NLRB v. Town & Country Electric, Inc.

Supreme Court of the United States · 1995 · Labor Law

516 U.S. 85 (1995)

Updated August 1, 2026

Labor Lawsalts as employeesNLRAemployeesaltspaid union organizerssection 152(3)union organizing

Facts

Town & Country, a nonunion electrical contractor, advertised for licensed Minnesota electricians through an employment agency. It refused to interview 10 of 11 union applicants, including two professional union staff members, and the one union applicant it hired was dismissed after a few days. The union members filed an NLRB complaint alleging discrimination based on union membership under NLRA §§ 8(a)(1) and (3). The Board concluded that all 11 applicants were "employees," even though some intended to organize the company and would be paid by the union while doing so.

Issue

Whether the NLRA's term "employee" in 29 U.S.C. § 152(3) lawfully includes workers or applicants whom a union also pays to organize the employer. More specifically, whether the Board may interpret the statute to protect paid union organizers from antiunion discrimination by the employer.

Rule

The NLRA's broad definition of "employee" in § 152(3) includes workers and applicants who work for a company while also being paid by a union to organize that company, so long as no statutory exclusion applies. The Board's interpretation is lawful and is consistent with both the statute's text and common-law agency principles because service to the union does not necessarily involve abandonment of service to the employer.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

Red Mesa Roofing, a nonunion contractor in Phoenix, advertised for installers. Lena Ortiz applied while also receiving a weekly stipend from a union to encourage organizing if hired, and the company rejected her solely because management learned of the stipend.

Under the majority's rule, which is the strongest conclusion about Lena's status under the NLRA?

Explanation. The majority held that the Act's broad definition of "employee" includes workers or applicants whom a union also pays to organize the employer, so long as no statutory exclusion applies. Union compensation alone does not disqualify the applicant.