Governor Polis Vetoes Proposed Elimination of the Labor Peace Act’s Second Election Requirement for Union Security Agreements

Governor Polis Vetoes Proposed Elimination of the Labor Peace Act’s Second Election Requirement for Union Security Agreements

Rob Thomas, Of Counsel

Last December, the Rocky Mountain Employer discussed the Colorado labor movement’s push to eliminate the Colorado Labor Peace Act’s (“LPA” or the “Act”) current requirement for a second election to determine whether a union can negotiate for union security agreements.[1]  As a result of those efforts, the Colorado Senate introduced and eventually passed Senate Bill 25-005 (“SB25-005”) through the General Assembly after contentious negotiations between labor and employer advocacy groups.[2]  But, on May 16, 2025, Governor Polis vetoed the bill,[3] setting back (for now) the labor movement’s push to eliminate Colorado’s unique status as a “modified” right-to-work state.  

The LPA’s Second Election Requirement, and SB25-005

Per the current text of the LPA, employees are free to unionize after obtaining a simple majority vote under the LPA’s and/or the National Labor Relations Board’s processes to do so.  In contrast to other right-to-work states, where union security agreements[4] are prohibited, Colorado permits employers and unions to negotiate union security agreements once the union is elected, but only if a second election on the issue is held and the union receives either a majority vote in favor of union securities among the entire bargaining unit, or a 75% plurality of all votes cast in favor of union securities.  In this regard, Colorado occupies a unique middle ground between “pure” right-to-work states and non-right-to-work states, where a union may negotiate union securities as soon as it is elected, thereby making the employer a “union shop” where all employees must pay dues to the union regardless of whether they support or oppose unionization. 

SB25-005 sought to outright eliminate the second election requirement for union securities, thereby making Colorado a non-right-to-work state like California, New York, Oregon, and several other states.  During the pendency of the bill’s passage through the General Assembly, labor and business advocacy groups vigorously negotiated with Colorado lawmakers to refine the bill in order to reach a compromise (such as keeping the second election requirement but reducing the voting threshold necessary to obtain union securities), but such negotiations faltered.  Thus, once the bill passed, Governor Polis was compelled to decide whether to pass or veto SB25-005’s elimination of the second election requirement in the LPA.     

Governor Polis’s Veto

            Prior to SB25-005 being presented to him, Governor Polis signaled his intent to veto the bill unless a compromise could be reached.  He followed through on this promise and vetoed SB-25-005 on May 16, 2025.  In so doing, Governor Polis stated that while he is pro-union and pro-worker, and has worked throughout his career to protect the right of workers to organize, he nonetheless believes that there must be a “high threshold” of worker participation and approval to allow for bargaining over union security agreements and mandatory wage deductions for union dues, given that individual workers should continue to have a say in mandatory payroll deductions. 

Nonetheless, Governor Polis lamented the failure of negotiations over the bill, which likely would have resulted in his signing of an “updated and fairer” version of the LPA.  Governor Polis noted the flaws in the current second election system, recognizing that the current thresholds for union security agreement elections incentivize unionization almost exclusively at smaller businesses, where such voting margins are more likely to be achieved, and make union security at larger employers (where organizing might be more critical) exceptionally difficult to accomplish.

            Ultimately, while the Governor’s veto presents a notable setback to the labor movement’s push to eliminate Colorado’s status as a modified right-to-work state, the battle is far from over.  It is fair to assume that another version of SB25-005 will make its way through the General Assembly again in the future, and perhaps under a new Democratic Governor once Governor Polis steps down from the office after his term expires next year. 

Employer Considerations

            Notwithstanding Governor Polis’s veto of SB25-005, Colorado remains at the forefront of pro-labor and pro-employee legislation across the country, as described by Governor Polis in his veto letter.  For now, however, Colorado remains a modified right-to-work state, and employers accustomed to this status do not need to worry about a transition to a non-right-to-work labor climate in this state.  Campbell Litigation will continue to monitor the labor movement’s push to eliminate the Labor Peace Act’s second election requirement, as well as other relevant developments in Colorado labor law.

[1] See https://www.rockymountainemployersblog.com/blog/2024/12/5/colorado-pro-labor-movement-seeks-to-eliminate-right-to-work-provisions-in-labor-peace-act.  

[2] See https://leg.colorado.gov/sites/default/files/2025a_005_signed.pdf for the full text of SB25-005.

[3] See https://drive.google.com/file/d/1aZctE6-unReGtFcqU6-n2FvqOkDnr-wa/view for the full text of Governor Polis’s May 16, 2025 veto letter.

[4] A “union security” is an agreement between the union and the employer requiring all workers, including non-union workers, to pay dues to the union.  Some types of union securities compel a worker’s allegiance to the union, including those workers who do not wish to unionize.