US decides SpaceX is like an airline, exempting it from Labor Relations Act

Source: Hacker News

SpaceX Deemed a Common Carrier

Background

The U.S. Labor Board has concluded that SpaceX should be regulated under railway law rather than the National Labor Relations Act (NLRA).

• The Railway Labor Act (RLA), enforced by the National Mediation Board, governs labor relations for railroads and airlines.
• The RLA includes an extensive dispute‑resolution process that makes strikes difficult, and employers covered by the RLA are exempt from the NLRA.

For a practical guide to the RLA, see JDSupra’s overview.
Details on the NLRA exemption are available on the NLRB site here.

The NLRB Complaint

In January 2024, an NLRB regional director filed a complaint alleging that SpaceX illegally terminated eight employees who had signed an open letter criticizing CEO Elon Musk.

• The open letter described Musk as a “frequent source of embarrassment.”
• The complaint sought:
  1. Reinstatement of the employees
  2. Back pay
  3. Letters of apology

Sources

• Ars Technica’s coverage of the complaint: SpaceX illegally fired employees who criticized Elon Musk
• The original open letter: SpaceX employees write letter blasting Musk’s harmful Twitter behavior

SpaceX’s Response

SpaceX sued the NLRB, arguing that the agency’s structure is unconstitutional.

• The lawsuit is detailed here: SpaceX sues US labor board in attempt to block case on anti‑Musk open letter.

Why the Case Was Dropped

A later argument from SpaceX—that it functions as a common carrier (similar to a rail or airline company)—prompted regulators to re‑classify the firm.

• The U.S. Department of Transportation ultimately designated SpaceX as a “common carrier by air” and a “carrier by air transporting mail.”
• Because common carriers fall under the Railway Labor Act, the NLRB no longer had jurisdiction, leading it to abandon the case.

Visual

Credit: Getty Images | Kevin Dietsch

Key Takeaway
SpaceX’s classification as a common carrier shifts its labor‑relations oversight from the NLRB (NLRA) to the National Mediation Board (RLA), effectively removing the agency’s authority to pursue the original employee‑rights complaint.

SpaceX Deemed a Common Carrier

In a February 6 letter to attorneys who represent the fired employees, NLRB Regional Director Danielle Pierce said the agency would defer to a National Mediation Board opinion that SpaceX is a common carrier:

In the course of the investigation and litigation of this case, a question was presented as to whether the Employer’s operations fall within the jurisdiction of the Railway Labor Act (“RLA”) rather than the National Labor Relations Act. As a result, consistent with Board law, the matter was referred to the National Mediation Board (“NMB”) on May 21, 2025 for an opinion as to whether the Employer is covered by the RLA.

On January 14, 2026, the NMB issued its decision finding that the Employer is subject to the RLA as a common carrier by air engaged in interstate or foreign commerce as well as a carrier by air transporting mail for or under contract with the United States Government. Accordingly, the National Labor Relations Board lacks jurisdiction over the Employer and, therefore, I am dismissing your charge.

The letter was provided to Ars today by Anne Shaver, an attorney for the fired SpaceX employees.

“The Railway Labor Act does not apply to space travel,” Shaver told Ars. “It is alarming that the NMB would take the initiative to radically expand the RLA’s jurisdiction to space travel absent direction from Congress, and that the NLRB would simply defer. We find the decision to be contrary to law and public policy.”

We contacted the NLRB today and will update this article if it provides a response. The NLRB decision was previously reported by Bloomberg and The New York Times:

• Bloomberg: “U.S. NLRB gives up oversight of Elon Musk’s SpaceX”
• The New York Times: “SpaceX NLRB Labor Dispute”

“Jennifer Abruzzo, NLRB general counsel under former President Joe Biden, had rejected SpaceX’s claim that allegations against the company should be handled by the NMB,” Bloomberg wrote. “After President Donald Trump fired her in January last year, SpaceX asked the labor board to reconsider the issue.”

NLRB Sought a Way to Settle

In April 2025, SpaceX and the National Labor Relations Board (NLRB) told a federal appeals court in a joint filing that the NLRB would ask the National Mediation Board (NMB) to decide whether it had jurisdiction over SpaceX.

The decision to seek the NMB’s opinion was made “in the interests of potentially settling the legal disputes currently pending between the NLRB and SpaceX on”.