Lincoln Federal Labor Union v. Northwestern Iron & Metal Co.
Facts
North Carolina enacted a statute and Nebraska adopted a constitutional amendment providing that no person could be denied employment because he is or is not a member of a labor organization. The laws also forbade employers from making agreements obligating themselves to exclude persons from employment because of union membership or nonmembership. In Nebraska, unions sought equitable and declaratory relief after employers refused union requests to discharge employees who had not retained union membership. In North Carolina, criminal proceedings were brought alleging that the employer and union officers had entered into an agreement made unlawful by the statute.
Issue
Do state laws requiring equal employment opportunity for union and non-union workers, and prohibiting contracts that require employment discrimination based on union status, violate the First Amendment, the Contracts Clause, or the Equal Protection and Due Process Clauses of the Fourteenth Amendment?
Rule
The Constitution does not confer on union members a right to exclude non-union workers from employment. A state may, consistent with due process and equal protection, prohibit employers from discriminating in employment on the basis of union membership or nonmembership and may likewise forbid contracts that would accomplish such prohibited discrimination. The Due Process Clause does not bar states from legislating against business and industrial practices they regard as injurious to the public welfare unless some specific federal constitutional prohibition or valid federal law is violated.
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Under the majority's reasoning, the union's strongest constitutional argument is most likely to fail because the statute primarily regulates: