Appeals court says NLRB structure unconstitutional, in a win for SpaceX

A federal appeals court ruled that the structure of the National Labor Relations Board (NLRB) is likely unconstitutional, delivering a significant legal victory to SpaceX. The Fifth District Court of Appeals issued the decision, which halts unfair labor practice cases against SpaceX, Energy Transfer, and Findhelp while these companies challenge the NLRB’s structure on constitutional grounds. The court emphasized that subjecting companies to potentially unconstitutional administrative proceedings constitutes irreparable harm, justifying the pause in enforcement actions. The dispute centers on whether the NLRB’s administrative law judges (ALJs) have unlawful protections that prevent their removal by the President, which the court panel found violates the constitutional separation of powers. This ruling arose from a case involving SpaceX employees who criticized CEO Elon Musk and alleged a culture of sexism at the company. The three-judge panel, composed of two Trump appointees and one appointee from George H.W. Bush, acknowledged the ruling is not final, and the NLRB