Practice Quiz

SPHR Human Resources

Category - Relations

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The term “closed shop” refers to a(n)
  1. Employer who refuses to hire employees who are union members.
  2. Employer who requires employees to be union members at the time of hiring.
  3. Union that limits the number of employees who may join the union.
  4. Employer who establishes company-sponsored unions.
Explanation
Answer - B - A closed shop requires employees be union member in order to be hired.

Key Takeaway: Closed shop became illegal due to the Labor-Management Relations Act (Taft-Harley Act). The Act recognized the right of employees to refrain from union activity. Union shops are where the employer agrees to require union membership as a condition of employment after completion of a probationary employment period.
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