Published
September 11, 2025
On August 19, the United States Court of Appeals for the Fifth Circuit issued a ruling regarding consolidated cases involving SpaceX, Energy Transfer, and Aunt Bertha (Findhelp) against the National Labor Relations Board (NLRB).
The plaintiffs had challenged the constitutionality of the NLRB’s structure, specifically the dual for-cause removal protections for its Board Members and Administrative Law Judges (ALJs), arguing that these protections violate the separation of powers under Article II of the U.S. Constitution, and the court agreed.
Background:
The plaintiffs faced unfair labor practice complaints and filed suits in federal district courts, claiming the NLRB’s structure was unconstitutional. In response, the district courts granted preliminary injunctions halting the NLRB’s proceedings.
The NLRB appealed, arguing that the district courts lacked jurisdiction and abused their discretion in granting the injunctions. However, in its decision, the Fifth Circuit affirmed the district courts’ decisions, saying that federal law does not strip district courts of jurisdiction to hear constitutional challenges to agency proceedings.
Moreover, the court said “ALJs are inferior officers insulated by two layers of for-cause removal protection—an arrangement the Supreme Court and this circuit have both held unconstitutional. The court further opined that the removal protections for Board members were also likely unconstitutional.
The court went on to say that the “employers have made their case and should not have to choose between compliance and constitutionality. When an agency’s structure violates the separation of powers, the harm is immediate—and the remedy must be, too.”
This much-anticipated case is a major development in the area of labor law, and employers should be aware that this could upend the authority of the NLRB to act on current or future cases.
About the author
Sean P. Redmond
Sean P. Redmond is Vice President, Labor Policy at the U.S. Chamber of Commerce.
