In the case of Beth Israel Hospital v. National Labor Relations Board (1977), the U.S Supreme Court ruled in favor of the hospital, overturning a decision by the NLRB that had found it guilty of unfair labor practices. The dispute arose when Beth Israel Hospital prohibited its employees from distributing union literature in certain areas during non-working hours. The NLRB argued this was an infringement on employee rights under Section 7 of the National Labor Relations Act to engage in concerted activities for mutual aid or protection. However, balancing these rights with those of employers to maintain order and productivity at their establishments, Justice Brennan delivered a unanimous opinion stating that hospitals are unique due to their primary function being patient care which requires tranquility and privacy; thus they can restrict such activities more than other workplaces without violating federal law.

The dissenting opinion in the case of Beth Israel Hospital v. National Labor Relations Board argued that the majority's decision to uphold the NLRB's ruling, which allowed hospital employees to distribute union literature in nonworking areas during their off-duty hours, was incorrect. The dissenters believed this ruling violated Section 8(a)(1) of the National Labor Relations Act by interfering with an employer’s right to maintain discipline and order on its property. They contended that a hospital is not like other workplaces; it has unique needs for tranquility and cleanliness due to patient care requirements. Therefore, they felt hospitals should have more leeway in restricting employee activities than other types of employers might have under similar circumstances.