In a recent twist, SpaceX’s battle against the National Labor Relations Board (NLRB) will continue in Texas federal court, at least for the time being. The 5th U.S. Circuit Court of Appeals has overturned an earlier decision that would have moved the lawsuit to California, where SpaceX is headquartered.
The appeals court’s brief order on Friday nullified a July ruling by U.S. District Judge Rolando Olvera, who had decided to transfer the case from his court in Brownsville to Los Angeles. The decision was made without prejudice, meaning the NLRB could still seek to have the lawsuit relocated.
The 5th Circuit’s ruling comes as it reviews SpaceX’s arguments that Olvera improperly handled the company’s request to halt the NLRB proceedings while the lawsuit unfolds. Earlier this year, the 5th Circuit had temporarily paused the NLRB case to allow SpaceX’s appeal to proceed.
SpaceX’s lawsuit, filed in January, challenges the structure of the NLRB, alleging that its internal procedures violate constitutional rights and the separation of powers. The company argues that NLRB judges and board members are impermissibly insulated from presidential removal and that this undermines their right to a jury trial.
This lawsuit is part of a broader wave of legal challenges against the NLRB’s enforcement actions, which have also involved other major companies like Amazon, Starbucks, and Trader Joe’s.
Additionally, SpaceX faces another legal battle over allegations that it coerced laid-off employees into signing severance agreements with unlawful provisions. In a separate development, U.S. District Judge Alan Albright has blocked this case from proceeding while the broader lawsuit is pending.
The NLRB has dismissed these claims as baseless, suggesting that they serve merely to distract from actual labor law violations.
The 5th Circuit panel, which includes judges appointed by both Republican and Democratic presidents, continues to weigh these complex legal issues.
