Under a recent ruling by the Fifth Circuit Court of Appeals, the National Labor Relations Board (NLRB), one of the primary agencies that oversees violations of federal labor law, was determined to be potentially unconstitutional. The ruling states that the NLRB, as currently constituted, does not comply with the US Constitution because it is structured in a way that prevents the President from freely firing its members. As such, the legitimacy of the agency and its various administrative rulings have now been brought into question.
What is the NLRB?
The NLRB was created by the National Labor Relations Act (NLRA) in 1935, and set out the first federal standards for labor organizing and unionization in the United States. Among other things, it oversees and enforces federal labor law, including imposing penalties on companies that engage in illegal or unfair labor practices. It also issues administrative rulings that have helped to shape labor law throughout the United States for the past 90 years.
What Was This Lawsuit About?
In SpaceX vs. NLRB, the Space Exploration Technologies Corp., more commonly known as SpaceX, sued the NLRB along with a number of other employers after it was penalized for engaging in unfair labor practices. According to the NLRB, SpaceX had violated their workers’ rights by firing eight employees who had publicly complained about the conduct of its CEO, Elon Musk. SpaceX claimed in its lawsuit that the charges against them should be reversed, claiming the Board had overstepped its legal authority.
What Did The Court Determine?
In a surprising outcome, the Fifth Circuit found that not only were the charges against SpaceX invalid, but the NLRB itself may be in violation of the US Constitution. This is because the rules of the NLRB prevent the president from firing members of the board at will, which they claim violates the President’s power to make appointments. Thus, the NLRB is illegally constituted as it currently exists, and may be entirely unconstitutional.
Why Does This Matter?
This extraordinary ruling is a serious shock to the entire field of labor and employment law. For nine decades, the NLRB has shaped federal law when it comes to workers’ rights, but many of the rulings issued by the Board are now potentially in jeopardy. In the more immediate sense, it may now be nearly impossible for people to seek relief from the federal government if they become the victim of unfair labor practices or other labor violations.
If you have an employment issue, give the Law Office of Andrew Ross Sack a call. Andrew Ross Sack is a New York and New Jersey employment lawyer who has considerable experience in handling the many aspects of labor and employment law. To schedule a consultation with New York City/Long Island/Westchester employment lawyer Andrew Ross Sack, call (516) 526-3319 or visit his contact page.
