Orange County Employment Lawyer

National Labor Relations Board v. Jones & Laughlin Steel Corporation Implications

In the National Labor Relations Board v. Jones & Laughlin Steel Corporation (1937) case, the Jones & Laughlin Steel Corporation, the fourth largest steel producer in the country, was accused of discriminatory discharges of its employees for their personal involvement in union activities. Ten employees had been fired at a plant in Pennsylvania after they decided to unionize. The National Labor Relations Board (NLRB) ruled against Jones & Laughlin Steel and ordered that the employees be rehired. The company refused on the grounds that the National Labor Relations Act was unconstitutional. Lower courts agreed with the company until the case reached the Supreme Court.

The United States Supreme Court ruled that the National Labor Relations Act, otherwise known as the Wagner Act, was indeed constitutional. Chief Justice Hughes ruled that the intrastate activities of the company “have such a close and substantial relation to interstate commerce that their control is essential or appropriate to protect that commerce from burdens and obstructions.” The effect of this ruling greatly increased Congress’ power under the Commerce Clause and constituted the end to the court’s striking down of New Deal economic legislation.

Dissenting opinions included Justice McReynolds, who questioned Congress’ increased power under the Commerce Clause. He did not disagree with Congress’ ability to regulate commerce but believed involvement should only occur when violations were “direct and material.”

If you have been discriminated against in an employment setting because of union involvement, it is imperative to contact experienced legal counsel to protect your rights. The Orange County employment lawyers at Perry Smith will aggressively fight against unfair workplace practices. Contact them today at 888-356-2529 to learn more.