Subject: Date/Time Change: LRI Labor Community Briefing | Aug 27 1 pm CT

August 13, 2026

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The Sectoral Bargaining Movement Is Growing, And Harvard Handed It A Model Law

by Kimberly Ricci

Earlier this year, Massachusetts certified the first rideshare drivers union in the country following similar legislation in California. If you guessed that Big Labor would keep that momentum going, you’d be correct.


Now Harvard University’s Center for Labor and a Just Economy (CLJE) has released a pair of Model State Sectoral Bargaining Laws. These are ready-made templates, one “Expansive” and one “Limited,” which, according to the authors, can be used as “a framework for legislating groundbreaking sectoral bargaining systems that would allow multiple employers and workers to create sector-specific agreements.” There’s a lot happening behind the scenes of these laws, which, of course, don’t provide a path for canceling any sectoral bargaining system that would go wrong.

Who wrote these model laws?

That’s a telling detail. The authors include current Communications Workers of America (CWA) senior advisor Jennifer Abruzzo, whose tenure as NLRB General Counsel produced famously aggressive guidance and decisions, chilling effects on employer free speech, and a lasting ULP backlog. Abruzzo is joined by former CWA president Larry Cohen, Service Employees International Union (SEIU) Local 668 President Steve Catanese, former Biden DOL Solicitor of Labor Seema Nanda, and former Biden DOL Assistant Secretary for Policy Raj Nayak, among others.

What's really going on here

These model laws are a way for Big Labor to strongly encourage state lawmakers to force sectoral bargaining upon one industry at a time. That would happen by establishing a “State Labor Standards Board,” which would certify unions to bargain against “covered employers.” This Board would also be empowered to “implement, administer, and actively supervise” union contracts.


Once these basic requirements for unionizing a sector are checked off, every employer within the industry will be bound by the union’s contract, regardless of whether their workers wanted to unionize in the first place.


Unsurprisingly, the threshold for certification is a low bar to meet, with any union able to petition as soon as they can card check either 1,000 workers or 25% of the sector, “whichever is less.” That’s a threshold that we can surely expect to be further manipulated by unions. With Massachusetts’ App Drivers Union, the card-check process to reach “25% active drivers” only counted drivers according to a median ride count. In the end, only 12.5% of statewide gig drivers chose to unionize, but all of the state’s app drivers–and the companies–were stuck with that decision.

How do the Expansive and Limited versions differ?

The model’s Expansive version outlines “Employer Associations” that businesses can join for collective bargaining. However, these associations will be policed by a State Labor Standards Board, ostensibly for antitrust purposes, and must file articles of association including the following:

  • A stated competition-compliance policy, within which employers must acknowledge that their employer association is not shielded under antitrust law.

  • Recordkeeping requirements that include all meetings, agenda items, and minutes, which are preserved for four years.

  • A transparent governance structure with no single employer holding more than 49% control.

  • Finances must also be transparent, as further detailed in the model.

The Expansive version also allows the State Labor Standards Board to step in and fix contract terms after parties reach an impasse, and the Board won't approve a final contract unless it meets a sectoral “wage floor” first. Meanwhile, the Limited version omits these powers and leaves the employer association section out altogether.

A broken record that employers can't ignore

We’ve seen unions pull this stunt multiple times. Although it’s still too early to see how Massachusetts’ App Drivers Union will fare, sectoral bargaining hasn’t been a rousing success in California. There, the SEIU-lobbied creation of the Fast Food Workers Union meant to take the industry by storm but only led to a Fast Food Council, which was meant to undertake sectoral bargaining but hasn’t met since September 2024.


So, it’s tempting not to take Harvard’s model laws seriously, but don’t count out the possibility of union-friendly state lawmakers deciding to introduce one of these versions. Employers should be prepared to lobby accordingly to avoid falling under the scrutiny of these model laws, which painstakingly build processes for tying industries to sectoral bargaining, with no exit path other than contract expiration.


C’mon, do you think these authors would really include a way to decertify or oust any union that ties an industry into sectoral bargaining? Not a chance.


Date/Time Change: LRI Labor Community Briefing August 2026

by Michael VanDervort

We are changing the date and time of the next LRI Labor Community Briefing for the month of August. Join us on Thursday, August 27 | 1:00 – 2:00 PM CT. We have a great agenda lined up and hope to see you on the call.


If you are not currently on our mailing list for the Labor Community Briefing, you can request to be added here: https://lrionline.com/labor-community-briefing/


You must work in HR/LR/ER functions to attend the Labor Community Briefing. All request to join are subject to review. Outside counsel, consultants, or press will not be approved. 


Topics to be covered this month include:

  • NLRB Confirmations

  • Successor bar being lifted, and what else after Loper Bright/Humphreys Executor

  • Starbucks update

  • Update on small independent unions and organizing activity 

  • Union activity at the state and local level

  • UAW/Shawn Fain/grand jury inquiry

Please come with questions, and feel free to share anything you are seeing in labor or employee relations that others may benefit from hearing about. We look forward to you joining us.

Beyond Cannabis: What A Labor Peace Agreement Ruling Can Mean For Other Industries

by Kimberly Ricci

We’ve talked plenty about the headaches endured by cannabis industry employers. Recreational cannabis use remains federally illegal, yet these businesses must still navigate federal labor law and adhere to state regulations, which differ wildly throughout the U.S. In several states, licensing laws require that these employers enter into Labor Peace Agreements (LPAs), which mandate or strongly encourage companies to remain neutral during union organizing campaigns.


Multiple unions, primarily the UFCW and Teamsters, aggressively lobby state lawmakers into rolling out LPA laws, which interfere with retailers and distributors’ right to run their businesses.


That brings us to today’s subject, which is an update on challenges to LPAs that have been ongoing in multiple states.

A second LPA law has been deemed illegal

In New Jersey, a U.S. District Court judge ruled that federal labor law preempted the state’s LPA mandate. In other words, the NLRA already covers workers’ organizing activity and governs collective bargaining of private industry, and therefore New Jersey’s applicable 2021 law cannot require employers to enter into LPAs. Nor can the law force businesses to bargain with unions within 200 days of a dispensary’s opening.


New Jersey is expected to appeal this case in the Third Circuit, so further updates will surely come, but that’s not the only state LPA that has fallen. Oregon’s LPA law, Measure 119, was struck down in May 2025, also due to NLRA preemption. That happened after two businesses sued on the grounds that the LPA law violates employers’ free-speech rights.


Elsewhere, courts have been divided, with a California law surviving on the grounds that an employer cannot claim that federal labor law should prevail over a federally illegal industry. In October 2025, the National Right to Work Foundation filed an amicus brief with the Ninth Circuit in that case with further updates pending. Meanwhile, a similar state argument is ongoing in a New York case, and let’s just say that this split between states won’t be resolved in federal court anytime soon.

Why employers beyond cannabis should be watching

Given how heavily unions will lobby for laws favorable to organizing, no employer should assume that their industry will remain immune to LPA laws, which have already touched multiple industries:

  • Gaming: A New York law governing commercial casinos requires all license applicants to either enter into an LPA or sign an affidavit stating that they’re willing to do so. (Separately, the Ninth Circuit ruled that tribal casinos fall under the NLRA, so state laws cannot force LPAs upon them.)

  • Transportation: This sector has been plagued by city ordinances zeroing in on certain groups of workers at airports. For example, the Los Angeles-owned LAX requires employers to agree to an LPA to do business at the airport as a concessionaire and receive a no-strike commitment from unions. And in Chicago, the city's Municipal Code requires a similar agreement at the O’Hare and Midway airports.

Where to go next for employers

LPAs are all the rage in labor-watching circles for the cannabis industry, but other sectors are not immune. Any employer in an industry that requires licensing or concession agreements could be vulnerable to being forced into an LPA by a state or city law. The lesson here is to stay aware, and we’ll be watching for further rulings from appeals courts on those cannabis cases, which could very well determine the future of LPAs in many more industries.


Friday Five: 'Captive Audience Ban' Laws, UAW Fallout, And A Major Union Loss

by Kimberly Ricci

California’s “captive audience ban” law could be the first (and only?) one to fall:

The tangle of so-called "captive audience ban" laws hasn’t seen a successful employer challenge yet, but that possibility is growing closer in California. In July, Ninth Circuit judges appeared “leery” of the Golden State’s ban, which now sits in a more precarious position as opposed to those laws that were subject to lawsuits in Minnesota, Illinois, and Connecticut, where a lack of employer standing has thrown up obstacles.


The law remains blocked pending resolution of the lawsuit brought by the California Chamber of Commerce. Also, Littler attorney Alex MacDonald has cautioned that even if the California law does fall, this doesn’t mean that other states would pull their bans from the books. Yet ultimately, these laws’ unconstitutional bar on employer free speech could reach the Supreme Court, so stay tuned there, but don’t expect fast action.

A major upset for UFCW’s plans at REI:

The last time we checked in on UFCW’s plans to organize this co-op, the union had launched an Anniversary Sale boycott in mid-May to protest achieving no first contract, four years after the first unionization of an REI store. How are things going now? Not so great for the union.


This week, workers voted against joining the union in a rerun election conducted in San Diego. Originally, the unit contained 119 workers, and had the vote been successful, this would have been the twelfth REI store to unionize. In a statement, the company declared, “We are pleased with this result. It reflects the San Diego team’s decision to continue engaging directly with REI, as we have long done with our employees.”

A UAW official’s threat against a Fain rival led to consequences:

Oh boy. We’ve talked a lot about the UAW’s federal monitor lately, including how Neil Barofsky made a clear request in 2021 that the union implement a formal budget, and it hasn’t happened. We also discussed how a grand jury subpoenaed Barofsky over his reports that are full of allegations against President Shawn Fain. Is there more UAW drama?


You’d better believe it. One of Fain’s presidential election rivals, Will Lehmen, recently called attention to how UAW organizer Raymond Jensen posted an AI-modified photo of Lehmen that showed him bloodied and bound with a masked figure pointing a rifle at his head. At last week’s candidate forum, Fain addressed the issue by declaring, “I don’t condone that stuff” before adding, “If you’re running for president, get ready, brother, because you’ll be getting them every day.”


Well, Barofsky agreed that the photo qualified as a threat, and Jensen is suspended from his position for two years.

Expect unions to go all-in on AI for the next presidential election:

Labor unions are split about how to handle AI in the workplace, although some industries are already seeing model contract language surface.


One thing is clear, though, which is that the AFL-CIO is planning to make AI a major focus in its lobbying efforts for the 2028 presidential election. At the AFL-CIO’s recent convention, multiple union heads reportedly co-signed a resolution that read, "Our message to elected leaders is clear and unequivocal: You can either stand with Big Tech's drive to maximize profits at all cost, or you can stand with working people in supporting responsible and careful technological change. But you can't do both."


Another telling point: neither Republican nor Democratic politicians were immune to criticism at this convention, so it’ll be interesting to see whether any shifts happen along, or opposed to, party lines as we approach 2028.

An update on challenges against the NLRB’s constitutionality:

We’re sitting in a strange time for tests of the NLRB’s power. Earlier this summer, the Supreme Court overturned Humphrey’s Executor while holding that the U.S. president can fire FTC members without cause, signaling that the same result could hold true for fired NLRB member Gwynne Wilcox. Previously, employer challenges began with SpaceX’s Fifth Circuit challenge against the NLRB’s structure.


Most recently in Aimbridge Employee Service Corp. v. NLRB, a federal judge in the Eastern District of Texas ruled that removal protections of both NLRB members and ALJs are unconstitutional, meaning that they can now be removed at-will. However, Judge Amos Mazzant severed the issue regarding the Board’s structure from the rest of the NLRA, meaning that the NLRB’s business as usual is not up for debate, and ULP proceedings against Aimbridge could continue in this case.


However, there’s also the Northern District of Texas’s ruling in Aunt Bertha v. NLRB, which halted the Board’s ULP proceedings against an employer that challenged the NLRB’s constitutionality. So, this issue remains far from simple, and employers will want to watch how other courts handle severing vs. not severing regarding pending ULPs.


About Labor Relations INK

Labor Relations INK is published weekly and is edited by LRI Consulting Services, Inc. Feel free to pass this newsletter on to anyone you think might enjoy it. New subscribers can sign up by visiting here.


If you use content from this newsletter, please attribute it to LRI Consulting Services, Inc. and include our website: http://www.LRIonline.com 


Contributing editors for this issue: Greg Kittinger, Michael VanDervort, and Kimberly Ricci.


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About LRI Consulting Services, Inc.

LRI Consulting Services, Inc. exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 40 years, LRI Consulting Services, Inc. has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

 

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