{"id":14582,"date":"2023-08-26T03:49:44","date_gmt":"2023-08-26T03:49:44","guid":{"rendered":"https:\/\/isafespend.com\/investing\/the-doj-sues-spacex-for-alleged-discriminatory-hiring-practices\/"},"modified":"2023-08-26T03:49:45","modified_gmt":"2023-08-26T03:49:45","slug":"the-doj-sues-spacex-for-alleged-discriminatory-hiring-practices","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=14582","title":{"rendered":"The DoJ Sues SpaceX For Alleged Discriminatory Hiring Practices"},"content":{"rendered":"<div>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Key takeaways<\/h2>\n<ul>\n<li>SpaceX has come under fire from the DoJ regarding claims of deliberately excluding refugees and people granted asylum from getting jobs at the company<\/li>\n<li>Musk claims the move would have caught SpaceX in international arms trafficking violations<\/li>\n<li>SpaceX is the dominant private space company in the U.S. and is set to complete 8% of Earth\u2019s payloads this year<\/li>\n<\/ul>\n<p>Private space company SpaceX, run by eccentric CEO Elon Musk, has gotten in hot water with its hiring strategy. The Justice Department has filed a lawsuit against the company concerning its alleged refusal to hire anyone without U.S. citizenship or a green card.<\/p>\n<p>SpaceX pleads its innocence, but Musk\u2019s many companies face many other employee-led lawsuits. Still, it\u2019s been an exciting week for space exploration as India became the first country to land on the south pole of the Moon on a shoestring budget &#8211; which is what SpaceX is all about. Here\u2019s the latest<\/p>\n<p><em>SpaceX isn\u2019t the only company making big moves in the tech industry. Get a front-row seat to tomorrow&#8217;s tech breakthroughs with Q.ai&#8217;s <\/em><em data-ga-track=\"ExternalLink:https:\/\/tryq.ai\/invest\/emerging-tech\">Emerging Tech Kit<\/em><em>. Backed by an intelligent algorithm, it helps adapt your holdings to tap into the week&#8217;s potential big movers.<\/em><\/p>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad><\/p>\n<p><em>It\u2019s powered by a sophisticated AI algorithm that sifts through the weekly data, predicts which tech stocks and ETFs could hit it big, and then rejigs the Kit\u2019s holdings on a risk-adjusted basis. It\u2019s all in the name of helping you stay one ahead of the curve.<\/em><\/p>\n<p><em data-ga-track=\"ExternalLink:https:\/\/refer.tryq.ai\/Vbfak3SnyCb\">Download Q.ai today<\/em><em> for access to AI-powered investment strategies.<\/em><\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Why is the DoJ suing SpaceX?<\/h2>\n<p>A new lawsuit from the Department of Justice claims SpaceX has discriminated against refugees and people granted political asylum for years. Filed Thursday, the lawsuit alleges SpaceX has routinely turned away people granted asylum and refugees or refused to hire them based on their citizenship status from at least September 2018 to May 2022.<\/p>\n<p>The lawsuit, if true, would put SpaceX in violation of the Immigration and Nationality Act. The DoJ also claims SpaceX wrongly stated in job postings that it can only hire U.S. citizens and green card holders. According to the agency, there aren\u2019t such restrictions in place in any law.<\/p>\n<p>The Justice Department has apparently been investigating SpaceX since 2020 when an interviewee raised the alarm after claiming the private space company didn\u2019t hire him after revealing he wasn\u2019t a U.S. citizen or permanent resident.<\/p>\n<p>In 2021, SpaceX was ordered to hand over hiring records as part of the probe. At the time, SpaceX\u2019s lawyers claimed, \u201cSpaceX cannot afford to artificially limit the talent pool from which it hires by discriminating against anyone on the basis of their citizenship\u201d.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">What was Elon Musk\u2019s response?<\/h2>\n<p>Billionaire and CEO Elon Musk responded swiftly, which was made on his social media platform, X (formerly Twitter). Musk <a rel=\"nofollow noopener\" href=\"https:\/\/twitter.com\/elonmusk\/status\/1694873272029221197?s=20\" target=\"_blank\" class=\"color-link\" title=\"https:\/\/twitter.com\/elonmusk\/status\/1694873272029221197?s=20\" data-ga-track=\"ExternalLink:https:\/\/twitter.com\/elonmusk\/status\/1694873272029221197?s=20\" aria-label=\"replied\">replied<\/a> to a post on the site saying, \u201cSpaceX 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\u201d.<\/p>\n<p>SpaceX hasn\u2019t taken the lawsuit lying down. In 2021, when the Justice Department requested the hiring records, SpaceX filed a petition against the subpoena because the request exceeded the Immigrant and Employee Rights Section (IER)\u2019s scope. The petition was denied.<\/p>\n<p>The DoJ is asking a court to award back pay and civil penalties for anyone denied a job at SpaceX based on their citizenship status. The Justice Department said in a statement that SpaceX \u201cactively discouraged asylees and refugees from seeking work opportunities at the company\u201d.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">The various employee lawsuits against Musk\u2019s companies<\/h2>\n<p>There are several ongoing employee lawsuits against Musk\u2019s various companies, mainly concerning alleged discrimination.<\/p>\n<p>Reports in June emerged that Tesla could face a class-action lawsuit after 240 Black factory workers testified about alleged rampant racial discrimination. The testimonies filed in Alameda County Superior Court involve Tesla\u2019s Fremont factory in California. Workers allege that racial slurs were frequently used, racist graffiti wasn\u2019t cleaned up quickly and there were references to the manufacturing site as a plantation or slave ship. The lawyers suing Tesla say 6,000 workers could be part of the case.<\/p>\n<p>Earlier this year, a judge found Tesla owes $3.175 million to a Black former contract worker, Owen Diaz, for failing to shield him from racial abuse. It\u2019s a 98% drop in damages from the 2021 case, which ruled Tesla should pay $137 million. At the time, it was one of the highest-ever awards for an individual suing for discrimination in the U.S. The case went to a retrial after a judge concluded $15 million was the most the Constitution would allow from such a case.<\/p>\n<p>SpaceX has several ongoing lawsuits from former employees alleging discrimination against their age, race and disability. Another recent lawsuit from earlier this month was filed by a former SpaceX technician claiming he experienced disability harassment and open retaliation in the workplace.<\/p>\n<p>It was also reported in July that X (formerly Twitter), which Musk purchased last year, has been hit with a lawsuit for allegedly failing to pay at least $500 million in severance payments to laid-off Twitter workers. The proposed class action lawsuit in San Francisco accuses X and Musk of violating federal laws regulating employee benefit plans.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">The space race heats up<\/h2>\n<p>News of the lawsuit comes at a time when SpaceX\u2019s model of cheap and straightforward reusable rocket launches looks even more attractive, as India became the fourth nation this week to land a spacecraft on the moon. The Chandrayaan-3 ship is the first to land on the Moon\u2019s south pole.<\/p>\n<p>The Indian Space Research Organization (ISRO) spent around $1 billion researching, building, launching and landing the probe; in comparison, NASA\u2019s annual budget is $20 billion. SpaceX was the first company to introduce reusable spacecraft parts, bringing down the cost of launching a rocketship to a tenth of the price.<\/p>\n<p>Another private space company, Rocket Lab, also made the headlines this week with its 40th mission launch using a reused engine. The Electron rockets delivered a satellite for Capella Space to low Earth orbit. The stock is up 4.2% in the last five days and has risen 45% in 2023.<\/p>\n<p>As for SpaceX, it\u2019s still the big dog in private space. The company is expected to make $8 billion in 2023 sales, compared to Rocket Lab\u2019s $290 million forecast. Musk has previously commented that 80% of all payloads this year are set to be delivered by SpaceX.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">The bottom line<\/h2>\n<p>Were SpaceX ever to go public, it\u2019s a little concerning from an investor point of view to see employee lawsuits against the company. That said, it still has a promising future, with most of Earth\u2019s payloads coming from SpaceX alone.<\/p>\n<p>It\u2019s unlikely the Justice Department will let the lawsuits go any time soon, having already pulled up other companies for similar issues. But at the same time, SpaceX is still on an upward trajectory regardless of the litigation.<\/p>\n<p><em>SpaceX isn\u2019t a publicly listed company, but there are plenty of cutting-edge tech stocks and ETFs to invest in. Jump on the fast track to the future with Q.ai&#8217;s <\/em><em data-ga-track=\"ExternalLink:https:\/\/tryq.ai\/invest\/emerging-tech\">Emerging Tech Kit<\/em><em>, which utilizes AI to help boost your portfolio.<\/em><\/p>\n<p><em>This dynamic portfolio offers a diverse range of tech stocks and ETFs that could make waves each week. An AI-powered engine updates your holdings based on market trends on a risk-adjusted basis, helping you stay ahead in the tech game.<\/em><\/p>\n<p><em data-ga-track=\"ExternalLink:https:\/\/refer.tryq.ai\/P7D41BfGwCb\">Download Q.ai today<\/em><em> for access to AI-powered investment strategies.<\/em><\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/qai\/2023\/08\/25\/the-doj-sues-spacex-for-allegedly-discriminatory-hiring-practices-against-refugees\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key takeaways SpaceX has come under fire from the DoJ regarding claims of deliberately excluding refugees and people granted asylum from getting jobs at the company Musk claims the move would have caught SpaceX in international arms trafficking violations SpaceX is the dominant private space company in the U.S. and is set to complete 8%<\/p>\n","protected":false},"author":1,"featured_media":14583,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[],"class_list":{"0":"post-14582","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.12 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The DoJ Sues SpaceX For Alleged Discriminatory Hiring Practices | iSafeSpend<\/title>\n<meta name=\"description\" content=\"Key takeaways SpaceX has come under fire from the DoJ regarding claims of deliberately excluding refugees and people granted asylum from getting jobs at\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/isafespend.com\/?p=14582\" 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