By: Vasileios Karamanlis
Within the past year, large U.S. corporations have been targeted for violations of worker’s rights by the National Labor Relations Board (“NLRB”). For example, Amazon has been accused of attempting to end efforts to unionize by interrogating workers, threatening to call the police on them and demoting workers involved in union organizing.[1] Similarly, SpaceX was accused of requiring employees who were laid off or fired to sign agreements that barred them from joining class-action lawsuits against them.[2] These accusations come at the wake of a surge in union drives and contemporary equality efforts.[3] Conversely, this also comes at the wake of lawsuits challenging the constitutionality of various regulatory agencies.[4] Within the last couple of years alone, administrative law has been shifting in a direction that makes it more difficult for the government to protect workers.[5] With increased pressure from the NLRB and a new found wave of conservative support, these corporate behemoths are choosing to capitalize on the Supreme Court’s conservative majority and are fighting back.[6]
Filed January 2024, SpaceX was one of the first companies to take action in an attempt to hobble the NLRB.[7] Following these claims are also filings made by Trader Joe’s[8], Amazon[9], and Starbucks[10] in an effort to remove the regulatory powers of the agency. The recent SpaceX filing claims that the NLRB is engaging in “an unlawful attempt . . . to subject SpaceX to an administrative proceeding whose structure violates Article II, the Fifth Amendment, and the Seventh Amendment of the Constitution of the United States.”[11] SpaceX contends that the existence of the NLRB violates the separation of powers since it mixes executive and judicial functions.[12] Additionally, they contend that the NLRB’s use of administrative judges[13] is a violation of the constitutional right to a fair trial.[14]
These claims can simply be answered using case law. In 1937, the Supreme Court upheld the constitutionality of the NLRB.[15] In doing so, the court made it clear that workers have the right to organize and bargain collectively.[16] With the Jones & Laughlin Steel decision, the court reinforced that Congress had the power to create these agency structure guidelines which would help the agency function well.[17] For example, by not allowing presidents to replace all of the NLRB’s administrative law judges for any reason or just because they feel like it, Congress intended to ensure the independence of those judges.[18]
These lawsuits can be seen as an attempt to remove these independent agencies and prevent a neutral process.[19] Moreover, considering the current conservative majority and their history, it is a toss-up whether the court will adhere to their historical rulings.[20] If these corporations succeed in their endeavors, there is a fear that the court could be shifting backwards toward a more big-business focused perspective, similar to the approach of the “Lochner Era.”[21] While there is room for optimism,[22] an issue currently on the docket regarding Chevron means the future of the NLRB could be uncertain.[23]
[1] See Kate Andrias, Amazon, SpaceX and Other Companies Are Arguing the Government Agency That Has Protected Labor Rights Since 1935 Is Actually Unconstitutional, The Conversation (Mar. 25, 2024, 8:40 AM), https://theconversation.com/amazon-spacex-and-other-companies-are-arguing-the-government-agency-that-has-protected-labor-rights-since-1935-is-actually-unconstitutional-225611.
[2] Daniel Wiessner, SpaceX Forced Workers to Sign Illegal Severance Agreements, US Agency Claims, Reuters, (Mar. 21, 2024, 9:05 PM), https://www.reuters.com/business/spacex-forced-workers-sign-illegal-severance-agreements-us-agency-claims-2024-03-21/.
[3] See Steven Greenhouse, Major US Corporations Threaten to Return Labor to ‘Law of the Jungle’, The Guardian (Mar. 10, 2024, 7:00 AM), https://www.theguardian.com/us-news/2024/mar/10/starbucks-trader-joes-spacex-challenge-labor-board.
[4] Id.
[5] See W. Virginia v. Env’t Prot. Agency, 597 U.S. 697, 700 (2022) (holding that Congress did not grant the Environmental Protection Agency in Section 111(d) of the Clean Air Act the authority to devise emissions caps based on the generation shifting approach the Agency took in the Clean Power Plan); see also Epic Sys. Corp. v. Lewis, 584 U.S. 497, 497 (2018) (holding that neither the Arbitration Act’s saving clause nor the National Labor Relations Act (NLRA) supersede Congress’s instructions in the Federal Arbitration Act).
[6] See Greenhouse, supra note 3.
[7] See Complaint for Declaratory and Injunctive Relief, Space Expl. Technologies Corp. v. NLRB, 2024 WL 98691 (S.D.Tex. Jan 4, 2024).
[8] Max Nesterak, Trader Joe’s Argues National Labor Relations Board Is Unconstitutional — And Other Labor News, Minn. Reformer (Feb. 2, 2024, 9:58 AM), https://minnesotareformer.com/2024/02/02/trader-joes-argues-national-labor-relations-board-is-unconstitutional-and-other-labor-news/.
[9] Haleluya Hadero, Amazon Argues That National Labor Board Is Unconstitutional, Joining SpaceX and Trader Joe’s, AP News, https://apnews.com/article/amazon-nlrb-unconstitutional-union-labor-459331e9b77f5be0e5202c147654993e (last updated Feb. 16, 2024, 5:31 PM).
[10] Andrew Afifian, Starbucks Worker: NLRB Is Unconstitutional, Dall. Express (Feb. 3, 2024), https://dallasexpress.com/national/starbucks-worker-nlrb-is-unconstitutional/.
[11] Space Expl. Technologies Corp., 2024 WL 98691, at 1.
[12] See Andrias, supra note 1.
[13] Who We Are, NLRB, https://www.nlrb.gov/about-nlrb/who-we-are (last visited Mar. 24, 2024).
[14] See Andrias, supra note 1.
[15] See N.L.R.B. v. Jones & Laughlin Steel Corp., 301 U.S. 1, 49 (1937) (“Our conclusion is that the order of the Board was within its competency and that the act is valid as here applied.”).
[16] See id. at 33.
[17] See Humphrey’s Ex’r v. United States, 295 U.S. 602 (1935) (referencing Congress’s power to discharge its duties independently).
[18] See id. at 629.
[19] See Eric Katz, Supreme Court Appears Ready to Deal Another Blow to Federal Agencies’ Administrative Powers, Gov’t Exec. (Nov. 29, 2023), https://www.govexec.com/management/2023/11/supreme-court-appears-ready-deal-another-blow-federal-agencies-administrative-powers/392348/.
[20] See id.
[21] Kate Andrias, Constitutional Clash: Labor, Capital, and Democracy, 118 Nw. U. L. Rev. 985 (2024).
[22] See id. at 992.
[23] Amy Howe, Supreme Court Likely to Discard Chevron, SCOTUSblog (Jan. 17, 2024, 6:58 PM),