In the 1971 case Allied Chemical & Alkali Workers of America, Local Union No. 1 v. Pittsburgh Plate Glass Co., Chemical Division et al., the U.S Supreme Court ruled that retirees were not "employees" under Section 9(a) of the National Labor Relations Act (NLRA), and therefore labor unions did not have a statutory obligation to bargain over their benefits. The dispute arose when Pittsburgh Plate Glass unilaterally changed its retiree health insurance coverage without negotiating with the union representing its employees. The court held that while employers could voluntarily agree to negotiate retiree benefits as part of collective bargaining agreements, they were not required by law to do so because retirees are no longer part of the active workforce and thus fall outside NLRA's definition of an employee.

In the dissenting opinion for the case of Allied Chemical & Alkali Workers of America, Local Union No. 1 v. Pittsburgh Plate Glass Co., Chemical Division, et al., Justice Brennan argued that retirees should be considered 'employees' under Section 9(a) of the National Labor Relations Act (NLRA). He contended that Congress intended to include retirees in collective bargaining agreements when they passed this legislation. Furthermore, he believed that excluding them from such negotiations would undermine their welfare and security post-retirement. The majority's interpretation was seen as a departure from previous decisions where courts had broadly interpreted who qualifies as an employee under labor laws to protect workers’ rights effectively.