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CHAPTER 30
LABOR LEGISLATION
Answers to Learning Objectives
(Page 358)
1. The objectives of the Fair Labor Standards Act are to spread employment by discouraging long
workweeks and to set a minimum wage. All workers except those in intrastate commerce,
executives, outside salespeople, and agricultural workers are covered by the Act.
Lesson Outline
1. Since 1930, the federal government has passed more laws dealing with industrial relations than had
been passed during the previous history of our government. Some of the more important of these
4. The Fair Labor Standards Act for the most part prohibits or severely limits employment of children
less than sixteen years of age.
5. Contingent wages may not be used to evade the minimum wage provisions of the Fair Labor
Standards Act.
6. The Labor Management Relations Act, commonly known as the Taft-Hartley Act, consists of five
main elements:
a. It provides for continuation of a National Labor Relations Board created by the National Labor
Relations Act to hear complaints of employer and union unfair labor practices.
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d. It prohibits unfair labor practices by employers, such as:
(1) Interfering in the exercise of the rights granted employees
(2) Refusing to bargain collectively with a legally selected representative
(3) Dominating or interfering with the formation or administration of any labor organization,
or contributing financial support to it
(4) Discriminating against or favoring an employee for union activity or lack of it
(5) Discriminating against an employee for filing a complaint under the Act
7. The Labor-Management Reporting and Disclosure Act, also called the Landrum-Griffin Act, has
three major provisions:
a. It contains a bill of rights for union members.
b. It classifies additional actions as unfair labor practices. These actions are as follows:
(1) Picketing to extort money and for recognition when another union is recognized
Comments on Cases
(p. 359) In this case the Secretary of Labor was permitted to estimate the number of hours worked and
Stewart was required to pay Petty time-and-a-half for all the hours over 40 even though Petty
did not seek overtime pay. In addition Stewart had to pay an equal amount in damages. Failure
to keep time records and pay overtime can result in a significant penalty. Reich v. Stewart, 121
F.3d 400 (8th Cir.)
(p. 365) Since the purpose of the LMRDA is to give union members an accurate picture of their union’s
financial condition and operations it was reasonable for the secretary of labor to require greater
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detail in the reports. American Federation of Labor and Congress of Indus. Organizations v.
Chao, 409 F.3d 377 (D.C.)
Answers to Questions
(Page 365)
1. The Fair Labor Standards Act discourages a long workweek by requiring employers to maintain
adequate records and pay time and a half for all hours worked over 40.
2. The Fair Labor Standards Act seeks to protect youth between the ages of sixteen and eighteen by
preventing them from working in industries declared by the secretary of labor to be particularly
hazardous to health.
6. The Labor management Relations Act gives employees the right to organize, to bargain collectively,
to strike and to join or not join a union unless there is a union shop.
7. The LMRA allows an employee to be fired for nonmembership in a union when the union has a
valid union shop contract with the employer.
8. The three main provisions of the Labor-Management Reporting and Disclosure Act are a bill of
rights for union members, classification of additional actions as unfair labor practices, and
Answers to Case Problems
(Page 366)
1. Yes. The court held that the union recognition provision in the original CBA was sufficient to
show the union represented the employees. As the certified representative, AFS was required by
the NLRA to negotiate with the union. N.L.R.B. v. American Firestop Solutions, Inc., 673 F.3d 766
(8th Cir.)
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4. Yes. The court pointed out that Gilvin’s criticism of the union leadership was protected by the
LMRDA. Such criticism was exactly what Congress intended to protect in enacting the law. Gilvin
v. Fire, 259 F.3d 749 (D.C. Cir.)
Answers to Summary Cases for Part Six
(Page 368)
1. Yes. The court pointed out that Pierce did not write in a corporate or company name and did not
indicate that he was signing the contract in a representative capacity. It was not Wright Group’s
5. Yes. The court stated that an agency relationship is a fiduciary one and an agent must act in the
interests of the principal. A sub-agent owes the same duties as the agent so concealing money
owed to the principal is a breach of fiduciary duty also.
6. Yes. The court pointed out that under the LMRA the NLRB had the authority to investigate, with
subpoena power, complaints of employer unfair labor practices. Dominating or contributing
financial support to any labor organization was a violation of the act. It was reasonable that the
operation of action teams at other AMR facilities pursuant to a national scheme might shed light on
the operation of the Bridgeport action teams and, in turn, help the NLRB investigate whether they