This article examines the changing nature of employee and labor relations in the United States. A significant shift has occurred in the employee relations environment between the public and private sectors. As union representation in the private sector workforce has steeply declined, there had been a sharp and steady increase in third party representation in the public sector workforce. The reasons for these changes are explored.The article goes beyond the issue of labor relations to the broader issue of positive employee relations in the workplace. Exploring employee relations from a behavioral science perspective, the article describes and discusses the psychological contract as an organizing framework for understanding and achieving positive employee relations in the workplace. The article also draws upon the author's professional human resource experiences in the public and private sectors. U nionism in the public sector has been steadily rising both in size and influence. This trend has been occurring as unions in the private sector have been on an equally steady decline in size and influence. While this trend has not gone entirely unnoticed, there is little public awareness or debate as to whether this trend is in the public's best interest, and there is little guidance for the public sector human resource professional, policy makers and elected officials on how to effectively approach positive employee relations.The purpose of this article is not to argue for or against public sector unions. Those debates are well established and well entrenched. This article does, however, seek to demonstrate how an understanding and application of behavioral science techniques and theories can aid the human resource professional and other interested parties in improving employee relations in public sector organizations, whether unionized or not. The public sector HR professional operates within the many constraints prescribed by statutes, labor agreements, policy and procedures manuals, and established precedents. Yet at the same time, the HR professional is faced with the growing challenges of increasing efficiency in government, creating harmony in employee relations, and controlling worker costs.