The U.S. Supreme Court case Railway Employes' Department, American Federation of Labor, et al. v. Hanson et al., 1955 revolved around the issue of union shop agreements and their constitutionality under the First Amendment's protection of freedom of association. The plaintiffs were railway employees who objected to a provision in the Railway Labor Act that allowed for "union shop" agreements - requiring all workers to join a union as a condition for employment - arguing it violated their rights to free association and constituted coerced membership. However, the Supreme Court unanimously upheld these provisions as constitutional on grounds that they served an important interest in maintaining labor peace and avoiding free ridership problems within unions (where individuals benefit from collective bargaining without contributing dues). The court held that such arrangements did not infringe upon employees' First Amendment rights because they only required financial support rather than ideological agreement with or participation in union activities.

In the dissenting opinion for Railway Employes' Department, American Federation of Labor v. Hanson, Justice Douglas argued that the case was not ripe for adjudication because there had been no actual injury to any party involved. He contended that it was premature to rule on whether union shop agreements were constitutional under Nebraska law or federal law since no one had yet been fired or threatened with firing due to non-membership in a union. Furthermore, he disagreed with the majority's interpretation of Section 2 Eleventh of the Railway Labor Act as authorizing compulsory unionism and believed this issue should be left up to Congress rather than decided by judicial legislation. Lastly, he expressed concern about potential First Amendment violations if individuals could be compelled into association through mandatory membership in unions.