Elon Musk just scored a major win after the nation’s top labor regulator dropped its case against SpaceX over the firing of eight employees.
The National Labor Relations Board (NLRB) sent a letter this month to lawyers representing the fired workers, saying it was dismissing the case over a jurisdiction issue, Bloomberg reports.
The dispute dates back to 2022, when a group of SpaceX employees circulated an open letter urging the company to distance itself from Musk’s behavior on social media. Shortly after, the employees were fired. In 2024, the NLRB issued a formal complaint against the rocket company, alleging the terminations were retaliatory and violated the workers’ rights to engage in protected collective activity.
But now, the board has concluded that SpaceX falls outside its jurisdiction. In its letter this month, the NLRB sided with SpaceX’s argument that the company does not fall under the agency’s authority.
“Accordingly, the National Labor Relations Board lacks jurisdiction over the Employer and, therefore, I am dismissing your charge,” Danielle Pierce, a regional director of the agency, wrote in the letter obtained by Bloomberg.
The labor board cited a recent opinion issued by the National Mediation Board (NMB), which determined that SpaceX engineers belong under its jurisdiction.
This distinction makes a big difference. Under federal law, workers covered by the NLRB have broad rights to organize and engage in collective action, with or without a union. Workers under the NMB operate under a different statute that offers narrower protections.
The NMB oversees railroad and airline companies, while the NLRB covers the majority of other private-sector employers. SpaceX has argued that it falls under the NMB’s jurisdiction as it allows customers to book space travel like an airline if you squint really hard. The fired employees disputed this claim, pointing out that SpaceX doesn’t operate like a traditional airline and its trips are not open to the general public. In addition, the NMB doesn’t currently have authority over companies that provide commercial space travel.
Still, the dismissal is a significant development in Musk’s broader fight against federal regulators. SpaceX has previously challenged the NLRB’s authority, arguing that the agency’s structure is unconstitutional.
The ruling comes as Musk, an off-and-on ally of President Donald Trump who contributed millions to his presidential campaign, has repeatedly tried to influence Washington. Following the election, Musk led the now-defunct Department of Government Efficiency (DOGE), which pushed for cuts across multiple federal agencies. Meanwhile, the administration has been slow to fill roles at regulatory bodies that oversee Musk’s companies, including the NLRB and the Consumer Financial Protection Bureau.
And Musk isn’t the only billionaire cozying up to Trump while fighting organizing efforts at his companies. Amazon, founded by Jeff Bezos, has also argued that the NLRB’s structure is unconstitutional, as the retail giant failed to sign contracts with workers who have voted to unionize.
Bezos’ proximity to Trump has also been on display recently. Amazon MGM reportedly paid about $40 million for the rights to a documentary about the life of First Lady Melania Trump and then spent another $35 million on marketing. And just last week, Bezos welcomed the U.S. Secretary of Defense Pete Hegseth to the headquarters of Blue Origin, a business whose future depends heavily on government contracts.
For their part, the eight former SpaceX employees are continuing to pursue harassment and retaliation claims related to their dismissal in a separate case filed in California.
SpaceX and the NLRB did not immediately respond to a request for comment from Gizmodo.
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