Taft-Hartley Act


Definition - What does Taft-Hartley Act mean?

The Taft-Hartley Act is a federal law passed in 1947. It was designed to set restrictions on the power of labor unions. Supporters of the law claimed it was necessary because labor unions were getting too powerful and preventing businesses from running properly. Critics claimed it would hurt workers and blocked their freedom of speech.

Insuranceopedia explains Taft-Hartley Act

The Taft-Hartley Act created a number of new rules for how unions could operate. It outlawed certain types of strikes, made it more difficult for unions to open and collect membership dues, and blocked unions from contributing to political campaigns. This Act made it easier for workers to not participate in unions if they didn’t want to. For example, the law said unions could not force workers to participate in union activities or contribute to union causes.

It also created Taft-Hartley plans, a type of retirement and health insurance plan with more protection for employers. These plans allow multiple employers to create a shared pension and/or health insurance plan. If an employee transfers to a different employer in this group, they are able to continue their pension and health insurance coverage.

How Well Do You Know Your Life Insurance?

The more you know about life insurance, the better prepared you are to find the best coverage for you.

Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.

Share this:

Connect with us

Email Newsletter

Join thousands receiving the latest content and insights on the insurance industry.