The National Labor Relations Act and, by extension, the National Labor Relations Board are constitutional because the Commerce Clause applies to labor relations. Therefore, the NLRB has the right to sanction companies that fire or discriminate against workers for belonging to a union. Also, a local commercial activity that is considered in isolation may still constitute interstate commerce if that activity has a "close and substantial relationship" to interstate commerce. Decided April 12, 1937 (argued 1937). Opinion of the Court: Charles Evans Hughes → go there Dissenting: McReynolds. Topic: Federalism. National Labor Relations Board v Jones & Laughlin Steel Corporation, 301 U.S. 1 (1937), is a landmark decision of the Supreme Court of the United States that upheld the constitutionality of the National Labor Relations Act of 1935, also known as the Wagner Act. The case marked a major expansion in the Court's interpretation of Congress's power under the Commerce Clause and effectively spelled the end to the Court's striking down of New Deal economic legislation. Wiki link