Fifth Circuit Upholds Injunction Because NLRB Structure Is Likely Unconstitutional

On August 19, 2025, in Space Exploration Tech. Corp. v. National Labor Relations Board, et al., a panel of the U.S. Court of Appeals for the Fifth Circuit upheld preliminary injunctions that had halted NLRB complaint proceedings. The court held that the employers that obtained the injunctions will likely prevail on their arguments that multiple protections that stand in the way of the president's removing NLRB administrative law judges (ALJs) and Board members violate the Constitution. This decision opens the door for other employers to seek similar injunctions to stop ongoing NLRB proceedings.

The District Court Lawsuits and Consolidated Appeals

Three employers facing NLRB unfair labor practice (ULP) complaints obtained preliminary injunctions in three different federal district courts in Texas by challenging the constitutionality of the statutory removal protections for Board members and ALJs. The NLRB appealed, and the appeals were consolidated at the Fifth