SpaceX has once again entered the legal arena, this time renewing its challenge against the National Labor Relations Board (NLRB) by questioning the constitutional structure of the agency. The SpaceX NLRB lawsuit, filed in a Texas federal court, aims to halt the NLRB’s administrative proceedings concerning an unfair labor practice complaint that targets the aerospace giant’s severance agreement as unlawful.
Background of the SpaceX NLRB Lawsuit
In a strategic legal move, SpaceX petitioned for a court order on Friday to pause the unfair labor practice case that scrutinizes its severance and arbitration agreements with employees across the nation. This lawsuit echoes a previous SpaceX NLRB lawsuit linked to the dismissal of eight employees who penned an open letter critical of CEO Elon Musk.
SpaceX argues that the current protections shielding NLRB members and administrative law judges from presidential removal contravene the U.S. Constitution. The company asserts, “If the NLRB members, following a recommendation from the ALJ, issue a final order against SpaceX, the constitutional injury will likely be irremediable.”
SpaceX NLRB Lawsuit : Judicial Precedents and Arguments
Citing the Fifth Circuit’s decision in Jarkesy v. SEC, SpaceX leveraged a precedent where the majority of the appeals court panel deemed the protections against removal of U.S. Securities and Exchange Commission’s administrative law judges unconstitutional. “Similar to the SEC ALJs in Jarkesy, NLRB ALJs are considered ‘inferior officers’ who wield substantial authority within agency investigations and enforcement actions,” SpaceX emphasized.
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