Earlier today, the U.S. Court of Appeals for the Fifth Circuit issued an opinion concluding that the National Labor Relations Board (NLRB) process relating to its Members and its administrative law judges (ALJs) likely violates Article II of the U.S. Constitution and the separation of powers doctrine. In Space Exploration Technologies Corp., et al. v. N.L.R.B., et al., Case No. 24-50627 (Aug. 19, 2025), the Court ruled that the NLRB’s structure is likely unconstitutional because both its ALJs and its five-member board are too insulated from presidential oversight. ALJs conduct hearings and issue initial decisions in unfair labor practice cases, while the five presidentially appointed board members review those decisions and set the agency’s final policies and rulings. The Fifth Circuit held that being subjected to such proceedings by unconstitutionally insulated officers results in irreparable harm and therefore affirmed preliminary injunctions blocking NLRB cases against SpaceX, Energy Transfer, and Findhelp.

The decision pauses NLRB enforcement actions in these cases and casts doubt on the agency’s authority to conduct proceedings in the future, at least in the Fifth Circuit. Ultimately, this issue will likely need to be resolved by the U.S. Supreme Court.