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Appeals court says NLRB structure unconstitutional, in a win for SpaceX

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Appeals court says NLRB structure unconstitutional, in a win for SpaceX Aria Alamalhodaei AM PDT · August 19, 2025 A federal appeals court handed SpaceX a win on Tuesday, in a ruling that prevents the National Labor Relations Board from prosecuting unfair labor practices against the company. The ruling

The ruling keeps unfair labor practice cases against SpaceX and two other companies, Energy Transfer and Findhelp, on hold while the companies pursue their claim that the NLRB structure violates the U.S. Constitution. While the court did declare it unlawful, this is far from a settled issue and the NLRB is undoubtedly likely to challenge the ruling.

The three-judge panel said being subjected to a possibly unconstitutional administrative proceeding, which is what SpaceX claimed, is an irreparable harm — so the pause continues. The NLRB brought the unfair labor practices claim against SpaceX after it fired a group of employees who signed an open letter criticizing CEO Elon Musk and a culture of sexism in the company.

The core of the dispute is over whether the NLRB’s in-house judges, called administrative law judges, enjoy unlawful protections that shield them from removal

The panel included two judges appointed

We’re always looking to evolve, and

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Aria Alamalhodaei

Aria Alamalhodaei covers the space and defense industries at TechCrunch. Previously, she covered the public utilities and the power grid for California Energy Markets. You can also find her work at MIT’s Undark Magazine, The Verge, and Discover Magazine. She received an MA in art history from the Courtauld Institute of Art in London. Aria is based in Austin, Texas.

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