On June 9, 2026, the U.S. House of Representatives passed the Faster Labor Contracts Act (H.R. 5408) (FLCA) by a 230-193 vote, with 20 Republicans joining Democrats in support of the bill.
Important caveat: the FLCA has passed the House, but it is not yet law. The bill remains subject to Senate consideration and, if amended, further congressional action before it could be presented to the President. If enacted, the FLCA would amend the National Labor Relations Act, which governs most private-sector employers, to impose deadlines for first-contract negotiations and to require binding interest arbitration when negotiations do not produce an agreement within 120 days.
Current law requires good-faith bargaining but does not require the parties to reach a first contract by a fixed deadline. The FLCA cites a 2021 study finding that the average time between a vote in favor of union representation and the parties’ first contract was 465 days.
As proposed, the FLCA would require an employer to meet and begin bargaining within 10 days after receiving a written request for collective bargaining from the newly certified or recognized union.
If the parties do not reach agreement after 90 days of bargaining, either party could notify the Federal Mediation and Conciliation Service (FMCS) that a dispute exists and request mediation.
If the parties do not reach agreement within 30 days after the mediation request, the FMCS would refer the matter to binding interest arbitration. The arbitration panel would include one member selected by the union, one member selected by the employer, and one neutral member agreed to by both parties.
Panel members would have to be selected within 14 days after the FMCS referral. A majority of the three‑person arbitration panel would then issue a decision resolving the dispute, and that decision would be binding on the parties for two years.
The three-person arbitration panel would base its decision on factors including: (1) the employer’s financial status and prospects; (2) the size and type of the employer’s operations and business; (3) employees’ cost of living; (4) employees’ ability to sustain themselves, their families, and their dependents on the wages and benefits they earn from the employer; and (5) wages and benefits provided by other employers in the same business.
Similar legislation has been introduced in the Senate, positioning the FLCA for further consideration. At this stage, however, Senate prospects remain uncertain, and the bill may not have sufficient support to overcome a filibuster. Employers should monitor developments, but should not treat the FLCA as enacted law unless and until Congress completes the legislative process.
If enacted, the FLCA would put employers on an accelerated path either to negotiate a first collective bargaining agreement or to present their position to a three-member arbitration panel. The resulting two-year arbitration award could establish wages, benefits, and other contract terms without the parties’ mutual agreement.
Recommended employer action items include:
- Review union-readiness plans and train frontline supervisors on lawful communications and organizing response.
- Identify the management team, decision-makers, and outside advisors who would lead first-contract negotiations if a union is certified or recognized.
- Assess wage, benefit, scheduling, and operational data that could be relevant in bargaining or, if required, interest arbitration.
- Develop a bargaining timeline and document-retention plan that would allow the employer to respond promptly to a union’s written request to bargain.
- Continue monitoring Senate action before making policy changes based solely on the FLCA.
If you have questions about union organizing, first-contract bargaining, or how the FLCA could affect your workforce planning if enacted, please contact a member of Woods Aitken’s Labor & Employment Law Practice Group. We also encourage you to subscribe to our Labor & Employment E-Briefs to get the latest HR news, tips, and updates.