Wisconsin’s right-to-work law will remain on hold pending an appeal after Dane County judge William Foust declined to stay his ruling finding the law unconstitutional.
Foust ruled earlier this month that the state’s right-to-work law, which prohibits businesses and unions from requiring employees to pay dues as a condition of employment, amounts to the taking of private property. He has since prohibited the state from enforcing the law.
Attorney general Brad Schimel quickly vowed to appeal the decision and asked Foust to stay the decision pending the appeal.
“We are disappointed our motion for stay in the right-to-work case was denied in Dane County Circuit Court and plan to seek stay in the Court of Appeals, where we feel confident this law will be upheld,” Schimel said.
Many business leaders and supporters of the law have said they expect the Wisconsin Supreme Court, where conservatives hold a 5-2 majority, to ultimately uphold the law.
With no stay in place, there is still a possibility for the ruling to impact businesses. Michael Aldana, a partner in the Quarles & Brady LLP labor and employment group, told BizTimes recently the biggest issue will be for companies in the middle of union negotiations. He said unions will likely push hard to have provisions requiring dues payments to be included in contracts.
He noted some are looking to establish an interim agreement until there is a final ruling, but others are taking the position the ruling only applies to the unions who were plaintiffs in the lawsuit.
Aldana also said employers who have negotiated new contracts since the law was signed may receive demands from the union to reopen negotiations.
“I haven’t heard that yet, but that’s another area for employers,” Aldana said.
