CSLB Contractor's Law & Business Practice Exam

Which act establishes the rights of workers to organize into unions and negotiate contracts?

1. Fair Labor Standards Act

2. National Labor Relations Act of 1935

3. Occupational Safety and Health Act

4. Employee Retirement Income Security Act

The correct answer is: National Labor Relations Act of 1935

The National Labor Relations Act of 1935 is the foundational legislation that provides workers the right to organize into unions and engage in collective bargaining. This act was a significant development in U.S. labor law, as it aimed to protect the rights of employees and improve their working conditions. It established the National Labor Relations Board (NLRB), which oversees the enforcement of these rights, including the ability to form and join unions and to negotiate terms of employment through collective bargaining agreements. This legislation marked a turning point by allowing workers to stand together to advocate for their interests and improve workplace conditions without fear of employer retaliation. In contrast, the Fair Labor Standards Act primarily focuses on wage and hour standards, such as minimum wage and overtime pay, rather than the rights of workers to organize. The Occupational Safety and Health Act addresses workplace safety and health standards, while the Employee Retirement Income Security Act governs employee benefits and pensions, neither of which directly pertains to union organization rights.