SpaceX Challenges Lawsuit Over Employee Firings

SpaceX has taken legal action against the National Labor Relations Board (NLRB) following accusations of unlawfully terminating employees who criticized CEO Elon Musk in a public letter in June 2022.

According to MyRGV.com, the NLRB charged SpaceX with illegally firing eight employees who authored and circulated a letter expressing concerns about Musk’s behavior and calling for the company’s leadership to address the situation.

The letter, describing Musk’s conduct as a “frequent source of distraction and embarrassment,” also highlighted a sexual harassment allegation against Musk, asserting that it was negatively impacting SpaceX’s reputation.

SpaceX promptly fired the employees, with President and COO Gwynne Shotwell stating in an internal email that the letter had made others feel uncomfortable and pressured them into supporting views that did not align with their own.

The terminated employees filed charges with the NLRB in November, alleging retaliation by SpaceX. On January 3 of the current year, an NLRB regional director in Los Angeles filed a complaint against the company, seeking the reinstatement of the employees, back pay, and letters of apology. If the matter is not settled, SpaceX faces a hearing before an NLRB administrative law judge in March.

SpaceX is seeking preliminary and permanent injunctions to prevent the NLRB from proceeding with the administrative hearing related to the terminated employees. The lawsuit contends that without such relief, SpaceX’s claims will be unfairly adjudicated by an administrator instead of a jury, causing irreparable harm to the company.