SpaceX Severance Agreements Challenged in Labor Board Complaint

March 21, 2024, 6:20 PM UTC

Elon Musk’s SpaceX is under fire from federal labor board prosecutors for allegedly forcing terminated employees to sign severance agreements with illegal gag orders and for allegedly maintaining unlawful workplace rules.

The complaint, filed Wednesday by a National Labor Relations Board regional director in Seattle, alleges that severance agreements given to separated employees nationwide contained unlawfully broad nondisparagement and confidentiality clauses, along with a provision limiting the worker’s ability to participate in legal claims against the company.

SpaceX also has maintained unlawful rules for current employees, making them sign class action waivers as a condition of employment and banning them ...

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