In the 1941 case of Hotel & Restaurant Employees' International Alliance, Local No. 122, et al. v. Wisconsin Employment Relations Board et al., the U.S Supreme Court ruled in favor of the Wisconsin Employment Relations Board (WERB). The dispute arose when WERB ordered a local union to cease and desist from picketing a hotel after it refused to bargain with them because they were not certified as an exclusive bargaining representative under state law. The union argued that this order violated their First Amendment rights to freedom of speech and assembly but the court disagreed stating that states have broad power in regulating labor disputes including limiting or prohibiting certain types of picketing activities if deemed necessary for maintaining industrial peace.

The dissenting opinion in the case of Hotel & Restaurant Employees' International Alliance, Local No. 122 v. Wisconsin Employment Relations Board argued that the majority's decision was an overreach and a violation of states' rights to regulate their own labor relations. The dissenters believed that the National Labor Relations Act did not preempt state law in this area, as it only provided a minimum standard for labor relations and allowed states to provide additional protections if they chose to do so. They also disagreed with the majority's interpretation of "labor dispute", arguing that it should be broadly interpreted to include any controversy concerning terms or conditions of employment, rather than being limited to disputes between employees and employers. Finally, they expressed concern about potential negative impacts on collective bargaining due to interference from state agencies like the Wisconsin Employment Relations Board.