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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchOn August 19, 2025, the U.S. Court of Appeals for the Fifth Circuit affirmed preliminary injunctions that paused National Labor Relations Board (NLRB) proceedings against SpaceX, Energy Transfer and Findhelp. The panel said the employers were likely to succeed in arguing that statutory protections limiting the removal of NLRB administrative law judges and Board members violate the Constitution’s separation of powers. It was a preliminary ruling—not a final decision striking down the NLRB.
What the Fifth Circuit ruled
In Space Exploration Technologies Corporation v. NLRB, No. 24-50627, the Fifth Circuit considered the NLRB’s appeals from three separate federal district court orders. Each employer had challenged the agency’s structure while facing an NLRB unfair-labor-practice proceeding, and each had obtained a preliminary injunction halting that proceeding. The appellate panel affirmed those injunctions.
The court’s decision was about whether those constitutional challenges were likely to succeed and whether the employers could pause the agency proceedings while the cases continued. It did not finally resolve the merits of every challenge or invalidate the NLRB as an institution.
Why the court questioned the NLRB’s removal protections
Administrative law judges
The panel focused first on NLRB administrative law judges (ALJs). Under the arrangement described in the Fifth Circuit’s August 19, 2025 opinion, an ALJ could be removed only for good cause, and the Merit Systems Protection Board had a role in determining whether good cause existed. The panel viewed those protections as two layers of for-cause limits between the President and the ALJs.
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Judge Don R. Willett, writing for the court, put the point this way: “ALJs are inferior officers insulated by two layers of for-cause removal protection—an arrangement the Supreme Court and this circuit have both held unconstitutional.” That statement describes the Fifth Circuit panel’s reasoning; it is not a new final ruling by the Supreme Court.
NLRB Board members
The panel also concluded that the employers were likely to succeed in challenging statutory limits on removing NLRB Board members. The opinion treated the ALJ and Board-member protections as distinct structural issues; the preliminary injunctions rested on the panel’s assessment of the employers’ likelihood of success, not a final judgment abolishing either office.
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Why the court allowed the structural claims to proceed
The NLRB argued that the Norris-LaGuardia Act deprived federal district courts of jurisdiction. The Fifth Circuit rejected that argument in these cases, reasoning that the employers’ claims concerned Article II and the structure of the agency—not the terms and conditions of employment or union representation. That allowed the constitutional challenges to be heard in district court while the NLRB proceedings were paused.
What the ruling meant for the three employers
The injunctions applied to the agency proceedings involving SpaceX, Energy Transfer and Findhelp. They were preliminary relief for those challengers, not a nationwide order ending NLRB cases or changing the agency’s status for every employer, worker or union. The decision addressed the Fifth Circuit appeals from the injunctions; it should not be read as a final merits outcome for every proceeding affected by the separate district court cases.
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SpaceX’s underlying dispute began after an NLRB regional office alleged that the company’s severance agreements violated the National Labor Relations Act (NLRA). SpaceX sued in April 2024, arguing that the removal protections for NLRB ALJs and Board members were unconstitutional. The Fifth Circuit opinion recounts that procedural background.
SpaceX’s case later took a different procedural path
A later development affected SpaceX’s individual NLRB proceeding, but did not itself settle the broader constitutional question. A Mealey’s report dated June 19, 2026, said the Fifth Circuit dismissed SpaceX’s interlocutory appeal after the National Mediation Board (NMB) determined that SpaceX fell under the Railway Labor Act (RLA), rather than the NLRA, and the underlying NLRB charges were dismissed. The NLRB docket for SpaceX, Case 31-CA-307446, records the case as closed and lists a circuit court judgment dated July 9, 2026.
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The NMB’s jurisdictional determination concerned which labor-relations statute applied to SpaceX. It is separate from the 2025 Fifth Circuit panel’s preliminary assessment of the NLRB’s removal protections. The later docket entry and report establish a change in SpaceX’s case path; they do not establish that the general constitutional challenge to the NLRB’s structure was finally resolved.
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The central ruling is the published Fifth Circuit opinion in Space Exploration Technologies Corporation v. NLRB, No. 24-50627, filed August 19, 2025. The later SpaceX procedural update is reflected in the NLRB’s Case 31-CA-307446 docket and in Mealey’s June 19, 2026 report. The account of the later dismissal is limited to those reported and docketed developments.
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