The court of appeals reversed a district court judgment and remanded the action with instructions. The court held that a labor union which sent an annual fee notice to its members was not required to send an additional fee notice when adopting a temporary, mid-term fee increase.

The Service Employees International Union, Local 1000, was the exclusive bargaining agent for California state employees. Under the Union’s various Memoranda of Understanding with the State, all California employees had to join the Union or, if opting out, pay an “agency” or “fair share” fee.