SpaceX v. NLRB: A New Chapter for Labor Law?

The structure of the National Labor Relations Board (NLRB) has been the subject of increasing criticism and scrutiny in the past few years. Under the current framework, board members may be removed by the President only "for neglect of duty or malfeasance of office." This adjudicatory framework also insulates Administrative Law Judges (AJLs) through two layers of for-cause removal protections, since AJLs can be removed only "for good cause," as determined by the Merit Systems Protection Board (MSPB).  

In 2024, in response to an unfair labor practice complaint brought by the NLRB, SpaceX challenged the constitutionality of the Board’s removal protections for its ALJs and members. In August, the U.S. Court of Appeals for the Fifth Circuit agreed with SpaceX, holding that the dual layers of for-cause removal likely violate the Constitution. Consequently, the court stayed the unfair labor practice proceedings to allow SpaceX to pursue its structural challenge.

Should the case reach the Supreme Court, the Court’s decision could have significant implications not only for the NLRB but also for the broader landscape of federal administrative agencies employing similar adjudicatory structures.

Featuring:

Prof. Anne M. Lofaso, Professor of Law, University of Cincinnatti College of Law

Aaron B. Solem, Staff Attorney, National Right to Work Foundation

(Moderator) Hon. Patrick Pizzella, Former Deputy Secretary of Labor

*******

As always, the Federalist Society takes no position on particular legal or public policy issues; all expressions of opinion are those of the speaker.