Aug 12 (Reuters) - SpaceX's challenge to the structure

of the National Labor Relations Board will remain in Texas

federal court for now, after a U.S. appeals court overturned a

decision that would have transferred the rocket maker's lawsuit

to California.

A 5th U.S. Circuit Court of Appeals panel in a two-sentence

order on Friday vacated a July decision by U.S. District Judge

Rolando Olvera refusing to reconsider an earlier ruling

transferring the case from his Brownsville, Texas, court to Los

Angeles.

The appeals court issued its decision without prejudice,

however, citing a related appeal that is still pending. That

means the NLRB can again move to transfer the lawsuit to

California, where SpaceX is based and the company is facing an

administrative board case claiming it illegally fired engineers

critical of CEO Elon Musk.

The 5th Circuit is considering SpaceX's separate claims that

Olvera improperly failed to rule on the company's request to

pause the NLRB case pending the outcome of the lawsuit. The

court in May temporarily blocked the board case from proceeding

while it considers SpaceX's appeal.

An NLRB spokeswoman declined to comment. SpaceX did not

immediately respond to a request for comment.

The lawsuit filed in January was among the first in a

growing number of challenges to the NLRB's in-house enforcement

proceedings, in which administrative law judges and then the

five-member board appointed by the president hear unfair labor

practice claims brought by the board's general counsel, who acts

as a prosecutor.

SpaceX says that administrative judges and board members are

improperly insulated from at-will removal by the U.S. president

and that NLRB proceedings violate the separation of powers and

the company's right to a jury trial under the U.S. Constitution.

The board is facing similar claims in cases involving

Amazon.com, Starbucks, Trader Joe's, pipeline operator Energy

Transfer ( ET ), a Michigan hospital operator, a small Missouri bank,

and a film producer, among others.

SpaceX filed a second lawsuit in Texas federal court in

April stemming from a separate NLRB complaint accusing the

company of forcing laid-off workers to sign severance agreements

that include illegal provisions. U.S. District Judge Alan

Albright in Waco in July blocked the board case from moving

forward pending the outcome of the lawsuit.

The NLRB has said the claims about its structure lack merit

and that the companies bringing the challenges are attempting to

distract from their violations of federal labor law.

The 5th Circuit panel includes Circuit Judges Jerry Smith

and Andrew Oldham, who were appointed by Republican presidents,

and Circuit Judge Carl Stewart, an appointee of Democratic

former President Bill Clinton.

The case is SpaceX v. NLRB, 5th U.S. Circuit Court of

Appeals, No. 24-40315.

For SpaceX: Catherine Eschbach, Harry Johnson and Michael

Kenneally of Morgan Lewis & Bockius

For the NLRB: David Boehm

Read more:

SpaceX wins block on US labor board case over severance

agreements

SpaceX seeks new Texas venue for challenge to NLRB after 5th

Circuit ruling

SpaceX wins temporary block on NLRB case over fired

engineers

SpaceX loses bid to keep challenge to NLRB structure in

Texas court

NLRB defends 'zealous advocacy' of SpaceX case transfer

SpaceX faces hearing on engineers fired after criticizing

Elon Musk over sexism

US judge blocks NLRB case against energy firm challenging

agency's structure

US Supreme Court ruling curbing agency powers could hobble

labor board

NLRB's Abruzzo hits back at 'low-road' companies challenging

agency's structure

(Reporting by Daniel Wiessner in Albany, New York)