Goldberg Segalla partners Cali L. Chandiramani and Scott R. Green wrote an article that was published in Law360 regarding the Fifth Circuit Court of Appeals’ landmark decision in SpaceX v. NLRB.

The article, titled “How 5th Circ.’s NLRB Ruling May Reshape Federal Labor Law,” explores the potential impact of the decision that ruled the structure of the National Labor Relations Board (NLRB) likely violates the U.S. Constitution by insulating NLRB members and administrative law judges from presidential removal.

This decision stems from SpaceX’s challenge to the NLRB’s constitutionality, joined by other employers. The court upheld a preliminary injunction blocking NLRB proceedings against SpaceX, citing that the agency’s structure does not meet the narrow exceptions previously recognized by the Supreme Court.

However, they do note that, while the decision undermines the agency’s authority, it does not immediately shut down NLRB enforcement.

“Employers and labor organizations should expect more litigation, more uncertainty and a possible U.S. Supreme Court showdown. The safest course is to stay compliant with existing laws, while preserving defenses and preparing for rapid shifts in policy.”

As far as a longer-term outlook is concerned, they say this is a moment to prepare for volatility.

“The Fifth Circuit’s decision is one of the most consequential developments in labor law in years. It casts doubt on the legitimacy of the agency that governs union-management relations and signals potential upheaval ahead. For employers and labor organizations alike, the challenge will be navigating a landscape where the rules of the game are uncertain – not only in substance, but in the very structure of the referee. Staying proactive, preserving defenses and monitoring developments closely will be essential in the months ahead.”

Goldberg Segalla’s Logan Arlen also contributed to the article.

READ THE FULL ARTICLE HERE (subscription required)