Elon Musk takes NLRB to court over its constitutionality

From Fortune:

Elon Musk wants answers after the National Labor Relations Board set a court date for March 5, accusing SpaceX CEO of unlawfully terminating employees who criticized him. Musk’s attorneys argue that the NLRB judges are beyond the reach of traditional government oversight and can act with impunity, creating a constitutional and legal battle.

The firm claims that NLRB judges can act largely with impunity and are insulated from oversight by the President, which violates SpaceX’s legal rights. SpaceX’s lawyers argue this kind of reinforced safety net for officials was ruled unconstitutional in a previous case, raising a challenge for constitutional and labor law scholars.

Musk’s vast wealth and track record of legal disputes may cast doubt on the success of his lawsuit, but the controversy around the NLRB’s unpredictable rulings may give this legal battle more weight. The NLRB has swung from anti-union under the Trump administration to more union-friendly under the Biden White House, prompting concerns about the agency’s unpredictability and wide-ranging ramifications for employment law.

A libertarian think tank has recently argued that the NLRB’s decisions can swing wildly from case to case, making it less predictable than other government agencies. Furthermore, another agency, the SEC, has developed a similar reputation for “regulation by enforcement”, raising concerns about governmental overreach and policy creation. This legal battle with the NLRB could have far-reaching implications for government agency oversight and labor law regulations.



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