New Deal legislation and constitutional challenge
The Wagner Act of 1935 created an independent board, initially with three presidentially appointed, Senate-confirmed members. Earlier labor boards had struggled with enforcement. The new law protected organizing and majority representation and required employers to bargain with the chosen representative.
Employer groups challenged the statute, and court injunctions obstructed the agency. In 1937, the Supreme Court upheld the law's application in NLRB v. Jones & Laughlin Steel Corp. by five votes to four. Industrial labor disputes could substantially affect interstate commerce even when production itself was local.
Representation and remedies
One function concerns representation: deciding an appropriate bargaining unit and administering investigation, hearings and elections when representation is disputed. Majority selection can produce a representative for the unit's employees in negotiations over wages, hours and other working conditions.
Another concerns unfair labor practices. Under the amended statute, charges can lead to investigation, hearings and orders requiring unlawful conduct to stop. Remedies may include reinstatement and back pay where appropriate. Federal courts participate through enforcement and review of orders.
References: [3]
The 1947 reorganization and jurisdictional boundaries
The 1947 amendments increased the statutory board from three members to five and established the General Counsel's separate responsibilities for investigation and prosecution. This structure distinguishes those functions from the Board's adjudication.
The statute defines covered employers, employees and effects on commerce. Its amended exclusions include agricultural laborers, domestic workers, independent contractors and supervisors. Government employment and sectors governed by the Railway Labor Act follow different arrangements. The agency's jurisdiction therefore covers a particular legal domain rather than every workplace dispute.
References: [3]