In a ruling that has disrupted employment law throughout the United States, the Fifth Circuit of the United States Appeals Court found that the National Labor Relations Board (NLRB) may be unconstitutionally structured. This ruling undercuts the authority of the NLRB to make decisions on violations of the National Labor Relations Act (NLRA) and other related legislation. If upheld, it may even bring into question the continued existence of the NLRB and the applicability of its rulings.
What Was This Case About?
In SpaceX v. NLRB, the Space Exploration Technologies Corporation (more commonly known as SpaceX), along with two other companies, faced complaints by the NLRB for alleged violations of the NLRA. These companies were accused of engaging in unfair labor practices and were facing potential fines and other legal penalties. In response, the companies sued the NLRB, arguing that the Board’s investigation of these legal violations constituted an “irreparable harm” on their companies, resulting in the investigation being enjoined by the District Court.
What Was the Legal Issue Being Disputed?
The fundamental question before the Fifth Circuit was whether or not the NLRB’s investigation into alleged unfair labor practices was valid. In particular, there was the question as to whether the investigation constituted an irreparable harm that needed to be enjoined. The NLRB, for its part, argued that it was merely carrying out the legal responsibilities allotted to it under the NLRA.
What Did the Court Rule?
In a shocking ruling, the Fifth Circuit ruled that not only was the investigation into SpaceX illegal, but the NLRB itself may be unconstitutional. Going beyond the relief requested by SpaceX and its fellow plaintiffs, the court found that the language of the NLRA, which prevented the president from making at-will firings of members of the board, was an unconstitutional infringement on the president’s power to make appointments. As such, the NLRB as it currently exists may be illegal.
Why Does This Matter?
This ruling may tear apart labor law as it currently exists in the United States. The NLRA is the backbone of labor law on the federal level, and the NLRB is the primary organization tasked with its enforcement. If it is unconstitutional, then not only are all of its rulings no longer valid, but there may be no federal agency left to investigate or prosecute labor violations on a federal level.
Steven Mitchell Sack, the Employee’s Lawyer, is a New York employment lawyer with more than 45 years’ experience handling the many aspects of employment law. His new book, “Fired!: Protect Your Rights & FIGHT BACK If You’re Terminated, Laid Off, Downsized, Restructured, Forced to Resign or Quit,” is available in hardback, and contains valuable advice on dealing with employment and labor law issues. To purchase the book, feel free to contact Steven Sack at 917-371-8000 or visit the website at legalstratpub.com. To inquire about a legal matter, please feel free to contact attorney Steven Sack at 917-371-8000 or stevensackatty@hotmail.com.
