This article examines how the legal‐institutional context created by American labor law has impacted the frequency, issue composition, and economic damage of strike activity since the passage of the Taft‐Hartley Act. Emphasis on the legal‐institutional context complements conventional perspectives of strike activity which focus on business cycle and political‐organizational interpretations. A new labor law index is developed to measure the legal‐institutional context, and it is comprised of five components: number of pro‐labor laws, National Labor Relations Board unfair labor cases filed, use of antilabor injunctions, labor mediation, and labor arbitration. For the period of 1948 to 1980, high values on the labor law index reduced overall strike frequency, reduced some types of control‐related strikes, had no effect on economic strikes, and decreased working time lost to strikes, especially in the monopoly sector. These findings suggest that the legal‐institutional context of the post‐Taft‐Hartley period has served to regulate and delegitimize expressions of labor unrest that most seriously challenge capitalist interests.