Colorado Is Scrapping the 'Second Vote' for Union Contracts. Here's What It Means.

The Bottom Line

Colorado is removing a major hurdle in labor negotiations by eliminating the need for a second, state-run election just to discuss union dues requirements in a contract. It also officially writes "good faith" bargaining protections into state law for both sides of the table. If you're involved in a unionized workplace, the path to a finalized contract just got a lot shorter.

What This Bill Actually Does

Under Colorado's historical "Labor Peace Act," forming a union and negotiating a contract featured an unusual extra step that didn't exist in most federal labor scenarios. If a recognized union wanted to negotiate an all-union agreement—often called a union security clause, which requires all covered employees to pay union fees to cover the costs of representation—they couldn't simply hash it out at the bargaining table. They had to petition the state, hold a second, separate election, and win a supermajority vote just to be allowed to negotiate that specific clause with the employer.

HB26-1005 completely strips away that second election requirement. Now, once a union is the certified representative of a workforce, they have the explicit right to collectively bargain concerning any mandatory subject of bargaining. That means they can immediately negotiate union security clauses right alongside wages, hours, and benefits without waiting for the state to administer another ballot. The primary goal is to remove bureaucratic red tape and align state law closer to standard, streamlined collective bargaining practices.

Additionally, the legislation establishes clear ground rules for both sides of the table by formally writing a good faith bargaining requirement into state law. It requires employers and union representatives to genuinely try to reach an agreement. But it also includes a crucial, balanced protection: it states clearly that refusing to agree to a proposal or refusing to make a concession is not an unfair labor practice, provided the party is legitimately bargaining in good faith. You have to come to the table and make an honest effort, but neither side is legally compelled to cave to the other's demands.

What It Means for You

For everyday workers, the biggest shift here revolves around how your workplace union operates, negotiates, and funds itself. If you are in a unionized workplace, or your shop is currently trying to organize, this law removes a massive logistical headache. Without the need for a second election, unions can negotiate an all-union agreement much faster. This means if a new contract is signed containing this clause, all employees covered by that contract will likely have union dues or representation fees automatically deducted from their paychecks. The underlying philosophy here is that since everyone benefits from the union-negotiated wages and protections, everyone should contribute to the cost of that representation.

But what if you're someone who prefers not to join the union, even though you work in a bargained unit? This bill directly affects your wallet. Previously, the high threshold of that second state election meant many Colorado unions couldn't easily secure these clauses, allowing non-members to opt out of paying fees while still receiving the contract's benefits. Now, those mandatory fee clauses will just be standard items negotiated directly between your employer and the union reps. If they agree to it in the contract, you'll be required to pay your share.

As an employee, you also gain the reassurance that state law formally demands your employer to bargain in good faith over your wages, hours, and working conditions. However, it's worth keeping expectations realistic: the law doesn't force your employer to say yes. The state is mandating the effort of negotiation, not a specific outcome. These new rules apply to any collective bargaining agreements that are entered into or renewed on or after the day the bill is signed into law.

What It Means for Your Business

If you run a unionized business or operate in an industry prone to labor organizing, this bill fundamentally shifts the speed, leverage, and scope of your contract negotiations. By eliminating the second election requirement for union security agreements, labor representatives will now bring demands for mandatory union dues to the bargaining table on day one. Historically, that second election served as a buffer—it gave employers time, and it often prevented these clauses from moving forward if the union couldn't rally a supermajority. That buffer is gone. You need to be prepared to negotiate these financial and organizational clauses directly alongside your standard wage and benefit discussions.

However, there is a very important piece of legal armor built into this bill for business owners. While you are newly mandated under state law to bargain in good faith, the text explicitly declares that refusing a lawful proposal or holding your ground without making concessions is not an unfair labor practice. As long as you are actively engaging, providing necessary information, and not stonewalling the process, you aren't legally forced to agree to a union's terms just to prove you are playing by the rules. You can still play hardball at the negotiating table—you just have to show up and make a genuine effort.

Because these rules apply to collective bargaining agreements entered into or renewed as soon as the bill becomes law, you shouldn't wait to adjust your strategy. If you have a contract renewal coming up in the near future, it is highly recommended to sit down with your labor counsel. Your negotiating playbook will need to account for the immediate introduction of all-union clauses. Furthermore, you'll want to implement practices to carefully document your bargaining sessions, ensuring you have a clear paper trail to prove you are meeting the state's new statutory good faith standard if a labor dispute arises.

Follow the Money

In a refreshing twist for state legislation, this bill actually saves the government money. Because the Colorado Department of Labor and Employment (CDLE) will no longer need to administer, oversee, and certify those secondary elections for union security agreements, the state's administrative workload visibly shrinks. The process used to be offered at no cost to the employer or the union, meaning taxpayers footed the bill for the bureaucracy.

According to the official fiscal note, eliminating these elections will save the state's General Fund roughly $27,000 in the first fiscal year, and those savings will grow to about $40,000 annually in the years following. This translates to a reduction of about a third of a full-time state employee (0.3 FTE) who previously handled the logistics for these labor elections. There are no new taxes, fees, or direct government costs passed on to businesses or residents to fund this change.

Where This Bill Stands

HB26-1005 is currently Vetoed. The latest official action came on 05/28/2026: Governor Vetoed.

That means the governor rejected the bill. Unless lawmakers override that veto, it will not take effect.