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<\/div>\n?Employee resource groups (ERGs), also known as affinity groups, are employee-driven groups focused on a shared and often protected characteristic, life experience or interest. These groups have proliferated, with roughly 90 percent of Fortune<\/em> 500 companies, along with a growing number of mid-size and small companies, offering ERGs. Lauded for positive business, professional and personal benefits, ERGs have become an asset across all types of work environments.<\/p>\n This article explores the benefits, potential legal pitfalls and considerations specifically for ERGs in unionized workforces and offers practical ways for employers to implement effective ERGs while minimizing associated risks. <\/p>\n ERGs Benefit Employers and Employees <\/p>\n ERGs offer employers a competitive edge by serving as a tool for attracting, recruiting and retaining a diverse workforce and cultivating leaders. ERGs can also aid employees in developing skills and knowledge critical to an employer’s business, which can enhance the company’s products and services. More broadly, ERGs are a proactive method of promoting diversity and an inclusive work environment while positively contributing to a company’s internal and public reputations. <\/p>\n Likewise, employees who participate in ERGs report feeling heard, valued, supported and included. In this way, ERGs can serve as a safe space for open dialogue and learning. This genuine sense of belonging and community can help employees grow professionally and personally while boosting their overall morale. In addition, ERGs offer convenient networking and mentoring opportunities to help drive employee advancement. <\/p>\n Legal Pitfalls<\/p>\n However, accompanying the many benefits of ERGs are potential legal pitfalls, broken into three categories:<\/p>\n This article focuses on the first category: traditional labor law issues. <\/p>\n Employers risk running afoul of federal labor law if they create or treat an ERG like a labor organization and then dominate or interfere with it. NLRA Section 2(5) defines a “labor organization” as any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment or conditions of work. “Dealing with” is a broader concept than negotiating or collective bargaining.<\/p>\n Because employers often contribute funds to, sponsor or otherwise support ERGs, there is a risk that the National Labor Relations Board or courts could find an NLRA violation involving them. This has occurred when an employer has established and funded the group and determined its purpose and structure, and the group then engages in bilateral back-and-forth discussions with management over working conditions or wage\/benefit issues, with management having significant control over the group’s agenda. <\/p>\n Steps for Implementing Effective ERGs and Mitigating Risks<\/p>\n By taking several proactive steps, employers can maximize the tremendous potential benefits of ERGs and limit legal risks.<\/p>\n First, employers should prepare a written policy with the following provisions: <\/p>\n Other steps include:<\/p>\n Harry I. Johnson III and Larry L. Turner are partners with Morgan, Lewis & Bockius LLP in Los Angeles and Philadelphia, respectively. This article was written with assistance from Lakeisha Andress and Mikaela Masoudpour, associates with Morgan, Lewis & Bockius LLP in Dallas and Chicago, respectively.<\/em><\/p>\n\n
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