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June 15, 2026 - A bipartisan bill that would impose strict federal timelines and mandatory binding arbitration on first union contract negotiations is now on a fast track to becoming law. The U.S. House of Representatives has passed the Faster Labor Contracts Act (FLCA). It is uncertain whether the Senate will pass the FLCA, but, if it does, it appears President Trump would sign the legislation into law.
What the FLCA Would Change
The National Labor Relations Act (NLRA) currently imposes no timeline for reaching a first contract, allowing employers to negotiate for months, or even years, to hammer out a fair deal.
The FLCA would amend the NLRA to impose a compressed, federally mandated timeline on first-contract negotiations in the private sector. Under this framework, following union certification:
- Day 10: The employer is required to begin bargaining.
- Day 100: Federal mediation is triggered if no agreement has been reached.
- Day 130: Binding interest arbitration is initiated if mediation fails.
- Day 144: An arbitration panel is seated to impose a final contract.
This represents a maximum bargaining period of 120 days – 90 days of bargaining followed by 30 days of mediation – before either party can invoke mandatory arbitration. If the parties cannot agree on a neutral third arbitrator, the Federal Mediation and Conciliation Service would step in to designate one. The arbitration panel’s decision would be binding for two years.
The FLCA also strips employers of the traditional negotiating dynamic in which employees ultimately vote on whether to ratify a contract. Under binding arbitration, the terms are imposed without a ratification vote.
What Should You Do Now?
1. Contact your U.S. Senators. The most effective action you can take right now is to make your voice heard. Reach out to your U.S. Senators to express your concerns
2. Assess your union exposure. Take stock of which of your facilities or workforces could be subject to an organizing campaign. If a union were certified tomorrow, would you be prepared to bargain effectively within a 90-day window?
3. Evaluate your bargaining readiness. Understand where your compensation and benefits stand relative to the market. If arbitration became a possibility, an arbitrator would evaluate your financials and employee living costs. You’ll want to enter that process in a strong position, not scrambling to gather data.
4. Audit your first contract bargaining strategy. If you already have unions in some locations, understand how this proposed law would change your approach to any upcoming initial agreements.
SESCO has a long history of assisting employers with a variety of labor services and union awareness training. Please contact us as 423-764-4127 or sesco@sescomgt.com with questions or to request assistance.
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