Accessibility Tools

Skip to main content

Major Employers Challenge Constitutionality of Labor Act

Written on .

Amazon is the most recent major employer to challenge the constitutionality of the National Labor Relations Act (NLRB), joining Trader Joe's, Starbucks and SpaceX.  Elon Musk's company, SpaceX, first raised the constitutional issue in a Texas federal court in January.  A company announcement from Amazon stated: "NLRB proceedings violate Article III of the United States Constitution and the Seventh Amendment to the Constitution by seeking to adjudicate private rights outside an Article III court and award a broader range of legal remedies beyond just equitable remedies without trial by jury."  These developments of Constitutional claims will likely become a standard part of employers' defenses against NLRB complaints until there is a definitive legal ruling on the issues. 

Editor's Note:  This writer believes these legal claims, while highly unusual, are not frivolous.  This writer has always wondered about the jury trial issue, and why employers have not raised it more prominently.  Recently, a 2022 ruling from the federal Fifth Circuit Court of Appeals found the U.S. Securities and Exchange Commission's in-house court unconstitutional.  The Supreme Court is currently reviewing that case. 

This article is part of our April 2024 Newsletter. 

View newsletter online

Download the newsletter as a PDF

Related Content

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.

Judge Invalidates Joint Employer Rule, and Independent Contractor Rule Takes Effect

The National Labor Relations Board (NLRB) Joint Employer Regulation, which was set to take effect March 11, 2024, was invalidated by a Te...
balance of justice statue

The Importance of Fairness in Employment to the Law and to Job Satisfaction

Some of you may have heard about disgruntled employees taping phone conversations of their discharge and mentioning them on social media ...
we the people, focus, document

Major Employers Challenge Constitutionality of Labor Act

Amazon is the most recent major employer to challenge the constitutionality of the National Labor Relations Act (NLRB), joining Trader Jo...
starbucks drink on a table

Starbucks' Big Change in Labor Policies

Starbucks' new public commitment to work with its union antagonists to resolve issues has been called a landmark in labor relations.  In ...
smiling blocks

Judge Orders Survey Data to Be Revealed from Employer EEO-1 Reports

Employers are supposed to file annually the EEO-1, Standard Form 100, with the U.S. Department of Labor (DOL).  This requirement applies ...
mcdonalds sign, blue sky

Featured Article at The Federalist Society: Franchise With That? McDonald’s No-Poach Agreements Receive Antitrust Scrutiny

Elizabeth K. Dorminey authored another article for the Federalist Society. Here's a quick summary of what this article, Franchise With ...