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What is “Agency Fee?”

What is the difference between “Fair Share,” “Agency Shop” and “Agency Fee?”

Who must pay an agency fee?


Q. What is "Agency Fee?"
A. The phrase "Agency Fee" refers to the union's ability to collect money from employees to pay for things such as negotiating a contract and representing employees in grievances and arbitrations, and lobbying activities to foster collective bargaining negotiations or secure advocates.

Q. What is the difference between "Fair Share," "Agency Shop" and "Agency Fee?"
A. Nothing. Fair share, agency shop and agency fee are the same thing. The Public Employee Relations Board (PERB), the state agency charged with administering the agency fee law, has adopted to use the phase "Agency Fee."

Q. Who must pay an agency fee?
A. If your position is covered by an exclusive representative (union) and you are not a registered member of a union to which you pay union dues, you are required by law to pay an agency fee.