PREPARATION FOR THE POSSIBLE END OF FAIR SHARE FEE ARRANGEMENTS

APRIL 4, 2018

We are aware that most if not all of our school district clients recently received a joint email from the leaders of IASA, IASBO, the IFT and the IEA regarding the possible end of Fair Share fee deductions.  These are payroll deductions for bargaining unit members who have not elected to join the union as a full member, but who are nevertheless covered by a Fair Share fee requirement in a collective bargaining agreement.  The U.S. Supreme Court will likely rule before June 30 on whether such Fair Share deductions are unconstitutional.  As stated in the joint email, if you have Fair Share fee payers in your district, you may need to immediately cease deductions of Fair Share fees and cease remittance of those fees to the IEA or IFT as soon as the date the Court issues its decision.

Since each school district has different payroll schedules, and different lead time requirements for processing payroll, the timing of the Supreme Court’s opinion may or may not give your district time to halt Fair Share deductions before the next payroll is processed.  Because of the differences in each school district’s payroll procedures, different payroll lead time requirements, and differences in remittance practices, we cannot provide a uniform recommendation for how to prepare for this decision.  However, we can work with your Business Office to prepare or review individualized procedures to increase the likelihood that you will be able to promptly comply with the Court’s decision.

Please contact John Fester, James Petrungaro, or your primary contact attorney to discuss any questions or concerns you may have.