In the case of New York State Club Association, Inc. v. City of New York et al., 1987, the U.S Supreme Court upheld a local law that prohibited private clubs with over 400 members from discriminating against individuals based on race or gender. The New York State Club Association had challenged this law arguing it violated their First Amendment rights to freedom of association and expression by forcing them to accept members they did not want in their club. However, the court ruled in favor of the city stating that such large clubs were essentially business establishments open to public patronage and therefore subject to anti-discrimination laws under state authority for regulating commerce.

In the dissenting opinion for New York State Club Association, Inc. v. City of New York et al., Justice Sandra Day O'Connor argued that the majority's decision to uphold a city law prohibiting discrimination in large private clubs was an overreach of government power and violated First Amendment rights to freedom of association. She contended that while preventing discrimination is a compelling state interest, it does not justify infringing on individuals' constitutional rights unless there is clear evidence that such infringement will directly advance this interest. In her view, the city failed to provide sufficient proof that discriminatory practices at these clubs significantly contributed to societal discrimination or economic inequality in general society. Therefore, she believed the law was too broad and intrusive into private organizations' affairs without adequate justification.