SpaceX Sued for Alleged Discrimination; DOJ Claims Elon Musk’s Company Refuses To Hire Asylees, Refugees

SpaceX is facing legal charges from the Department of Justice (DOJ). The latter complained to Elon Musk's space agency due to its alleged discriminatory hiring process.

Elon Musk's SpaceX Accused of Discrimination

The DOJ alleges in a lawsuit filed on Wednesday that SpaceX dissuaded refugees and asylees from applying to the company from at least September 2018 through May 2022 "by falsely stating that SpaceX can only hire U.S. citizens and lawful permanent residents."

The lawsuit claims that despite receiving applications from asylees and refugees, SpaceX "failed to fairly consider" them and "refused to hire" them. Additionally, it argues that SpaceX "wrongly claimed" that only U.S. nationals and legal residents may be hired under the U.S. export control restrictions. In addition, the DOJ asserts that from September 2018 to September 2020, SpaceX "only" hired U.S. residents and those with green cards.

According to the lawsuit, the DOJ has been monitoring SpaceX for some time. The DOJ's Immigrant and Employee Rights Section (IER) launched an inquiry into SpaceX's hiring practices in May 2020 to see if there was any discrimination based on nationality or immigration status. The DOJ asserts, however, that SpaceX "failed to provide documents responsive to the IER's investigation requests."

According to the lawsuit, SpaceX only made the documents available after the IER received a subpoena more than a year later. The IER concluded its investigation of SpaceX in November 2022 and informed the firm that it had "found reasonable cause to believe that SpaceX had engaged in a pattern or practice of unfair immigration-related employment practices."

The case contains some evidence that Musk himself provided. The DOJ cites two videos of Musk discussing hiring limits. In a post on X, formerly Twitter, Musk even stated that "U.S. law requires at least a green card to be hired at SpaceX, as rockets are considered advanced weapons technology." It was just a week after the probe began.

According to Kristen Clarke, the assistant attorney general of the DOJ's Civil Rights Division, their investigation found that SpaceX "failed to fairly consider" or "refused to hire" asylees and refugees because of their citizenship status and imposed what amounted to a ban on their hire regardless of their qualification."

Asylees and refugees who "were deterred or denied employment" at SpaceX are asking for equitable consideration, back pay, and civil penalties in an amount to be set by the court. The DOJ is also asking for civil penalties in a sum that will be determined in court. In the interim, the DOJ is urging refugees and asylees who attempted to secure a job at SpaceX or were dissuaded from doing so to get in touch with the IER.

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More About SpaceX

On the "Careers" section of SpaceX's website, the company announces that it is looking for top-tier talent who is eager to take on difficult projects that could eventually make it possible for life to exist on other planets. The company claims to be an "equal opportunity employer," providing equity packages, competitive salaries, and extensive health benefits.

With a valuation of almost $150 billion, SpaceX continues to be among the most valuable private firms in the world. SpaceX's remarkable market valuation has earned the company the "centicorn" or "hectocorn," which denotes an enterprise worth $1 billion 100 times over. A private company is said to have acquired unicorn status when its valuation exceeds the $1 billion threshold.

According to a document given by SpaceX Chief Financial Officer Bret Johnsen, the business secured an agreement with both new and existing investors to offer up to $750 million in stock from insiders for $81 per share, valuing it at roughly $140 billion.