The U.S. Court of Appeals for the Seventh Circuit issued its decision on Nov. 2 in a lawsuit brought by three local unions: the Anderson Federation of Teachers, the Avon Federation of Teachers and the Martinsville Classroom Teachers Association.

At issue was Senate Enrolled Act 251, passed by the Republican-controlled Legislature in 2021 largely along party lines. The law created a separate dues-deduction process applying only to teachers' unions. Under it, a teacher had to sign an additional authorization form acknowledging they could decline to join or pay dues, with language printed in 14-point boldface type stating that membership and dues are voluntary and that teachers cannot be discriminated against for refusing to join or support a union. Once a school received the form, it had to email the teacher to confirm their intentions before any dues could be deducted. Schools also had to send annual notices telling teachers they could leave the union, and teachers had to renew their dues authorization every year.

No other non-teacher unions or their members' employers were subject to those requirements.

The unions argued the system was "entirely unnecessary and onerous," making it harder for teachers to support their union and for unions to maintain membership and resources. They contended the law violated their rights to freedom of association and freedom of speech. The court agreed the state had violated the former.

"Although the government can choose whose speech to subsidize through use of school employers' payroll systems to collect union dues, selectively conditioning access to that subsidy for public school teachers and their unions alone is indicative of viewpoint discrimination that the State has done nothing to rebut," Judge John Lee wrote for the Seventh Circuit. Lee was nominated to the bench by former President Joe Biden.

Lawmakers revised the disclosure language in 2022, after the lawsuit was filed. The U.S. District Court for the Southern District of Indiana found both versions unconstitutional in March 2023, and the state appealed a month later.

An attorney for the three suing unions said they were excited about the victory. Jennifer Smith-Margraf, president of the Indiana State Teachers Association, which was not a party to the case, said in a statement that "the court's ruling makes clear that the state cannot unfairly discriminate against public school teachers and their unions due to their viewpoints."

The Indiana Attorney General's office, led by Todd Rokita, is still reviewing the decision and considering its next steps, spokesperson Slayde Settle said in an email. It is unclear whether the office will pursue a further appeal.

The ruling is a significant win for organized labor in a state that has repeatedly clashed with teachers' unions over dues collection and membership rules. It also reinforces the principle that government cannot tilt the playing field against one category of workers based on the views their unions represent.