Open Shops Definition
An open shop is a business where the employees are not required to join or financially support a union. Open shops are also sometimes referred to as ‘merit shops’ or ‘nonunion shops.’
The National Labor Relations Board defines an open shop as follows: ‘An ‘open shop’ is an establishment in which any person, regardless of union membership, may be employed. An employer may lawfully announce and maintain an open-shop policy.’
In contrast, a closed shop is a business where the employees are required to join and financially support a union. A closed shop may be defined by either a contract between the employer and the union (a collective bargaining agreement) or by law.
The National Labor Relations Board defines a closed shop as follows: ‘A ‘closed shop’ is an establishment in which, pursuant to an agreement between the employer and a labor organization, only members of such organization may be employed.’
