Supreme Court Rules in NLRB Case (June 26, 2014)
The Supreme Court ruled today that President Obama’s recess appointments to the National Labor Relations Board (NLRB) were unconstitutional. CFPB Director Richard Cordray was appointed the same day but has since been confirmed by the Senate, suggesting today’s ruling will have little or no effect on the CFPB.
In its decision in the case, NLRB v. Noel Canning, et al, the court ruled Obama exceeded the scope of his authority in making three NLRB appointments during a Congressional recess. However, the decision concluded that the president’s recess appointment authority is broader than was suggested by an appellate court that nullified the NLRB appointments in early 2013, according to a blog post by John E. Lande, an attorney with Dickinson, Mackaman, Tyler & Hagen.
The case was viewed by many as a litmus test for the legality of Obama’s recess appointment of Cordray to head the CFPB in January 2012. Cordray was confirmed by the Senate in July 2013, but there could still be questions as to the validity of actions taken by the CFPB prior to his confirmation. However, with Cordray officially confirmed, “this ruling will have no impact on the existence of the CFPB, or, in the long run, on the CFPB’s ability to use its rulemaking authority,” Lande wrote.
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