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Over the past few decades, as teachers unions have been increasingly perceived as detrimental to student progress and educational equity, collective bargaining rights have been reduced through “right-to-work” legislation. Little is known about the implications of these changes, particularly regarding their effect on an increasingly diverse student population. Therefore, using data collected through the Schools and Staffing Survey prior to the recent proliferation of “right-to-work” legislation, this study uses hierarchical linear modeling to examine the previously unstudied variation in 31,454 teacher salaries and the degree to which they vary depending on the racial makeup of the school. The results are consistent with the notion that collective bargaining is associated with more equitable school finance distribution between schools.