In the Electromation decision (1992) the NLRB ruled that the company's committees were considered legitimate labor organizations under the NLRA because they had unilateral control over wages, hours, and terms and conditions of employment.

In the Electromation decision, the NLRB ruled that the company's action committees were not legitimate labor organizations because they were employer-dominated and their existence violated the National Labor Relations Act (NLRA), which prohibits employer interference in the formation or administration of any labor organization.