In the 1985 case Local 28 of the Sheet Metal Workers' International Association v. Equal Employment Opportunity Commission, the U.S. Supreme Court dealt with issues related to racial discrimination in labor unions. The court ruled that a New York City union had violated Title VII of the Civil Rights Act by discriminating against non-white workers and failing to meet minority membership goals set by previous court orders. The union was ordered to pay back dues and admission fees for rejected applicants who were later admitted under affirmative action policies, as well as compensatory damages for emotional distress caused by their discriminatory practices. Additionally, it was decided that federal courts could enforce affirmative action plans on recalcitrant unions or employers even if these measures might temporarily affect innocent parties.

In the dissenting opinion for Local 28 of the Sheet Metal Workers' International Association v. Equal Employment Opportunity Commission, Justice Powell argued that while he agreed with the majority's goal to eliminate racial discrimination in union membership, he disagreed with their chosen method. He believed that imposing a strict quota system was not an appropriate or effective solution and could potentially lead to reverse discrimination against non-minority workers. Furthermore, he expressed concern about federal courts overstepping their bounds by becoming involved in managing unions' affairs and dictating specific hiring practices. Instead, Justice Powell suggested focusing on removing barriers to equal opportunity rather than mandating equal results.