On Wednesday, December 11, 2024, Reuters reported that a federal judge in Washington, D.C. has ruled that the removal protections for administrative judges of the National Labor Relations Board (NLRB) are illegal. This decision marks a significant development in ongoing lawsuits challenging the structure of the NLRB. U.S. District Judge Trevor McFadden issued the ruling in a case brought by Saint Vincent Hospital, which had filed a lawsuit against the NLRB after receiving a complaint from the agency.
The hospital, located in Massachusetts, argued that the protections preventing NLRB judges from being dismissed at will should be severed from the National Labor Relations Act (NLRA). Judge McFadden’s ruling is the first of its kind, as it permanently invalidates these removal protections, which have been the subject of scrutiny in a series of lawsuits initiated by various employers facing NLRB complaints. The lawsuits contend that certain elements of the NLRB’s internal processes infringe upon the U.S. Constitution.
Previously, three federal judges in Texas indicated that the removal protections for administrative law judges (ALJs) might be unconstitutional and have temporarily halted some NLRB cases. However, Judge McFadden is the first to definitively strike down these protections within the framework of the NLRA. Currently, the NLRB’s ALJs can only be removed by the five-member board after a civil service board determines there is good cause for their removal. Additionally, board members themselves can only be removed for cause.
In his ruling, McFadden emphasized that ALJs possess significant executive authority and must be accountable to the President. He criticized the existing process as overly complex, stating that it undermines the President’s ability to oversee NLRB judges effectively. McFadden was appointed by former President Donald Trump.
The ruling comes amid ongoing litigation involving Saint Vincent Hospital, which is accused of improperly denying grievances from a nurse’s union and making changes to a bonus program without engaging in bargaining. The hospital has denied any wrongdoing. The NLRB has not commented on the ruling, but a spokesperson previously stated that the agency believes its structure is supported by decades of Supreme Court precedent.
In addition to challenging the removal protections, Saint Vincent’s lawsuit also claims that NLRB proceedings violate the constitutional separation of powers and the right to a jury trial. However, McFadden recently dismissed these claims, stating that the hospital could not demonstrate that it would suffer harm from the alleged structural issues. The hospital is currently appealing this dismissal.
Judge McFadden’s decision relied heavily on the Supreme Court’s 2010 ruling in Free Enterprise Fund v. Public Company Accounting Oversight Board, which asserted that members of a board within the Securities and Exchange Commission were improperly shielded from removal. McFadden noted that the NLRB’s structure similarly restricts presidential authority over ALJs, despite their considerable powers.
Source: Reuters
