A federal appeals court (Fifth Circuit) ruled that safeguards for NLRB board members and NLRB administrative law judges are unconstitutional. The ruling suspended unfair labor practice proceedings against SpaceX, Energy Transfer, and Findhelp and described agency structure violations as causing irreparable harm when separation of powers is implicated. The decision comes amid a Trump administration overhaul of union and worker protections and follows a recent unionization wave that increased union filings and unfair labor practice complaints. The NLRB will likely appeal, and the Fifth Circuit's conservative record raises the prospect of long-term effects on federal labor enforcement.
A court ruled with SpaceX and two other companies on Tuesday in their case arguing that the structure of the National Labor Relations Board (NLRB) is unconstitutional, in a decision that could have seismic implications for workers' rights for years to come. In its ruling, U.S. Court of Appeals for the Fifth Circuit said that safeguards for NLRB board members and administrative law judges for the NLRB are unconstitutional.
The ruling suspends unfair labor practice proceedings against Elon Musk's SpaceX and co-plaintiffs Energy Transfer and Findhelp. Donald Trump appointee Judge Don Willett wrote in his decision for the court that it constitutes irreparable harm for the companies to be subject to such cases "[w]hen an agency's structure violates the separation of powers." The NLRB will likely appeal the decision.
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