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5th Circuit Says NLRB Structure Likely Unlawful, Halts Cases Against SpaceX and Two Others

The panel questioned statutory limits on presidential control over the labor agency, triggering a pause in three enforcement actions.

The seal of the National Labor Relations Board (NLRB) is seen at their headquarters in Washington, D.C., U.S., May 14, 2021. REUTERS/Andrew Kelly/File Photo
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Overview

  • Judges blocked NLRB unfair‑labor‑practice proceedings against SpaceX, Energy Transfer, and Findhelp while constitutional challenges proceed.
  • Judge Don Willett wrote that limits on removing NLRB administrative law judges and board members likely violate separation‑of‑powers principles.
  • The decision is the first by a federal appeals court to find the NLRB’s removal protections likely illegal, heightening the stakes for potential further review.
  • The panel—two Trump appointees and one George H. W. Bush appointee—upheld Texas district court injunctions that had frozen the three cases.
  • The NLRB has been unable to issue decisions since President Trump removed board member Gwynne Wilcox, and the board and companies did not immediately comment.