The National Labor Relations Board (NLRB) has dropped its case against SpaceX accusing the company of illegally firing eight employees who criticized CEO Elon Musk, marking a significant setback for workers’ rights protections in the tech industry.
The Background
In 2022, SpaceX terminated eight employees after they circulated an internal letter to company leadership expressing concerns about Musk’s alleged sexual misconduct and his controversial Twitter activity, which the letter characterized as “a frequent source of distraction and embarrassment.” The employees called for the company to condemn Musk’s behavior and enforce its “No Asshole” policy uniformly.
The NLRB filed a formal complaint in 2024, arguing that SpaceX had violated the National Labor Relations Act by terminating workers for engaging in protected concerted activity—a fundamental labor protection that shields employees who speak out collectively about workplace conditions.
An Unusual Legal Maneuver
Rather than continue fighting the NLRB’s case on constitutional grounds—a position SpaceX had previously pursued by arguing the agency’s structure violated the separation of powers—SpaceX pivoted to an unexpected argument: it claimed the company should fall under the jurisdiction of the National Mediation Board (NMB), the federal agency that traditionally oversees labor disputes in the airline and railway industries.
The company’s rationale centered on the fact that SpaceX operates commercial space flights under a Federal Aviation Administration license and technically allows anyone to book a flight. This commercial airline-like business model, SpaceX argued, made it a “common carrier by air.”
The National Mediation Board affirmed this logic in January 2026, and the NLRB subsequently dismissed its case, essentially surrendering its regulatory authority over the company.
Expert Skepticism
According to labor law experts, this classification represents a significant stretch. While the logic may technically hold, SpaceX operates fundamentally differently from traditional airlines, which raised questions about the broader implications of this jurisdictional shift.
A Broader Pattern
The NLRB’s capitulation aligns with a larger trend of independent agencies losing power during the second Trump administration. Notably, Elon 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 federal agencies as part of the Department of Government Efficiency.
Other major technology companies have adopted similar tactics. Amazon has filed cases challenging the NLRB’s constitutionality, signaling that the SpaceX outcome may embolden other corporate challenges to labor board authority.
Implications for Workers
The dismissal raises concerns about worker protections in the aerospace and commercial space industries. The eight former SpaceX employees who filed the original charges had argued that the company did not operate like a traditional airline, since it serves only hand-picked customers rather than the general public—a distinction that appears to have been overlooked in the final decision.
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