The first Labor Day holiday was celebrated on Tuesday, September 5, 1882, in New York City, in accordance with the plans of the Central Labor Union. The Central Labor Union held its second Labor Day holiday just a year later, on September 5, 1883.
In 1884 the first Monday in September was selected as the holiday, as originally proposed, and the Central Labor Union urged similar organizations in other cities to follow the example of New York and celebrate a "workingmen's holiday" on that date. The idea spread with the growth of labor organizations, and in 1885 Labor Day was celebrated in many industrial centers of the country.

The first governmental recognition came through municipal ordinances passed during 1885 and 1886. From them developed the movement to secure state legislation. The first state bill was introduced into the New York legislature, but the first to become law was passed by Oregon on February 21, 1887. During the year four more states — Colorado, Massachusetts, New Jersey, and New York — created the Labor Day holiday by legislative enactment. By the end of the decade Connecticut, Nebraska, and Pennsylvania had followed suit. By 1894, 23 other states had adopted the holiday in honor of workers, and on June 28 of that year, Congress passed an act making the first Monday in September of each year a legal holiday in the District of Columbia and the territories.

As the Industrial Revolution took hold of the nation, the average American in the late 1800s worked 12-hour days, seven days a week in order to make a basic living. Children were also working, as they provided cheap labor to employers and laws against child labor were not strongly enforced.

With the long hours and terrible working conditions, American unions became more prominent and voiced their demands for a better way of life. On Tuesday September 5, 1882, 10,000 workers marched from city hall to Union Square in New York City, holding the first-ever Labor Day parade. Participants took an upaid day-off to honor the workers of America, as well as vocalize issues they had with employers. As years passed, more states began to hold these parades, but Congress would not legalize the holiday until 12 years later.

On May 11, 1894, workers of the Pullman Palace Car Company in Chicago struck to protest wage cuts and the firing of union representatives. They sought support from their union led by Eugene V. Debs and on June 26 the American Railroad Union called a boycott of all Pullman railway cars. Within days, 50,000 rail workers complied and railroad traffic out of Chicago came to a halt. On July 4, President Grover Cleveland dispatched troops to Chicago. Much rioting and bloodshed ensued, but the government's actions broke the strike and the boycott soon collapsed. Debs and three other union officials were jailed for disobeying the injunction. The strike brought worker's rights to the public eye and Congress declared, in 1894, that the first Monday in September would be the holiday for workers, known as Labor Day.

Opponents of the bill are focusing on the provision of replacing secret elections with card signing, calling it anti-democratic.

“Most people sign those (election authorization) cards just to get the union toughs off their back,” said Greg Mourad, director of legislation for the National Right to Work Committee. “In the current process, the unions get to have their say, and the companies get to have their say. Then the workers decided in the privacy of a secret-ballot election process. Whether or not the current process works, card check is not the solution to the perceived problem.”

Judy Ancel, director of the Institute for Labor Studies at the University of Missouri-Kansas City, said the bill would help level the playing field.

“Given the reign of terror employers are allowed to exercise during what’s commonly called the union-election process, the Employee Free Choice Act would help restore democracy to the workplace,” Ancel said.