SpaceX Workers Challenge Company’s “Interstate Commerce” Claim in NLRB Dispute

In a surprising twist in the ongoing labor battle between SpaceX and former employees, attorneys representing the ex-workers have launched a bold legal challenge to the company’s claim that it operates as an interstate carrier under the Railway Labor Act. The case, which has captured widespread attention in tech and legal circles, centers on whether SpaceX’s space transportation activities qualify it as a “common carrier” subject to specific federal labor regulations.

The Core of the Dispute: What Counts as Interstate Commerce?

The ex-employees’ legal team has argued that SpaceX’s operations do not meet the statutory definition of interstate or foreign commerce as outlined in the Railway Labor Act. In their filing, they contend that SpaceX’s launches do not constitute transportation “between one state or territory and another, nor between a state or territory and a foreign nation, nor between points in the same state but through another state.” Instead, they assert that SpaceX’s missions originate in Florida, Texas, or California and travel to outer space—a destination that falls outside traditional terrestrial commerce definitions.

“SpaceX’s transport activities are not between one state or territory and another, nor between a state or territory and a foreign nation, nor between points in the same state but through another state,” the filing states. “Rather, they originate in Florida, Texas, or California, and go to outer space.”

SpaceX’s “Mail Carrier” Argument Under Fire

The dispute also challenges SpaceX’s claim that it qualifies as a “carrier by air transporting mail for or under contract with the United States Government.” The ex-employees’ attorneys argue that the evidence presented by SpaceX is insufficient to support this assertion. While SpaceX has demonstrated that it has transported employee letters to the International Space Station crew and government-provided crew supplies, the filing contends that this does not establish SpaceX as an official mail carrier under federal law.

“They do not show that the government has contracted with SpaceX as a ‘mail carrier,'” the attorneys wrote, dismissing the company’s argument as speculative and focused on future intentions rather than current operations.

The filing further criticizes SpaceX’s reliance on its “future intent to develop its role as a ‘common carrier,'” suggesting that the company lacks the present standing to claim such status. “One can only surmise that the reason for its constant reference to its future intent to develop its role as a ‘common carrier’ is the lack of current standing in that capacity,” the attorneys noted. They argue that Congress would need to explicitly expand the Railway Labor Act’s jurisdiction to include space travel for SpaceX to qualify as a common carrier.

Broader Implications for Space Industry Labor Rights

This legal battle has significant implications for labor rights in the emerging commercial space industry. If SpaceX succeeds in its argument, it could set a precedent that allows other space companies to claim exemptions from certain labor regulations by characterizing their operations as beyond traditional interstate commerce. Conversely, if the ex-employees prevail, it could strengthen protections for workers in the space sector and ensure that companies like SpaceX remain subject to federal labor oversight.

The case also highlights the evolving nature of labor law in the face of technological advancements. As private companies push the boundaries of space exploration, regulators and courts are being forced to grapple with how existing laws apply to activities that were once the exclusive domain of government agencies.

Ongoing Legal Battles and Next Steps

The dispute is part of a broader legal saga involving SpaceX, the National Labor Relations Board (NLRB), and the National Mediation Board (NMB). SpaceX has filed a lawsuit against the NLRB, challenging the constitutionality of the agency’s structure and its authority to investigate the company. That case is currently pending at the US Court of Appeals for the 5th Circuit, though it has been put on hold while the parties await a decision on which agency—the NMB or the NLRB—has jurisdiction over SpaceX.

Meanwhile, the ex-employees’ case, Holland-Thielen et al v. SpaceX and Elon Musk, is ongoing in the US District Court for the Central District of California. Attorney Shannon Shaver, representing the former workers, confirmed that they have defeated SpaceX’s motion to compel arbitration at the district court level, and the case is now on appeal to the 9th Circuit.

SpaceX’s Response and Future Outlook

SpaceX has yet to issue a detailed public response to the ex-employees’ latest filing. However, the company has consistently maintained that its operations fall under the Railway Labor Act and that the NMB, not the NLRB, should have jurisdiction over labor disputes involving its workers. SpaceX’s legal team has argued that the company’s role in transporting cargo and crew to space, as well as its contracts with the US government, qualify it as a common carrier.

The outcome of this case could have far-reaching consequences not only for SpaceX but for the entire commercial space industry. As companies like Blue Origin, Virgin Galactic, and others continue to expand their operations, the question of how labor laws apply to space-based activities will become increasingly important.

Conclusion: A Defining Moment for Space Labor Rights

As the legal battle unfolds, it is clear that this case represents a defining moment for labor rights in the space industry. The ex-employees’ challenge to SpaceX’s “interstate commerce” claim is not just a technical legal argument—it is a fight for the recognition of workers’ rights in a rapidly evolving sector. With the potential to set new precedents and shape the future of labor law in space, this case is one that will be closely watched by industry insiders, legal experts, and workers alike.

For now, all eyes are on the courts as they navigate the uncharted territory of space labor law. Whether SpaceX will be able to maintain its claim of exemption from traditional labor regulations remains to be seen, but one thing is certain: the outcome of this case will have lasting implications for the future of work in the final frontier.

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