Indiana Right-to-Work Law: Rights, Employer Duties, and Penalties

Indiana’s right-to-work law prohibits any employer or union from requiring you to join a union or pay dues, fees, or assessments as a condition of getting or keeping a job. The rule is set out in Indiana Code 22-6-6, and it covers most private-sector workplaces in the state, with two narrow exceptions and real penalties for violations.¹

What the Law Forbids

Under IC 22-6-6-8, no one can require you to become or remain a union member, pay dues or fees to a union, or pay an equivalent amount to a charity or third party, as a condition of employment.¹ That last piece matters. Some older contracts tried to route mandatory payments through charitable donations as a workaround, and the statute closes that door explicitly.

Voluntary payments are still fine. Union members who want to contribute can. What is off-limits is tying anything about your job — hiring, firing, promotion, discipline — to whether you pay. The label on the payment does not matter. Dues, service fee, agency fee, fair-share contribution: all treated the same.

Who Is Not Covered

Two categories fall outside the law, and they are where employers and unions most often stumble.

Building and construction trades. Collective bargaining agreements between employers and unions in the building and construction industry are exempt. Pre-hire agreements remain valid, so construction unions can still negotiate contracts requiring workers to join or pay fees before starting on a project. If you work in the trades, the law probably does not change your obligations under a union agreement.²
Contracts in place before March 14, 2012. Any collective bargaining agreement that was in effect on or before that date continued to operate under its original terms for the rest of its duration. The prohibitions only apply to agreements entered into, modified, renewed, or extended after March 14, 2012.³

Public-sector labor relations, federal workers, and railway and airline employees covered by federal law operate under different rules that the file does not address here.

Your Rights If You Don’t Want to Pay

You can decide whether to financially support a union without workplace consequences. You cannot be fired, demoted, denied a promotion, or disciplined for refusing to pay dues or declining to join.¹ The protection applies at hiring and throughout employment.

You are also entitled to make the decision free from coercion. If an employer or union pressures, intimidates, or retaliates against you for refusing to pay, you can file a complaint with the Indiana Department of Labor, the Attorney General, or the county prosecuting attorney where you work. Federal law adds another layer: under the National Labor Relations Act, it is an unfair labor practice for an employer to interfere with, restrain, or coerce employees exercising their union-related rights.⁴

You Still Get Union Representation

One thing to understand before opting out: your union must still represent you. Even if you pay nothing, the union negotiates wages, benefits, and working conditions for everyone in the bargaining unit and handles grievances on your behalf. Dues-paying members carry the cost of representation that covers the whole unit equally. That is the trade-off the law creates, and it is worth thinking through before you decide.

What Employers Have to Do

Employers carry most of the compliance work. Any collective bargaining agreement or employee handbook still requiring union dues as a condition of employment is unenforceable and exposes the company to liability. Reviewing and updating those documents is the starting point for anyone operating under a union contract in Indiana.

Payroll practices deserve close attention. If dues are deducted from a worker’s paycheck, the employer needs clear, written authorization from that worker. Automatic enrollment or default deductions that assume consent are exactly what triggers complaints. When an employee revokes authorization, deductions stop.

Conduct matters as much as paperwork. Supervisors and HR staff cannot favor dues-paying employees in promotions, shift assignments, or other benefits, and they cannot pressure workers to join or contribute. The NLRA cuts both directions here: employers cannot push workers toward union membership or away from it.⁴ Training managers on those boundaries is the most reliable way to prevent complaints.

Penalties for Violating the Law

Enforcement runs on two tracks: criminal and civil. They stack.

Criminal

Knowingly or intentionally violating the ban on mandatory union payments is a Class A misdemeanor.³ In Indiana, that carries up to one year in jail and a fine of up to $5,000.⁵ Prosecutors decide whether to bring charges, so not every violation ends up criminal, but the exposure is real.

Civil

An employee injured by a violation, or threatened with one, can sue. A court may award:

The greater of actual and consequential damages, or liquidated damages of up to $1,000.
Reasonable attorney’s fees, litigation expenses, and court costs.
An injunction stopping the illegal practice and preventing future violations.
Any other relief the court considers appropriate.

These remedies are cumulative and sit on top of any criminal penalties or administrative orders.⁶ The attorney’s fees provision matters in practice, because it lowers the financial barrier for workers pursuing claims over relatively small amounts of wrongly deducted dues.

How to File a Complaint

If you think your rights have been violated, you have three places to go: the Indiana Attorney General, the Indiana Department of Labor, or the prosecuting attorney in the county where you work. Any of them can investigate and enforce compliance. The Department of Labor can also issue an administrative order granting the same civil remedies a court could award, including damages and injunctive relief.³

For straightforward problems like an unauthorized payroll deduction, the Department of Labor is usually the fastest path. For broader patterns of coercion or retaliation, a private civil lawsuit may produce a larger recovery. You can also file an unfair labor practice charge with the National Labor Relations Board if the conduct violates federal law; that proceeds on a separate track from the state remedies.

1
Indiana General Assembly. Indiana Code 22-6-6-8 – Certain Practices as Condition of Employment Forbidden
2
Justia. Indiana Code Title 22, Article 6, Chapter 6 – Right to Work – Section 22-6-6-3
3
Indiana Department of Labor. Right-to-Work
4
Office of the Law Revision Counsel. 29 US Code 158 – Unfair Labor Practices
5
Indiana General Assembly. Indiana Code 35-50-3-2 – Class A Misdemeanor
6
Justia. Indiana Code Title 22, Article 6, Chapter 6 – Right to Work – Section 22-6-6-12