SpaceX Sues US Agency Over Firing Workers Critical of Elon Musk
SpaceX has filed a lawsuit against a US labor board that accused the company of illegally terminating employees who criticized CEO Elon Musk.
SpaceX Files Lawsuit Claiming NLRB Violates Constitution
SpaceX has filed a lawsuit in federal court in Brownsville, Texas, against the National Labor Relations Board (NLRB), which recently accused the company of wrongfully firing employees. The NLRB had claimed that the employees were terminated for sending a letter to company executives, calling Musk a 'distraction and embarrassment.' However, SpaceX argues that the structure of the NLRB violates the US Constitution.
According to the NLRB, SpaceX violated federal labor law by terminating eight workers who signed the letter. The letter accused Musk of making sexist comments that were against company policies. The case will be heard by an administrative judge and a five-member board appointed by the US president. Decisions made by the board can be appealed in federal court.
SpaceX Claims NLRB Structure is Unconstitutional
In its lawsuit, SpaceX argues that the NLRB's structure is unconstitutional because federal law only allows board members and administrative judges to be removed for cause, not at will. Therefore, SpaceX is seeking to block the NLRB case from moving forward.
Earlier, SpaceX employed a similar tactic to halt an administrative case filed by the US Department of Justice, in which the company was accused of unlawfully refusing to hire refugees and asylum recipients. A federal judge in Brownsville paused the administrative case in November, stating that administrative judges at the Justice Department should be appointed by the president, not the attorney general.
Other Lawsuit Against NLRB and SpaceX's Similar Tactic
The NLRB is already facing another lawsuit from a Starbucks Corp employee who opposed the unionization of the New York store where she works. The worker sued the board in October after it denied her petition for an election to dissolve the union. The agency has not yet responded to that lawsuit.
SpaceX has utilized a similar tactic before when it successfully paused an administrative case filed by the US Department of Justice. In that case, the judge ruled that administrative judges at the Justice Department should be appointed by the president, as per the US Constitution.
