Breaking: Justice Department Sues SpaceX Over Alleged Discrimination

Kelvin Munene Murithi
August 24, 2023 Updated May 20, 2025
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According to a recent report, the Justice Department has taken legal action against Elon Musk founded Space Exploration Technologies Corporation (SpaceX). The lawsuit claims that from 2018 to 2022, SpaceX discouraged and denied opportunities to asylees and refugees, citing misleading reasons tied to citizenship status.

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The Heart of the Matter

SpaceX argued that “export control laws” limited their hiring to only U.S. citizens and green card holders. However, these laws impose no such constraints since asylees and refugees can access export-controlled materials just like any U.S. citizen. Moreover, asylees and refugees undergo stringent U.S. government vetting, making them as eligible as any other applicant.

Assistant Attorney General Kristen Clarke remarked, “SpaceX failed to fairly consider or hire asylees and refugees because of their citizenship status.” Hence, the department seeks civil penalties and policy changes from SpaceX, ensuring compliance with federal non-discrimination laws.

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The Resistance from SpaceX

While the lawsuit itself presents significant concerns, another dimension of the issue is SpaceX’s alleged reluctance to cooperate with the DOJ’s Immigrant and Employee Rights Section (IER).

In May 2020, the IER embarked on an investigation to determine if SpaceX’s hiring practices were discriminatory based on citizenship or immigration status. However, SpaceX reportedly withheld key documents, providing them only after a subpoena was issued over a year later.

Notably, in November 2022, after thoroughly scrutinizing these documents, the IER concluded there was reasonable cause to believe SpaceX might be engaging in unfair immigration-related employment practices.

This contention is made with seriousness since, besides the complaints from potential hires, some evidence, shockingly, comes directly from the company’s figurehead, Elon Musk. Videos of Musk discussing hiring restrictions, coupled with posts on X – previously known as Twitter – where he outlines citizenship requirements for SpaceX, serve to strengthen the case against the company.

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Implications for the Aerospace Industry

As a result of this legal conflict, other companies in the sector may reconsider their employment policies to guarantee compliance with anti-discrimination laws at the federal level.

DOJ records show that after almost four years and more than 10,000 hires, just one applicant who identified himself as a refugee was employed. This hire occurred conspicuously four months after the DOJ’s initial notice of the investigation.

The trajectory of this case is significant not just for SpaceX but for the aerospace sector and corporate America at large. The outcome could reshape how companies approach hiring, especially concerning refugees and asylees. The call to action is clear for companies to recommit to fair hiring practices, ensuring that every qualified individual, regardless of origin or citizenship status, gets a fair shot.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.