H.R. 2692 — No Tax Breaks for Union Busting (NTBUB) Act

This section sets forth congressional findings regarding employer interference with employees' rights to organize under the National Labor Relations Act (29 U.S.C. 151 et seq.) and Railway Labor Act (45 U.S.C. 151 et seq.), including that employers were charged with unfair labor practices in approximately 4 of 10 labor organization elections in 2016–2017 (over 54% in units of 61 or more employees) and spend $340 million annually on outside consultants to influence workers' decisions on unionization. The section asserts that such employer spending, like expenditures to influence public elections, should not be tax deductible to avoid subsidizing interference with workers' free choice in collective bargaining and representation.

This section amends Section 162(e) of the Internal Revenue Code of 1986 to deny deductions for any taxpayer attempt to influence its employees with respect to labor organizations (as defined in the Labor-Management Reporting and Disclosure Act of 1959) or labor organization activities (i.e., labor organization elections, labor disputes, collective actions such as collective bargaining, and related activities identified by the Secretary of the Treasury). It further specifies non-deductible amounts paid or incurred, including (1) costs resulting in National Labor Relations Act unfair labor practice complaints or settlements or Railway Labor Act findings of interference, (2) wages and other costs for meetings or trainings discussing labor organizations or activities with potentially represented employees, and (3) amounts reportable under the Labor-Management Reporting and Disclosure Act of 1959; exceptions include communications with certified employee representatives, required shareholder communications under Section 13 of the Securities Exchange Act of 1934, voluntary recognition of unions, labor-management partnerships or grievance procedures under collective bargaining agreements, labor organization expenditures, legally required postings, and certain set-aside NLRB complaints.