Montgomery, AL – Governor Kay Ivey recently held a bill signing ceremony for SB231, also known as the Union Economic Incentive Bill. The legislation, sponsored by Senator Arthur Orr and House Majority Leader Scott Stadthagen, has drawn significant attention for its impact on companies receiving state, county, or municipal economic incentives in Alabama.
SB231 mandates that companies benefiting from economic incentives after January 1, 2025, must repay those incentives if they voluntarily recognize a union without first conducting a secret ballot election. This requirement is intended to ensure that employees can make decisions regarding unionization free from potential pressure or intimidation.
In addition to the secret ballot requirement, the law prohibits employers from disclosing an employee’s personal contact information to labor organizations or third parties acting on behalf of labor organizations without the employee’s prior written consent, unless disclosure is required by state or federal law.
The Associated Builders and Contractors of Alabama (ABC), a key player in the construction industry, supported the legislation. ABC President Jay Reed commented on the importance of the bill, stating, “While we welcome and celebrate large industries coming to our state, we still must protect the reason these industries are coming to Alabama in the first place. Ensuring secret ballot unionization elections is critical to free enterprise. There is a reason why our political elections are conducted with secret ballots, and workers should be given those same protections when choosing whether to organize or not.”
Senator Arthur Orr emphasized the law’s intent to protect employees’ rights, saying, “This law simply requires that employers who receive state funds conduct unionization votes by secret ballot. The purpose of the secret ballot is obvious: it prevents employees from being intimidated, ostracized, or humiliated for making the decision they believe is in the best interest of them and their families.”
House Majority Leader Scott Stadthagen echoed this sentiment, noting, “This law does not prevent workers from joining unions. It gives employees the right to vote privately and be free from pressure campaigns from labor unions or anyone else. Secret ballots are a foundational principle in our nation, and workers deserve the right to make their own decisions freely.”
The Associated Builders and Contractors of Alabama, representing an industry that creates 200,000 jobs and contributes 5% of Alabama’s economic output, has been a strong advocate for the bill.
