Legal Definitions - hot cargo clause

A hot cargo clause is a rule in a labor agreement that prevents an employer from doing business with another person or company. This rule is usually put in place by a union during a labor dispute. It means that the employer cannot work with the other company until the dispute is resolved.

For example, let's say that a union representing truck drivers is in a dispute with a company that makes widgets. The union might put a hot cargo clause in their contract with the trucking company. This would mean that the trucking company cannot transport widgets for the widget company until the dispute is resolved.

Hot cargo clauses are generally considered illegal under U.S. labor law, except in certain industries like construction and garment manufacturing. This is because they can be seen as a way for unions to unfairly pressure employers during a labor dispute.