion shop because employment is contingent upon not being a union member.

  • Example 2: A specialized consulting firm includes a clause in its employment contracts stating that employees must remain unaffiliated with any labor organization as a condition of their employment.

    Explanation: This firm operates as a closed nonunion shop by explicitly requiring employees to be non-union.

• Closed Shop

  A workplace where an employer, through an agreement with a union, hires and retains in employment *only* individuals who are already members of that union and remain in good standing. It is important to note that closed shops were made illegal under federal law in the United States by the Labor-Management Relations Act (Taft-Hartley Act).

  • Example 1 (Historical/Hypothetical): Decades ago, a local newspaper might have had an agreement with the printers' union that only individuals who were already active members of the union could be hired as press operators.

    Explanation: This depicts a closed shop because only pre-existing union members were eligible for employment.

  • Example 2 (Historical/Hypothetical): In the past, a major construction project might have required all electricians to be current members of the electricians' union before they could be hired for the job.

    Explanation: This reflects a closed shop where union membership was a prerequisite for employment.

• Open Closed Shop (also known as an Open Shop in this specific context)

  A workplace where the employer may hire non-union workers, but these new hires are then required to join the union within a specified period (e.g., 30 or 60 days) as a condition of continued employment. This term is essentially synonymous with a "union shop."

  • Example 1: A large food processing plant hires new production line workers who are not union members. However, their employment agreement states that they must join the plant's industrial union within 30 days of their start date.

    Explanation: This is an open closed shop because non-union workers are hired but must subsequently join the union.

  • Example 2: A regional airline hires new flight attendants who are not yet part of the flight attendants' union. The airline's policy requires these new hires to become union members within 60 days to maintain their employment.

    Explanation: The airline operates as an open closed shop by mandating union membership after hiring non-union individuals.

• Open Shop (Primary Meaning)

  A workplace where an employer hires individuals without regard to their union affiliation. Employees are free to join a union, not join a union, or leave a union without it affecting their employment status, hiring prospects, or job security. This is common in states with "right-to-work" laws.

  • Example 1: A technology company recruits software engineers based solely on their skills and experience. Whether a candidate is a member of a union or chooses to join one after being hired has no bearing on their employment with the company.

    Explanation: This company operates as an open shop because union affiliation is irrelevant to hiring and employment decisions.

  • Example 2: A chain of retail stores hires sales associates based on their customer service abilities. Employees are informed that they are free to join or not join any union, and their decision will not impact their job or opportunities for advancement.

    Explanation: This retail chain exemplifies an open shop by allowing employees complete freedom regarding union membership without employment consequences.

• Preferential Nonunion Shop

  A workplace where the employer gives preference in hiring, promotion, or other employment matters to individuals who are *not* members of a labor union.

  • Example 1: A small, independent film studio, when hiring crew members for a new project, explicitly states that it will prioritize applicants who are not affiliated with any film industry unions.

    Explanation: This studio operates as a preferential nonunion shop by favoring non-union individuals in its hiring process.

  • Example 2: A private security firm, when considering candidates for management positions, gives preference to those who have no history of union membership, believing it aligns better with their company culture.

    Explanation: The security firm demonstrates a preferential nonunion shop by giving an advantage to non-union candidates for promotions.

• Preferential Union Shop (also known as a Preferential Shop)

  A workplace where the employer gives preference in hiring, promotion, or other employment matters to individuals who *are* members of a labor union.

  • Example 1: A professional theater company, when casting actors for a play, often gives priority to performers who are members of Actors' Equity Association, the union for stage actors.

    Explanation: This theater company operates as a preferential union shop by favoring union members in its casting decisions.

  • Example 2: A large commercial printing company, when hiring for skilled press operator positions, first reviews applications from individuals who are members of the graphic communications union before considering non-union applicants.

    Explanation: The printing company exemplifies a preferential union shop by giving preference to union members in its hiring process.

• Union Shop

  A workplace where the employer may hire non-union employees, but these new hires are required to join the union within a specified period (typically at least 30 days) as a condition of continued employment. If they do not join the union within that timeframe, they may lose their job.

  • Example 1: A major automobile manufacturing plant hires new assembly line workers. During orientation, new employees are informed that they must become members of the United Auto Workers union within 30 days of their start date to remain employed.

    Explanation: This plant is a union shop because new hires, though initially non-union, must join the union to keep their jobs.

  • Example 2: A public school district hires a new teacher who is not currently a member of the local teachers' union. The district's collective bargaining agreement requires the teacher to join the union within 60 days of employment.

    Explanation: The school district operates as a union shop by mandating union membership for new non-union teachers within a set period.