According to the National Labor Relations Act, the President can dismiss NLRB members for neglect of duty or malfeasance after a formal hearing, but not for inefficiency, a stipulation that SpaceX criticizes as overly stringent.
SpaceX NLRB Lawsuit : Current Legal Proceedings
The thrust of the SpaceX NLRB lawsuit became apparent when SpaceX sought not only a halt to the proceedings but also attorney fees and injunctive relief to prevent the continuation of the administrative case. The NLRB’s Region 19 office in Seattle had previously issued a complaint in March, claiming SpaceX coerced workers into signing severance agreements that included unlawful confidentiality and nondisparagement clauses. Furthermore, the agency highlighted SpaceX’s alleged nationwide policy involving an arbitration agreement.
SpaceX maintains that its lawsuit is properly situated in the Texas district and division where the initial complaint was lodged, stating, “Defendants are officers of an agency of the United States acting in their official capacity; and a substantial part of the events or omissions giving rise to the claim occurred in McGregor and Bastrop, Texas at SpaceX facilities located in this judicial district.”
