PHR Human Resources Exam Prep

Answer - D - A yellow dog contract is the term for an agreement between management and a potential employee to offer the potential employee a job as long as they agree not to join a union.

Key Takeaway: A yellow dog contract is an agreement between an employer and employee to offer employment as long as the employee agrees not to be a member of a union. Before 1932, when yellow dog contracts were outlawed under the Norris-LaGuardia Act, these contracts were used widely to prevent the formation of unions within companies.