National Labor Relations Board Dismisses SpaceX Case on Jurisdictional Grounds
The National Labor Relations Board (NLRB) has officially dismissed its high-profile case against SpaceX, bringing an end to a protracted two-year legal battle. The dispute centered on the rocket company's termination of eight engineers who had publicly criticized CEO Elon Musk in an open letter. The labor board cited clear jurisdictional issues as the primary reason for dropping the complaint, marking a significant development in this ongoing saga.
Jurisdictional Shift from NLRB to National Mediation Board
In a formal letter addressed to the attorneys representing the former employees, the NLRB referenced a recent opinion from the National Mediation Board (NMB). The agency argued that SpaceX engineers actually fall under the jurisdiction of the NMB rather than the NLRB. Danielle Pierce, a regional director of the NLRB, explicitly stated in the letter, "Accordingly, the National Labor Relations Board lacks jurisdiction over the employer, and therefore, I am dismissing your charge." This document was reviewed and confirmed by Bloomberg News.
The National Mediation Board traditionally oversees railroad and airline companies, including major carriers like American Airlines Group. In contrast, the NLRB governs most other private-sector employers, including manufacturing giants such as Boeing Co. The original complaint was filed two years ago, alleging that SpaceX unlawfully fired the engineers specifically for their participation in drafting and disseminating the critical open letter.
Implications for SpaceX and Employee Protections
The NLRB's withdrawal represents a favorable outcome for SpaceX, as both former and current employees will now have substantially reduced legal recourse when alleging retaliation. Under established United States law, workers covered by the NLRB possess the right to engage in collective action to improve their working conditions, regardless of union representation. However, workers under NMB jurisdiction are governed by a different legal framework that lacks equivalent protective measures.
Paige Holland-Thielen, one of the terminated engineers, expressed deep concern to Bloomberg, stating, "The legal system doesn't feel like it's working like it's supposed to, and it doesn't feel like it's protecting workers the way it's supposed to. I think that this is a sign of worse things to come in declawing the NLRB." This sentiment highlights the broader anxieties among labor advocates regarding diminishing worker protections.
Legal Maneuvers and Broader Constitutional Challenges
In 2024, SpaceX proactively responded to the NLRB's complaint by filing a lawsuit against the agency, challenging its very structure as unconstitutional. This legal action resulted in an injunction from the 5th Circuit Court of Appeals, which effectively paused the Labor Board's case against the company. During the administration of former President Joe Biden, NLRB General Counsel Jennifer Abruzzo had firmly rejected SpaceX's claim that the NMB should handle the accusations. However, following Abruzzo's dismissal by former President Donald Trump in January 2025, the company successfully sought reconsideration of the jurisdictional issue.
By April 2025, the NLRB general counsel's office announced it would seek the mediation board's opinion "in the interests of potentially settling" the disputes with SpaceX. The fired engineers contested this jurisdictional shift, arguing that Congress never granted the NMB authority over commercial space transportation. They emphasized that unlike commercial airlines serving the general public, SpaceX provides rides exclusively to a select group of hand-picked customers. Despite these arguments, the NMB ruled in SpaceX's favor in January 2025, asserting that "space transport includes air travel" to reach outer space and that the company's website allows anyone to email for trip purchases.
Additional Legal Proceedings and Ongoing Lawsuits
In December 2025, the NLRB abandoned another Biden-era case against SpaceX, which had alleged that terms in the company's severance and arbitration agreements, including confidentiality rules, were illegally coercive. While the NLRB's recent reversal is expected to resolve SpaceX's ongoing lawsuit against the agency, the labor board continues to face other constitutional challenges. Since SpaceX initiated its lawsuit in 2024, other corporations, including Amazon, have filed similar cases, several of which remain pending in United States courts.
Simultaneously, the fired engineers have pursued separate legal action against SpaceX and Elon Musk under California law, alleging sexual harassment and retaliation. Their lawsuit claims that some plaintiffs received harassing comments from coworkers that "mimicked Musk's posts" on social media, thereby "creating a wildly uncomfortable, hostile work environment." In December 2025, SpaceX petitioned a federal appeals court to compel arbitration of this case after a lower court refused the request.
