Court Ruling Challenges NLRB's Structure Amidst SpaceX Lawsuit

A U.S. appeals court has sided with SpaceX and two other companies over the likely unlawfulness of the U.S. National Labor Relations Board's structure, preventing the agency from pursuing cases against them. The ruling finds the current structure limits presidential authority, raising constitutional concerns.


Devdiscourse News Desk | Updated: 20-08-2025 00:16 IST | Created: 20-08-2025 00:16 IST
Court Ruling Challenges NLRB's Structure Amidst SpaceX Lawsuit
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A U.S. appeals court ruled Tuesday in favor of SpaceX, backing the claim that the National Labor Relations Board's (NLRB) structure may be unconstitutional. This ruling temporarily halts the agency's cases against SpaceX and two other firms, Energy Transfer and Aunt Bertha.

The 5th Circuit Court of Appeals highlighted the president's constrained ability to control executive-branch operations due to the current legal protections of NLRB's judges and board members.

Decisions by three Texas judges blocking NLRB cases against the companies were upheld. This ruling fuels ongoing debate regarding the NLRB's independence and executive power. SpaceX, alongside other affected companies, awaits the outcome of lawsuits challenging the NLRB's authority.

(With inputs from agencies.)

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