What are unfair labor practices?

Unfair labor practices (ULPs) are any actions by an organization, its representatives, or labor unions that violate employees’ statutory rights or disrupt healthy relationships between the parties in an employment relationship. In practice, this may include restricting employees’ right to organize or engage in collective bargaining, unequal treatment in hiring or employment, threats against whistleblowers, or entering into agreements that bypass applicable labor laws.

For HR professionals and managers, the concept of unfair labor practices serves as a warning against behaviors that can erode team trust, trigger legal disputes, or damage the company’s reputation.

Unfair labor practices under U.S. law

The concept of unfair labor practices originates from U.S. labor law, with its foundation in the National Labor Relations Act (NLRA) of 1935, also known as the Wagner Act. This landmark legislation was the first to define actions considered unfair and to establish a framework for protecting employees’ collective rights in the United States.

Oversight and enforcement fall primarily to the National Labor Relations Board (NLRB) – an independent federal agency that investigates complaints, conducts hearings, and issues rulings on alleged violations. In specific industries or for certain groups of workers, other bodies may also have jurisdiction, such as the Federal Labor Relations Authority (FLRA) for the federal public sector.

An employee who suspects their rights have been violated can file a charge directly with the NLRB or seek assistance from their labor union if they are a member. Depending on the situation, consulting an employment attorney or reaching out to worker advocacy nonprofits may also be helpful.

Unfair labor practices under international law

While specific regulations on unfair labor practices vary between countries, the underlying principle remains the same – protecting workers from abuse and fostering fair workplace relationships. Since 1919, the International Labour Organization (ILO) has developed conventions and recommendations that set global standards, including freedom of association and collective bargaining rights. Countries that ratify these documents commit to aligning their laws with the recommended norms.

In Europe, protections against unfair labor practices are also embedded in European Union law, such as the Charter of Fundamental Rights of the EU and directives on equal treatment, working conditions, and employee information rights. Enforcement typically falls to national labor inspectorates, labor courts, or specialized bodies that handle collective disputes.

Outside the United States, employees can seek help from local unions, worker organizations, labor inspectorates, or non-governmental organizations. In some legal systems, mediation or arbitration is also available as a less formal way to resolve disputes.

Examples of unfair labor practices in the employer–employee relationship

Because the term “unfair labor practices” originates from U.S. labor law, similar actions in other countries may be regulated under different provisions or described using other terms. The following examples are therefore intended as a general reference and highlight employer behaviors that violate employee rights or bypass fair employment standards:

Discrimination in hiring or employment – asking about or making decisions based on age, gender, parental plans, disability, origin, religion, sexual orientation, or contract type instead of evaluating skills and performance.
Unequal pay for work of equal value – pay gaps without objective criteria, lack of consistent salary ranges, or unclear raise policies.
Withholding or underpaying benefits – delayed wage payments, failure to pay overtime or night-shift premiums, or unauthorized deductions.
Manipulating time records – encouraging employees to underreport overtime, off-the-books work arrangements, or falsified schedules.
Sham forms of cooperation – using freelance or contractor agreements for roles that clearly involve fixed hours, a set workplace, and direct supervision.
Blocking access to entitlements – refusing vacation or parental leave requests, discouraging sick leave use, or denying required breaks.
Retaliation for reporting violations – worse shifts, removal from projects, or demotion after reporting harassment, discrimination, or policy breaches.
Harassment or bullying and managerial inaction – tolerating humiliation, isolation, or hostile comments; failing to investigate complaints.
Health and safety violations – lack of training or protective equipment, instructing employees to work in unsafe conditions, or ignoring hazard reports.
Excessive monitoring and invasion of privacy – tracking employee activity beyond business needs or collecting data without legal grounds or proper notice.
Non-transparent HR decisions – promotions, bonuses, or performance reviews without defined criteria or explanations.
Unilateral changes to essential conditions – altering workplace location, schedules, or bonus structures without proper notice or procedure.
Abuse of non-compete clauses – overly broad restrictions or failure to provide legally required compensation after termination.
Improper termination practices – pressuring employees to accept certain exit terms, delaying work certificates, or failing to settle owed benefits.
Obstructing employee representatives – restricting their access to staff or withholding information necessary for their statutory duties.

Examples of unfair labor practices in the union–employee relationship

Unfair labor practices are not limited to employers – unions can also overstep their authority or fail the very workers they are meant to support. Because labor laws and terminology differ across countries, the following examples should be viewed as a general overview rather than binding legal definitions:

Coercing membership – applying pressure, threats, or social ostracism toward employees who choose not to join the union.
Discriminating against non-members – excluding them from communication, limiting access to union representatives, or shutting them out of consultations on working conditions.
Forcing participation in protests – pressuring employees to join strikes, pickets, or fundraising actions against their will.
Retaliation for criticism or reporting misconduct – punishing members who raise concerns about union actions or voice dissenting opinions.
Refusing representation based on favoritism or bias – arbitrarily rejecting legitimate grievances, delaying cases, or treating members unequally.
Misinformation about agreements and negotiations – sharing incomplete or misleading information about settlements or bargaining outcomes that affect workers’ terms of employment.
Mismanaging union funds – spending outside the union’s charter, lacking financial transparency, or failing to report to members.
Excessive or unjustified fees – charging entry fees or additional payments without a valid basis in the union’s bylaws.
Hindering resignation from the union – creating procedural barriers or exerting pressure on members who wish to leave.
Manipulating elections or votes – obstructing candidacies, failing to ensure ballot secrecy, or mishandling vote counts.
Violating members’ privacy – disclosing personal information or political views without proper grounds or consent.
Harassing or threatening opponents – using aggressive behavior during internal disputes or protest actions.
Blocking lawful access to work – physically preventing employees or contractors from entering a workplace or company premises.
Favoring members in job opportunities – referring candidates to employers based on union loyalty rather than qualifications.
Failing to update members on grievance processes – not informing members about steps taken on their cases or the outcomes achieved.

The impact of unfair labor practices on organizations

Unfair labor practices affect multiple aspects of a company’s operations and can undermine its overall performance and growth:

Legal level

Violations of labor law can trigger proceedings before labor courts that may last months or even years, tying up significant organizational resources. Audits or arbitration processes require careful documentation and cooperation with inspectors. Companies may also be ordered to reinstate dismissed employees and compensate them for wages lost during unlawful termination. In addition, organizations often need to revise workplace policies, internal procedures, and employment conditions to comply with legal requirements – a process that consumes HR and legal resources.

Financial level

The financial consequences include administrative fines and compensation payments to employees, which often exceed several months’ wages and must be paid with statutory interest charges. Organizations also face the cost of legal representation, external compliance audits, and the implementation of corrective measures. In more serious cases, mediation or out-of-court settlements can add further expenses but may resolve disputes more quickly.

Reputational level

News about unfair labor practices can spread quickly through industry platforms, social media, and employer review sites. This can deter potential candidates, erode current employees’ engagement, and even affect partnerships – especially as more businesses consider ESG standards when selecting collaborators. A tarnished reputation can make it harder to attract top talent in competitive fields.

Operational level

Unfair labor practices can increase employee turnover, driving up recruitment and onboarding costs. Lower team morale often results in decreased productivity and higher rates of sick leave. In extreme cases, protests or strikes can disrupt business continuity. A climate of distrust within the company can also lead to more frequent internal conflicts and challenges in executing cross-functional projects.

Can HR prevent unfair labor practices?

HR shapes standards and procedures within the framework set by senior leadership and board decisions. While it cannot stop deliberate legal violations, it can reduce mistakes caused by lack of knowledge or disorganized processes. To lower the likelihood of unfair labor practices and strengthen a culture of transparency, HR can:

Build legal awareness – for example, by offering regular training on labor law, equal treatment, workplace safety, and whistleblowing procedures.
Standardize HR processes – create clear policies for recruitment, compensation, performance reviews, and dispute resolution, and make updated documents easily accessible, for instance through an internal HR platform.
Analyze workforce data – monitor metrics such as turnover, absenteeism, pay equity, and performance scores to spot concerning trends early.
Maintain safe reporting channels – implement whistleblower-compliant procedures and clearly communicate how reports are handled.
Document decisions and investigations – keep thorough, organized records of all personnel actions and internal inquiries in digital form to simplify verification and audits.

Summary

The way a company treats its people directly shapes its reputation, team loyalty, and ability to execute business plans. Unfair labor practices are not just violations of the law – they expose weaknesses in organizational culture and management processes.

The risk of such practices drops when HR professionals and managers align their decisions with company values, stay attentive to team dynamics, and respond quickly to potential issues. This approach not only shields the company from legal exposure but also signals to employees that their employer values respectful and responsible relationships.

Unfair labor practices