SpaceX Wins Legal Breakthrough: Labor Board Steps Back

SpaceX Lawsuit Dropped: Labor Board Cites Jurisdictional Limits

A federal labor agency has decided to drop a long‑running lawsuit against SpaceX, ending its attempt to hold the company accountable for firing eight engineers. The case began when the agency accused SpaceX of dismissing employees who signed an open letter criticizing CEO Elon Musk.

After two years, the board announced it would no longer pursue the matter. In a letter to the attorneys representing the former staff, officials cited a recent ruling from another federal body that said SpaceX falls under a different jurisdiction. This new decision meant the labor board had no authority to continue the case.

The letter quoted a regional director, who explained that because SpaceX is governed by another agency’s rules, the labor board cannot act against it. Consequently, the complaint was dismissed.

SpaceX and the agency did not comment on the outcome. The move signals that future legal actions against the company in this area are unlikely, at least from this particular board.

The decision highlights how jurisdictional boundaries can shape the enforcement of labor laws, especially for high‑profile companies in emerging industries. It also raises questions about how effectively workers can seek redress when different agencies have overlapping authority.