U.S. House Passes Bill That Could Significantly Accelerate First-Contract Collective Bargaining
Bayan Biazar, Associate
On June 9, 2026, the U.S. House of Representatives (the “House”) passed the Faster Labor Contracts Act (“FLCA”),[1] a bipartisan bill that would substantially alter the timeline for negotiating an initial collective bargaining agreement[2] following a union election. Although the bill still faces consideration in the Senate, its passage reflects efforts to strengthen organized labor and reduce delays in the collective bargaining process.
What Would the FLCA Do?
Under the National Labor Relations Act (“NLRA”) employers and unions are required to bargain in good faith following the union’s certification. However, there is currently no statutory deadline requiring the parties (employers and the union) to reach a first collective bargaining agreement. Instead, the law only currently requires that an employer and newly certified union meet a reasonable frequency when bargaining over a first contract with no deadlines imposed and no requirement that either side accept a specific proposal or concession.[3]
The FLCA is attempting to address these delays by imposing a strict bargaining deadline and a mandatory process that could result in employers and unions being forced to implement first-contract terms that they do not choose or would agree to. Employers and unions would have ten days to start bargaining after a union’s written demand to negotiate. If the parties fail to reach an agreement within ninety days after bargaining commences, either party may request mediation through the Federal Mediation and Conciliation Service (“FMCS”). If, after the expiration of the thirty-day period following the mediation request, FMCS is unable to bring the parties to an agreement through mediation and conciliation, the dispute would then proceed to binding arbitration,[4] and any collective bargaining agreement imposed through arbitration would remain binding on the parties for two years.
Why the FLCA Matters to Employers
The newly proposed arbitration provision represents a substantial departure from the traditional collective bargaining framework. Historically, federal labor law has focused on requiring employers and unions to bargain in good faith while ultimately leaving the terms of an agreement to the parties themselves. The FLCA would shift that dynamic by creating a process through which arbitrators could establish the terms of the first contract when negotiations stall. This could result in employers being forced into contractual provisions that do not necessarily align with the employer’s unique business, long-term plans and more.
Moreover, this process could potentially shift the power dynamics of negotiating the first contract. Unions could wait out this ninety-day period, request the FMCS mediation, and ultimately move the parties toward binding arbitration. This compressed timeline may make it more difficult for employers to maintain bargaining positions on contractual provisions they view as important to their business operations, particularly where they would otherwise prefer additional time to negotiate those issues at the bargaining table.
Key Takeaways
While the FLCA’s passage is not guaranteed, employers operating in unionized workplaces or those facing potential organizing activity should continue to monitor the legislation’s progress and consider how an accelerated bargaining framework could affect their labor-relations strategies moving forward.
As we have seen in Colorado, proposals aimed at expanding collective bargaining rights continue to gain traction.[5] The FLCA is the latest example of that trend and, if enacted, could have significant implications for employers across the country.[6]
[1] See https://www.congress.gov/119/bills/hr5408/BILLS-119hr5408ih.pdf for the full bill.
[2] Collective bargaining is defined as the mutual obligation of the employer and the representative of the employees (union) to meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment. 29 U.S.C. § 158(d). The initial agreement, i.e., the first collective bargaining agreement, is the first contract negotiated between an employer and a union following a union’s certification.
[3] Id.
[4] The binding arbitration is conducted by a three-member panel consisting of one member selected by the union, one member selected by the employer, and a neutral member mutually agreed upon by the parties.
[5] For an additional discussion regarding recent efforts to expand collective bargaining rights in Colorado, see our prior post covering legislation that would have eliminated the Colorado Labor Peace Act’s second-election requirement for union security agreements. Although the bill was ultimately vetoed by Governor Jared Polis on May 28, 2026, it reflected a broader trend toward strengthening organized labor at the state level. See https://www.rockymountainemployersblog.com/blog/2026/1/15/colorado-advocates-renew-effort-to-eliminate-the-labor-peace-acts-second-election-requirement.
[6] Those interested in providing feedback on the FLCA may do so by visiting https://www.congress.gov/bill/119th-congress/house-bill/5408/text and selecting “Contact Your Member.”