January 04, 2024
NLRB Faces Legal Challenges to its Constitutional Authority
On January 4, 2024, a lawsuit was filed against the National Labor Relations Board. It alleges the Board’s structure violates the Constitution, shielding its members from removal by the President and denying respondents their right to a trial by jury.
The U.S. Supreme Court is currently considering a case posing a similar challenge to the structure of the Securities and Exchange Commission.
Since the January 4th filing, it is reported that three more employers have filed similar claims.
What are the implications for employers? With the NLRB’s rule on joint employment poised to take effect March 11th, employers might watch the development of the current case. If the Board’s structure or authority are found to be unconstitutional, that may give rise to other challenges that rules previously issued should be withdrawn. Stay tuned. In the interim, join us for the March 11th FREE webcast as we review this rule plus the DOL’s new independent contractor rule.