YELLOW DOG CONTRACT
Yellow Dog Contract
A yellow-dog contract refers to an agreement between an employer and an employee in which the employee pledges not to join or support a labor union during their tenure with the company. Yellow-dog clauses are non-compete provisions included in or added to a non-disclosure agreement that ban an employee from competing with other firms in the same industry. Employers may discipline union organizers who encourage employees to break those contracts, which were widespread in the United States in the 1920s.
Acceptance of the yellow-dog agreement is typically a condition of employment, and an individual may be required to sign the contract as part of the hiring process. Employers have the right to take disciplinary actions against employees found to violate the agreement, including termination of employment.