The U.S. Supreme Court case National Labor Relations Board v. Milk Drivers and Dairy Employees Local Unions Nos. 338 and 680, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, AFL-CIO (1957) revolved around the issue of whether a union's demand for an employer to discharge an employee due to non-payment of union dues constituted unfair labor practices under Section 8(b)(2) and (1)(A) of the National Labor Relations Act. The court held that it did constitute as such if the collective bargaining agreement between the employer and union included a "union shop" clause but failed to incorporate statutory exceptions allowing employees up to thirty days from their hiring date or effective date of agreement before becoming members in good standing by paying initiation fees or dues. This ruling clarified that unions could not force employers into discharging workers who had not paid their dues within this grace period without violating federal law.

The dissenting opinion in the case of NATIONAL LABOR RELATIONS BOARD v. MILK DRIVERS AND DAIRY EMPLOYEES LOCAL UNIONS NOS. 338 AND 680, INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUFFEURS, WAREHOUSEMEN AND HELPERS OF AMERICA, AFL-CIO argued that the National Labor Relations Board (NLRB) had overstepped its authority by finding that a union's refusal to bargain with an employer constituted an unfair labor practice. The dissenters believed that this interpretation was inconsistent with the intent and language of the National Labor Relations Act (NLRA). They contended that under NLRA Section 8(b)(3), it is only unlawful for a labor organization to refuse to bargain collectively with an employer if such refusal results in restraint or coercion of employees in their rights guaranteed by Section 7 - which was not proven here. Therefore, they disagreed with majority's decision upholding NLRB’s order requiring unions to cease and desist from refusing to negotiate.