A U.S. federal appeals court has sided with Elon Musk’s SpaceX and two other companies, ruling that the National Labor Relations Board (NLRB) is likely structured unlawfully.
The 5th U.S. Circuit Court of Appeals in New Orleans on Tuesday became the first appellate court to find that federal laws protecting NLRB administrative judges and board members from being removed at will by the president may violate the Constitution.
Presidential Oversight at the Core
In the 2-1 ruling, Circuit Judge Don Willett, a Trump appointee, wrote that such protections undermine the president’s authority.
“Because the executive power remains solely vested in the President, those who exercise it on his behalf must remain subject to his oversight,” Willett stated.
The decision temporarily halts NLRB proceedings against SpaceX, pipeline operator Energy Transfer, and Aunt Bertha, a social services search platform, until the constitutional challenge is resolved.
Wider Implications for the NLRB
The NLRB is the only federal agency that handles private-sector labor disputes, with cases typically heard by administrative judges and appealed to its five-member board. But the agency has been in turmoil since President Trump fired Democratic board member Gwynne Wilcox in January, leaving it unable to issue new rulings.
Legal experts say the ruling could embolden other challenges to the board’s authority, several of which are already pending in courts across the country.
Political Undercurrents
Musk, once a close adviser to Trump on government reform and budget cuts, has clashed with the NLRB in multiple cases. SpaceX has a separate lawsuit seeking to block another board action.
Judge Willett emphasized that employers should not be forced into a constitutional dilemma, writing:
“The Employers have made their case and should not have to choose between compliance and constitutionality.”
Neither the NLRB nor the companies involved immediately commented on the ruling.
The case adds fresh uncertainty to the future of the NLRB, an agency designed by Congress to operate independently of the White House. Until now, no president had ever removed a sitting board member.
