The case of "Hoffman Plastic Compounds, Inc. v. National Labor Relations Board" involved an undocumented worker who used fraudulent documents to obtain employment. The National Labor Relations Board awarded backpay to the worker, but the Supreme Court ruled that federal immigration policy expressed in the Immigration Reform and Control Act of 1986 (IRCA) prohibits such relief. The Court also rejected the Board's interpretation of a federal mutiny statute and found that the Board cannot enforce orders in conflict with federal statutes and policies unrelated to the NLRA. The lower court erred in awarding backpay to the worker. The NLRA applies to undocumented workers, but the Board's authority to select remedies for unfair labor practices is limited by federal immigration policy. The Board cannot award backpay to an illegal alien for work not performed, wages that could not have been earned, and a job obtained through criminal fraud. Allowing the Board to award backpay to illegal aliens would violate explicit statutory prohibitions critical to federal immigration policy, as expressed in IRCA. The Board's discretion to fashion remedies under the NLRA does not authorize this type of award.

The National Labor Relations Board has the power to award backpay for labor law violations, and denying this power could increase the attractiveness of employment as a magnet for illegal immigration. The labor laws must apply to illegal aliens to ensure that there is no advantage in preferring them and therefore fewer incentives for aliens to enter. The Supreme Court's precedent in ABF Freight System, Inc. v. NLRB supports the Board's authority to award back-pay to undocumented workers. The Court cannot rely on negative aspects of the Board's request for backpay to an illegal alien, as previous cases have provided examples of how backpay can be adjusted to avoid rewarding the alien for their legal inability to mitigate damages by obtaining lawful employment elsewhere. The Board's position is reasonable and lawful and should be upheld.