A yellow dog contract is an agreement between an employer and an employee in which the employee agrees not to join or remain a member of a labor union as a condition of employment. Historically, these contracts were used in the early 20th century in the United States to discourage unionization. However, both federal and state statutes have since outlawed such contracts due to their negative impact on workers’ rights and public welfare.
The Norris-LaGuardia Act of 1932 specifically makes yellow dog contracts unenforceable in any court, and Section 7 of the National Labor Relations Act grants workers the right to organize without employer interference. While early Supreme Court cases upheld these contracts based on the principle of freedom to negotiate employment terms, the Court later recognized the importance of federalism, allowing states to legislate against such practices. For example, New York’s labor laws classify requiring an employee to refrain from joining a union as an unfair labor practice. Overall, yellow dog contracts have been deemed harmful to fair labor standards and the rights of workers to organize.
See also: 5 U.S. Code § 7116 - Unfair labor practices; 29 U.S. Code § 158 - Unfair labor practices
[Last updated in July of 2024 by the Wex Definitions Team]