In the case of National Labor Relations Board v. Southern Bell Telephone & Telegraph Co., 1942, the U.S Supreme Court ruled in favor of the National Labor Relations Board (NLRB). The NLRB had accused Southern Bell Telephone & Telegraph Company of unfair labor practices for interfering with, restraining and coercing its employees' rights to self-organization and collective bargaining. The company argued that it was merely exercising its right to free speech by expressing opposition to unionization efforts among its workers. However, the court held that while employers have a constitutional right to express their views on labor issues, they cannot engage in conduct or speech aimed at threatening or intimidating employees into rejecting union representation. Therefore, Southern Bell's actions were deemed as an infringement upon their employees' rights under Section 7 of the National Labor Relations Act.

In the dissenting opinion for the case between National Labor Relations Board and Southern Bell Telephone & Telegraph Co., it was argued that the majority's decision to uphold a cease-and-desist order against Southern Bell violated principles of federalism. The dissenters believed that state law should govern labor relations in this instance, not federal law as enforced by the NLRB. They contended that Congress did not intend for its legislation to supersede state laws regarding employment contracts when it passed the National Labor Relations Act (NLRA). Furthermore, they disagreed with how broadly the majority interpreted "unfair labor practices" under NLRA, arguing such interpretation could potentially infringe upon employers' rights. In their view, Southern Bell had acted within its rights under state contract law and thus should not be subject to penalties from a federal agency like NLRB.