The National Labor Relations Board remains barred from bringing unfair labor practice cases against SpaceX, Energy Transfer, and Findhelp after a federal appeals court affirmed a lower court’s preliminary injunctions pausing such prosecutions. On August 19, in Space Exploration Technologies Corp. v. NLRB, the U.S. Court of Appeals for the Fifth Circuit found that the injunction is warranted because the agency’s structure is likely unconstitutional.
SpaceX, Energy Transfer, and Findhelp had asserted that the National Labor Relations Act — which permits the President to fire Board members only for neglect of duty or malfeasance in office and to remove NLRB administrative law judges only for good cause after a hearing — conflicts with the President’s broad constitutional powers to remove executive officers. After determining that the three companies likely would succeed on this claim, the Fifth Circuit held that they suffered irreparable harm by being subject to proceedings run by officers who were unconstitutionally insulated from removal.
The decision stops NLRB enforcement actions in these cases and provides a roadmap for employers who wish to challenge other unfair labor practice proceedings. Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.