SpaceX just won a major legal battle by convincing the government that it isn’t a regular technology company. The National Labor Relations Board (NLRB) officially dropped its case against Elon Musk’s rocket company. This dispute started because SpaceX fired eight employees who dared to criticize Musk in an open letter.
Back in 2022, these workers circulated a memo calling Musk a “distraction and embarrassment” to the company. They also pointed to reports about his personal conduct. When SpaceX fired them, the NLRB stepped in and claimed the company broke federal labor laws. SpaceX didn’t just argue that they had the right to fire the workers. Instead, they attacked the very foundation of the labor board.
SpaceX lawyers argued that the NLRB has no power because its structure is unconstitutional. They aren’t the only ones saying this; Amazon and other giant corporations have made similar claims lately. However, SpaceX added a unique twist to their defense. They argued that because they sell space flight tickets and hold a license from the Federal Aviation Administration, the government should treat them like an airline.
This strategy worked. In January, the National Mediation Board—which usually only oversees railroads and commercial airlines—agreed that SpaceX falls under its jurisdiction. Following that decision, the NLRB walked away and dismissed the case. This shift is a big deal because the rules for airlines make it much harder for employees to organize or sue their bosses compared to standard labor laws.
The timing of this victory stands out. Elon Musk has become a central figure in the second Trump administration. He spent over $250 million to help Donald Trump win the election and now leads a new initiative to slash government spending and regulations. While the NLRB technically gave up its own authority in this case, the move fits Musk’s broader goal of shrinking the power of independent government agencies. By redefining what kind of company it is, SpaceX managed to sidestep a major federal investigation and weaken the agency meant to protect workers.
