Frequently Asked Questions Regarding Agency Fee
FREQUENTLY ASKED QUESTIONS REGARDING AGENCY FEE
INTRODUCTION
Q.1. What is "Agency Fee?"
A.1. The phrase "Agency Fee" refers to the union's ability to collect money from
employees to pay for things such as negotiating a contract and representing
employees in grievances and arbitrations, and lobbying activities to foster
collective bargaining negotiations or secure advocates.
Q.2. What is the difference between "Fair Share," "Agency Shop" and "Agency Fee?"
A.2. Nothing. Fair share, agency shop and agency fee are the same thing. PERB
has adopted to use the phase "Agency Fee."
Q.3. Who must pay an agency fee?
A.3. If your position is covered by an exclusive representative (union) and you are not
a registered member of a union to which you pay union dues, you are required
by law to pay an agency fee.
Q.4. When will employees start paying an agency fee?
A.4. It depends. The agency fee law went into effect January 1, 2000. Each union
must inform the University when they want the agency fee to begin. Some
employees began paying effective January 1, 2000, while others did not.
Q.5. When was the first agency fee payment due?
A.5. It depends upon when the request was made by each CSU Union. For example,
if the union notified the University to collect an agency fee starting in January
2000, then the University deducted the fee from the February 1, 2000 paycheck
based on January earnings. Under the law, the CSU was not required to deduct
the fees until after the union formally made the request.
HOW IS THE AGENCY FEE PROCESSED
Q.6. How wil employees pay the agency fee?
A.6. The agency fee will normally be collected through payroll deduction.
Q.7. How much money will be deducted from my paycheck?
A.7. The law mandates that the agency fee amount cannot be more than the union's
membership dues. Each union will determine the amount of the agency fee for
their members.
Q.8. What is the amount of the agency fee?
A.8. The exclusive representative (union) of your bargaining unit has this information.
Q.9. How will supervisors and employees know how much the fee will be?
A.9. According to regulations by the Public Employee Relations Board (PERB), the
state agency charged with administering the agency fee law, Unions must give
employees notice of the fee to be charged. The State Control er’s Office
assumed responsibility for mailing union literature regarding agency fees to CSU
employees. This method protected employees who have specifically blocked
release of their home address to an exclusive representative. The University
may also provide the union with an employee’s campus or check address.
Unions will then be able to notify employees regarding agency fee amounts.
Q.10. What if an employee has more deductions than actual wages in a given month
(as a result of a medical plan, legal plan, garnishments and other deductions),
what wil happen to agency fee payments?
A.10. Pre-tax items and taxes will come first. Absent agreement with the exclusive
representative, the State Control er, the University’s payrol agent, wil make a
decision on the priority of deductions.
Q.11. What if an employee has insufficient earnings to cover the agency fee in a given
month because of other deduction commitments with higher priority, will the
deduction be taken from future checks?
A.11. No, if there is not enough money then no deduction will be taken. This will be the
same as deductions for union dues.
Q.12. If the union elects a flat dollar fee structure and the employee is on a leave of
absence without pay or non-pay disability leave during a pay period, will the
State Control er, the University’s payrol agent, be required to make the
deduction from a future check?
A.12. No, deductions will not be taken retroactively.
PART-TIME EMPLOYEES OR THOSE WITH SPLIT APPOINTMENTS
Q.13. If an employee's timebase is below 50% (i.e. works part time) does the employee
have to pay an agency fee?
A.13. Yes, but the exclusive representative may, at its option, have a lower agency fee.
Q.14. What if an employee is appointed to a position for a short duration and a union
represents the position, does that employee have to pay the fee? (e.g. an
employee is appointed for three months per year - does he or she have to pay
for three months, even though the employee won't be getting the union benefits
that a career or long-term employee would get?)
A.14. Yes. Even though the employee is in a position covered by an exclusive
representative (union) for only a short period of time, the employee is covered by
wage ranges negotiated by the University and Union, and therefore, must pay
the agency fee while working in the position.
Q.15. Is the agency fee amount based on the employee's timebase in that particular
job? (i.e. 60% timebase, 60% payment)?
A.15. This depends on the particular union representing that position. Absent
agreement otherwise, a ful agency fee is required for a position less than 100%
time. However, if the Union in question agrees to implement an agency fee
based on the percentage appointment (i.e. 60% timebase, 60% payment), then
that employee will pay less than a full-time employee.
Q.16. If a union collects a flat dollar fee instead of a percentage of pay, will an
employee have to pay the full flat dollar amount even if he/she has less than a
full-time appointment in the unit?
A.16. Yes. An employee wil be required to pay the same fee regardless of
appointment unless his or her exclusive representative requests a different
agency fee structure to handle this situation.
Q.17. Does a part-time faculty unit member who earns less than $400 per month from
CSU employment, have to pay fair share fees?
A.17. No. The CFA has agreed not to deduct fair share fees from those faculty unit
employees earning less than $400 per month.
ARE EMPLOYEES REQUIRED TO PAY AN AGENCY FEE
Q.18. Can an employee be reclassified to a position in order to avoid paying the fair
share fee?
A.18. No, classifications are determined by the tasks performed. If an employee
believes the tasks he or she performs do not accurately reflect his or her job
description, the employee can speak to a manager regarding the possibility of a
reclassification. However, reclassification may not result in an employee leaving
his or her current bargaining unit, nor guarantee movement into a position not
requiring an agency fee.
Q.19. Do I have to give the union permission to take an agency fee deduction from my
monthly wages
A.19. No, the University is required by law to make the deduction once the union
requests it.
Q.20. Wil I be terminated from employment if I refuse to pay the agency fee?
A.20. The University wil not terminate employees for non-payment of an agency fee.
The State Controller, the University’s payroll agent, will automatically deduct the
agency fee amount and remit the money deducted to the appropriate Union(s).
Q.21. How can the agency fee be rescinded?
A.21. Agency fee may be rescinded by a majority (50% +1) vote in a secret ballot of all
the employees in a bargaining unit. A bargaining unit may be systemwide or
local, please check with your union.
Q.22. How do you take a vote to cancel the agency fee?
A.22. First, a petition must served on the PERB that contains the signatures of at least
30 percent of the employees in the bargaining unit. The signatures have to be
obtained in one academic year.
Q.23. How often can there be a vote to cancel the agency fee?
A.23. There cannot be more than one vote taken during the term of any contract in
effect on or after January 1, 2000. (Refer to the Duration Article in Col ective
Bargaining Agreement covering the terms and conditions of your employment
with the University).
CONSCIENTIOUS OBJECTORS AND HOW DO THEY OBJECT TO THE FEE
Q.24. Can an employee avoid paying an agency fee to the union?
A.24. If the union representing the position imposes an agency fee, then the employee
cannot avoid an agency fee deduction. However, if the employee is a
conscientious objector, the agency fee will be donated to a selected charity.
Q.25. What is the course of action for non-payment?
A.25. If the employee does not pay an amount equivalent to the agency fee to a
charitable organization in accordance with procedures for providing proof of
payment, the State Controller, the University’s payroll agent, will assume
payment has not been made and begin making automatic agency fee deductions
as part of the payrol process.
Q.26. Who is a "conscientious objector"?
A.26. The law states that a conscientious objector is an employee " who is a member
of a bona fide religion, body, or sect that has historically held conscientious
objections to joining or financial y supporting public employee organizations.” A
conscientious objector would not be required to join, but would instead be
required to pay a sum equal to the agency fee to a nonreligious, non-labor
charitable fund.
Q.27. If I am a conscientious objector whom do I notify?
A.27. Notify the union directly of your conscientious objector status.
Q.28. What will the process be for evaluating conscientious objector status?
A.28. Each union will administer its own criteria for determining conscientious objector
status.
Q.29. If an employee disagrees with the union's decision to deny conscientious
objector status, can the employee grieve the decision? If so, what is the
process?
A.29. If you do not agree with your union rejection of a claim for conscientious objector
status, you may contact PERB for advice on your rights.
Q.30. If an employee is a conscientious objector can he/she select any charity to which
the agency fee will be donated?
A.30. The University and the union may agree upon a list of charities to which the
agency fee can be donated. If an employee is a conscientious objector, she/he
must first notify the union and inform it to which charity he/she wants to donate.
Once the University and union agree on a selection of charitable organizations, a
list wil be posted on the University bulletin board. The agreement with the
California Faculty Association can be found there. If a union and the University
do not agree on a list of charities, the employee may donate to a non-religious,
non-labor charitable organization that meets the requirements set forth in the US
Internal Revenue Service Code. The employee will be required to provide the
union proof monthly of the charitable contribution.
Q.31. If monthly proof of payment to a charitable organization is not provided, does the
State Control er automatically begin deducting monies from the employee's
paycheck?
A.31. Yes. If the union notifies the State Control er, the University’s payroll agent, that
a charitable contribution is not being made according to procedures for providing
proof of payment, the State Controller will begin making automatic agency fee
deductions as part of the payroll process.
Q.32. What will the process be for determining the non-labor funds to which
conscientious objectors can contribute?
A.32. Determination of the non-labor funds is subject to the col ective bargaining
process. If the University and the exclusive representative cannot agree on the
funds, then the employee gets to pick a non-labor, non-religious charitable
organization that meets the requirements set forth in the US Internal Revenue
Service Code. The State Board of Control lists of organizations that meet this
standard, and which are available for payrol deduction, can be found at
___________________________.
Q.33. How many charities will be on the list?
A.33. If the union and University agree on a list of charities, by law, they must agree on
at least three. If the University and union do not agree on a list, then the
employee will select a charity.
Q.34. What if you have objections to the charities listed?
A.34. You must still direct your agency fee contribution to one of the charities listed.
However, you can contact your union representative or a member of your local
Labor Relations office to voice your concerns about the list of charitable
organizations. The University and Union can jointly decide to change or add
charitable organizations to the list.
Q.35. Can I donate my agency fee to charity even though I do not belong to a religion
or sect that objects to financial y supporting a public employee organization?
A.35. No. Only those employees who are members of a bona fide religion, body or sect
that has historically held conscientious objections to joining or financial y
supporting public employee organizations may direct their agency fee
contribution to a charitable organization.
Q.36. Which religions historically object to providing financial support to a public
employee organization?
A.36. The Unions will be determining this matter. You can consult your union for a list
of organizations the unions believe meet the legal criteria.
Q.37. What proof is required to have a conscientious objection?
A.37. Your exclusive representative will determine what proof is acceptable.
Q.38. Assuming the union agrees, is there any preclusion to directing conscientious
objector contributions to a University student scholarship fund through the
Alumni Association or Foundation?
A.38. Under the law, unions and the University must agree on at least three charitable
organizations. One of those organizations could be a University scholarship fund
through the Alumni Association, provided it meets IRS criteria. However, the law
is clear that the employee gets to choose from a minimum list of three charities
agreed to by the exclusive representative and the University, or one of their own
choosing. The agreement with the California Faculty Association includes all
CSU auxiliary organizations, and the CSU has no agreement with any other CSU
union that prohibits contributions to these CSU auxiliary organizations.
