MONTGOMERY — On Tuesday, the Senate passed legislation clawing back incentives from companies that voluntarily recognize their employees’ union by a 23-5 margin.

According to the bill by State Sen. Arthur Orr (R-Decatur), no employer would be eligible to receive an economic development incentive for a project if the employer voluntarily grants recognition rights for the employees solely and exclusively based on signed labor organization authorization cards if the selection of a bargaining representative may be conducted through a secret ballot election.

“We’re going to penalize the employer if there’s not a secret ballot vote. If you’re already organized, this bill doesn’t apply to you,” Orr said on the Senate floor.

Under the bill, an employer who voluntarily discloses an employee's personal contact information to a labor organization or third party acting on behalf of a labor organization without the employee's prior written consent, unless otherwise required by state or federal law, would also be ineligible for economic development incentives.

The bill does not apply to any agreement between the state and an employer executed before Jan. 1, 2025.

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