The Georgia House of Representatives passed a bill on Wednesday prohibiting companies that benefit from state economic development incentives from recognizing unions without first conducting formal secret-ballot elections. The bill, Senate Bill 362, now awaits Governor Brian Kemp’s signature to become law in the state. The bill has sparked debate regarding its compliance with federal law, particularly the concerning the National Labor Relations Act of 1935 (NLRA), which governs union organization.

The bill passed the House with a vote of 96 in favor and 78 opposed. The bill establishes a formal requirement for secret-ballot elections for the unionization of any company benefitting from Georgia economic development incentives. The bill states:

[Employers] shall not…[v]oluntarily grant recognition rights for the employer’s employees solely and exclusively on the basis of signed labor organization authorization cards if the selection of a bargaining representative may instead be conducted through a secret ballot election.

According to the bill, to be eligible for economic development initiatives, employers must adhere to specific requirements regarding union recognition and employee privacy. These requirements include conducting secret-ballot elections for selecting a bargaining representative rather than solely relying on signed labor organization authorization cards. Additionally, employers are prohibited from disclosing employees’ personal contact information to labor organizations without prior written consent, except as required by state or federal law.

Critics, including union leaders and Democrats, argue that Senate Bill 362 violates the NLRA by preventing workers from organizing and engaging in collective bargaining—which are protected rights under the act. For example, Representative Long Tran (D) expressed concern to local newspaper the Georgia Recorder that the bill may discourage unions. The International Federation of Professional and Technical Engineers (IFPTE) called the bill “draconian legislation whose intent is not only to stifle the ability of workers to organize, but also threaten the business interests of employers themselves.”

Proponents of the bill, including Governor Brian Kemp, counter that the bill safeguards workers’ privacy and guards against any coercion that may occur during the unionization process. During discussions on the House floor, Representative Soo Hong (R) clarified that the bill focuses on the use of state economic development funds as opposed to imposing regulations. She emphasized that Georgians should have the choice to unionize or not when their tax dollars support job creation.