Elon Musk’s SpaceX hit with NLRB complaint over severance

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107383567 17097585432024 03 02t162918z 1953810971 rc2sd6ajp14d rtrmadp 0 space exploration crew 8

The National Labor Relations Board has accused SpaceX of engaging in unlawful practices with terminated employees, including illegal confidentiality and non-disparagement clauses in severance agreements. The NLRB also claims SpaceX limited workers’ ability to participate in claims against the company and had a rule requiring arbitration agreements and waiving rights to class-action lawsuits. The complaint includes a section of the severance agreement that restricts assistance to other employees unless compelled by a valid subpoena or court order.

If the case is not settled, it will be heard by an NLRB administrative law judge in Seattle. The NLRB is seeking to rescind the severance agreements and class-action waivers and notify workers of their rights. SpaceX has until April 3 to respond to the complaint.

This is part of an ongoing battle between Elon Musk’s companies and the NLRB. In a previous complaint, the NLRB alleged that SpaceX violated workers’ rights by firing eight employees for criticizing Musk. SpaceX filed a lawsuit against the NLRB, claiming the agency’s structure violates the U.S. Constitution.

Other companies, like Trader Joe’s and Amazon, have challenged the NLRB’s structure. In a separate case, X, formerly Twitter, was accused of violating the law by firing an employee who criticized the company’s return-to-work policy.

Overall, the NLRB has multiple open cases against Tesla, the electric car maker led by Elon Musk. Last year, Musk scored a win against the NLRB when the U.S. Court of Appeals vacated a decision against Tesla regarding workers’ rights to wear pro-union clothing.

The National Labor Relations Board has filed a complaint against SpaceX, accusing the company of engaging in unlawful practices related to severance agreements with terminated employees. The complaint alleges that SpaceX included illegal confidentiality and non-disparagement clauses in these agreements, as well as limiting the ability of terminated employees to participate in claims against the company. Additionally, the complaint states that SpaceX maintained an unfair rule requiring workers to sign agreements for arbitration and dispute resolution, waiving their right to participate in class-action lawsuits. If SpaceX does not settle the case, the complaint will be heard by an administrative law judge in Seattle on October 29. SpaceX has not yet responded to the complaint, but is required to do so by April 3. This is not the first legal battle between Elon Musk’s companies and the NLRB, with previous complaints being filed against SpaceX and X (formerly Twitter). Various companies, including Trader Joe’s and Amazon, have challenged the legality of the NLRB’s structure in separate actions. The NLRB continues to have multiple open cases against Tesla, another of Musk’s companies. In a previous case, the U.S. Court of Appeals ruled in favor of Tesla against a decision made by an NLRB administrative law judge regarding workers’ rights to wear pro-union attire.

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