A bill introduced in both the House and Senate would amend the National Labor Relations Act (NLRA) to permit an employer to award individual employees with financial incentives beyond the pay or compensation level specified in a collective bargaining agreement (CBA). Introduced by Senator David Vitter (R-LA) and Rep. Tom McClintock (R-CA), the Rewarding Achievement and Incentivizing Successful Employees Act or the “RAISE Act” (H.R. 2732, S. 1184) would add the following provision to section 9(a) of the NLRA:

Notwithstanding a labor organization's exclusive representation of employees in a unit, or the terms and conditions of any collective bargaining contract or agreement then in effect, nothing in either--

(A) section 8(a)(1) or 8(a)(5), or

(B) a collective bargaining contract or agreement renewed or entered into after the date of enactment of the RAISE Act,

shall prohibit an employer from paying an employee in the unit greater wages, pay, or other compensation for, or by reason of, his or her services as an employee of such employer, than provided for in such contract or agreement.

In essence, this legislation would allow an employer to create merit pay systems, bonuses or other incentive awards for employees for increased productivity or exceptional work. Under current law, an employer is bound by the terms and conditions of a CBA, and cannot pay particular individuals amounts greater than that set by the contract without further negotiation with the union.

The House version of the RAISE Act has been referred to the House Committee on Education and Labor. The Senate companion bill has been referred to the Senate Committee on Health, Education, Labor, and Pensions.