The NLRB just gave up on SpaceX workers who claim they were illegally fired

Source: Engadget

Background

The National Labor Relations Board (NLRB) has dropped a case accusing SpaceX of illegally firing eight employees who criticized the company’s CEO, Elon Musk, according to The New York Times. The employees were terminated in 2022 after circulating a letter that referenced reports of Musk’s sexual misconduct and called him “a frequent source of distraction and embarrassment.” The NLRB had filed a complaint in 2024 claiming the firings were illegal.

Legal Arguments

SpaceX’s initial opposition to the NLRB’s case was that the agency is unconstitutional, a claim noted by The New York Times. Complaints about the NLRB’s independence and authority are not uncommon; for example, Amazon has previously argued that the board’s structure “violates the separation of powers,” a critique the company has also applied to the Consumer Product Safety Commission.

The NLRB ultimately dismissed its SpaceX case on an unusual procedural ground: it argued that regulating SpaceX actually falls under the jurisdiction of the National Mediation Board (NMB), the agency that handles mediation in the airline and railway industries. Because SpaceX can technically allow anyone to book a space flight and operates under a license from the Federal Aviation Administration, its lawyers contend the company should be treated like an airline. In January, the NMB issued a decision affirming that logic, and shortly thereafter the NLRB dismissed the case using the same reasoning.

Political Context

Elon Musk and his companies have maintained a close relationship with the Trump administration. Musk spent over $250 million to help re‑elect President Donald Trump and briefly served as a special government employee overseeing budget cuts and layoffs across various government bodies as part of the Department of Government Efficiency.

The NLRB’s decision to relinquish its authority to regulate, rather than being stripped of funding or staff, fits a broader pattern of independent agencies being weakened during the second Trump administration.