The Supreme Court decision in National Labor Relations Board (NLRB) v. Yeshiva University is discussed, along with a test for determining "managerial employees." In this case, the court held that full-time faculty at nonprofit, private, higher education institutions are managerial employees, where their recommendations are normally determinative of curricular matters. The NLRB's contentions concerned: the professional status of full-time faculty; the exercise of faculty's supervisory and managerial functions on a collective rather than individual basis; actions of the faculty that are not in the interest of the employer; and the ultimate authority of the Board of Trustees over the faculty. The majority opinion of the court was that faculty members act simultaneously both as individual professionals and as managerial employees. The subject matter of their collective decisions is managerial. Their authority in academic matters is absolute, including courses that are offered and class scheduling. The minority opinion advised that one must not overvalue the significance of the faculty's influence on academic affairs. The faculty's role in the governance of higher education is unique, and the faculty's curricular recommendations are made on the basis of its independent professional judgment. (SW)