[UPDATE] SpaceX Files Lawsuit Against US Agency Over Accusations of Improperly Firing Workers

SpaceX filed a lawsuit against a United States agency on Thursday after the latter accused the space company of firing workers who were critical of the company's CEO, Elon Musk.

The firm claims in the lawsuit that was filed in Brownsville, Texas, federal court that the structure of the National Labor Relations Board (NLRB) violates the U.S. Constitution. The NLRB is the one responsible for issuing a complaint against SpaceX on Wednesday.

SpaceX Files Lawsuit Against NLRB

[UPDATE] SpaceX Files Lawsuit Against US Agency Over Accusations of Improperly Firing Workers — SpaceX filed a lawsuit against the National Labor Relations Board (NLRB) over the latter's complaint that Elon Musk's company fired workers who were critical of the billionaire entrepreneur. Leon Neal/Getty Images

As seen in a previous report by HNGN, the board alleges that the space company violated federal labor law when it fired eight workers in 2022 for signing on to the letter that accused Musk of making sexist comments that went against company policies.

That particular case will be heard by an administrative judge and then a five-member board that was appointed by United States President Joe Biden. The decisions of the board can be appealed in federal court.

A spokesperson for the NLRB declined to comment regarding the matter. The development comes as SpaceX recently utilized a similar tactic to block an administrative case by the Department of Justice that claims the firm illegally refused to hire refugees and asylum recipients, as per The Guardian.

A Brownsville federal judge ordered a pause of the administration case in November, pending the outcome of a lawsuit by the space company. The judge argued that the U.S. Constitution required that administrative judges at the Justice Department be appointed by the president and not the attorney general as they are now.

Currently, the NLRB is facing a similar lawsuit from a Starbucks employee who was opposed to the unionization of the New York store where she was employed. The worker then sued the board in October last year after it denied her petition for an election to dissolve the union.

In SpaceX's lawsuit, it argued that the complaint by the NLRB was a "distraction to SpaceX employees around the country." The firm claims that the board's proceedings, which involve a hearing in front of an NLRB administrative law judge (ALJ), violate the company's "constitutional right to trial by jury."

Complaint Against the Space Company

Additionally, the firm accused the NLRB of violating the Constitution's rules on the separation of powers. It said that the agency's structure was miles away from the traditional understanding of the concept, according to The Verge.

The space company is now asking the court to deem the provisions restricting the removal of NLRB members and ALJs unconstitutional. A hearing is now scheduled in front of an NLRB ALJ on Mar. 5, 2024. However, there is an option to appeal the decision to the board and then a federal appeals court.

The letter that the NLRB sent to SpaceX executives in June 2022 focused on a series of tweets that the company's CEO had made since 2020. Many of these were found to be sexually suggestive. The company workers alleged that the billionaire entrepreneur's statements did not align with the firm's policies on diversity and workplace misconduct.

The NLRB's complaint also accused SpaceX of interrogating workers about the letter, disparaging the ones who were involved. The firm was also said to have threatened to fire workers who engaged in similar activity, said Reuters.