A display of a Falcon 9 rocket can be seen outside SpaceX headquarters in Hawthorne, California.
Photo credit: Patrick T. Fallon | AFP | Getty Images
The U.S. Department of Justice has filed a lawsuit against SpaceX, alleging discriminatory hiring practices towards refugees and asylum seekers within Elon Musk’s space company.
The lawsuit claims that between 2018 and 2022, SpaceX wrongly enforced restrictions on hiring to only U.S. citizens and lawful permanent residents, citing export control laws.
The DOJ initiated an investigation into SpaceX in June 2020 after receiving a complaint of employment discrimination from a non-U.S. citizen.
“Our investigation revealed that SpaceX, in violation of federal law, unfairly disregarded the qualifications of asylees and refugees due to their citizenship status, effectively banning their employment,” stated Kristen Clarke, assistant attorney general of the DOJ’s Civil Rights Division.
Clarke further stated that SpaceX recruiters and high-level officials actively discouraged asylees and refugees from seeking job opportunities at the company.
According to data provided by SpaceX, the DOJ found that out of over 10,000 hires made in the course of nearly four years, the company hired only one individual who was identified as an asylee.
This single hire occurred approximately four months after SpaceX was notified of the DOJ’s investigation.
SpaceX has not yet responded to CNBC’s request for comment. The lawsuit was filed in the Executive Office for Immigration Review, a division of the DOJ responsible for adjudicating immigration cases.
The DOJ lawsuit seeks fair consideration and back pay for asylees and refugees who were deterred or denied employment at SpaceX, along with civil penalties and policy changes from the company.
In 2021, the DOJ’s Immigrant and Employee Rights Section accused SpaceX of obstructing a subpoena related to the investigation. The DOJ requested a court order to compel SpaceX to provide documents regarding its hiring practices. SpaceX had previously filed a petition with a DOJ administrative tribunal to dismiss the subpoena, claiming that it exceeded the scope of the IER’s authority, but the petition was denied.
The IER launched its investigation following a complaint from Fabian Hutter, who alleged discrimination by SpaceX during a job interview in March 2020 due to his citizenship status. Hutter is a lawful permanent resident with dual citizenship from Austria and Canada, according to SpaceX’s response to the DOJ subpoena in 2021.
Hutter did not provide immediate comment to CNBC’s request.
Below is the complete lawsuit filed by the DOJ:
– Additional reporting by Dan Mangan, CNBC.
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