- The federal labor agency has dropped an enforcement action against SpaceX, and lawyers have asked a Texas judge to dismiss one of the company’s lawsuits.
- The NLRB had challenged SpaceX severance and arbitration agreements in 2024, citing confidentiality and non-disparagement terms.
- The agency is also reevaluating a related filing in California and has cited questions about its authority.
- The change in enforcement follows staffing shifts in the agency’s leadership and comes as SpaceX advances plans for a large IPO and seeks federal land in Texas.
In a recent development, lawyers for both sides asked a federal judge in Texas to dismiss one of SpaceX’s lawsuits after the labor board abandoned its enforcement action, according to a Bloomberg report. Court filings dated December 18 show the request to dismiss followed the agency’s decision to step back.
The complaint originated in 2024 when the National Labor Relations Board (NLRB) challenged SpaceX severance and arbitration agreements, alleging they unlawfully limited workers’ rights, including confidentiality and non-disparagement provisions. (Severance agreement: a contract specifying pay and terms when employment ends. Arbitration agreement: a contract requiring disputes be resolved outside court.)
SpaceX responded by suing the agency and pursued litigation similar to another case in California, as noted in a CNBC report. The NLRB has also told a court it is reassessing the California filing and whether it has authority to proceed.
Retail sentiment tracking showed investor discussion of SpaceX as “neutral” amid “low” message volume on a social platform around the time of the report. The agency’s change in approach occurred after the appointment of William Cowen as acting general counsel and the later confirmation of Crystal Carey as permanent general counsel; Carey previously worked at a law firm that represented large corporations, including SpaceX and Tesla.
Separately, the federal government is reportedly considering transferring nearly 800 acres of land in a Texas wildlife refuge to SpaceX. The company is also said to be moving ahead with plans for an initial public offering that could raise about $30 billion at a valuation near $1.5 trillion.
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