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US Sues SpaceX for Employment Discrimination Through Export Control Laws

SpaceX illegally discriminated against asylees and refugees in its hiring practices by claiming it could only hire U.S. citizens and legal permanent residents under export control laws, DOJ alleged in a lawsuit filed on Aug. 24. Export control laws "impose no such hiring restrictions," the agency said, adding that the company violated the Immigration and Nationality Act in its hiring practices.

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From 2018 to 2022, SpaceX made the claims about export controls in "job postings and public statements," the lawsuit alleged. The company allegedly discouraged asylees and refugees from applying for open roles, failed to fairly consider applications from asylees and refugees, refused to "hire qualified asylee and refugee applicants" and hired only U.S. citizens.

DOJ said asylees' and refugees' permission to live and work in the U.S. "does not expire, and they stand on equal footing with U.S. citizens and lawful permanent residents under export controls." From 2018 to 2022, SpaceX hired over 10,000 people, bringing on only one who was an asylee, around four months after the Immigrant and Employee Rights Section told the firm it was opening an investigation.

The lawsuit requests that the court order SpaceX to stop its illegal practices, "take affirmative steps to address the illegal practices," pay a civil penalty and provide "fair consideration to each applicant who identified as an asylee or a refugee." The suit goes on to say the court should order the company to hire applicants who were victims of the practices and pay back pay to each individual who was discriminated against.

The lawsuit comes about four months after DOJ reached a $365,000 settlement with General Motors over claims the car maker discriminated against non-U.S. citizens in an attempt to comply with U.S. export control laws (see 2304180078).