A federal appeals court ruled the NLRB’s structure unconstitutional, marking a major legal victory for SpaceX in its ongoing battle with the labor board.
In a ruling that prevents the National Labor Relations Board from prosecuting SpaceX for discriminatory labor practices, a federal appeals court awarded the company a victory on Tuesday.
The Fifth District Court of Appeals’ ruling, which implies that the NLRB’s structure is likely unconstitutional, can have significant consequences.
The ruling suspends the discriminatory labor practice cases against SpaceX and two other companies, Energy Transfer and Findhelp. In contrast, the companies assert that the NLRB structure violates the U.S. Constitution.
Although the court did pronounce it unlawful, this matter is far from resolved, and the NLRB will undoubtedly contest the ruling.
SpaceX’s assertion that being subjected to an administrative proceeding that may be unconstitutional is an irreparable injury was confirmed by the three-judge panel.
Consequently, the pause remains in effect. After SpaceX terminated a group of employees who signed an open letter critical of CEO Elon Musk and the company’s culture of misogyny, the National Labor Relations Board (NLRB) filed an unfair labor practices claim against the company.
The crux of the controversy is whether the NLRB’s administrative law judges, who are in-house judges, are afforded unlawful protections that prevent them from being removed by the president.
The judges stated that if this is the case, it violates the constitutional regulations governing the separation of powers.
The tribunal consisted of two judges appointed by President Donald Trump and a third appointed by George H.W. Bush.