Definitions for "Agency Shop"
workplace where employees are required to belong to the union or pay dues as a condition of employment.
A union security contract clause requiring those employees who are covered by the contract, but who decline to join the union, to pay a service fee to the union equal to, or a percentage of, the union dues. This fee is intended to compensate the union which, by law, must give full and equal representation to all bargaining unit members, regardless of membership status (also called "Fair Share").
An arrangement that requires an employee, as a condition of employment, either to join the recognized employee organization, or to pay the organization a service fee (see Agency Fee) covering the cost of representation to the employee organization.