Powerful legislative changes are likely to be coming to a longstanding labor law in Colorado, which could change the process for organizing and empowering labor unions in our state. SB25-005 passed through the Colorado Senate on February 18, 2025, drawing ever closer to Governor Polis’s desk[1]. Most States in our union fit neatly into one of the two main jurisdictional categories: “right-to-work” States and non-“right-to-work” States. Unions have a peculiar treatment in Colorado.
Generally, the two kinds of jurisdictional schemes vary with how they manage union security agreements. A union security agreement is an agreement between the union and the employer that enables the union to require workers to join as a condition of their employment. It also may give the union the power to collect membership dues directly from all employee paychecks. The exact nature of the security agreement may vary depending on the state and the specific terms of the collective bargaining agreement between the employer and the union.
In a right-to-work state, the legislature has passed a state law that bans union security agreements between employers and unions. Thus, workers are free to choose for themselves whether to join the union and pay dues. Consequently, unions tend to be less funded and less powerful (relative to employers) in a right-to-work state. It may be tougher to form and sustain a functioning union without the ability to “secure” the union’s access to dues and fees from paychecks. Worker participation may be lower, and collective bargaining may be less effective against employers for things like higher pay, benefit arrays, and changes to workplace conditions.
In these States, there is no law banning union security agreements. This means unions may enjoy the power to make employment conditional on membership in the union. Unions may also collect dues for each employee directly from employee paychecks. Unions will thus tend to be better funded and maintain stronger collective bargaining rights against employers. Participation in the union is also usually higher.
Well… it is complicated. Colorado has features of both[2].
Colorado allows “agency shop” union security agreements. This means an individual worker cannot be required to join a union as a condition of employment, but the employee can be required to pay a fee to the union – regardless of union membership status – which helps cover the costs of the activities the union performs for the benefit of all employees.
Tamra Ryan, Thomas Young
Under current Colorado law, two employee votes can be held during the process for workers to form a union. See C.R.S. § 8-3-108(c)(II)(A). First, the workers must vote by simple majority to organize into a union, as prescribed under the National Labor Relations Act – the federal law that protects the right to organize. Once that simple majority vote takes place, a second vote is held to determine whether the union has the right to take a fee from all employee paychecks, regardless of membership status, to cover union costs. See C.R.S. § 8-3-108(c)(II)(D). In sum, Colorado does not ban union security agreements, but state law also does not automatically confer on unions the power to take dues and fees directly from employee paychecks unless additional conditions have been met.
SB25-005, if enacted, eliminates the second election mechanism described above and effectively make Colorado join the list of “right-to-organize” jurisdiction. Unions would become stronger overnight, gaining the power to take dues and fees directly from all employees, regardless of their involvement in the union. Consequently, union participation could rise in our State and the relative bargaining power of the unions would increase against employers. We are all still entitled to our opinions. Political support for the bill is predictably split along party lines[3]. Proponents may say the change is necessary to improve quality of life for the average worker, and removing the second vote may bolster workers’ rights to organize and bargain for higher wages in the face of inflation. (Have you bought eggs lately?!) On the other hand, making it easier for unions to automatically syphon money from paychecks could be seen as an attack on individual workers’ freedom to choose how to spend their heard-earned wages. Opponents to the bill may also say that new businesses are going to think twice about coming to Colorado if the bill passes and the laws of this state are more pro-union.
At Pollart Miller, we are monitoring the developments with SB25-005 closely. If you want tailored advice on how new Colorado laws could affect your business and your labor force, please contact our labor and employment law team today. Changes like SB25-005 are a reminder that your official employment policies and documents may be due for a refresh. We specialize in reviewing these materials and providing advice on how to update them and protect your business from common labor and employment pitfalls.
Want to know more? Contact Jonny Campbell at [email protected]
[1]Ed Sealover, Labor Peace Act Overhaul Passes Colorado Senate, The Sum & Substance, Feb. 18, 2025, https://tsscolorado.com/labor-peace-act-overhaul-passes-colorado-senate/
[2]Tamra Ryan, Thomas Young, Colorado’s Labor Peace Act: A Balance of Competing Forces, Common Sense Institute Colorado, Jan. 20, 2025, https://www.commonsenseinstituteus.org/colorado/research/workforce/colorados-labor-peace-act-a-balance-of-competing-forces
[3] See Sealover, supra.
