Why Louisiana Needs Payroll Protection

Date: March 03, 2015

NFIB/Louisiana supports legislation that prohibits public bodies from collecting and remitting union dues through automatic payroll deduction.

State law in Louisiana currently allows public bodies to collect union dues through an automatic payroll deduction and remit those dues to the union in question. While payroll deduction is a widespread practice for a variety of items—including charitable donations, income taxes and employee benefits—the deduction of union dues is another matter.

“Unions often pursue an aggressive political strategy, which may or may not be supported by public employees or taxpayers,” says Dawn Starns, NFIB’s Louisiana state director. “The handling of union dues by the state for collection and remittance inherently suggests some level of collaboration with the unions and their agendas.”

Legislation is currently being crafted that would prohibit public bodies from collecting and remitting union dues through automatic payroll deduction, under the argument that it’s an inappropriate use of taxpayer resources. NFIB/Louisiana supports this legislation and will push for its passage once it’s filed.

“The collection of union dues is, in effect, being subsidized by taxpayers, and then unions are turning around and pushing a political agenda that is often contrary to taxpayer interests,” Starns says. “It creates a situation where taxpayers have no choice but support and subsidize unions, regardless of if they agree with the union’s position on a candidate or issue.”

While small business owners are not directly impacted by this legislation, Starns says, all taxpayers would benefit from the dissolution of a taxpayer-subsidized union dues payment system. Passage of this legislation would level the political advocacy playing field, empower workers to have more say over the use of their money and help protect taxpayers—and small business owners—from politically ideological agendas they don’t support.

“Like other member-based organizations that engage in political activity, they [unions] will have to go out and get members and invoice them annually,” Starns says.


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