Agency shops provide for voluntary union membership but require nonunion employees to pay an agency fee to cover collective bargaining costs.

Question

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An agency shop allows nonunion employees to choose whether or not to join the union, but requires them to pay an agency fee to cover the costs of collective bargaining, contract administration, and grievance procedures that benefit all employees, regardless of union membership. This type of system is allowed under U.S. labor law, but is also controversial and sometimes challenged in court.

Agency Shops Provide for Voluntary Union Membership but Require Nonunion