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.

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