NLRA stands for the National Labor Relations Act, which was enacted in 1935. The NLRA was created to protect the rights of both employees and employers by encouraging them to come to agreements through collective bargaining. It also served to stop harmful labor practices. It applies to most private employers[i], but it does not apply to organizations that only employ agricultural workers. Generally, it also does not apply to domestic workers, independent contractors, workers employed by a spouse, workers employed by a parent, or for supervisors. It also does not apply to employers covered by the Railway Labor Act, which covers interstate railways and airlines.
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The NLRA came about as a response to situations where both employees and employers were acting in ways that were harmful to one another. After all, labor relations can have widespread repercussions. If employees are unhappy, turnover can result, which costs the organization a lot of money. If employees go on strike, the business and clients are all affected. Public relations are also affected, and eventually the economy as a whole is affected. It’s clearly in everyone’s best interest to find a balance between employer and employee needs. As such, the NLRA was created in order to foster a situation in which employees and employers could create a good working relationship—one without harm to employees, and one in which employers had less fear of employee strikes or other forms of labor shortage. It creates a situation in which employees can work together without repercussion from the employer, and both can find ways to constructively address concerns with less work disruption.
NLRA in Practice
In practice, the NLRA provides some rights and restrictions for employees, employers, and unions. Let’s take a look at each group.
Under the NLRA, employees:
- Have the right to act with other employees in an effort to address working conditions. They can act collectively to address terms of employment as well. This is true regardless of whether there is any formal employee union. Employees can use collective bargaining and can elect representatives.
- Can form a union if they choose, join an existing one, or dismantle a union if they choose. They can also assist an existing union. They also have the right to refrain from doing any of the above, even if all other employees are doing so.
- Can engage in what is known as “concerted activity”—which is the formal term for acting together to work toward improving working conditions.
- Can participate in strikes or picketing or other concerted activities designed to assist in their cause, without retaliation from the employer.
Under the NLRA, employers:
- Cannot interfere with protected concerted activity, such as employee discussion of working conditions.
- Cannot interfere with other concerted activity, including strikes. This also means employers cannot prohibit strikes, even during normal work hours.
- Cannot prohibit employees from joining a union, nor force them to do so either.
- Cannot stop employees from discussing unionization. However, employers do have the right to require employees to be working while on the clock. That said, they cannot prohibit discussion of forming a union during breaks, or on the premises in general.
- Cannot retaliate against employees who conduct any of the above activities or exercise their rights. Nor can they threaten employees in any way or do any other activity that would discourage unionization or reward participation or non-participation in the union.
Under the NLRA, unions:
- Cannot threaten or harass employees, even if the employees do not want to join. They cannot force anyone to join.
- Cannot refuse to carry out their duties for all employees, regardless of whether the employee in question is actually a member of the union.
- Cannot engage in other discriminatory behavior related to union membership status.
- Must act in good faith to represent employees and fairly represent employees during bargaining and while enforcing the collective bargaining agreement.
Another function of the NLRA was that it also established the National Labor Relations Board (NLRB) as the body tasked with enforcing the NLRA provisions. The NLRB is heavily involved in ensuring fair labor practices at private employers.
*This article does not constitute legal advice. Always consult legal counsel with specific questions.
About Bridget Miller:
Bridget Miller is a business consultant with a specialized MBA in International Economics and Management, which provides a unique perspective on business challenges. She’s been working in the corporate world for over 15 years, with experience across multiple diverse departments including HR, sales, marketing, IT, commercial development, and training.