SpaceX Says DOJ Lawsuit Unconstitutional, Defends Export Compliance Practices
DOJ's lawsuit against SpaceX looking into whether the space exploration firm wrongly relied on export control laws to justify its alleged hiring discrimination is unconstitutional, the company said in a Sept. 15 complaint in U.S. District Court for the Southern District of Texas. The company also defended its hiring practices in its complaint, telling the court that it risks “severe consequences” for violating the International Traffic in Arms Regulations.
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The U.S. in August said SpaceX engaged in illegal hiring practices by claiming it could hire only U.S. citizens and legal permanent residents because of export control laws under the ITAR (see 2308250041). DOJ said these laws impose no such restrictions and that the company's hiring and recruiting practices amounted to discrimination.
In its complaint, SpaceX argued that the administrative law judge presiding over the case was "unconstitutionally appointed," is "unconstitutionally insulated from Presidential authority," is "unconstitutionally purporting to adjudicate SpaceX's rights" in a place other than a federal court, and is "unconstitutionally denying SpaceX its Seventh Amendment right to a jury trial." It added that the administrative law judge "was appointed in violation of the Appointments Clause" and made other arguments based on constitutionality and jurisdiction.
The company also argued that if it weren't subject to “legal or regulatory restrictions” under the ITAR, it would “hire the most talented people on Earth regardless of their origin.” It added that it has hired “hundreds of noncitizens,” including people who didn’t meet the definition of “U.S. Persons” under the ITAR and “whose status required SpaceX to seek special permission from the U.S. government so SpaceX could employ them.”
But because SpaceX designs and manufactures “sensitive technologies,” including technologies with military uses, the company said it faces “legal mandates under export control laws and regulations, including the ITAR, as well as under some of its government contracts that impose strict limitations on who it can employ.” It specifically pointed to the work it’s doing at Starbase in Texas to develop, build, test and launch a spaceship, which is “substantially controlled" under the ITAR, the Commerce Department’s Export Administration Regulations and the multilateral Missile Technology Control Regime.
SpaceX said it’s concerned about appearing to violate these export control laws, which can have “severe consequences,” such as fines of more than $1 million and potential jail time. The company said it “follows strict policies and procedures to both ensure compliance with all export control laws and regulations and also prevent any unlawful discrimination, including discrimination against refugees and asylees. The company’s training materials, recruiting efforts, and job descriptions reflect those legally compliant policies.”