Closed Shop Legal Meaning and Definition

Here is a simplified definition of the legal term Closed Shop.

Closed Shop (noun):

A type of agreement between a business or industry and a labor union where current and future employees are required to join the union within a certain time period after being hired. This ensures that the entire workforce is unionized. The U.S. has largely outlawed such practice due to its restrictive nature, favoring instead the 'Union Shop' model.