In the case of Oil, Chemical & Atomic Workers International Union, AFL-CIO et al. v. Mobil Oil Corp., Marine Transportation Department, Gulf-East Coast Operations (1975), the U.S Supreme Court was tasked with determining whether an employer's decision to lay off employees based on seniority violated Title VII of the Civil Rights Act of 1964. The union argued that this policy disproportionately impacted black and Hispanic workers who had been hired more recently due to past discriminatory hiring practices by Mobil Oil Corporation. However, the court ruled in favor of Mobil Oil Corporation stating that a bona fide seniority system which adversely affects racial minorities is not unlawful under Title VII if it was established without intent to discriminate even though it may perpetuate effects of past discrimination.

The dissenting opinion in the case of Oil, Chemical & Atomic Workers International Union, AFL-CIO, et al. v. Mobil Oil Corp., Marine Transportation Department, Gulf-East Coast Operations argued that the majority had misinterpreted and improperly applied Section 301(a) of the Labor Management Relations Act (LMRA). The dissenters believed that this section should not be used to enforce arbitration awards which are contrary to public policy or law. They contended that an arbitrator's decision cannot override statutory rights provided by Congress under Title VII of the Civil Rights Act and other labor laws. This view held that courts have a responsibility to ensure arbitration decisions do not violate these rights or undermine their enforcement mechanisms. Therefore, they disagreed with enforcing an award reinstating a worker who was fired for racial discrimination against another employee as it contradicted federal anti-discrimination laws.