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SEIU Faces Potential of Numerous Lawsuits and Millions in Fines

If this report from Fox News is on target and its prediction is true this is good news for franchising and the franchised home care sector.

One of the nation's most powerful labor unions could face a costly onslaught of lawsuits seeking tens of millions of dollars in dues, after the U.S. Supreme Court ruled the money was collected improperly, legal experts said. In a ruling Monday, the high court held that Service Employees International Union cannot force people who care for loved ones to be union members and deduct dues from the government checks of those they care for. The practice has gone on for several years in a handful of states, creating a lucrative stream of cash for the powerful labor organization, which represents more than 2 million workers and takes in about $300 million per year.

This could really hurt the SEIU if the following takes place. Unleash the lawyers

“The whole point of the decision was that the folks milked by the SEIU weren’t really public employees and should not be forced to pay union dues at all," said Hans Bader, senior attorney for the Competitive Enterprise Institute. "So they should be able to sue for refund of their compelled union dues back as far as the statute of limitations will allow. “It could have a large effect,” he added.

They have the audacity to complain about QSR franchises being greedy and unwilling to pay a fair wage

Home health aides have become a key segment of SEIU's base, comprising about 20 percent of the union's membership. In Illinois and other states, they were classified as public-sector workers, paid out of the proceeds of entitlement checks and thus automatically members of the SEIU. Harris' 25-year-old son, who suffers from a genetic disorder called Rubinstein-Taybi Syndrome, receives a monthly Medicaid check of approximately $1,300, from which about $90 was automatically deducted for union dues.

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About Ed Teixeira

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Ed Teixeira is the founder and owner of FranchiseKnowHow, which publishes articles and provides advice for prospective and existing franchisees and franchisors. He is also COO of Ed's most recent book is The Franchise Buyers Manual, a comprehensive guide for prospective franchisees. He has also published the Home Care Franchise Industry Update for the past 3 years. Ed has worked in the franchise industry for over thirty five years. He was a franchisee and has served as a corporate executive for firms in the retail, manufacturing, healthcare and technology industries. Over the course of his career Ed has been involved with over 1,000 franchise locations and has transacted international licensing in Europe, Asia and South America. His articles and interviews have appeared in numerous publications and media. Ed has spoken before various groups including: the International Franchise Association, the International Franchise Expo, European Healthcare Conference in Luxumbourg and the Chinese Franchise Association in Shanghai, China. He has participated in the CEO Magazine Roundtable Meetings with business leaders from around the country. 

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