The National Labor Relations Act (NLRA): Everything you need to know

The National Labor Relations Act (NLRA) is a federal law that protects the rights of private sector employees to organize and bargain collectively with their employers. This blog post discusses the key provisions of the NLRA, provides examples of how it has been applied in court cases, and explains the impact of the law on businesses. We also provide some tips for businesses to comply with the NLRA.

BUSINESS + LAWFEDERAL LAWEMPLOYMENT LAW

Graham Settleman

9/15/20237 min read

a man with a black and white face and a blue background
a man with a black and white face and a blue background

Introduction

Here is a brief overview of the National Labor Relations Act of 1935 (NLRA):

  • Purpose: The NLRA was enacted to protect the right of private sector employees to organize and bargain collectively with their employers. It also prohibits employers from engaging in unfair labor practices, such as firing or discriminating against employees for union activity.

  • History: The NLRA was passed during the Great Depression, when labor unions were weak and employers had a great deal of power over their workers. The act was intended to level the playing field and give workers a voice in their workplaces.

  • Key provisions: The NLRA guarantees employees the right to:

    • Self-organize

    • Form, join, or assist labor organizations

    • Bargain collectively with their employers

    • Engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection

    • Refrain from any or all of the above activities


The NLRA also prohibits employers from engaging in unfair labor practices, such as: Firing or discriminating against employees for union activity Dominating or interfering with a labor organization Requiring employees to join a union as a condition of employment Refusing to bargain collectively with a union


The NLRA is enforced by the National Labor Relations Board (NLRB). The NLRB investigates complaints of unfair labor practices and can order employers to stop engaging in such practices. The NLRB can also order employers to reinstate employees who have been fired for union activity.


The NLRA is a landmark piece of legislation that has had a profound impact on the American workplace. It has helped to give workers a voice in their workplaces and has led to improvements in wages, benefits, and working conditions for millions of Americans.

Key Provisions

Let’s take a closer look at some key provisions of the National Labor Relations Act of 1935 (NLRA):

  • Section 7: Employees have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection.

  • Section 8: Employers are prohibited from engaging in unfair labor practices, such as:

    • Firing or discriminating against employees for union activity

    • Dominating or interfering with a labor organization

    • Requiring employees to join a union as a condition of employment

    • Refusing to bargain collectively with a union


The NLRA is enforced by the National Labor Relations Board (NLRB). The NLRB investigates complaints of unfair labor practices and can order employers to stop engaging in such practices. The NLRB can also order employers to reinstate employees who have been fired for union activity.


Here are some examples of how the NLRA has been used to protect the rights of workers:

  • In 2015, the NLRB ordered Walmart to reinstate two employees who were fired for organizing a union.

  • In 2016, the NLRB ordered Starbucks to pay $2.8 million in back wages to employees who were fired for union activity.

  • In 2017, the NLRB ordered Amazon to reinstate an employee who was fired for complaining about working conditions.


The NLRA is an important piece of legislation that has helped to protect the rights of workers in the United States. It has helped to give workers a voice in their workplaces and has led to improvements in wages, benefits, and working conditions for millions of Americans.

Examples in Court

  • In June 2023, the NLRB ruled that Amazon violated the NLRA by firing an employee for complaining about working conditions. The employee, Jamar Adams, was fired after he complained about the heat and noise levels in the Amazon warehouse where he worked. The NLRB found that Amazon had retaliated against Adams for exercising his right to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection.

  • In 2016, the Supreme Court ruled in the case of Boeing v. NLRB that the NLRA does not allow employers to prohibit employees from discussing their wages with each other. The case stemmed from a dispute at a Boeing plant in Washington state, where the company had prohibited employees from discussing their wages. The NLRB found that the company's policy violated the NLRA, and the Supreme Court agreed.

  • In 2017, the NLRB ordered Walmart to reinstate two employees who were fired for organizing a union. The employees, Eric Beal and Anthony Stallworth, were fired after they began distributing union literature and talking to other employees about the benefits of unionization. The NLRB found that Walmart had violated the NLRA by firing the employees for engaging in protected concerted activity.


These are just a few examples of how the NLRA has been applied in court cases. The NLRA is a complex law, and there are many different ways that it can be interpreted. However, the cases mentioned above provide a good overview of how the NLRA has been used to protect the rights of workers.

Business Impact of the Law

Here is how the National Labor Relations Act (NLRA) impacts businesses in simpler terms:

  • The NLRA gives employees the right to organize and bargain collectively with their employers. This means that employees can form a union and elect representatives to negotiate with their employer on their behalf about wages, benefits, and working conditions.

  • The NLRA also prohibits employers from engaging in unfair labor practices. This means that employers cannot fire, discriminate against, or retaliate against employees for union activity.


The NLRA has a number of impacts on businesses. First, it can lead to increased costs for businesses. When employees are represented by a union, they are often able to negotiate for higher wages and better benefits. This can put a strain on a business's budget.


Second, the NLRA can lead to disruptions in the workplace. When employees are engaged in union activity, they may picket or strike. This can disrupt the business's operations and lose customers.


Third, the NLRA can increase the risk of legal challenges for businesses. If an employer is accused of engaging in unfair labor practices, it may be subject to fines or other penalties.


Despite these challenges, the NLRA also has some benefits for businesses. First, it can help to improve employee morale and productivity. When employees feel that they have a voice in their workplace, they are more likely to be satisfied with their jobs and work harder.


Second, the NLRA can help to resolve disputes between employees and employers. When employees are able to negotiate with their employer through a union, it can help to prevent disputes from escalating into costly lawsuits.


Third, the NLRA can help to create a more level playing field for businesses. When all businesses are subject to the same rules about union activity, it can help to prevent unfair competition.


Overall, the NLRA has a mixed impact on businesses. It can lead to increased costs and disruptions, but it can also improve employee morale, productivity, and dispute resolution.

Additional Resources

You can find more information about the National Labor Relations Act (NLRA) by accessing any of these resources:


The NLRB website has a wealth of information about the NLRA, including the full text of the law, case law, and FAQs. The DOL website also has information about the NLRA, as well as other labor laws.


The National Right to Work Legal Defense Foundation is a non-profit organization that opposes the NLRA. The organization's website provides information about the NLRA and its impact on businesses and employees.


The AFL-CIO is the largest federation of labor unions in the United States. The AFL-CIO website provides information about the NLRA and the union movement.

How Businesses Can Comply with the NLRA

Check out these examples of how businesses can comply with the National Labor Relations Act (NLRA):


Example 1: A small retail store in California


The owner of a small retail store in California wants to make sure that her business is complying with the NLRA. She does the following:

  • Posts a copy of the NLRA poster in a conspicuous place in the workplace.

  • Tells her employees about their rights under the NLRA, including the right to organize and bargain collectively with their employer.

  • Does not interfere with employees' exercise of their rights under the NLRA.

  • Does not discriminate against employees who participate in union activity.

The state of California also has its own labor laws that may apply to this business. For example, California law requires employers to provide employees with paid sick leave. The owner of the retail store should make sure that she is complying with both federal and state labor laws.


Example 2: A large manufacturing plant in New York


The manager of a large manufacturing plant in New York wants to make sure that his business is complying with the NLRA. He does the following:

  • Holds a meeting with all employees to discuss their rights under the NLRA.

  • Provides employees with a copy of the NLRA poster.

  • Does not retaliate against employees who participate in union activity.

  • Bargains in good faith with the union that represents his employees.


The state of New York also has its own labor laws that may apply to this business. For example, New York law requires employers to provide employees with paid family leave. The manager of the manufacturing plant should make sure that he is complying with both federal and state labor laws.

Here are some additional tips for businesses to comply with the NLRA:

  • Train managers and supervisors on the NLRA. Make sure that managers and supervisors understand the NLRA and their obligations under the law.

  • Create a workplace culture that respects employees' rights. Employees should feel comfortable exercising their rights under the NLRA without fear of retaliation.

  • Be open and transparent with employees about union activity. Employees should be able to get information about unions from their employer without fear of retaliation.

  • If you have any questions about the NLRA, consult with an attorney. An attorney can help you understand your obligations under the law and avoid making any mistakes.


By following these tips, businesses can help to ensure that they are complying with the NLRA and protecting the rights of their employees.

What Are Your Thoughts?

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We are always looking for feedback from our readers, and we would love to hear your thoughts on this important law.

A comprehensive guide to the NLRA

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