Overview

• A three-judge panel kept preliminary injunctions in place that block NLRB prosecutions of SpaceX, Aunt Bertha (Findhelp) and Energy Transfer LP while their constitutional challenges proceed.
• The court concluded that for-cause limits on removing NLRB Board members and the two-layer protections for ALJs are likely unconstitutional, citing its approach in Jarkesy v. SEC.
• Judges distinguished the NLRB from the FTC model upheld in Humphrey’s Executor, finding modern Board members exercise substantial executive authority.
• The decision currently binds courts in Texas, Louisiana and Mississippi and is expected to face appeal that could position the issue for Supreme Court review.
• NLRB operations remain constrained, with the Board lacking a quorum since President Trump removed member Gwynne Wilcox and the Supreme Court stayed an order reinstating her.