SpaceX Wins Legal Battle with National Labor Relations Board
SpaceX has emerged victorious in a legal battle with the National Labor Relations Board (NLRB) after the agency decided to dismiss a case accusing the company of wrongfully terminating engineers involved in an open letter against founder Elon Musk.
The NLRB made the decision to dismiss the case after confirming that it no longer has jurisdiction over SpaceX. The update was first reported by Bloomberg News, which referenced a letter concerning the matter.
In a letter to the lawyers representing the former employees, the NLRB stated that the affected individuals fall under the jurisdiction of the National Mediation Board (NMB) rather than the NLRB, leading to the dismissal of the case.
Danielle Pierce, a regional director at the agency, stated, “the National Labor Relations Board lacks jurisdiction over the Employer and, therefore, I am dismissing your charge.”
The NMB typically oversees airlines and railroads, while the NLRB covers most private-sector employers and manufacturers like Boeing.
The former SpaceX engineers argued that the company should not be under the NMB’s jurisdiction as it only caters to “hand-picked customers.” However, the NMB asserted its jurisdiction over SpaceX, citing that “space transport includes air travel” to reach outer space and that SpaceX’s services are available to anyone.
Prior to this legal victory, SpaceX had challenged the NLRB’s authority in court, claiming that the agency’s structure was unconstitutional. Although the NLRB general counsel at the time, Jennifer Abruzzo, rejected SpaceX’s arguments, the company sought a reconsideration after her termination during the Trump administration.
SpaceX is not alone in challenging the constitutionality of the NLRB. Since SpaceX initiated its legal challenge in 2024, other prominent companies like Amazon have also filed similar cases that are currently pending.