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KSM Blog | Katz, Sapper & Miller CPA

Indiana Becomes Right-To-Work State

Posted 3:14 PM by

On February 1, 2011, Indiana Governor Mitch Daniels signed into law a right-to-work bill, which makes Indiana the 23rd state in the U.S. to become a "right-to-work" state. 

In simple terms under the new law, individuals are neither required to nor prohibited from becoming members of a union. The law makes it a Class A misdemeanor to require an individual to become or remain a member of a labor organization, or pay dues, fees, or other charges to a labor organization, as a condition of employment. The law also establishes a private right of action for violations, including the ability to obtain damages, civil penalties, and attorneys’ fees. 

Governor Mitch Daniels was quoted after signing the bill:

Seven years of evidence and experience ultimately demonstrated that Indiana did need a right-to-work law to capture jobs for which, despite our highly rated business climate, we are not currently being considered. ... This law won’t be a magic answer, but we’ll be far better off with it. I respect those who have objected, but they have alarmed themselves unnecessarily: No one’s wages will go down, no one’s benefits will be reduced, and the right to organize and bargain collectively is untouched and intact. The only change will be a positive one. Indiana will improve still further its recently earned reputation as one of America’s best places to do business, and we will see more jobs and opportunity for our young people and for all those looking for a better life.”

Only time will tell what the impact will be on Indiana's manufacturing sector and the overall economic environment of Indiana.

About the Author
Justin Hayes is a director in Katz, Sapper & Miller’s Audit and Assurance Services Group. Justin works with clients to help ensure accurate financial reporting, keeping an eye on their bottom line, helping them avoid risk and maximize efficiencies. Connect with him on LinkedIn.

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