9th Circuit Rejects Constitutional Challenge to NLRB Structure

The 9th Circuit Court of Appeals has rejected a constitutional challenge to the National Labor Relations Board (NLRB) structure, according to a report by Bloomberg Law. The case involved an apartment management company from Phoenix that appealed unfair labor practice charges, arguing that the NLRB's structure is unconstitutional for several reasons:

• For-Cause Removal: The company claimed that the NLRB's for-cause removal protections violate Article II of the Constitution.
• Seventh Amendment: They argued that the NLRB's adjudication scheme violates the right to a jury trial.
• Separation of Powers: The company contended that the combination of investigatory and adjudicatory powers within the NLRB violates the separation of powers and the Fifth Amendment right to due process.

The court rejected each of these arguments, granting the NLRB's application to enforce its order. Judge Jed Rakoff, sitting by designation from the Southern District of New York, wrote the opinion. The court found no "compensable harm" regarding for-cause removal since the President had not attempted to remove the Administrative Law Judge (ALJ) who issued the order. It also ruled that Thryv remedies do not entitle parties to a jury trial and that the NLRB does not confer investigative and adjudicatory powers on a single individual, thus not violating the separation of powers.

Author: Henry Green
Source: onlabor