Federal Appeals Court Rules NLRB Structure Likely Unconstitutional, Blocks Cases Against SpaceX

A federal appeals court, the Fifth Circuit Court of Appeals, has granted SpaceX a temporary injunction blocking the National Labor Relations Board (NLRB) from proceeding with unfair labor practice charges against the company, citing likely constitutional issues with the NLRB's structure. The ruling, which also applies to Energy Transfer and Findhelp, centers on whether the NLRB's in-house administrative law judges are improperly protected from presidential removal, potentially violating the separation of powers principle. The three-judge panel, including two appointees of President Donald Trump and one appointed by George H.W. Bush, emphasized that subjecting companies to administrative proceedings that may be unconstitutional causes irreparable harm. This injunction pauses enforcement actions while the companies continue to challenge the NLRB's constitutionality, with the NLRB expected to appeal the decision. The initial NLRB complaint against SpaceX arose after the company fired employees who signed an open letter criticizing CEO Elon Musk and alleging a sexist culture. This ruling raises broader questions about the independence of the NLRB and executive control over federal agencies.