In the case of Wabash Valley Electric Co. v. Young et al., 1932, the U.S Supreme Court ruled in favor of Wabash Valley Electric Company against a group of its employees represented by Young and others. The dispute arose when the company decided to reduce wages due to economic hardship during the Great Depression without consulting with its employees or their union representatives first, which was considered a breach of contract under Indiana state law at that time. However, the court held that federal law superseded state laws in this matter as per Article VI Clause 2 (the Supremacy Clause) of US Constitution and therefore, it was not necessary for employers to negotiate wage reductions with unions during times of financial distress according to Norris-LaGuardia Act passed earlier in 1932 which limited power courts had over labor disputes including issuing injunctions.

The dissenting opinion in the case of Wabash Valley Electric Co. v. Young et al., argued that the majority's decision to uphold an Indiana law requiring public utilities to obtain approval from a state commission before reducing wages was incorrect. The dissenting justices believed this law violated the Fourteenth Amendment, which guarantees due process and equal protection under the law, as it interfered with private contractual relationships between employers and employees without sufficient justification or benefit to public welfare. They contended that while states have broad powers to regulate businesses serving public interests, these powers should not extend into areas such as wage determination unless there is clear evidence of exploitation or unfair practices necessitating government intervention. In their view, this particular regulation overstepped its bounds by infringing upon individual liberty rights protected by constitutional principles.