NLRB Accuses SpaceX of Unlawful Severance Agreements and Employment Practices in New Complaint

The NLRB accused SpaceX of unlawful severance agreements, including confidentiality clauses and limits on workers' rights. SpaceX must respond by April 3.

The National Labor Relations Board (NLRB) has recently filed a complaint accusing SpaceX of engaging in unlawful employment practices related to terminated employees on a nationwide scale. This new complaint, which was filed by NLRB's Region 19-Seattle Regional Director, alleges that SpaceX violated the rights guaranteed in the National Labor Relations Act.

Unlawful Severance Agreements

The complaint claims that SpaceX included unlawful confidentiality and non-disparagement clauses in severance agreements, limiting the terminated workers' ability to participate in other claims against the company.

Unlawful Employment Rules

Additionally, the complaint alleges that SpaceX maintained a rule that required workers to sign an agreement for arbitration and dispute resolution, and to waive their right to receive money in class-action lawsuits against the company.

Legal Action and Response

If SpaceX does not settle the case, the complaint will be heard by an NLRB administrative law judge in Seattle on October 29. Any final decision in the case can be appealed to federal court. SpaceX is required to file a response to the NLRB by April 3.

Request for Order

As part of the complaint, the NLRB's general counsel is seeking an order requiring SpaceX to rescind the severance agreements and class-action waivers, and to broadly notify workers of a notice of employee rights.

Previous Complaints and Lawsuits

This action is the latest in a series of battles between Musk's companies and the NLRB. In a prior complaint against SpaceX filed on January 3, the NLRB alleged that the company had violated workers' rights by firing eight employees for sending a letter in June 2022 to company executives, calling Musk a "distraction and embarrassment." A day after that NLRB complaint was filed, SpaceX sued the NLRB in federal court in Texas.

In October, the NLRB accused the Musk-owned social media company X of violating the law by firing an employee who criticized the firm's return-to-work policy. The complaint says that the worker, Yao Yue, was terminated after trying to organize other workers at the company over those concerns. X was known as Twitter before Musk bought it.

Legal History with NLRB

The NLRB's home page lists eight open cases against Tesla, the electric car maker of which Musk is CEO. Musk scored a win against the NLRB last year when the U.S. Court of Appeals for the 5th Circuit vacated a decision against Tesla by an NLRB administrative law judge. The NLRB judge had declared that Tesla's uniform policy had violated the rights of workers to wear clothes adorned with pro-union logos and slogans.

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