Supreme Court Ruling on Union Dues Could Cost SEIU Millions in Payback
One of the nation's most powerful labor unions could face a costly onslaught of lawsuits seeking tens of millions of dollars in dues, after the U.S. Supreme Court ruled the money was collected improperly, legal experts said.
In a ruling Monday, the high court held that Service Employees International Union cannot force people who care for loved ones to be union members and deduct dues from the government checks of those they care for. The practice has gone on for several years in a handful of states, creating a lucrative stream of cash for the powerful labor organization, which represents more than 2 million workers and takes in about $300 million per year.
“The whole point of the decision was that the folks milked by the SEIU weren’t really public employees and should not be forced to pay union dues at all," said Hans Bader, senior attorney for the Competitive Enterprise Institute. "So they should be able to sue for refund of their compelled union dues back as far as the statute of limitations will allow.
“It could have a large effect,” he added.