SpaceX, the aerospace company renowned for its rockets and satellites, has taken legal action against the US Labor Board in response to allegations made by one of its employees. The accusation asserts that SpaceX violated a federal workplace law by terminating employees who distributed a letter criticizing CEO Elon Musk and purportedly referred to him as a “distraction and embarrassment.” In retaliation, SpaceX has argued that the National Labor Relations Board (NLRB), the agency behind the complaint, operates under an unconstitutional structure.
The NLRB contends that SpaceX unlawfully dismissed eight employees in 2022 for signing the critical letter and accuses Elon Musk of violating company policy through sexist remarks. The case follows a procedural path involving an administrative judge and a five-member board appointed by the US president. Decisions made in this process can later be contested in federal court. SpaceX’s lawsuit maintains that federal law permits the removal of administrative judges and board members only for cause, not at will, thereby rendering the NLRB unconstitutional. The objective of the legal action is to halt the NLRB from advancing the case.
Interestingly, SpaceX has previously employed a similar strategy to thwart a case brought by the US Department of Justice. This earlier instance involved accusations that SpaceX refused to hire refugees and asylum beneficiaries. In that case, a federal judge in Brownsville temporarily suspended proceedings, citing the significance of administrative judges at the justice department being chosen by the president rather than the attorney general, as stipulated by the US Constitution.
In a parallel development, the NLRB is confronting a lawsuit akin to SpaceX’s, filed by a Starbucks employee. This employee initiated legal action in October after her appeal to oppose the unionization of a New York store was denied by the board. However, the NLRB has yet to officially acknowledge this particular lawsuit.