The U.S. Department of Justice sued SpaceX Thursday, accusing Elon Musk's aerospace company of discriminatory hiring practices, specifically against refugees and people granted asylum in the U.S. The suit alleges that, between at least 2018 and 2022, the company "routinely discouraged asylees and refugees from applying," saying that SpaceX refused to bring on certain groups of people because of their citizenship status.
“Our investigation found that SpaceX failed to fairly consider or hire asylees and refugees because of their citizenship status and imposed what amounted to a ban on their hire regardless of their qualification, in violation of federal law,” Kristen Clarke, assistant attorney general of the DOJ's Civil Rights Division, said in a statement.
DON'T MISS: Jeff Bezos' Blue Origin is purposefully lagging behind Elon Musk's SpaceX
Clarke added that the investigation found that SpaceX officials and recruiters "took actions" to discourage asylees and refugees from applying to work at SpaceX.
The investigation has been ongoing since 2020.
Musk has previously said that SpaceX is "not allowed" to hire people from other countries due to U.S. International Traffic in Arms Regulations laws.
"SpaceX was told repeatedly that hiring anyone who was not a permanent resident of the United States would violate international arms trafficking law, which would be a criminal offense," Musk wrote in response to the suit. "We couldn’t even hire Canadian citizens, despite Canada being part of NORAD! This is yet another case of weaponization of the DOJ for political purposes."
More SpaceX:
- Environmental Groups Make Serious Move After Damaging SpaceX Explosion
- Investor Says $150 Billion SpaceX Valuation Seems Too Good to Be True
- SpaceX Has Some Wild Predictions for the Rest of 2023
But the DOJ addressed this very defense in its suit, saying that the regulations do in fact allow both asylees and refugees access to such export-controlled items as rocket technology.
The fundamental principle of ITAR law is that US companies who have advanced weapons technology, such as rockets with intercontinental range, must hire people who are permanent American residents, so that the technology does not fall into the hands of countries who wish us harm.
— Elon Musk (@elonmusk) August 25, 2023
The suit says that SpaceX "wrongly claimed" that this federal restriction prevents the company from hiring refugees and asylees, saying: "Export control laws impose no such hiring restrictions."
Delian Asparouhov, the cofounder of Varda Space Industries, noting the same federal restrictions, said: "Does the DOJ realize that space companies, like SpaceX and Varda are ITAR-controlled. So BY LAW we HAVE TO DISCRIMINATE BY US CITIZENSHIP."
Does the DOJ realize
— delian (@zebulgar) August 24, 2023
That Space companies, like SpaceX and Varda are ITAR-controlled
So BY LAW we HAVE TO DISCRIMINATE BY US CITIZENSHIP
What in God's name kind of corrupt lawsuit is this https://t.co/lshayaRTPm
SpaceX did not immediately return a request for comment.
The suit seeks to win civil penalties and policy changes, as well as "fair consideration and back pay for asylees and refugees who were deterred or denied employment at SpaceX due to the alleged discrimination."
"Through this lawsuit we will hold SpaceX accountable for its illegal employment practices and seek relief that allows asylees and refugees to fairly compete for job opportunities and contribute their talents to SpaceX’s workforce," Clarke said.
Action Alerts PLUS offers expert portfolio guidance to help you make informed investing decisions. Sign up now.
