A federal judge in Texas has decided to temporarily block the National Labor Relations Board (NLRB) from proceeding with claims against SpaceX, alleging the company forced workers to sign unlawful severance agreements. The decision follows SpaceX’s argument that facing such claims under the current structure of the NLRB would cause irreparable harm and undue financial burden.
U.S. District Judge Alan Albright, appointed by former President Donald Trump, made the announcement at the conclusion of a brief hearing in Waco, Texas. Judge Albright stated he would grant a temporary block on the NLRB’s administrative case, pending further proceedings, without elaborating further during the hearing. A written ruling on the matter is expected to follow.
In its defense, SpaceX filed a lawsuit in April asserting that the NLRB’s internal enforcement processes violate the U.S. Constitution. The company contended that administrative judges and board members appointed by the president cannot be removed without cause, thus challenging the independence of such agencies from political influence.
To secure a preliminary injunction, Judge Albright needed to find SpaceX likely to succeed in its case against the NLRB, a condition he deemed met during Wednesday’s hearing.
SpaceX, represented by its legal team, did not immediately respond to requests for comment following the hearing. Likewise, a spokesperson for the NLRB declined to provide a statement.
During the hearing, arguments centered on historical Supreme Court precedents that established independence for agencies like the NLRB. However, SpaceX’s attorneys cited recent rulings involving other federal agencies to support their argument that officials enforcing federal laws must remain accountable to the White House.
This legal battle originated when the NLRB’s general counsel filed a complaint against SpaceX in January, alleging the dismissal of eight engineers for publicly criticizing Elon Musk, the company’s CEO. The current lawsuit further challenges the NLRB’s claims regarding severance agreements signed by former SpaceX employees.
Several other companies, including Amazon.com, Starbucks, Trader Joe’s, and a hospital operator in Michigan, have also challenged the NLRB’s structure through administrative channels or in federal courts. A recent ruling in a Starbucks case deferred the constitutional issues to be resolved by the federal judiciary.
The outcome of SpaceX’s legal challenge could have broader implications for the regulatory landscape governing employment practices and corporate accountability in the United States.
