Elon Musk‘s rocket manufacturing company SpaceX is reportedly under scrutiny by the California Civil Rights Department due to claims of unaddressed sexual harassment and discrimination against female employees.
What Happened: Several months ago, a group of engineers raised complaints with the civil rights watchdog, claiming they were unfairly dismissed after voicing criticism against the company and CEO. These complaints allege that the rocket-making company favors men over women for jobs and promotions, pays women employees less for similar jobs, and even tolerates sexual comments and other harassment, Reuters reported, citing the complaints.
As per the report, the complaints allege that SpaceX “tolerates, condones, and permits a work environment that is hostile to female employees.” The agency has already notified SpaceX of these claims and the company has until the end of February to respond. Subsequently, the agency will determine the next course of action, including the potential of a lawsuit.
Why It Matters: The allegations are not the first of their kind for companies under Musk's leadership. Previous allegations of labor and employment law violations have been leveled against both Tesla Inc. and Musk's social media service X.
The California Civil Rights Department itself has previously alleged that Musk’s EV company Tesla discriminated against black workers at its plant with regard to pay and promotion.
Price Action: Tesla shares closed 2.2% higher at $185.10 on Tuesday, according to data from Benzinga Pro.
Photo by Fedor Selivanov on Shutterstock
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