Jean MartinSpaceX, the aerospace manufacturer founded by Elon Musk, faces accusations from the National Labor Relations Board (NLRB) regarding alleged unlawful agreements with separated employees, inhibiting their rights to disparage the company and join class-action lawsuits.
Complaint Details Restrictions on Severance Agreements:
The NLRB asserts that SpaceX’s severance agreements contain confidentiality and non-disparagement clauses that impede employees from exercising their rights under U.S. labor law, challenging the common provisions seen in such agreements.
Legal Disputes and Arbitration Clauses Under Scrutiny:
The complaint further alleges that agreements mandating legal disputes to be resolved through arbitration instead of court, as well as relinquishing participation in class actions, are unlawful. SpaceX is yet to respond to the allegations.
An initial hearing for the case is scheduled for October before an administrative judge. The complaint seeks to annul existing agreements and prevent SpaceX from enforcing similar terms in the future, pending review by the NLRB’s labor board.
SpaceX Legal Battle Against the NLRB:
This accusation adds to SpaceX’s ongoing legal battle with the NLRB, with the company filing a lawsuit claiming the agency’s structure violates the U.S. Constitution. The case is intertwined with a separate dispute involving the alleged wrongful termination of engineers critical of Musk.
