New Supreme Court Ruling Shores Up Employers’ Private Property Rights

In an important ruling for employers—whether subject to the National Labor Relations Act (NLRA) or not—the Supreme Court struck down a California law requiring them to allow union organizers on their private property for organization activities. 

The challenged law granted union organizers a “right to take access” to private property owned by agricultural employers to engage in organization efforts with the employers’ farm workers. The law required employers to allow access for up to three hours a day, 120 days per year.

How was the law challenged?

After unsuccessfully trying to stop organizers from entering their property, two employers sued in federal court. They sought to block the law on grounds it amounted to an unconstitutional taking. Both the lower court and appellate court rejected the employers’ position, landing the case before the Supreme Court.

The Supreme Court reversed and held for the employers. It found the law letting unions enter employers’ property for union organizing activities amounts to a “per se” taking of private property. The Court explained that the challenged law takes employers’ “right to exclude” from their private property and gives union organizers “a right to invade” that property for organizing activities. It added that the fact the law granted access to the union organizers only for a narrow purpose and a limited time could not save it from being struck as unconstitutional. 

What does the Court’s ruling mean for employers?

The Court’s holding delivers a win for employers, whether or not they are subject to the NLRA. The government cannot require employers to allow third parties on their private property to engage in union organizing activities. To do so would infringe on employers’ right to exclude, which is a fundamental element of property rights.

Why is this important?

It remains to be seen whether the Court’s decision signals trouble for the Protecting the Right to Organize (PRO) Act, which passed the U.S. House of Representatives on March 9 and is now under debate in the Senate. The PRO Act stands to impact employers’ property rights through changes to labor law, including requiring employers to allow their electronic systems to be used for organizing and protected activity. The PRO Act now seems to be on a collision course with this latest decision from the Supreme Court.

Please contact Nick Morisani or any member of Phelps’ Labor and Employment team if you have questions or need compliance advice and guidance.