Victory for Elon Musk: US labor board abandons authority over SpaceX

February 12, 2026
Victory for Elon Musk: US labor board abandons authority over SpaceX

Here's something that might surprise you — Elon Musk just scored a big win. The US labor board, the NLRB, decided it doesn't have jurisdiction over SpaceX anymore. According to Jon Brodkin writing in Technology, the agency ruled that SpaceX should be regulated under the Railway Labor Act, which covers railroads and airlines. Now, that’s a big deal because the Railway Labor Act has a much tougher dispute process, making strikes pretty hard for workers. What’s more, the NLRB had previously accused SpaceX of firing employees for criticizing Musk — an open letter called him a ‘source of embarrassment.’ But here’s where it gets interesting — by shifting oversight to the Railway Labor Act, SpaceX now falls under a different set of rules, and the NLRB’s influence is essentially out of the picture. So, this could mean less protection for SpaceX workers moving forward. As Brodkin points out, it’s a win for Musk, but the ripple effects could change how labor disputes unfold in aerospace and tech.

The National Labor Relations Board abandoned a Biden-era complaint against SpaceX after a finding that the agency does not have jurisdiction over Elon Musk's space company. The US labor board said SpaceX should instead be regulated under the Railway Labor Act, which governs labor relations at railroad and airline companies.

The Railway Labor Act is enforced by a separate agency, the National Mediation Board, and has different rules than the National Labor Relations Act enforced by the NLRB. For example, the Railway Labor Act has an extensive dispute-resolution process that makes it difficult for railroad and airline employees to strike. Employers regulated under the Railway Labor Act are exempt from the National Labor Relations Act.

In January 2024, an NLRB regional director alleged in a complaint that SpaceX illegally fired eight employees who, in an open letter, criticized CEO Musk as a “frequent source of embarrassment." The complaint sought reinstatement of the employees, back pay, and letters of apology to the fired employees.

Read full article

Comments

Audio Transcript

The National Labor Relations Board abandoned a Biden-era complaint against SpaceX after a finding that the agency does not have jurisdiction over Elon Musk's space company. The US labor board said SpaceX should instead be regulated under the Railway Labor Act, which governs labor relations at railroad and airline companies.

The Railway Labor Act is enforced by a separate agency, the National Mediation Board, and has different rules than the National Labor Relations Act enforced by the NLRB. For example, the Railway Labor Act has an extensive dispute-resolution process that makes it difficult for railroad and airline employees to strike. Employers regulated under the Railway Labor Act are exempt from the National Labor Relations Act.

In January 2024, an NLRB regional director alleged in a complaint that SpaceX illegally fired eight employees who, in an open letter, criticized CEO Musk as a “frequent source of embarrassment." The complaint sought reinstatement of the employees, back pay, and letters of apology to the fired employees.

Read full article

Comments

0:00/0:00