Cl i e n t Al e r t Up d a t e f r o m t h e La b o r & Em p l o y m e n t Te a m

March 2009

Contacts Employee Free Choice Act Introduced in House If you have questions or would like more information, please contact any and Senate of the attorneys listed at the end of this “Since When Is The Secret Ballot A Basic Tenet Of Democracy?” Alert. Hunton & Williams’ labor and says Teamsters President Jim Hoffa in support of EFCA employment law practice covers the entire spectrum of labor and employ- ment litigation, arbitration, administrative The Employee Free Choice Act (“EFCA”), How The Process Would Change practice before the NLRB, EEOC, and S.560, was introduced on March 10, 2009 Under The Employee Free Choice Act the DOL, federal contract compliance, in both Houses of Congress. The text of wage-hour standards, workplace safety ÆÆ EFCA would make employer and health standards, workers’ compen- the bill is identical to the one introduced recognition mandatory if the union sation, contractual rights and remedies, in 2007 which was passed by the House Sarbanes-Oxley and whistleblower collects written authorization cards of Representatives and rejected by close claims, workplace investigations and signed by a majority of employees client counseling under federal and state vote in the Senate. The House version has labor and employment laws. in an appropriate unit. If the union 222 sponsors while the Senate version is collects cards from a majority, EFCA Hunton & Williams LLP provides legal sponsored by 40 Senators, all of whom prohibits the NLRB from conducting services to corporations, financial are Democrats. A variety of union leaders, institutions, governments and individu- an election. The employees do not als, as well as to a broad array of other led by Jim Hoffa, Teamsters General get to choose whether to have an entities. Since our establishment more President, praised the introduction of the than a century ago, Hunton & Williams election. It’s the Union’s choice. This proposed statute. Hoffa went so far as to has grown to more than 1,000 attorneys would effectively eliminate the secret serving clients in 100 countries from question whether the secret ballot election ballot election since no union would 19 offices around the world. While our was even a “basic tenet of democracy.” practice has a strong industry focus choose a campaign and an election on energy, financial services and life over automatic recognition based on sciences, the depth and breadth of The Senate Committee on Health, our experience extends to more than Education, Labor and Pensions conducted authorization cards. 100 separate practice areas, including a hearing on the morning of March 10, bankruptcy and creditors’ rights, com- ÆÆ If the union and the employer are mercial litigation, corporate transactions 2009, entitled “Empowering Workers to unable to agree on a first contract and securities law, intellectual property, Restore the Middle Class.” The hearing international and government relations, within 90 days, mediation by a federal was entirely devoted to promoting the regulatory law, products liability, and mediator is mandatory. Absent agree- privacy and information management. introduction and passage of the proposed ment within 120 days of the election, statute. Witnesses called to testify If you have questions or would like more EFCA requires the parties to submit information, please contact any of the at the hearing, described EFCA as a to binding arbitration. The arbitrator attorneys listed at the end of this Alert or “reasonable, modest approach” to “level e-mail [email protected]. would be empowered to decide the the playing field.” Senator Casey from terms of the first contract and impose continued to propound them on the parties for two years. the fiction that EFCA does not eliminate the secret ballot, but rather allows ÆÆ EFCA would authorize civil fines of employees to choose between a secret up to $20,000 per violation against ballot election and majority . employers found to have willfully or

Hunton & Williams LLP repeatedly violated an employee’s been lifted. In other words, there is New Mexico — Jeff Bingaman rights during an organizing still time for interested parties to make North Carolina — Kay Hagan campaign or first contract drive. their voices heard in Washington. North Dakota — Bryon Dorgan EFCA would also create additional North Dakota — Kent Conrad If you are opposed to the passage of penalties, including triple damages, Virginia — Jim Webb EFCA in its current form, you should be for employers who are alleged to Virginia — Mark Warner aware that the key vote on EFCA will have interfered in union organizing Wisconsin — Herb Kohl occur in the Senate on the question of among their employees. cloture. Both sides agree that currently While a number of organizations are There Is Still Time To Act it is an extremely close question which engaged in this lobbying effort, the U.S. may be decided by one vote. The fol- Chamber of Commerce and various While it is difficult to predict EFCA’s lowing Senators are NOT co-sponsors: state chambers of commerce have legislative path, the current wisdom is been extremely active in the lobbying — that the House will await Senate action process and would welcome your Arkansas — Mark Pryor on cloture and EFCA itself before taking support. In addition, Hunton & Williams — up the measure. Apparently, House has several lobbyists who are actively Colorado — members are reluctant to take a stand engaged in the process concerning Colorado — Michael Bennet on this legislation until they are certain EFCA and can assist in or coordinate Indiana — Evan Bayh it is necessary. On the Senate side, it your efforts to oppose this legislation. seems unlikely that EFCA’s sponsors Louisiana — Mary Landrieu will press forward until the second Missouri — Claire McCaskill For more information, please Senator from is seated and Montana — Jon Tester contact any one of us or e-mail the clouds hanging over President Montana — Max Baucus us at [email protected]. Obama’s Illinois replacement have —

2 Client Alert Hunton & Williams Labor and Employment Team Contacts

Practice Leaders L. Traywick Duffie Laura M. Franze Gregory B. Robertson [email protected] [email protected] [email protected] (404) 888-4004 (213) 532-2131 (804) 788-8526

Atlanta Dallas McLean Richmond W. Christopher Arbery G. Allen Butler Jeffrey B. Hardie Patricia K. Epps [email protected] [email protected] [email protected] [email protected] Kenneth L. Dobkin W. Stephen Cockerham Michael F. Marino III Patricia S. Gill [email protected] [email protected] [email protected] [email protected] L. Traywick Duffie Laura M. Franze Thomas P. Murphy Gregory B. Robertson [email protected] [email protected] [email protected] [email protected]

Kurt A. Powell William L. Keller Miami Marguerite R. (Rita) Ruby [email protected] [email protected] [email protected] Terence G. Connor Robert T. Quackenboss David C. Lonergan [email protected] C. Randolph Sullivan [email protected] [email protected] [email protected] Juan C. Enjamio Brussels Alan J. Marcuis [email protected] Hill B. Wellford, Jr. [email protected] [email protected] Hervé Cogels New York [email protected] Julie I. Ungerman San Francisco [email protected] Michael F. Marino III Charlotte [email protected] M. Brett Burns Houston [email protected] A. Todd Brown Norfolk [email protected] Fraser A. McAlpine Fraser A. McAlpine [email protected] Sharon S. Goodwyn [email protected] Wood W. Lay [email protected] [email protected] Kevin J. White Washington, DC [email protected] James P. Naughton [email protected] Ian P. Band Holly Williamson [email protected] [email protected] Frederic Freilicher Los Angeles [email protected] Phillip J. Eskenazi Michael J. Mueller [email protected] [email protected] Laura M. Franze Susan F. Wiltsie [email protected] [email protected] Roland M. Juarez Richard L. Wyatt Jr. [email protected] [email protected]

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