ALEC's Efforts to Limit Worker and Consumer Rights
The bills on this page represent ALEC corporations' efforts to keep workers from exercising their rights under law, to drain labor unions of resources, and to limit their political influence. Bills here also attack consumer protection laws, favor big bank fees, and support slumlords and predatory lenders. These anti-worker and anti-consumer "model bills" are drafted at American Legislative Exchange Council conventions with input from, and approval by, Big Business, then introduced in state legislatures to erode the rights of working Americans. Politicians are elected to represent the people, not corporations; through ALEC, corporations have both a VOICE and a VOTE on specific state laws. Do you?
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Learn MORE about the "Model Bills" ALEC Corporations Are Backing to Rewrite YOUR Rights
The Center for Media and Democracy analyzed the bills ALEC politicians and corporations voted for. More analysis is available below and also at ALEC Exposed's sister sites, PRWatch and SourceWatch.
How are corporations attacking worker rights in these bills?
These bills aim to erode the rights of workers in favor of corporate interests by:
Eliminating defined benefit pension plans for public employees in favor of defined contribution plans, and placing management of those funds in the hands of private sector management.
Deterring injured employees from making worker’s compensation claims through:
These are but a few of the bills that attack worker rights. To see a full list of bills in this section and send them to your computer individually, click here.
Some of this Corporate Agenda Has Already Become Law
Wisconsin Governor (and ALEC alum) Scott Walker took a cue from the ALEC corporate wish list and introduced a radical bill in February 2011 to cripple public employee unions. Wisconsin Act 10 inspired months of protests and has been subjected to a series of legal challenges. There is no ALEC bill that mirrors Walker's proposal, but the Wisconsin bill does comport with ALEC's sweeping anti-union agenda, which includes decades of support for "Right to Work" and "Paycheck Protection" legislation and other measures to disempower and defund unions. On collective bargaining, ALEC's "Public Employee Freedom Act" declares that "an employee should be able to contract on their own terms" and "mandatory collective bargaining laws violate this freedom." This ALEC bill and the "Public Employer Payroll Deduction Act" prohibit automatic payroll deductions for union dues, a key aspect of the Walker bill. To learn more about this story, click here (PLACEHOLDER) (Have any of these bills been introduced or enacted in YOUR state? If so, please add that information to the ALEC Exposed page on your state by searching for your state's name in the search engine at the top of this page.)
Limiting the ability to develop smart transportation policy through a state Constitutional Amendment requiring that revenues from gas taxes and vehicle-related fees be used for highways, rather than investment in less fossil-fuel dependent rail transit or bike lanes.
These are but a few of the bills that attack consumer rights. To see a full list of bills in this section and download them individually, click here.
Did You Know about this Bill?
Authorizing "Car Title Pledges" for Predatory Lenders
One "model bill" from ALEC corporations would authorize a form of short-term lending that many states have recognized as unfair and predatory to low-income consumers. Specifically, it authorizes lending companies to give short-term, 30-day renewable loans backed by the borrower's car title, loans which usually have high rates of interest.
Consumer groups have opposed this type of lending not only because the high interest rates and short-term repayment period can trap consumers in a cycle of debt, but also because it places a working person in the position of risking their vehicle (an asset usually necessary in order to work and maintain a living). The bill also provides few consumer protections, for example failing to include a private right of action with strong remedies, and requiring that all claims be brought within one year. This provides little deterrence for predatory lenders, and because the budgets and resources of regulatory agencies are often limited, the state cannot adequately crack-down on abusive lenders.
The Consumer Federation of America, USPIRG, and the Center for Responsible Lending sent a letter to ALEC opposing this model legislation in November 2005, noting these concerns and referring to many examples of predatory title lending, and also pointing out that title lenders have been generous campaign contributors. "Title Pledge Acts" have become law in states such as Mississippi and Tennessee, and in 2011, Wisconsin rolled-back its ban on the practice (after former Governor Jim Doyle banned the practice only one year prior). Is a local legislator who was elected to represent YOU actually protecting the profits of corporate interests?
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