Labor Laws and Laws Relating to Negotiation

Workplace negotiation has two distinct meanings depending on whether it's a union or nonunion work environment. The National Labor Relations Act, or the Wagner Act, contains laws concerning union-related collective bargaining or contract negotiations. Negotiations for employment in nonunion jobs aren't regulated by federal or state law, except to the extent that the parties determine the state law that should be used if future disputes arise.

Collective Bargaining

Collective bargaining is the negotiation process that labor unions and employers use to reach a union contract that covers the wages, benefits and working conditions for union workers. The labor union negotiation team generally includes the labor union leader or president as the chief negotiator, a business agent and an employees' representative, such as a union steward. The employer's negotiation team may consist of the human resources leader, company president and legal counsel. Depending on their expertise, any of the three employer representatives could be the chief negotiator.

National Labor Relations Act

The National Labor Relations Act protects the rights of union and nonunion workers. However, it's relevant in labor negotiations to the extent that it requires both labor and management to engage in fruitful negotiations. By fruitful, that doesn't mean that a collective bargaining agreement must result from negotiations. It simply requires that the parties bargain in good faith, which includes scheduling negotiation sessions and making reasonable proposals and counteroffers.

Executive Employment Agreements

Employment agreements for executives and high-level employees are another form of workplace negotiation. There aren't any federal or state laws to which the parties must adhere; however, conventional aspects of contract negotiations apply. For example, an executive agreement contains the scope of work or position for which the executive is being hired, compensation, benefits and perks, termination, non-compete and confidentiality clauses. The negotiation team is comprised of the employer and employee and legal counsel for each.

Typical Negotiations

The vast majority -- up to 90 percent -- of hiring managers don't present their best and final offer upon extending a job offer, according to Barbara Safani, owner of Career Solvers, in her publication, "Winning Negotiation Strategies for Your New Job." Therefore, many candidates explore whether a prospective employer is willing to negotiate salary, benefits and working conditions. Again, there aren't any federal or state laws that regulate this type of negotiation process and employers aren't obligated to negotiate job offers with potential employees.


In collective bargaining, if the parties can't agree on a contract or move negotiations forward, the Federal Mediation and Conciliation Service will assist the parties in returning to the bargaining table. The Federal Mediation and Conciliation Service is an independent federal agency that helps unions and employers improve labor-management relations. In other negotiations, such as those for executive employment agreements, differences usually can be ironed out between the parties, which may require concessions on either part. Negotiations for a typical job offer can result in the offer being rescinded if the employer doesn't believe they can agree or the potential employee withdrawing from negotiations if he's not convinced the employer can meet his requirements.