Session
3 — Government
Regulations and the Labor Market
Case Study 5.3e_01 "Government Regulation and the Labor Market"
Directions: Complete the following case study and record your answers on a separate sheet of paper.
Topic: A discussion of government regulation of labor: Norris-LaGuardia Act, Wagner Act, Taft-Hartley Act, Landrum-Griffin Act, Equal Employment Opportunity Commission, and the Federal Wage and Hour Law.
Objective: To understand the evolution of federal labor laws and what they mean.
| Key Terms: | labor union | union shop |
| closed shop | Congress | |
| union official | union representatives | |
| Careers: | politician | historian |
| arbitrator | economist | |
| Web Site Links: | http://www.nlrb.gov/ | |
| http://www.eeoc.gov/ | ||
The Norris-LaGuardia Act of 1932 was named for its authors, George Norris and Fiorello LaGuardia. It restricted federal injunctions that stop nonviolent union activities. Prior to this act, an employer could gain an injunction against any union activity that hurt his or her business. The act states that employers must work to resolve disputes through negotiation. Further, the act banned yellow-dog contracts. This type of contract is a forced, signed agreement that the employee will not join or support any union.
The National Labor Relations Act of 1935 was created to regulate labor-management relations. It is more commonly known as the Wagner Act, after Senator Robert R. Wagner. It guaranteed the right for employees to organize and engage in collective bargaining. The act created the National Labor Relations Board (NLRB). The board is responsible for the following functions:
The Wagner Act of 1935 was the first formal national support of collective bargaining and unions. As a result, the number of organized workers more than quadrupled between 1935 and 1947.
CS Question #1: Do you think federal government labor laws were necessary? Why or why not?
In 1947, the Wagner Act was amended by the Labor-Management Relations Act. It is more often referred to as the Taft-Hartley Act, after Senator Robert Taft and Representative Fredy Hartley, who introduced the legislation to Congress. The purpose was to limit the power of organized labor by:
The Taft-Hartley Act of 1947 also defined and forbade employees, employers and unions from acts of coercion. Coercion is forcing an action or choice by use of force, threat, restraint or dominance.
CS Question #2: Why do you think employees and unions were included in legislation against coercion?
The Labor-Management Reporting and Disclosure Act passed in 1959. This act was created in response to union corruption and union ties to organized crime. It is commonly referred to as the Landrum-Griffin Act. The act created federal punishment for union officials who:
The Landrum-Griffin Act banned a union from stopping employers from doing business with an employer who was being boycotted. This practice is known as secondary boycotts. The act also created more state sovereignty with regard to labor relations within a state.
CS Question #3: Do you agree with the banning of secondary boycotts? Why or why not?
The Equal Employment Opportunity Commission (EEOC) was created as part of the Civil Rights Act of 1964. The EEOC enforces laws that prohibit employment discrimination on the basis of race, color, religion, sex or national origin. Subsequent laws have been created, prohibiting employment discrimination of:
The Fair Labor Standards Act of 1938 (FLSA) directly addresses labor conditions of the employee. It is also known as the Federal Wage and Hour Law. The minimum wage law is part of this act. The Federal Wage and Hour Law has been amended periodically to keep up with the standard of living. It requires pay of time and a half for overtime exceeding 40 hours a week. The act prohibits labor conditions that negatively affect the health of the worker. It also prohibits oppressive child labor. The act does include exemptions for executive, administrative, professional seasonal, specialized, full-time student, apprentice, handicapped, academic and some farm employees. Employees in these categories may not be eligible for the provisions of the law.
CS Question #4: Review the list of exemptions from the Federal Wage and Hour Law. Why do you think these categories of employees are exempt?
Further Thought: