SpaceX has secured a significant legal victory as the National Labor Relations Board (NLRB) has officially dismissed a case that alleged the company terminated engineers involved in an open letter critical of founder Elon Musk. The NLRB confirmed it no longer holds jurisdiction over the private space company.
Labor Board Reclassifies Jurisdiction
The decision, initially reported by Bloomberg News citing a reviewed letter, stems from the labor board’s determination that the affected former employees fall under the purview of the National Mediation Board (NMB), not the NLRB. In a letter addressed to the former employees’ legal representatives, the NLRB stated, “the National Labor Relations Board lacks jurisdiction over the Employer and, therefore, I am dismissing your charge.”
Traditionally, the NMB oversees entities within the airline and railroad industries. The NLRB, conversely, governs most private-sector employers and manufacturers like Boeing.
SpaceX’s Appeal and NMB’s Stance
Former SpaceX engineers had contested the NMB’s jurisdiction, arguing that SpaceX, by serving only select clients, should not be classified under the NMB’s mandate. However, the NMB’s opinion clarified that SpaceX’s operations, which include space transport, encompass air travel essential for reaching outer space. The board also noted that SpaceX’s services are accessible to any interested party.
This development follows SpaceX’s prior legal challenges questioning the constitutionality of the NLRB’s structure. These challenges were initially rejected by then-NLRB General Counsel Jennifer Abruzzo during the Biden administration. Following the Trump administration’s changes, SpaceX sought a reconsideration of its arguments.
Broader Legal Landscape
SpaceX is not alone in challenging the NLRB’s constitutionality. Since the company initiated its legal proceedings in 2024, other prominent companies, including Amazon, have filed similar cases that are currently pending resolution.