In August 2025, the Fifth Circuit Court upheld injunctions barring the National Labor Relations Board (NLRB) from prosecuting unfair labor practice cases against SpaceX and two other companies. In its decision, the Court found the protections that NLRB members and administrative law judges (ALJs) have from being fired by the President of the United States violate the U.S. Constitution.

This decision is headed to the Supreme Court because, at least on one level, it is about the balance of power between the President and Congress. This is about the fundamental structure of American government. (To be clear, this lawsuit before the Fifth Circuit Court also named as plaintiffs two other employers. Although the facts differ, all advance the same constitutional arguments.)

The Real Issue: Workplace Sexual Harassment

This case is also about the eight SpaceX engineers who believe they were fired for criticizing Elon Musk’s sexist conduct and the company’s tolerance of sexual harassment in the workplace. This may be the single most important part of the story to remember.

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SpaceX Employee Fired for Calling Out Workplace Sexist Conduct and Sexual Harassment

SpaceX workers complained to the NLRB that SpaceX wrongfully fired them in 2022 for publishing an open letter criticizing Elon Musk’s alleged sexist conduct in the workplace and the company’s tolerance of sexual harassment in violation of the National Labor Relations Act (NLRA). SpaceX then sued the NLRB, challenging the constitutionality of the agency’s structure, specifically by making it difficult for the President to fire the agency’s administrative law judges and board members, and denying companies the right to jury trials in employment disputes.

SpaceX sought a preliminary injunction to stop the NLRB’s administrative proceedings. The motion was granted by the Western District of Texas in 2024. In August, this (along with similar cases from the Southern and Northern Districts) was affirmed by the Fifth Circuit. In its opinion, the Fifth Circuit noted that it believed that SpaceX was likely to prevail and that it would be irreparably harmed if the injunction were not upheld.

Cases Stay Frozen and Unresolved

What about the harm to the SpaceX engineers who lost their jobs for criticizing Elon Musk’s alleged sexist behavior and claim of a hostile work environment? As legal scholars debate constitutional issues, the workers get no relief. Their cases stay frozen and unresolved.

Background of the NLRA

The NLRA was passed and signed into law on July 5, 1935 by President Franklin D. Roosevelt. It makes clear that it is the policy of the United States to encourage collective bargaining by protecting full freedom of association. The law provides employees at private-sector workplaces with the fundamental right to seek better working conditions and designation of representation without fear of retaliation. The NLRA established the NLRB and created a framework to protect employee rights to organize, bargain collectively, and engage in other concerted activities, which the SpaceX workers contend includes the publication of the open letter.

NLRA Protections

The NLRA covers non-union employees as well as collectively bargained workers, although the provisions relating to organizing, collective bargaining, and representation mean less in a non-union workplace. SpaceX workers are not unionized. Elon Musk has expressed publicly his negative opinion of unions.

Many other federal statutes protect workers rights, including the Fair Labor Standards Act, which specifically addresses wage and hour issues; the Americans with Disabilities Act; the Age Discrimination in Employment Act; and Title VII of the Civil Rights Act of 1964 (Title VII).

Title VII Seems Particularly On Point

Title VII prohibits discrimination in employment based on race, color, religion, sex, and national origin. In 1986, the U.S. Supreme Court, in Meritor Savings Bank v. Vinson, held that workplace sexual harassment can constitute unlawful discrimination under Title VII to the extent it creates a workplace hostile environment. Title VII also protects employees from the kind of retaliatory firing that SpaceX employees suffered. Other activities that are protected under Title VII include discrimination, complaining about harassment, and participating in an investigation, whether as a formal charge, testimony, or informal complaint to Human Resources.

The Texas Workforce Commission (TWC) also handles complaints for violations of state and federal employment discrimination laws including Title VII by allowing an employee to file a charge with them (the TWC) instead of directly with the federal Equal Employment Opportunity Commission (EEOC).

Structural Similarities and a Shared Recent History

NLRA protections are implemented through the NLRB and administrative law judges who exercise quasi-judicial powers to resolve disputes. The employment protections of the Civil Rights Act are implemented through the EEOC and administrative law judges who function in ways that are generally like the NLRA administrative law judges.

In both cases, members are appointed by the President and subject to Senate confirmation for terms longer than a single presidential administration. Board members and Commissioners are intended to be free of political influence. Under the 1935 Supreme Court decision in Humphrey’s Executor v. U. S., as interpreted and expanded during the last 90 years, Congress can limit the President’s power to remove officials from independent administrative agencies, without “good cause.” The professional staff of both bodies develop specialized expertise in their relevant areas of law over long careers.

In January 2025, the president fired NLRB Member Gwynne Wilcox. On the same day, without allegations or evidence of good cause, the president fired two Democratic senate-confirmed EEOC Commissioners, Charlotte Burrows and Jocelyn Samuels. He also fired EEOC General Counsel Karla Gilbride, and NLRB General Counsel Jennifer Abruzzo. The conflict between Congress and the President is why the SpaceX case is headed to the Supreme Court. Wait a minute\! What about the SpaceX workers who were fired?

The Two Stories Meet

Without NLRB Member Wilcox, and without the two EEOC Commissioners, neither agency has the quorum necessary to exercise the full range of its power to protect employee rights. Both have been described as “hobbled” when it comes to processing complaints beyond the routine, preliminary stage. Some speculate that SpaceX and related lawsuits may be more about grinding the mechanisms of employment law enforcement to a halt. Some may say that this is more about a titanic power struggle between the branches of American government.

Kilgore & Kilgore Lawyers Defend Employee Rights

We live in interesting times and a changing legal landscape. If you believe that you, or someone you know and care about, is a victim of workplace discrimination, harassment or retaliation, we may be able to help. If you believe that your employment rights have been violated, take heart because you may have options under federal and Texas law. Reach out to us at contact Kilgore & Kilgore or (214) 969-9099. For more information, click this link Our Dallas Discrimination Lawyers Hold Employers Liable for Employee Rights Violations.