In March 2014, a regional director of the National Labor Relations Board (NLRB or Board) ruled that scholarship football players at Northwestern University are employees for purposes of the National Labor Relations Act (NLRA), and ordered an election to determine support for the College Athletes Players Association (CAPA), a newly created labor organization. Although the full five-member NLRB agreed to review the regional director's decision, an election was held on April 25, 2014, with the ballots impounded until after a final decision is issued in the case. If the decision is upheld and a majority of players have voted to be represented by CAPA, the players are expected to negotiate with the university over various terms and conditions of employment. This report provides an overview of the NLRA, and reviews the decision by the NLRB's regional director. The report also examines the concerns raised by Northwestern and CAPA. The report ends with a brief discussion of other developments that could affect unionization efforts by athletes at private colleges and universities. The NLRA, as amended, establishes the basic framework governing labor-management relations in the private sector. The act provides workers the right to join or form a labor union and to bargain collectively over wages, hours, and other conditions of employment. Under the act, workers also have the right to not join a union. The act requires an employer to bargain in good faith with a union chosen by a majority of employees. To protect the rights of employers and workers, the act identifies certain activities as unfair labor practices. The NLRA covers most, but not all, private sector workers in the United States. It does not cover agricultural workers, family domestic workers, supervisors, or independent contractors. The act does not apply to railroad or airline employees, who are covered by the Railway Labor Act (RLA). The NLRA does not cover federal, state, or local government employees. Most federal employees are covered by the Federal Service Labor-Management Relations Statute (FSLMRS). Employees of state and local governments, including employees of public colleges and universities, are covered by state or local laws. In a majority of states, public employees have the right to engage in some form of collective bargaining. This right may be limited, however, to only some employees (e.g., to public safety workers). The NLRA is administered and enforced by the NLRB, an independent federal agency that consists of a five-member Board and a General Counsel. The Board resolves objections and challenges to secret ballot elections, decides questions about the composition of bargaining units, and hears appeals of unfair labor practices. The General Counsel's office conducts secret ballot elections, investigates complaints of unfair labor practices, issues unfair labor practice charges, and supervises the NLRB's regional and other field offices. The Board and General Counsel are appointed by the President and confirmed by the Senate. Traditionally, the Board is comprised of two Democrats, two Republicans, and a fifth member who belongs to the same party as the President. The NLRA states that a union may be "designated or selected for the purposes of collective bargaining by the majority of the employees in a unit appropriate for such purposes.... " A union that is selected by a majority of employees in an election conducted by the NLRB is certified as the bargaining representative of employees in the bargaining unit. An employer may also voluntarily recognize a union if a majority of employees in a bargaining unit have signed authorization cards. The NLRB conducts a secret ballot election when a petition is filed requesting one. A petition can be filed by a union, worker, or employer. Workers or a union may request an election if at least 30% of workers have signed authorization cards (i.e., cards authorizing a union to represent them). After a petition is filed with the NLRB requesting an election, the employer and union may agree on the time and place for the election and on the composition of the bargaining unit. If an agreement is not reached between the employer and union, a hearing may be held in the relevant regional office of the NLRB. The regional director may then direct the holding of an election. Under specified circumstances, the regional director's decision may be appealed to the full Board. A union is certified by the NLRB as the exclusive bargaining representative of the employees if a majority of employees who vote (i.e., not a majority of employees in the bargaining unit) choose to be represented by a union. Under the so-called "election bar," if the NLRB conducts an election and a majority of employees do not choose to be represented by a union, another representation election cannot be held for at least 12 months. The NLRB also conducts elections to decertify a union that has previously been certified or recognized. A decertification petition may be filed by employees or a union acting on behalf of employees. A decertification petition must be signed by at least 30% of the employees in the bargaining unit represented by the union. Under the so-called "certification bar," a union that is certified after winning a secret ballot election is protected for a year from a decertification petition and from an election petition filed by another union. A secret ballot election is required for decertification. If a union wins an NLRB election, the employer is required to bargain in good faith for a year. The NLRA does not require the parties to reach an agreement on a contract. After one year, if an employer and a certified union have not reached a contract agreement, the employer may withdraw recognition of the union if both parties have engaged in good faith bargaining and the employer doubts, on the basis of objective information (e.g., a petition signed by a majority of employees and given to the employer), that a majority of employees continue to support the union. If a union has been voluntarily recognized by an employer and no agreement has been reached after a reasonable period of time, an employer may withdraw recognition if the employer doubts, on the basis of objective information, that a majority of employees support the union. The NLRB and courts have divided bargaining subjects into three categories: mandatory, permissive, and illegal subjects. Mandatory subjects of bargaining include "wages, hours, and other terms and conditions of employment." At the request of either the employer or union, both parties must bargain over mandatory subjects. Both the employer and the union must bargain in good faith with respect to wages, hours, and other working conditions. "Wages" include basic pay, overtime pay, merit pay increases, bonuses that are compensation for services provided, profit-sharing plans, and paid vacations and holidays. Mandatory bargaining subjects also include certain benefits, such as group health insurance and pension benefits for current employees. The term "hours" has been interpreted to include daily and weekly work schedules. "Other conditions of employment" include changes in work assignments, procedures for layoffs and recalls, rules to discipline or discharge employees, policies for promotions and seniority, grievance procedures and arbitration, and no-strike or no-lockout clauses. An employer code of ethics is a mandatory subject of bargaining if a violation of the code subjects an employee to discipline. Drug or alcohol testing of current employees is also a mandatory subject of bargaining. Permissive subjects of bargaining are those that either party may propose to be included in a collective bargaining agreement. One party may request bargaining on a permissive subject, but the other party is not required to bargain. Permissive subjects include the definition of a bargaining unit, the selection of bargaining representatives, and the parties involved in collective bargaining. Pre-employment drug or alcohol testing of job applicants is a permissive subject. An employer and union cannot bargain over illegal subjects. If the parties should reach an agreement on an illegal subject, the agreement is not enforceable. Examples of illegal subjects of bargaining include clauses that would treat employees differently because of race or gender, a provision giving preferences to union members in hiring, or a clause that would allow an employer to discharge an employee for union activity. The NLRA identifies certain activities as unfair labor practices that are prohibited. For example, employers have the right to campaign against unionization, but they cannot interfere with, restrain, or coerce employees in their right to form or join a union. An employer cannot threaten employees with the loss of their jobs or benefits if they vote for a union or join a union. An employer cannot threaten to close a plant should employees choose to be represented by a union. An employer cannot raise wages to discourage workers from joining or forming a union. An employer cannot discriminate against employees with respect to their conditions of employment (e.g., fire, demote, or give unfavorable work assignments) because of union activities. Employees have the right to organize and bargain collectively. However, a union cannot restrain or coerce employees to join or not join a union. A union cannot threaten employees with the loss of their jobs if they do not support unionization. A union cannot cause an employer to discriminate against employees with respect to their conditions of employment. A union is also prohibited from boycotting or striking an employer that is a customer of or supplier to an employer that the union is trying to organize. An unfair labor practice charge may be filed by an employee, employer, labor union, or any other person. After a charge is filed, a regional office of the NLRB investigates to determine whether there is reason to believe that the law has been violated. If no violation is found, the charge is dismissed or withdrawn. If a charge has merit, the regional director first seeks a voluntary settlement. If this effort fails, the case is heard by an NLRB administrative law judge. Decisions by administrative law judges can be appealed to the Board. When a union and employer cannot reach an agreement on a collective bargaining agreement, the dispute is called an impasse. An impasse may lead to a strike by workers or a lockout of employees by the employer.