New England Biz Law Update
Amazon has filed a lawsuit in the U.S. District Court for the Central District of California, aiming to halt a National Labor Relations Board proceeding involving its status as a joint employer.
The tech giant argues that the NLRB’s administrative law judges and board members are unconstitutionally protected against removal by the president, which undermines executive authority and violates constitutional principles.
Background and legal arguments
The case revolves around NLRB allegations that Amazon jointly employs delivery drivers from Battle Tested Strategies, a delivery service provider, and unlawfully terminated their contract.
In its legal complaint, Amazon asserts that ALJs wield substantial executive power as “Officers of the United States” and are subject to removal restrictions that hinder the president’s oversight. This multi-layered protection, Amazon argues, is a constitutional violation, referencing the U.S. Supreme Court decision in Free Enterprise Fund v. Public Company Accounting Oversight Board.
Amazon’s suit seeks declarative and injunctive relief to prevent ongoing proceedings before these officials. Moreover, Amazon seeks to ensure the agency is accountable to executive authority.
Previous and pending court actions
This is not Amazon’s first legal maneuver against the NLRB. The company previously secured a halt from the 5th U.S. Circuit Court of Appeals on NLRB cases that could compel Amazon to engage in collective bargaining with a union at a New York warehouse. However, the current case, which was filed in the 9th Circuit, presents new challenges.
The lawsuit, filed earlier this month, underscores ongoing tensions between Amazon and labor unions.
