SpaceX, led by Elon Musk, faces accusations from a US labor agency of imposing unlawful agreements on laid-off or terminated rocket and satellite maker employees, which allegedly prohibited them from signing unlawful agreements criticizing the company or participating in class-action lawsuits against it.
A complaint lodged by a National Labor Relations Board (NLRB) regional official in Seattle on Wednesday adds to SpaceX's legal woes. It coincides with an existing case it filed alleging that the agency's structure breaches the US Constitution.
READ ALSO: SpaceX Counters an Ongoing Lawsuit, Claiming U.S. Labor Board Structure Unconstitutional
The Mandatory Severance Agreements
SpaceX, which is based in Hawthorne, California, had been accused of compelling employees to sign severance agreements containing confidentiality and non-disparagement clauses that restrict them from exercising their rights under US labor law, according to the National Labor Relations Board's (NLRB) new statement released on Thursday.
While standard in severance agreements signed by workers, the NLRB stipulates that such provisions must explicitly state that workers cannot forfeit their rights to advocate for improved working conditions or lodge complaints with the agency.
Any Acts of Disparagement Against SpaceX are Illegal
The NLRB stated that the complaint, which was not readily accessible, also contends that agreements signed by SpaceX employees to resolve legal disputes through arbitration rather than court and abstaining from class action participation against the company were illegal.
SpaceX did not provide an immediate response to a request for comment.
The case is set for an initial hearing in October before an administrative judge, whose ruling may undergo review by the NLRB's five-member labor board appointed by the US president, which is subject to appeal in federal court.
A Call to Revoke The Agreements Signed by Workers
The complaint aims to force SpaceX to revoke the agreements and prevent it from enforcing agreements already signed by workers.
The company's lawsuit against the labor board, currently pending in a Texas federal court, originates from a distinct case where the agency alleges that SpaceX wrongfully terminated eight engineers who had circulated a letter criticizing Elon Musk, the CEO and founder, and accused him of engaging in sexist behavior.
SpaceX's Denying Wrongdoings
In response to the case, SpaceX has denied any wrongdoing and contended that the NLRB's in-house enforcement proceedings infringe upon its constitutional entitlement to a jury trial. Additionally, the company asserts that limiting the removal of board members and administrative judges contradicts the US Constitution.
Similar claims are being made in pending lawsuits and board cases by Amazon.com, Starbucks, Trader Joe's, and three Starbucks baristas who oppose unions at their workplaces.
SpaceX has requested a US appeals court in New Orleans to reconsider its recent decision, which denied the company's attempt to keep its lawsuit in Texas. A judge had transferred the case to California, SpaceX's home base, where the administrative case concerning the terminated engineers is ongoing.
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