NLRB v. Town & Country Elec., Inc., 516 U.S. 85, 4 (1995)

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88

NLRB v. TOWN & COUNTRY ELEC., INC.

Opinion of the Court

Phelps Dodge Corp. v. NLRB, 313 U. S. 177, 185-186 (1941) (statutory word "employee" includes job applicants, for otherwise the Act's prohibition of " 'discrimination in regard to hire' " would "serve no function"). Neither, in the Board's view, did it matter (with respect to the meaning of the word "employee") that the Union members intended to try to organize the company if they secured the advertised jobs, nor that the Union would pay them while they set about their organizing. The Board then rejected the company's fact-based explanations for its refusals to interview or to retain these 11 "employees" and held that the company had committed "unfair labor practices" by discriminating on the basis of union membership. Town & Country Elec., supra, at 1250, n. 3, 1256, 1258.

The United States Court of Appeals for the Eighth Circuit reversed the Board. It held that the Board had incorrectly interpreted the statutory word "employee." In the court's view, that key word does not cover (and therefore the Act does not protect from antiunion discrimination) those who work for a company while a union simultaneously pays them to organize that company. 34 F. 3d 625, 629 (1994). See also H. B. Zachry Co. v. NLRB, 886 F. 2d 70, 75 (CA4 1989). For this threshold reason the court refused to enforce the Board's order.

Because other Circuits have interpreted the word "employee" differently, see, e. g., Willmar Elec. Service, Inc. v. NLRB, 968 F. 2d 1327, 1330-1331 (CADC 1992) (paid union organizers can be "employees" protected by the Act), cert. denied, 507 U. S. 909 (1993); NLRB v. Henlopen Mfg. Co., 599 F. 2d 26, 30 (CA2 1979) (same), we granted certiorari. We now resolve the conflict in the Board's favor.

II

The Act seeks to improve labor relations ("eliminate the causes of certain substantial obstructions to the free flow of commerce," 29 U. S. C. § 151 (1988 ed.)) in large part by granting specific sets of rights to employers and to employ-

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