Amazon Scores Major Court Victory As Judge Blocks New York's Bid To Regulate Private-Sector Labor Disputes

Amazon.com Inc. (NASDAQ:AMZN) secured a legal win this week after a federal judge blocked New York from enforcing a new labor law that would allow the state to intervene in private-sector union disputes normally handled by federal regulators.

The preliminary injunction, issued by U.S. District Judge Eric Komitee in the Eastern District of New York on Wednesday, pauses enforcement of the statute while Amazon’s broader challenge moves forward.

The court found that Amazon is likely to succeed on its argument that the law is preempted by the National Labor Relations Act (NLRA) and conflicts with long-established federal authority over private-sector labor relations.

State Sought To Act Amid NLRB Quorum Crisis

New York lawmakers advanced the measure earlier this year, arguing the state needed temporary authority to process labor complaints because the National Labor Relations Board (NLRB) has been hamstrung by a loss of quorum.

The NLRB has been unable to fully function since President Donald Trump fired Democratic board member Gwynne Wilcox in January, leaving hundreds of cases stalled.

California later passed a similar law, and the NLRB has since filed separate federal suits challenging both states’ efforts. The federal agency argues that only Congress can decide how to handle labor governance gaps when the NLRB lacks a quorum.

Komitee echoed that view, warning that allowing states to act would expose companies to conflicting or duplicative rulings.

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Case Connected To Firing Of Staten Island Union Leader

Amazon's lawsuit was filed shortly after the Teamsters-affiliated Amazon Labor Union submitted an unfair labor practice complaint to the New York Public Employment Relations Board (PERB). The board had planned to investigate allegations tied to the firing of Brima Sylla, a union vice president at Amazon's unionized JFK8 warehouse in Staten Island.

Amazon argued that PERB had no legal authority to take that case. With the injunction now in place, the state agency is barred from acting until the court rules on the merits.

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