In the most recent development, SpaceX has lodged a lawsuit against the U.S. labor board that alleges the aerospace manufacturing company of unlawfully dismissing employees who criticized Elon Musk.
What Happened: SpaceX filed the lawsuit on Thursday in a federal court in Brownsville, Texas, challenging the claims of the National Labor Relations Board (NLRB), Reuters reported. The NLRB accused SpaceX of violating federal labor law by sacking eight employees in 2022.
These employees had accused Musk of making sexist comments that contradicted company policies in a signed letter, as per a Reuters report. The employees described Musk as a "distraction and embarrassment.”
The allegations by the NLRB will be scrutinized by an administrative judge and a five-member board appointed by the U.S. president. Their decisions can be appealed in federal court. However, SpaceX is alleging in its lawsuit that the structure of the NLRB is unconstitutional, as federal law only allows the removal of board members and administrative judges for cause, not at will. The lawsuit aims to stop the NLRB case from moving forward.
Interestingly, SpaceX recently used a similar strategy to halt an administrative case by the U.S. Department of Justice alleging that the company unlawfully refused to hire refugees and asylum recipients.
On a related note, a worker of Starbucks Corp has also sued the NLRB over a unionization dispute at her New York store.
Why It Matters: The lawsuit comes on the heels of a series of legal actions involving Elon Musk. Earlier this week, Tesla Inc appealed to a bankruptcy judge to hold an ex-employee accountable for a $425,000 legal debt arising from a feud with Musk. The ex-employee, Martin Tripp, had tipped off the media about Tesla's excessive wastage of raw materials at its Nevada Gigafactory, leading to his dismissal and subsequent legal battles.
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