Oct 15 (Reuters) - The U.S. Supreme Court on Tuesday
declined to wade into claims being made by a growing number of
businesses that the National Labor Relations Board's in-house
enforcement proceedings are unconstitutional.
Justice Brett Kavanaugh denied an emergency application by
auto parts maker Yapp USA Automotive Systems to block an NLRB
case against it pending the outcome of its lawsuit claiming
board officials are improperly shielded from at-will removal by
the president.
Yapp in the underlying board case is accused of illegally
interfering with a union election at a Michigan factory, which
it has denied.
Kavanaugh, who oversees requests arising from Michigan and
other states covered by the Cincinnati-based 6th U.S. Circuit
Court of Appeals, did not explain his decision.
Lawyers for Yapp and an NLRB spokeswoman did not immediately
respond to requests for comment.
A federal judge in Michigan last month refused to block the
NLRB case against Yapp from proceeding, ruling that the company
was unlikely to prevail on its claims that the board's
administrative judges and its five members are illegally
insulated from being removed without cause.
Yapp says that because those officials wield executive
power, the U.S. Constitution requires that they be held
accountable to the president.
The company is appealing to the 6th Circuit, which on Sunday
denied its motion to stay the administrative case pending the
appeal.
Nearly 20 other companies including Amazon.com ( AMZN ), Elon Musk's
SpaceX and pipeline operator Energy Transfer ( ET ) have filed similar
lawsuits attacking the NLRB's structure and enforcement powers.
Three judges in Texas have temporarily blocked board cases from
moving forward, while at least four judges in other states have
refused to do so.
At a panel discussion on Tuesday hosted by the National
Press Club in Washington, D.C., NLRB General Counsel Jennifer
Abruzzo said the legal challenges by Yapp and other companies
were an attempt to distract from their violations of federal
labor law. But she said the board would not waver in protecting
workers' rights.
"Everybody in this country needs us," said Abruzzo, an
appointee of Democratic President Joe Biden. "It would be chaos
if the agency was not allowed to perform its functions and do it
properly."
The case is Yapp USA Automotive Systems v. NLRB, U.S.
Supreme Court, No. 24A348.
For Yapp: Timothy Garrett of Bass, Berry & Sims; Matthew
Nelson of Warner Norcross + Judd
For the NLRB: Michael Dale
Read more:
US Supreme Court asked to weigh in on challenge to NLRB's
structure
US judge rejects auto parts maker's challenge to NLRB
structure
Amazon ( AMZN ) challenges US labor board's structure in lawsuit over
union election
SpaceX wins block on US labor board case over severance
agreements
US judge blocks NLRB case against energy firm challenging
agency's structure
US judge rejects medical center's bid to 'neuter' NLRB
NLRB's Abruzzo hits back at 'low-road' companies challenging
agency's structure
(Reporting by Daniel Wiessner in Albany, New York)