May 3 (Reuters) - A U.S. appeals court has temporarily
blocked a National Labor Relations Board case accusing SpaceX of
illegally firing engineers who criticized CEO Elon Musk, as the
rocket company pursues a legal challenge to the agency's
structure.
In a single-sentence order on Thursday, a three-judge panel
of the New Orleans-based 5th U.S. Circuit Court of Appeals
barred the NLRB from proceeding with the administrative case
pending SpaceX's appeal of a judge's "effective denial" of its
motion for an injunction.
The 5th Circuit twice rejected SpaceX's bid to overrule a
decision by U.S. District Judge Rolando Olvera in Brownsville,
Texas, to transfer the case to California at the NLRB's request.
SpaceX then asked Olvera to reconsider the transfer and take
up its motion for a preliminary injunction pending the outcome
of its lawsuit. The company this week filed an appeal, saying
Olvera's delay in deciding that motion amounted to a denial of
it.
SpaceX in its lawsuit claims the NLRB's in-house enforcement
proceedings violate the U.S. Constitution in various ways and
that administrative judges and board members are improperly
insulated from removal by the president. Amazon.com ( AMZN ), Starbucks ( SBUX )
and Trader Joe's have all raised similar arguments in pending
board cases.
An NLRB spokeswoman declined to comment on the 5th Circuit
order. SpaceX did not immediately respond to a request for
comment.
In the underlying board case, SpaceX is accused of firing
eight engineers who signed onto a letter to company executives
accusing Musk of sexism and other misconduct. The company has
said the workers' actions were disruptive and not protected by
federal labor law.
SpaceX sued the NLRB a day after the agency issued the
complaint in January, and has since filed a similar lawsuit in
Waco, Texas, federal court stemming from a separate board
complaint involving the company's severance agreements.
Thursday's 5th Circuit order will likely delay a ruling by a
special master on challenges to subpoenas in the administrative
case, which is pending before an administrative judge in Los
Angeles, and could push back hearings that were slated to be
held in the case over the summer.
The 5th Circuit panel includes Circuit Judges Jerry Smith
and Andrew Oldham, appointees of former Republican presidents
Ronald Reagan and Donald Trump, respectively, and Carl Stewart,
who was appointed by Democratic former President Bill Clinton.
The case is Space Exploration Technologies Corp v. NLRB, 5th
U.S. Circuit Court of Appeals, No. 24-40315.
For SpaceX: Michael Kenneally, Catherine Eschbach, Harry
Johnson and Amanda Salz of Morgan Lewis & Bockius
For the NLRB: David Boehm
Read more:
SpaceX asks Texas judge to block NLRB case over severance
agreements
SpaceX loses latest bid to keep lawsuit against NLRB in
Texas
SpaceX faces hearing on engineers fired after criticizing
Elon Musk over sexism
SpaceX illegally fired workers critical of Elon Musk, US
labor agency says
Amazon ( AMZN ) joins companies arguing US labor board is
unconstitutional
SpaceX loses bid to keep challenge to NLRB structure in
Texas court
(Reporting by Daniel Wiessner in Albany, New York)