This proposed subsection defines an employee as someone who works for an employer “for compensation.” An employer is a “person or entity employing one or more employees.”
This provision allows unionization of a single employee.
As a practical matter, defining “employer,” “employee” and “compensation” has proved extremely complicated in existing state labor law. The brief and arguably circular and vague definition of these terms in Proposal 2 will almost certainly lead to lengthy and complex litigation.
The potential for disagreement over the meaning of employment-related terms has been underscored by recent litigation over whether home-based day care providers and home help providers who indirectly receive child care and Medicaid subsidies are state government employees. A similar controversy arose over an attempted unionization of graduate student research assistants at the University of Michigan. Each of these debates necessarily involved intense investigation of existing labor and constitutional law regarding what constitutes employment.