Labor lawyers, take note.
Last week, the U.S. Supreme Court issued a decision that doesn’t address employment law directly, but it certainly does indirectly. Labor lawyers in particular need to watch this.
In Axon Enterprises v. FTC, the Court unanimously held that plaintiffs could bring federal court challenges to the constitutionality of SEC and FTC procedures before the administrative procedures were exhausted. The opinion, written by Justice Elena Kagan, says the “challenges are fundamental, even existential.” The plaintiffs claim the agencies’ internal adjudication processes are contrary to constitutional separation of powers principles.
The Securities and Exchange Commission and the Federal Trade Commission, like many administrative agencies, operate what amounts to an internal court system. The agencies can investigate cases, bring prosecutions before administrative law judges working for the agencies, and hear appeals from the ALJ decisions. It is not until all three of these stages are complete that the target of their enforcement actions can get into a federal court. Not surprisingly, the agencies usually win.
In this case, the plaintiffs contend that the way the ALJs are employed is unconstitutional. ALJs can be removed “only for good cause” as determined by the Merit Systems Protection Board, a civil service process. MSPB members can be removed only by a Presidential decision finding “neglect of duty” or “malfeasance.”
In addition, and perhaps more...
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