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Closed Shop

closed shop n

: a business in which the employer by agreement hires and retains only union members see also Labor Management Relations Act in the Important Laws section compare open shop, union shop NOTE: Closed shops are illegal under the Labor Management Relations Act.

Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.