The Supreme Court on Monday announced it will review a lower court’s decision in National Labor Relations Board v. Noel Canning, a case with significant labor law implications. Focused on the constitutionality of Obama Administration recess appointments, the case also threatens to undermine the efforts of the Consumer Financial Protection Bureau.
Earlier this year, Pepsi bottler Noel Canning questioned the authority of the NLRB on the grounds that three members, named as recess appointments by President Obama, were invalid and should not count toward a needed quorum. A three-judge panel of the D.C. Circuit Court of Appeals ruled that because Congress was still meeting in “pro forma” sessions, and not technically in full recess, the appointments were not legal. The decision, if upheld by the Supreme Court, could invalidate many, if not all, NLRB decisions made since Jan. 4, 2012. The appeals court ruling has already led nearly 90 companies—including Starbucks, McDonald’s, Domino’s Pizza, CNN, and Time Warner—and several unions to challenge recent NLRB decisions.
