Labor Board Sees Another Texas Judge Freeze Enforcement Case

A public benefits corporation won a court order preventing the National Labor Relations Board from moving forward with an unfair labor practice case alleging it illegally fired a slew of union organizers.

Findhelp became the third company Monday to obtain a preliminary injunction halting NLRB enforcement from a Trump-appointed judge in Texas, following SpaceX and an Energy Transfer LP subsidiary.

Judge Mark Pittman ruled on Findhelp’s claim that NLRB administrative law judges are unconstitutionally shielded from being fired by the president, citing US Court of Appeals for the Fifth Circuit precedent similarly disapproving of those removal protections for the Securities and Exchange Commission’s in-house judges.

Two federal judges outside of the Fifth Circuit—an Obama appointee in Michigan and a Biden appointee in Illinois—have rejected preliminary injunction requests that attacked the constitutionality of NLRB ALJs’ removal protections.

The deepening of the divide raises the chances of the US Supreme Court eventually settling the debate.

In the meantime, employers appear to face favorable odds to win court injunctions if they sue in Texas, Louisiana, or Mississippi—thanks to the Fifth Circuit’s precedent on ALJ firing shields.

One of SpaceX’s two constitutional lawsuits against the NLRB was transferred from Texas to California in February because the unfair labor practice case and its underlying events happened in California. But the company repeatedly asked the Fifth Circuit to keep the case in Texas and, on its third attempt, won that battle last month.

In Monday’s ruling, the judge rejected the NLRB’s argument that the company isn’t entitled to relief from a court until the president tries to remove the administrative law judge in the case.

The potential that Findhelp could be forced to participate in a constitutionally defective administrative proceeding is enough to let the company sue, Pittman said.

His order prevents a hearing on allegations that the company committed several unfair labor practices, including firing two union organizers, blocking employees from discussing the union, and surveilling union activities.

Findhelp, the business name for Aunt Bertha, is represented by Jackson Lewis PC. Agency lawyers represent the NLRB.

The case is Aunt Bertha v. NLRB, N.D. Tex., No. 24-00798, 9/17/24.