NLRB Drops Case Against SpaceX Over Alleged Illegal Firings

Got story updates? Submit your updates here. ›

The National Labor Review Board (NLRB) has dropped its case against SpaceX, which had accused the company of illegally firing eight employees who criticized CEO Elon Musk. The NLRB argued that since SpaceX operates under an FAA license and allows anyone to book space flights, it should be treated like an airline and fall under the jurisdiction of the National Mediation Board instead.

Why it matters

This decision highlights the ongoing tensions between tech companies, labor regulators, and the political influence of figures like Elon Musk. It also raises questions about the boundaries of labor law and which government agencies should oversee different industries, especially as commercial space travel becomes more accessible.

The details

In 2022, eight SpaceX employees were fired after circulating a letter criticizing Musk's behavior. The NLRB filed a complaint in 2024 claiming the firings were illegal, but SpaceX argued the NLRB was unconstitutional. The NLRB then dismissed the case, saying SpaceX should actually be overseen by the National Mediation Board, which handles labor issues in the airline and railway industries. This decision came after the National Mediation Board issued a ruling affirming that SpaceX, with its FAA license and open-to-the-public flights, should be treated like an airline.

• The employees were fired in 2022.
• The NLRB filed a complaint against SpaceX in 2024.
• The National Mediation Board issued a ruling in January 2026.
• The NLRB dismissed its case shortly after the National Mediation Board's ruling.