On Thursday, the rocket and satellite maker SpaceX sued a U.S. labor board that had accused it of illegally firing workers who sent a letter to company executives calling CEO Elon Musk a distraction and embarrassment. A regional director of the National Labor Relations Board filed a complaint in November 2022 accusing SpaceX of violating federal labor law that allows co-workers to advocate for workplace issues in an open letter. The complaint said SpaceX interrogated employees about their involvement in the letter, encouraged them to quit, and created an impression that their protected concerted activities were under surveillance.
The complaint alleged that SpaceX fired employees in June 2022 after they sent the letter to their managers. The employees called Musk a “distraction and embarrassment” and demanded that the company distance itself from his public comments on Twitter and other social media platforms. They also accused him of making sexist remarks that violated the company’s policies. SpaceX denies the allegations.
In its lawsuit, filed in Brownsville, Texas federal court, the company claims that the structure of the National Labor Relations Board(NLRB), which issued a complaint against it on Wednesday, violates the U.S. Constitution. The company’s lawyers said the NLRB’s complaint process violates the separation of powers and limits presidential oversight. Its lawsuit cites a case before the Supreme Court that alleges agency tribunals infringe on the right to a jury trial in civil cases. It also takes issue with the NLRB’s use of administrative law judges, which it argues could be more tricky to remove from office despite the substantial executive power granted to them under the National Labor Relations Act to carry out its enforcement duties.
SpaceX’s suit seeks to halt the current legal proceedings scheduled for March in front of an NLRB administrative law judge. The company also wants the court to declare the NLRB’s proceedings unconstitutional.
A spokesman for the NLRB declined to comment. The NLRB has been accused of unfairly targeting companies’ business practices that challenge government policy or criticize the president. The agency also has faced scrutiny for its handling of sexual harassment allegations in the entertainment industry. It took 18 months for the NLRB to file its complaint against SpaceX, and it was filed only after the company received notice of an ALJ hearing, the lawsuit alleges. The NLRB has already convicted some companies and individuals for similar conduct and has brought dozens of additional cases against employers and other defendants. How many of those cases will succeed needs to be precise. A federal judge has ordered a review of the NLRB’s practices. A lawsuit by employees against the NLRB and other agencies is also pending in the same court. The NLRB is seeking to impose new rules on employer’s use of social media that could limit the ability of employees to organize. It could also force companies to pay monetary penalties for not complying with the new rules.
