The National Labor Review Board (NLRB) has dropped a case accusing SpaceX of illegally firing eight employees who criticized the company’s CEO Elon Musk, The New York Times. The employees were originally fired in 2022 after circulating a letter that referenced reports of Musk’s sexual misconduct and called the executive “a frequent source of distraction and embarrassment.” The NLRB filed a complaint claiming the firing was illegal in 2024.
Originally, SpaceX’s opposition to the NLRB’s case was that the agency is unconstitutional, The New York Times writes. Complaints about the NLRB’s independence and power are not uncommon. Amazon has previously claimed that the board’s structure “violates the separation of powers,” a critique the company has made even more recently about the Consumer Product Safety Commission. The NLRB dismissed its SpaceX case following an even more unusual line of argument, though: that regulating SpaceX actually fell under the jurisdiction of the National Mediation Board, the government agency that handles mediation in the airline and railway industries.
Because the company will technically let anyone book a space flight with it, and it operates under a license from the Federal Aviation Administration, SpaceX’s lawyers argue it should be treated like an airline. According to The New York Times, the National Mediation Board issued a decision affirming that logic in January, and not long after, the NLRB dismissed its SpaceX case using the same line of thinking.
Elon Musk and his companies maintain a close relationship with the Trump administration. Musk spent over $250 million to help re-elect President Donald Trump, and he briefly served as a special government employee overseeing budget cuts and layoffs across various government bodies as part of the Department of Government Efficiency. The NLRB gave up its own authority to regulate, rather than it being stripped of funding or employees, but the decision still fits a larger pattern of independent agencies being disempowered during the second Trump administration.
