The National Labor Relations Board (NLRB) has dropped its multi-year lawsuit against SpaceX, a company owned by Elon Musk, and stated it will not handle future related cases involving the firm. The NLRB initially filed the lawsuit two years ago, alleging the aerospace company unlawfully terminated eight engineers after they jointly published an open letter criticizing Musk. The board has now announced the dismissal of this suit.
In a letter to the lawyers representing the dismissed employees, the NLRB cited a recent opinion from another agency, the National Mediation Board (NMB), asserting that SpaceX engineers fall under the NMB's jurisdiction, not the NLRB's. NLRB Regional Director Danielle Pierce wrote in the letter: "Consequently, the NLRB lacks jurisdiction over your client's employer, and the charge is dismissed."
The NMB oversees railway and airline companies, such as American Airlines, while the NLRB regulates most other private employers, including Boeing. The NLRB's withdrawal of the lawsuit marks a clear victory for SpaceX. It implies that current and former employees of the company will have more limited legal avenues if they wish to allege retaliatory actions in the future.
Under federal law, employees under NLRB jurisdiction, regardless of union membership, have the right to engage in collective activities aimed at improving working conditions. Employees under NMB jurisdiction are governed by a different law that does not provide equivalent protections. Paige Holland Thielen, one of the dismissed engineers, stated: "The legal system is currently dysfunctional and failing in its duty to protect workers. I believe this signals worse developments ahead—the NLRB is being systematically weakened." An NLRB spokesperson declined to comment. SpaceX, which has consistently denied any wrongdoing, did not immediately respond to requests for comment.
In response to the lawsuit filed by the NLRB in 2024, SpaceX countersued the agency, challenging the constitutionality of its structure. This countersuit led the U.S. Court of Appeals for the Fifth Circuit to issue an injunction, halting the NLRB's proceedings against SpaceX. During the administration of former President Biden, NLRB General Counsel Jennifer Abruzzo rejected SpaceX's argument that the allegations should be handled by the NMB. Following her dismissal by current President Trump in January of last year, SpaceX again requested the NLRB reconsider the jurisdictional issue.
In April 2025, the NLRB's General Counsel office stated that, to "facilitate a resolution of the dispute with SpaceX," it would seek the NMB's opinion on the jurisdictional question. The dismissed engineers argued that SpaceX should not fall under NMB jurisdiction because Congress never granted the agency authority over commercial space transportation. They also contended that, unlike airlines serving the general public, SpaceX's spaceflight services are offered only to a "carefully selected clientele." However, an opinion issued by the NMB on January 14 supported SpaceX's position, stating the company should be under its jurisdiction because "space transportation involves aerial flight to outer space" and anyone can request to book a spaceflight via email through the company's website.
In December 2025, the NLRB also dismissed another lawsuit from the Biden administration era against SpaceX. That lawsuit had alleged that certain provisions in SpaceX's severance and arbitration agreements, including confidentiality clauses, were unlawfully coercive. While the NLRB's recent dismissal may conclude its related litigation against SpaceX, the board's constitutionality faces other challenges. Following SpaceX's 2024 lawsuit, other companies, including Amazon, have filed similar suits, many of which remain pending in U.S. courts.
The dismissed engineers have also filed a lawsuit against SpaceX and Musk under California state law, alleging sexual harassment and retaliation. The complaint mentions that some plaintiffs reported experiencing harassing comments from colleagues that "mimicked Musk's social media posts," creating a "severely hostile and intolerable work environment." A lower court previously refused to send this case to arbitration. In December 2025, SpaceX petitioned a federal appeals court to compel the case into arbitration.
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