The federal labor board threw out a two-year-old decision in which William Emanuel, a former Republican member, allegedly had a financial conflict of interest unknown to federal watchdogs at the time.

The National Labor Relations Board on Friday vacated the decision in in ExxonMobil Research & Engineering Co., citing Emanuel’s stock holdings in Exxon Mobil Corp. at the same time he decided the case. Although the matter had been reviewed by the NLRB inspector general and the US Department of Justice, the “product of his unlawful participation” had been left in place, the board’s Democratic majority wrote.

“Vacatur eliminates ...

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