Court says labor board's structure unconstitutional

National Labor Relations Board (NLRB) envelopes sit at the headquarters in Washington, D.C., U.S., on Monday, Sept. 30, 2019. Students who receive compensation for teaching or conducting research "in connection with their studies" wouldn't be considered employees, who have the right to unionize and are protected from various unfair labor practices, the NLRB said in a press release Sept. 20.

A federal appeals court ruled to prevent the National Labor Relations Board from prosecuting unfair labor practices against SpaceX

(Image credit: Andrew Harrer / Bloomberg / Getty Images)

What happened

The U.S. 5th Circuit Court of Appeals Tuesday ruled that the National Labor Relations Board's structure is likely unconstitutional and barred the federal agency from pursuing cases against SpaceX and two other plaintiffs.

Who said what

The ruling, from a three-judge panel that includes two appointees of President Donald Trump, was the "first by an appeals court" to find that the law shielding NLRB members and judges from "being removed at will by the president is likely illegal," Reuters said. Companies "should not have to choose between compliance and constitutionality," Judge Don Willett wrote for the court. "When an agency's structure violates the separation of powers, the harm is immediate — and the remedy must be, too."

Congress designed the NLRB "to be independent from the White House," Reuters said, and "no board member had ever been removed by the president" until Trump fired Democratic member Gwynne Wilcox in January, leaving the board "paralyzed and unable to issue decisions." The Trump administration is also challenging the board's structure in Wilcox's lawsuit to get her job back.

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What next?

The NLRB is "undoubtedly likely to challenge" Tuesday's ruling, said TechCrunch. But the "win" for Trump's "uniquely expansive view of presidential power" gives the Supreme Court "yet another opportunity to bend to that vision of the presidency," said Above the Law.

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Rafi Schwartz has worked as a politics writer at The Week since 2022, where he covers elections, Congress and the White House. He was previously a contributing writer with Mic focusing largely on politics, a senior writer with Splinter News, a staff writer for Fusion's news lab, and the managing editor of Heeb Magazine, a Jewish life and culture publication. Rafi's work has appeared in Rolling Stone, GOOD and The Forward, among others.