Nat'l Labor Relations Bd. v. SW Gen., Inc.

2017-03-21
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Headline: Court rules Vacancies Reform Act bars presidential nominees from serving as acting federal officers, upholding that agencies must replace nominated acting officials and sometimes voiding decisions made while they served.

Holding: The Court held that the FVRA prohibits any person whom the President nominates to a Senate-confirmed office from serving as an acting officer under any §3345 pathway, making Solomon ineligible once nominated.

Real World Impact:
  • Requires replacing nominees who continue acting after nomination or risk voiding agency actions.
  • Makes some enforcement actions vulnerable to challenge if led by ineligible acting officials.
  • Limits Presidential flexibility to keep a nominated official temporarily in office without Senate confirmation.
Topics: acting officials, appointments and confirmations, agency enforcement, labor law

Summary

Background

The dispute centers on Lafe Solomon, who was directed to serve as Acting General Counsel of the National Labor Relations Board after the confirmed general counsel resigned. Solomon met the FVRA's senior-employee test and later was nominated to the permanent job. While he continued to act in that role, the Board issued an unfair-labor-practice complaint against SW General, which challenged the complaint's validity because Solomon had been nominated.

Reasoning

The Court addressed whether §3345(b)(1) of the Federal Vacancies Reform Act bars only first assistants who automatically become acting officers, or whether it bars any person serving as an acting officer under any of the statute's paths. The majority read the statute’s text to apply to any “person” serving “under this section,” and held that the “notwithstanding subsection (a)(1)” clause resolves a clash with the first-assistant default but does not limit the prohibition. Applying that reading, Solomon became ineligible to serve once the President nominated him.

Real world impact

The decision requires Presidents and agencies to replace nominated acting officials or risk agency actions being invalidated. It makes enforcement actions and other decisions taken by ineligible acting officers vulnerable to challenge. The ruling enforces the FVRA's time limits and reporting rules and leaves the President many alternative choices for lawful acting officials.

Dissents or concurrances

Justice Thomas concurred with the statutory outcome but warned the Appointments Clause likely forbids appointing principal officers without Senate confirmation. Justice Sotomayor dissented, arguing the statute and its history show the restriction was meant to apply only to first assistants.

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