U.S. Court Rules NLRB Structure Likely Unlawful in SpaceX Case
A U.S. court has sided with Elon Musk’s SpaceX and two other companies, ruling that the structure of the U.S. National Labor Relations Board (NLRB) is likely unconstitutional. The decision blocks the agency from pursuing cases against them while legal challenges continue.
The ruling, delivered by the New Orleans-based 5th U.S. Circuit Court of Appeals, is the first by an appellate court to find that the NLRB’s protections shielding its administrative judges and five board members from being removed at will by the president are likely unlawful.
Presidential Power at the Centre of the Ruling
Circuit Judge Don Willett, appointed by former President Donald Trump, wrote that such protections undermine the president’s authority to oversee the executive branch.
“Because the executive power remains solely vested in the President, those who exercise it on his behalf must remain subject to his oversight,” Willett stated.
The ruling upheld earlier decisions by three judges in Texas who had blocked NLRB cases alleging labour law violations by SpaceX, pipeline operator Energy Transfer, and Aunt Bertha, a social services search platform.
Wider Legal and Political Implications
A series of similar lawsuits challenging the NLRB’s structure are still pending. The Trump administration has made comparable arguments after Trump dismissed Democratic board member Gwynne Wilcox in January. She later sued to regain her position.
Notably, the NLRB had been designed by Congress to function independently of the White House, and before Wilcox’s dismissal, no president had ever removed a sitting member. Since her removal, the five-member board has been paralysed, unable to issue rulings.
U.S. Court Ruling on SpaceX and Broader Context
SpaceX has also filed a separate lawsuit seeking to block another NLRB case. The company, along with other employers, argues that the agency’s structure forces them to choose between legal compliance and constitutional rights.
“The Employers have made their case and should not have to choose between compliance and constitutionality,” Willett noted in the ruling.
Musk, who once served as a close adviser to Trump on federal workforce reduction and spending cuts before a public falling-out, has continued to challenge federal regulatory agencies.
The NLRB remains the sole federal body handling private-sector labour disputes, with its general counsel empowered to bring complaints against employers and unions. These cases are first heard by administrative judges and then reviewed by the board.
Tuesday’s ruling panel included another Trump appointee and a judge appointed by former Republican President George H.W. Bush.
with inputs from Reuters