Legal Definitions - sweetheart deal

Definition: A sweetheart deal is an agreement made between two parties, often an employer and a union representative, that is collusive in nature. This type of agreement usually allows the employer to pay lower wages in exchange for payoffs to the union representative.

Example 1: A construction company and a union representative agree to a collective-bargaining agreement that allows the company to pay lower wages to its workers in exchange for the union representative receiving kickbacks or other benefits.

Example 2: A politician and a lobbyist agree to a deal that benefits both parties, but is not in the best interest of the public. The politician may receive campaign contributions or other perks, while the lobbyist may receive favorable legislation or other benefits.

These examples illustrate how a sweetheart deal is a collusive agreement that benefits both parties involved, but often at the expense of others. It is important to be aware of these types of agreements and to ensure that they are not harmful to the public or other stakeholders.