financetom
Economy
financetom
/
Economy
/
Musk's SpaceX, others win US court challenge to labor board's structure
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Musk's SpaceX, others win US court challenge to labor board's structure
Aug 20, 2025 4:17 AM

(Reuters) -A U.S. appeals court on Tuesday agreed with Elon Musk's SpaceX and two other companies that the U.S. National Labor Relations Board's structure is likely unlawful and blocked the agency from pursuing cases against them.

The ruling by the New Orleans-based 5th U.S. Circuit Court of Appeals is the first by an appeals court to find that a law shielding NLRB administrative judges and the board's five members from being removed at will by the president is likely illegal.

The 5th Circuit on Tuesday said the protections from removal prevent the president from exercising his power to control the executive branch.

"Because the executive power remains solely vested in the President, those who exercise it on his behalf must remain subject to his oversight," wrote Circuit Judge Don Willett, an appointee of Republican President Donald Trump.

A series of similar cases challenging the board's structure are pending, and the Trump administration is making the same arguments after the president fired a Democratic member of the board in January and she sued to get her job back.

The 5th Circuit upheld decisions by three judges in Texas that blocked NLRB cases alleging illegal labor practices by SpaceX, pipeline operator Energy Transfer, and Aunt Bertha, which operates a social services search engine, pending the outcome of their lawsuits.

"The Employers have made their case and should not have to choose between compliance and constitutionality," wrote Willett.

The board and the companies did not immediately respond to requests for comment.

Musk was a top adviser to Trump, spearheading an effort to drastically shrink the federal workforce and slash government spending, until the two men had a public falling out in May. SpaceX has a separate pending lawsuit against the NLRB seeking to block a different board case.

The NLRB is the only federal agency that hears private-sector labor disputes. The agency's general counsel can issue complaints against employers or unions that are heard by administrative judges, whose decisions can be appealed to the board.

The five-member board has been paralyzed and unable to issue decisions since Trump in January fired Member Gwynne Wilcox. The NLRB was designed by the U.S. Congress to be independent from the White House, and before Wilcox no board member had ever been removed by the president.

Tuesday's panel included a second Trump appointee and a judge appointed by Republican President George H.W. Bush.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Centre sets up task force to figure out how to navigate rising fuel prices: Report
Centre sets up task force to figure out how to navigate rising fuel prices: Report
Mar 9, 2022
The government has set up a task force consisting of senior government officials to give recommendations on ways to manage the rise in prices of petroleum products in India, reported Mint. The task force is thought to suggest a mixture of VAT and excise liability reductions.
Proposed digital currency by RBI to speed up transactions, reduce cost of cash: Deloitte
Proposed digital currency by RBI to speed up transactions, reduce cost of cash: Deloitte
Mar 9, 2022
As a financial services innovation, CBDCs are likely to play a pivotal role in shaping the 'future of value transfer', the Deloitte report said, adding that most central banks worldwide are now in various stages of their evaluation of launching their national digital currencies.
Cabinet approves setting up National Land Monetisation Corporation; amendment in MMDR Act to fix royalty rates
Cabinet approves setting up National Land Monetisation Corporation; amendment in MMDR Act to fix royalty rates
Mar 9, 2022
The National Land Monetisation Corporation (NLMC) will be set up as a wholly-owned Government of India company with an initial authorised share capital of Rs 5,000 crore and paid-up share capital of Rs 150 crore. The approval to amend the MMDR Act would ensure auction of mineral blocks in respect of glauconite, potash, emerald, platinum group of metals, andalusite and molybdenum thereby reducing imports of these minerals.
NARCL invites applications for full-time MD, CEO of bad bank
NARCL invites applications for full-time MD, CEO of bad bank
Mar 8, 2022
Candidates should not be less than 45 years and the selected person would be responsible for NARCL's strategic direction to generate maximum value for shareholders.
Copyright 2023-2026 - www.financetom.com All Rights Reserved