SpaceX faces probe over discrimination, sexual harassment

SpaceX is currently under investigation by a California civil rights agency regarding allegations of systemic discrimination and sexual harassment within its workforce.

The inquiry focuses on whether the aerospace company, led by CEO Elon Musk, has adequately addressed these issues, particularly those affecting female employees.

In January, the California Civil Rights Department formally notified SpaceX of the allegations after a group of engineers lodged complaints with the agency, asserting that they had been terminated for raising concerns about SpaceX and its CEO, Elon Musk, in a letter addressed to company executives. According to their attorney, Laurie Burgess, these engineers allege they were fired for criticizing SpaceX and Musk.

Those same workers are the focus of a case that the U.S. National Labour Relations Board (NLRB) has filed against SpaceX, accusing the company of violating federal labour law by firing them.

The company has denied wrongdoing and, in turn, sued the agency seeking to block its lawsuit from moving forward, claiming that NLRB board members and in-house judges were not properly appointed under the U.S. Constitution.

Discrimination and sexual harassment

Six of the complaints filed in California shed light on concerning practices at SpaceX. According to these documents, engineers allege that the Hawthorne, California-based company consistently favours men over women for job opportunities and promotions, engages in gender-based pay disparities, tolerates a culture where sexual comments and harassment are commonplace, and retaliates against employees who voice grievances.

“SpaceX tolerates, condones and permits a work environment that is hostile to female employees and to employees of all genders who object to discrimination and harassment,” the workers said in the complaints.

SpaceX did not immediately respond to a request for comment. The California agency, which is prohibited by state law from commenting on pending investigations, did not respond to a request for comment.

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Burgess said the complaints were meant to vindicate the engineers and create a safer workplace for all SpaceX employees.

“SpaceX insists that nothing is more important than its mission to get to Mars; our clients shared that vision but were fired for daring to demand that SpaceX comply with basic civil rights while doing so,” Burgess said.

As first reported by Bloomberg, SpaceX has until later this month to respond to the California civil rights agency. Following this deadline, the company will have the opportunity to either address the allegations or seek to negotiate a settlement. If an agreement cannot be reached, the agency may grant the affected workers permission to pursue legal action independently or initiate its lawsuit.

‘Distraction and embarrassment’

In their 2022 correspondence, the engineers characterized Musk as a “distraction and embarrassment” and voiced criticism regarding his handling of sexual harassment allegations involving a flight attendant. The letter further pointed out a series of Musk’s social media posts dating back to 2020, many of which contained sexually suggestive content.

The California and U.S. labour board cases are the latest to accuse companies run by Musk of widespread violations of labour and employment laws.

In 2022, the California agency sued Tesla, where Musk serves as CEO, over alleged harassment and discrimination against black factory workers. Tesla, while stating its intolerance for discrimination, unsuccessfully contested the agency’s investigation process and decision to pursue legal action. Similarly, the U.S. Equal Employment Opportunity Commission filed a lawsuit in September, echoing these claims against Tesla.