This week, the Fifth Circuit Court of Appeals upheld preliminary injunctions from a Texas federal court, blocking the National Labor Relations Board (NLRB) from pursuing unfair labor practice charges against Elon Musk’s SpaceX. The court ruled that the NLRB’s structure under the National Labor Relations Act is “likely unconstitutional.”
This finding contrasts with the 1937 U.S. Supreme Court decision that upheld the NLRA itself. The current challenge focuses instead on whether the law improperly restricts the President’s authority to remove NLRB members and Administrative Law Judges. The Fifth Circuit concluded that SpaceX’s argument is “likely to be successful.”
For now, this ruling prevents the NLRB from prosecuting cases against SpaceX but does not extend to other employers. It’s anticipated the NLRB will appeal this decision up to the U.S. Supreme Court.
Full decision: https://www.ca5.uscourts.gov/opinions/pub/24/24-50627-CV0.pdf
Posted August 22, 2025