Labor/Employment
Nov. 10, 2026
9th Circuit dissent warns SpaceX ruling opens door to evading arbitration
A divided 9th Circuit ruled that eight former SpaceX employees can pursue retaliation and harassment claims in court despite signing arbitration agreements. A dissenting judge warned that the majority's interpretation allows employees to circumvent arbitration simply by labeling workplace disputes sexual harassment.
A divided 9th Circuit ruled Tuesday that eight former SpaceX employees who accused Elon Musk of fostering a sexually hostile workplace can pursue their claims in federal court, drawing a sharp dissent warning that the decision could undermine employment arbitration agreements nationwide.
In a 2-1 decision, the panel held that the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 allows employees to avoid arbitration by alleging conduct they contend const...
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