Overview of the National Labor Relations Act
The National Labor Relations Act (NLRA) of 1935, also known as the Wagner Act, is the primary federal law governing the relationship between employers, employees, and labor unions. It is enforced by the National Labor Relations Board (NLRB), an independent federal agency.
For HR professionals preparing for the SHRM-CP or SHRM-SCP exam, NLRA knowledge is essential. The law applies to most private-sector employers, though it excludes certain groups including agricultural workers, domestic workers, supervisors, independent contractors, and employees of the federal government, states, and political subdivisions.
The NLRA was later amended by the Taft-Hartley Act (1947), which added protections for employers and addressed unfair labor practices by unions, and the Landrum-Griffin Act (1959), which regulated internal union affairs and protected union members' rights.
Section 7 Rights
Section 7 of the NLRA is the foundation of employee rights under the law. It guarantees employees the right to:
- Self-organization (forming, joining, or assisting labor organizations)
- Bargain collectively through representatives of their own choosing
- Engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection
- Refrain from any or all of these activities (except when a valid union security agreement is in place)
The concept of concerted activity is particularly important and frequently tested. Concerted activity occurs when two or more employees act together to improve their terms and conditions of employment, or when a single employee acts on behalf of others. This protection extends to non-union workplaces.
For example, employees who discuss wages with each other, collectively complain about working conditions, or share information about workplace safety concerns are engaging in protected concerted activity. Employers cannot discipline or terminate employees for these actions.
Unfair Labor Practices
The NLRA identifies specific actions that constitute unfair labor practices (ULPs) by employers and unions:
Employer ULPs (Section 8(a)):
- Interfering with, restraining, or coercing employees in the exercise of Section 7 rights
- Dominating or interfering with the formation or administration of a labor organization
- Discriminating against employees for union activity
- Retaliating against employees who file charges or testify under the NLRA
- Refusing to bargain in good faith with a certified union
Union ULPs (Section 8(b)):
- Restraining or coercing employees in the exercise of their Section 7 rights
- Causing an employer to discriminate against an employee
- Refusing to bargain in good faith with the employer
- Engaging in certain types of secondary boycotts or picketing
On the SHRM exam, you may be asked to identify whether a specific action constitutes a ULP by the employer, the union, or neither. Understanding the boundaries of permissible conduct is crucial.
Union Organizing and Elections
HR professionals should understand the union organizing process:
- Authorization cards: Employees sign cards indicating interest in union representation. If 30% or more of employees in an appropriate bargaining unit sign cards, the union can petition the NLRB for an election.
- Election petition: The NLRB determines the appropriate bargaining unit and schedules a secret-ballot election.
- Campaign period: Both the employer and the union can campaign. Employers can share facts and opinions but cannot threaten, interrogate, promise benefits, or conduct surveillance (the "TIPS" rule). Employers can share facts, opinions, and examples (the "FOE" approach).
- Election: A simple majority of those voting determines the outcome.
- Certification: If the union wins, the NLRB certifies it as the exclusive bargaining representative.
The employer may also voluntarily recognize the union if a majority of employees have signed authorization cards, though this is less common since the card-check process bypasses the secret-ballot election.
Start Practicing Today
NLRA and labor relations questions are an important part of the SHRM exam, which consists of 134 questions over 4 hours at Prometric or OnVUE. Expect questions about Section 7 rights, ULPs, and the organizing process.
SHRMpractice.com has practice questions on every labor relations topic covered on the exam. Start with our diagnostic to identify your knowledge gaps, then sign up for targeted practice that builds your confidence.