US sues SpaceX for alleged hiring discrimination against refugees and others

U.S. Court News

The U.S. Department of Justice on Thursday sued SpaceX, the rocket company founded and run by Elon Musk, for alleged hiring discrimination against refugees and people granted asylum.

The complaint, filed in an administrative court within the department, asserts that SpaceX wrongly claimed that federal export control laws barred it from hiring anyone but U.S. citizens and permanent residents. As a result, it discouraged refugees and asylum grantees from applying for jobs at the company, according to the complaint.

Export controls typically aim to protect U.S. national security and to further national trade objectives. They bar the shipment of specific technologies, weapons, information and software to specific non-U.S. nations and also limit the sharing or release of such items and information to “U.S. persons.” But the Justice Department noted that the term includes not only U.S. citizens, but also permanent U.S. residents, refugees, and those granted asylum.

The department charged that SpaceX also refused to “fairly” consider applications from this group of people or to hire them. The positions in question included both ones requiring advanced degrees and others such as welders, cooks and crane operators at the company.

The U.S. is seeking “fair consideration and back pay” for people who were deterred from or denied employment at SpaceX due to the company’s alleged discrimination, in addition to undetermined civil penalties.

SpaceX, which is based in Hawthorne, California, did not reply to a request for comment.

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Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.