LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6191 NOTE PREPARED: Oct 29, 2024
BILL NUMBER: HB 1374 BILL AMENDED:
SUBJECT: Repeal of Right to Work Law.
FIRST AUTHOR: Rep. Boy BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill repeals the chapter prohibiting a person from requiring:
(1) labor organization membership;
(2) payment of dues or fees to a labor organization; or
(3) payment to a charity or third party of an amount equivalent to dues or fees required by a labor
organization;
as a condition of employment.
It makes corresponding changes.
Effective Date: July 1, 2025.
Explanation of State Expenditures: Workload and costs for the Department of Labor and the Office of
the Attorney General may decrease if the agencies are no longer required to investigate complaints of
violations or enforce compliance if a violation of the statute is found.
Additional Information - Current law makes it a Class A misdemeanor for an employer, labor organization
or any other person to require an individual to become or remain a member of a labor organization, or pay
dues, fees or assessments (or charitable donation substitutes) as a condition of employment, new or
continued.
The Right to Work law includes a private right of action that can be brought by the individual in civil court,
and it provides for an administrative remedy by the Indiana Department of Labor. Additionally, violations
of the law are criminal acts, thereby giving prosecutors discretion to charge people or organizations
criminally for violations.
The law does not apply to existing collective bargaining agreements, and it does not prohibit exclusive pre-
hire agreements with labor unions in the building and construction trades.
Explanation of State Revenues: The repeal of the statute eliminates the potential for revenue associated
HB 1374 1 with the collection of court fees and fines from any related court actions.
Explanation of Local Expenditures: Costs for county prosecuting attorneys may decrease if the prosecuting
attorneys no longer investigate complaints of violations or enforce compliance if a violation of the statute
is found.
Explanation of Local Revenues: Local governments will no longer potentially receive court fee revenue
associated with Right to Work court actions.
State Agencies Affected: Indiana Department of Labor; Indiana Office of the Attorney General.
Local Agencies Affected: Trial courts and local law enforcement agencies.
Information Sources:
Fiscal Analyst: Camille Tesch, 317-232-5293.
HB 1374 2