Paycheck Deception

“Paycheck Protection” measures—more accurately described as “Paycheck Deception”—are based on the faulty premise that the dues of labor union members are involuntarily used for contributions to politicians or political causes. But these laws don’t actually have workers’ freedom in mind. By forcing unions to secure written permission from every single member before it can spend any portion of his or her dues on political activities, paycheck deception laws aim to limit the lobbying, political education, and get-out-the-vote drives that unions use to protect workers from exploitation.

When workers decide to join a union, they govern themselves as a democracy—setting their own dues, electing their own leaders, and voting on where and how their money is spent. In a “closed shop,” where non-members of a union pay for union services provided to them, those non-members can simply choose not to pay for political representation. In 1988, the Supreme Court ruled in Communications Workers of America v. Beck that workers who do not join a union cannot be required to pay for union political activities over their objections.1

Like everyone else, unions are legally required to secure voluntary contributions for any union-sponsored Political Action Committees (PACs). Paycheck deductions already require voluntary, written authorization from any participating union member, and unions are already prohibited from using their treasuries to make federal campaign contributions. Other campaign finance problems can be solved only by legislation—like the McCain-Feingold ban on soft money—that applies to all political contributors, not just unions. The current campaign finance system unfairly rewards wealthy and corporate contributors—corporations outspend unions 11-to-one.

Working Americans simply cannot compete in the political arena with wealthy individuals and large corporations unless they band together. The labor movement has led the fight to enact a minimum wage, the 40-hour work week, and other worker protections that have improved the quality of life for all working Americans. Paycheck Deception legislation is not an end in itself—it is a means to divert funding away from the labor community’s ongoing pro-worker efforts.

Paycheck Deception red tape—the collection and maintenance of thousands of records to prove individuals’ consent—applies only to unions and not to corporations or political associations. Phillip Morris, General Dynamics, and Pfizer, for example, spend millions of dollars on political activities without any special consent from shareholders. Special-interest groups like the National Rifle Association, the Chamber of Commerce, and the Christian Coalition lobby without any special authorization from their dues-paying members. Paycheck Deception is intended to single out unions—it is ideological warfare against working families.

Just six states have Paycheck Deception statutes (ID, MI, OH, UT, WA, WY). Laws in Idaho and Utah apply only to the public employee unions. Large portions of Ohio’s law were struck down in court. Michigan’s law only blocks “hard money” political contributions. A lawsuit settlement watered down Washington’s statute. And a broad law enacted in Wyoming has failed to stop unions in that state from substantially increasing their political spending.