301 U.S. 1 (1937)
NLRB v. Jones & Laughlin Steel Corp.
Does Congress have the authority under the Commerce Clause to regulate local labor practices that have a substantial effect on interstate commerce?
The Commerce Clause grants Congress the power to regulate activities that, although local in nature, have such a substantial impact on interstate commerce that their control is essential to regulating interstate commerce effectively.
The Supreme Court held that Congress has the authority under the Commerce Clause to regulate labor relations in industries that engage in interstate commerce or where the impact on commerce is substantial.
NLRB v. Jones & Laughlin Steel Corp. is significant for law students and legal scholars as it reflects a broader judicial recognition of the federal government's role in regulating economic activity under the Commerce Clause. The case marked a shift from earlier narrow constructions of federal power toward an expansive interpretation that allowed greater federal intervention in economic and social issues. This decision laid the groundwork for subsequent New Deal legislation and modern labor law, serving as a critical precedent for interpreting congressional powers.