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Agency Fee Payers

An agency fee payer is an employee who chooses to resign from union membership. He or she pays an agency fee (also known as the “representation” or “fair share” fee) that is used for collective bargaining purposes, but receives a refund of the portion of their dues that is not used for collective bargaining (such as union political expenditures).
If you want to get money back because you have political or ideological objections your union’s agenda, you can become an agency fee payer. Agency fee payers give the union 100 percent of regular dues, but are eligible to claim a rebate each year if they remember to request it in writing at the appropriate time.

How do I opt out as an agency fee payer?

Your union’s constitution and bylaws should include provisions specifying where to send your resignation letter, but here are some general guidelines.
Write a letter to your state affiliate union president stating that you object to the portion of your dues spent on activities that your union has deemed non-chargeable. Ask them to rebate the portion of your dues used for non-chargeable expenses and to provide you with an explanation of how the rebate is calculated. Be sure to include your name, address, phone number, job title, place of employment and any other pertinent information. Be sure to sign and date the letter.
Once you write your letter or fill out one provided, make three copies.

  • Send the original to your state affiliate president;
  • Send one copy to the local union president;
  • Send one copy to your payroll department; and,
  • Keep the third copy for your records.

If you have authorized payroll deduction of full dues, you should also notify your employer that you wish to authorize only the deduction of the portion of dues that is chargeable under law.
Here are a few sample letters and information to guide your own letter writing:

Generally, a union will refund that portion of the dues within 30 to 45 days after the resignation letter has been turned in. Each union has a different amount that is usually refunded. For the WEA, it is approximately 25 percent of union dues. For the WFSE, it is about 17 percent. For the WPEA, it is about five percent.

How do I resign as a religious objector?

See the Religious Objector website for more information on how to opt out by becoming a religious objector and tips on writing a letter to resign as a religious objector.

When can I opt out of the union?

Union members may resign from membership at any time. Most unions, however, designate a resignation deadline each year. If an employee misses the resignation window, any refund will be prorated for the portion of the membership year they have been in the union.

Do I need to request a refund every year? Do I need to resign from the union every year?

Yes, agency fee payers and religious objectors are required to opt out of union membership every year. However, the duty is not solely on the employees to remember. Unions are required to send information to every member on an annual basis.

What should I do if the union or my employer does not acknowledge or comply with my request?

If your union or your employer refuses your resignation, they are in violation of both case law and labor policies. Contact the Evergreen Freedom Foundation or the National Right to Work Foundation for assistance.

What rights will I have if I resign from my union?

State law requires that the union continue to represent non-member employees in contract negotiations and grievance proceedings. Non-union employees cannot be denied any benefits under the labor contract with the employer because of non-membership. Union threats that all benefits will be rescinded are incorrect. However, the union may deny the non-member incidental benefits to membership.

  • Voting rights: Union representatives at the local, statewide, and national level determine the rights of members and non-members and how much they can be involved. Technically, unions do not have to let anybody vote on contracts, not even their members. At times they will allow others such as nonmembers, religious objectors, or fee payers to vote.
  • Attend/speak at union meetings: Union representatives at the local, statewide and national level determine the rights of members and non-members and how much they can be involved. Unions are under no obligation to allow employees to attend or be actively involved in union membership or leadership meetings. Read your local bargaining unit's bylaws as well as the governing rules for the state affiliate.
  • Decertification rights (public employees): The procedure for certification and decertification are the same. Any employee in a business or department may gather signatures amounting to more than 30 percent of the work group, file the signatures with the Public Employment Relations Commission, and force a vote to certify or decertify a union as the work group’s collective bargaining representative. The remainder of the contract, including all wages and benefits, remains in effect and the union continues to serve as the exclusive bargaining representative, whether or not the employees pay any dues or fees.
  • Liability Insurance (teachers): Many unions, particularly teachers’ unions, provide liability insurance as a benefit of membership and an incentive to join. Upon resigning, unions are free to, and generally do, revoke coverage. However, by law and sometimes by contract, local school districts are required to provide similar liability insurance under which all teachers are covered, regardless of union membership status. Furthermore, most professional associations provide membership benefits that include liability insurance coverage.

Most insurance that a union provides its members can be secured from alternative sources. For teachers, both the Association of American Educators and the Christian Educators Association International offer their members a million dollar liability policy and other insurance that match or exceed the policies offered by the NEA to its members. You may also want to check with your school district. Many carry or provide liability coverage for their teacher employees and some are required to do so by the union contract. NEA Today admitted that "your school district should provide you with primary coverage.” If not, some homeowners or renters insurance allow you to add a liability clause to your policy for a nominal fee. Often this is described as an umbrella policy. In effect, the NEA's Educators Employment Liability Policy is protected by these other primary coverages and kicks in only after any insurance available though the school district has been exhausted. It even limits coverage in civil rights cases to $250,000 instead of the advertised $1 million.