NLRB case against SpaceX for illegally firing workers is stayed

The US National Labor Relations Board (NLRB) has announced that it will suspend an administrative proceeding against SpaceX over the alleged illegal firing of engineers who criticized CEO Elon Musk.

The labor department told U.S. District Judge Rolando Olvera on Thursday that dropping the case against SpaceX would expedite a final decision on the aerospace company’s claims that the case violated the U.S. Constitution. according to a report filed Thursday in federal court in Texas. The NLRB said that while it disagreed with SpaceX’s contention that a stay of proceedings was appropriate, it would agree to do so “in the interest” of conserving resources and avoiding “unnecessary” costs and delays.

The case was moved between the court in Brownsville, Texas, and the 5th U.S. Circuit Court of Appeals in New Orleans due to procedural issues. The NLRB said Thursday it would suspend the administrative proceeding once Olvera issues an order explaining how he would rule on the motion to block the case, which would allow the 5th Circuit to remand the lawsuit to Texas.

The NLRB’s motion on Thursday read first reported by Reuters.

SpaceX sued the Texas board in January, just a day after NLRB counsel filed a complaint – pending before an administrative law judge in Los Angeles – alleging eight engineers were illegally fired for distributing a letter in which Musk was criticized.

The letter also asked The company needs to clarify its harassment policies and enforce them more consistently. In March, SpaceX was sued by an employee who claimed executives ignored it Sexual harassment complaints.

In response, SpaceX claimed that the NLRB’s internal enforcement process violated its constitutional right to a jury trial. It also said restrictions on the removal of NLRB board members and administrative law judges violated the Constitution. Amazon, Starbucks and Trader Joe’s have have made similar claims in recent months.

SpaceX filed a lawsuit last month second lawsuit — this time in federal court in Waco, Texas — after a separate complaint accused the NLRB of forcing workers to sign illegal severance agreements. The 5th U.S. Circuit Court of Appeals has temporarily blocked this case.

Olvera transferred SpaceX’s lawsuit to California in February at the NLRB’s request, arguing that the company belonged there because it was there based in the Golden State and the administrative case is heard there. The 5th U.S. Circuit Court of Appeals rejected SpaceX’s appeal of Olvera’s ruling, even though the company asked Olvera to reconsider it.