07-05-2025
Amazon loses bid to block NLRB case over NYC union bargaining
May 7 (Reuters) - A divided U.S. appeals court has rejected attempt to block a National Labor Relations Board case involving the online retail giant while it pursues claims that the agency's structure is unconstitutional.
The 5th U.S. Circuit Court of Appeals in a 2-1 decision, opens new tab on Tuesday said Amazon should have waited for a Texas federal judge to rule before bringing the case to the appeals court.
Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.
Amazon claims that NLRB members are improperly shielded from being removed at will by the president, and it wants to block the board from ruling on whether the company must bargain with the first union in its history at a New York City warehouse.
Amazon argued that U.S. District Judge Xavier Rodriguez"constructively denied" its motion for a preliminary injunction when he did not rule by September 27, the earliest possible date that the NLRB could have issued a decision.
Amazon appealed that day and two days later, Rodriguez denied Amazon's motion and transferred the lawsuit to Washington, D.C., federal court.
Circuit Judge Irma Ramirez said on Tuesday that Amazon had not shown a legitimate basis for the alleged urgency in its appeal to the 5th Circuit. The NLRB typically takes months to decide cases and was unlikely to rule soon after final briefs were due in September, wrote Ramirez, an appointee of Democratic former President Joe Biden.
Ramirez was joined by Circuit Judge James Graves, an appointee of Democratic former President Barack Obama.
An NLRB spokesman declined to comment. Amazon did not immediately respond to a request for comment.
The labor board currently lacks a quorum to decide cases after President Donald Trump in January fired Democratic Member Gwynne Wilcox, so Tuesday's decision has little practical impact on Amazon.
Wilcox has sued to get her job back, claiming she was improperly removed without cause. The Trump administration, echoing Amazon and other companies, has argued that removal protections for NLRB members violate the president's broad powers to control the executive branch.
About 20 lawsuits have been filed against the NLRB since late 2023 claiming that aspects of its in-house enforcement proceedings violate the U.S. Constitution. Amazon's case was among the first to reach a federal appeals court. At least four judges have blocked NLRB cases from moving forward, while about a dozen others have ruled in the agency's favor.
Amazon's appeal was consolidated with a similar case by Elon Musk's SpaceX, which also claimed a judge had not ruled quickly enough on its bid to block an NLRB case. The 5th Circuit in March said the rocket maker's appeal was premature.
Circuit Judge Priscilla Richman dissented on Tuesday, saying Amazon's sense of urgency was justified.
"No one could know, other than the NLRB, when the Board intended to issue a decision," wrote Richman, an appointee of Republican former President George W. Bush. "What was certain was that the Board could issue a ruling after the [September 27] deadline, at its convenience."
The case is v. National Labor Relations Board, 5th U.S. Circuit Court of Appeals, No. 24-50761
For Amazon: Amber Rogers of Hunton Andrew Kurth
For the NLRB: Tyler Wiese
NLRB wins transfer of Amazon lawsuit from Texas to D.C.
Amazon takes challenge to NLRB's structure to US appeals court
US Supreme Court won't block NLRB case pending challenge to its structure
In Amazon, SpaceX cases, US labor board's power is on the line
Trump paralyzes US labor board by firing Democratic member
