The U.S. Supreme Court case Olsen, Secretary of Labor of Nebraska, v. Nebraska ex rel. Western Reference & Bond Association, Inc., et al., 1940 revolved around a dispute over the constitutionality of a state law that required private employment agencies to obtain licenses and pay fees before operating in the state. The plaintiff argued that this violated their rights under the Fourteenth Amendment's due process clause by depriving them of property without due process and denying equal protection under the laws. However, the court upheld Nebraska's right to regulate private employment agencies as it saw fit for public welfare purposes - including requiring licensing and fee payment - stating these were legitimate exercises of its police power aimed at preventing fraud or exploitation in job placement services provided by such businesses. The court also found no violation against equal protection since all similar businesses were treated equally under this law; those who didn't comply simply faced penalties or closure until they did so.

In the dissenting opinion for Olsen v. Nebraska ex rel. Western Reference & Bond Association, Inc., Justice Frankfurter argued that the majority's decision to strike down a Nebraska law regulating employment agencies was an overreach of judicial power and an intrusion into state affairs. He believed that it was not within the Court's purview to determine whether or not such regulations were wise or efficient, but rather if they violated any constitutional principles - which he did not believe this law did. Furthermore, he contended that states should have broad discretion in enacting laws related to economic and social policy as long as they do not infringe upon individual rights guaranteed by the Constitution. In his view, this case represented a dangerous precedent where courts could interfere with legislative decisions based on their own personal views about what constitutes good public policy.