During oral arguments on Nov. 14 in one of the most important labor cases before the U.S. Supreme Court this term, the justices seemed skeptical about the claim that employers' “neutrality” agreements with unions violate federal labor law.

The case, Unite Here Local 355 v. Mulhall, centers on whether an employer's agreement to remain neutral during a union organizing campaign is legal under the Labor Management Relations Act (LMRA). Neutrality agreements are widely used in the service and hospitality industries and sometimes in the construction industry. Union officials contend that a high-court ruling invalidating such pacts would be a major setback for organizing efforts.

The case involves a lawsuit brought by Martin Mulhall, an employee of Mardi Gras Gaming, Hollywood, Fla., who objected to being represented by a Unite Here local.