Under a closed shop agreement, an employer agrees to hire only employees who are already members of a union.

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A closed shop agreement requires an employer to only hire employees who are already members of a specific union. This type of agreement is prohibited under the National Labor Relations Act (NLRA) in the United States except for certain industries and situations where a collective bargaining agreement (CBA) is in effect.

Under a Closed Shop Agreement, an Employer Agrees to Hire