In the 1945 case of Fishgold v. Sullivan Drydock & Repair Corp., the U.S. Supreme Court ruled in favor of a World War II veteran who was denied his previous job after returning from military service, which violated the Selective Training and Service Act of 1940. The act required employers to reinstate veterans to their former positions or similar ones with comparable pay and status unless circumstances had changed significantly making it impossible or unreasonable to do so. The court held that this law created a "reemployment right" for veterans, not merely an anti-discrimination provision as argued by the employer, Sullivan Drydock & Repair Corp.. This ruling set important precedent for protecting employment rights of military personnel upon return from active duty.

In the dissenting opinion for Fishgold v. Sullivan Drydock & Repair Corp., Justice Frankfurter argued that the majority's interpretation of the Selective Training and Service Act was incorrect. He believed that Congress did not intend to provide returning veterans with a "seniority escalator" but rather sought to protect them from being disadvantaged due to their military service. The justice contended that this protection should only extend as far as ensuring veterans were not demoted or fired without cause, rather than granting them automatic promotions in absentia. Furthermore, he expressed concern over potential conflicts between collective bargaining agreements and veteran reemployment rights under this interpretation of the law. Ultimately, Justice Frankfurter felt that such issues should be resolved through negotiation between employers and unions, instead of judicial intervention.