SpaceX Versus the Department of Justice

The DOJ is suing SpaceX for focusing its hiring on US citizens and permanent residents. Yes, you read that right.

Semafor: The DOJ alleges that SpaceX discouraged refugees and asylum seekers from applying to open positions and refused to hire those that did, according to the complaint.

According to the complaint, SpaceX job postings wrongly stated that only U.S. citizens and lawful permanent residents could apply for openings, and that “SpaceX’s hiring practices were routine, widespread, and longstanding, and harmed asylees and refugees.”

Under U.S. law, both asylum seekers and refugees are protected from hiring discrimination regardless of citizen status.

The lawsuit is bizarre. I am sure Elon would be happy to hire some refugees from the Russian space program. So why does SpaceX advertise that only US citizens and lawful permanent residents can apply for some jobs? Because that’s what they understand the law requires:

People “don’t understand the chilling effect of the federal export control laws” that SpaceX allegedly cited in its job listings as a reason for excluding refugees and asylees as candidates, writes Abhi Tripathi, the director of mission operations at UC Berkeley’s Space Sciences Laboratory. The International Traffic in Arms Regulations (ITAR) only allows U.S. citizens and green card holders to access information in companies that make spacecraft and rockets for national security reasons. “Employees are PERSONALLY liable with huge fines and imprisonment if the wrong info gets out,” Tripathi says. It’s unclear which positions SpaceX allegedly refused refugee and asylum applicants for.

Now SpaceX may be wrong about the technicalities of the law, the distinction, as I understand it, rests on the difference between US Persons and US Citizens, but they are 100% correct that the DoD frowns on non-citizens working for military related ventures. As a result, jobs restricted to US citizens are common in industries that interact with the military or that involve technologies which are potentially dual-use, such as jobs at SpaceX. Jobs that require security clearances are, of course, typically restricted to US citizens but so are many jobs not requiring clearances. Here, for example, is an ad for an engineer at Northrup Grumman in aerospace structures that does not require security clearance but advertises US Citizen only. The U.S. military, of course, mandates citizenship or a green card for enlistment, a policy that is shared by another federal employer—can you guess? Surprise. The Department of Justice.

Below, for example, is an ad for a recreational specialist to work for the DOJ’s Bureau of Prisons–this is not a job involving national security!–but the ad states clearly that U.S. Citizenship is Required. Most federal government jobs, in fact, are restricted to US citizens. The Federal Reserve even requires US citizenship to get an internship.

In short, it seems that SpaceX is being singled out for punishment for a practice that is widespread in the industry and often encouraged by, sometimes required by, and usually practiced by the Federal government.