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What's next: Media Matters filed a motion to dismiss Musk's lawsuit in March, but a judge has yet to rule. VCG/GettyGovernment lawsuits and investigationsSEC investigation into Musk's Twitter takeoverThe issues: The Securities and Exchange Commission is investigating Elon Musk's Twitter purchase. Matt Winkelmeyer/Getty ImagesPersonal lawsuits against MuskTornetta v. MuskThe issues: Tesla shareholder Richard Tornetta sued Musk and Tesla in a class action lawsuit regarding Musk's compensation package, which was worth $55.8 billion at the time. Several lawsuits also allege Musk discriminated against them because of their race, gender, or disability in choosing to fire them. The executives were set to receive golden parachutes, but claim Musk and X have not paid them out.
Persons: , Elon Musk, Musk, Claire Boucher, Grimes, Alex Spiro, Sam Altman, Donald Trump, Spiro, Anna Webber, Angelo Carusone, What's, Gina Carano, Schaerr Jaffe, Tesla, Musk's, Elon, SEC hasn't, Elon Musk's, who've, Owen Diaz, Matt Winkelmeyer, Richard Tornetta, Kimbal Musk, He's, Boucher, Benjamin Brody, Brody, Brody reverberated, Ben Brody, didn't, Robert Kaiden, Kaiden, he's, Agrawal, Parag Agrawal, Ned Segal, Twitter Vijaya Gadde, Sean Edgett, Segal, hadn't Organizations: Service, SpaceX, Business, OpenAI, SEC, Trump, Trump —, Elon, Variety, Media, X Corp, Disney, National Labor Relations Board, UAW, Tesla, Getty Government, Twitter, Securities, Exchange Commission, Justice Department, Reuters, Traffic, Administration, NHTSA, Apple, NLRB, Musk's SpaceX, US, Employment Opportunity, Musk, Nazi, Litigation Locations: Texas, Texas and Missouri, America, Nazi Germany, California, Delaware, San Francisco
Tesla is being accused of taking steps to keep employees in Buffalo, New York, from unionizing, according to a complaint from the National Labor Relations Board. The policy restricted Tesla workers from "recording, unauthorized solicitating [sic] or promoting," and "creating channels and distribution lists," among other things, the complaint said. The Tesla Buffalo plant was supposed to manufacture solar panels, but has been used more recently to assemble electric vehicle charging equipment, and to house a team of AI software data labelers. Last month, the Buffalo plant was home to a number of job cuts put in place as part of a broader restructuring at the electric vehicle company. Tesla has also faced workers' rights challenges in Europe.
Persons: Elon Musk, Tesla, Linda Leslie, Musk Organizations: SpaceX, X Holdings Corp, Milken Institute's Global, Beverly Hilton Hotel, National Labor Relations, Buffalo, Union, Workers United, CNBC, NLRB, National Labor Relations Act, Twitter, Tesla Locations: Beverly Hills , California, Buffalo , New York, unionizing, Tesla Buffalo, Buffalo, New York, Europe, Sweden
Amazon CEO Andy Jassy violated federal labor law in comments he made to media outlets about unionization efforts at the company, a National Labor Relations Board judge ruled Wednesday. NLRB Administrative Law Judge Brian Gee cited interviews Jassy gave in 2022 to CNBC's "Squawk Box," Bloomberg Television and at The New York Times' DealBook conference. At the DealBook conference, Jassy said that without a union the workplace isn't "bureaucratic, it's not slow." The NLRB filed the complaint against Amazon and Jassy in October 2022. But the Amazon chief's other remarks that employees would be less empowered and "better off" without a union violated labor law, "because they went beyond merely commenting on the employee-employer relationship."
Persons: Andy Jassy, Brian Gee, Jassy, Gee, Mary Kate Paradis, Paradis Organizations: National Labor Relations, NLRB, Bloomberg Television, The New York Times, CNBC, Bloomberg, Amazon Locations: Amazon's
The SpaceX logo is shown on a Falcon 9 rocket as it is prepared for launch to carry NASA's SpaceX Crew-8 astronauts Matthew Dominick, Michael Barratt, and Jeanette Epps, and Roscosmos cosmonaut Alexander Grebenkin to the International Space Station at the Kennedy Space Center, in Cape Canaveral, Florida, U.S., March 2, 2024. The National Labor Relations Board accused SpaceX in a new complaint of entering into unlawful severance agreements with terminated employees nationwide. The unfair labor practices complaint comes two months after SpaceX filed a federal lawsuit challenging the legality of the NLRB's oversight authority, and after the federal agency in a separate complaint accused the company of illegally firing eight workers who had criticized its CEO Elon Musk in an open letter. The new NLRB complaint claims that SpaceX included unlawful confidentiality and non-disparagement clauses in severance agreements and that it unlawfully limited the terminated workers' ability to participate in other claims against the company. It also alleges that the rocket maker and satellite internet company maintained an unlawful rule that required workers — as a condition of their employment — to sign an agreement for arbitration and dispute resolution, and to waive their right to receive money in class-action lawsuits against the company.
Persons: Matthew Dominick, Michael Barratt, Jeanette Epps, Alexander Grebenkin, SpaceX, Elon Musk Organizations: SpaceX, International, Kennedy Space Center, National Labor Relations Board, Company Locations: Cape Canaveral , Florida, U.S
By a vote of 13 to 2, the team voted to join the service employees union SEIU Local 560 — making them the first college athletes in US history to vote to join a labor union. Then, last month, the NLRB ruled that the Dartmouth players were employees of the school, clearing the way for the unionization vote. The Dartmouth vote also comes as the share of union members in the US reached a record low of just 10% in 2023. AdvertisementIn the short term, however, the impact of the Dartmouth vote could be limited. AdvertisementIf the NLRB's decision to recognize the Dartmouth players stands, it could establish a precedent that enables other teams to follow suit.
Persons: , Dartmouth, Kaiser, There's, Victor Chen, Chen, Jake Rosenfeld, Louis, Trump, Rosenfeld, VCU's Chen, Matthew Johnson, Johnson, Barry Eidlin Organizations: Service, Dartmouth men's, Harvard, SEIU Local, National Labor Relations Board, Dartmouth, NLRB, Business, US, UAW, Hollywood, Kaiser Permanente, Virginia Commonwealth University, Washington University, NCAA, Northwestern football, Northwestern, Big, Associated Press, University of Southern, , USA, Duke University, McGill University Locations: Dartmouth, St, University of Southern California, Angeles, Montreal
Tesla and SpaceX CEO Elon Musk has to testify in a probe by the U.S. Securities and Exchange Commission concerning his 2022 acquisition of Twitter, a U.S. judge ordered in a court filing out Saturday. Musk closed his acquisition of Twitter in October 2022 in a deal worth roughly $44 billion, and has since rebranded it X. Musk, his attorney Alex Spiro and the SEC did not immediately respond to requests for comment. The settlement required Musk to have a "Twitter sitter" approve his tweets about his electric vehicle business before posting them. Attorneys for SpaceX argued in their suit that the very structure of the federal labor board violates the U.S. Constitution.
Persons: Elon Musk, Musk, Laurel Beeler, Alex Spiro, Tesla Organizations: SpaceX, U.S . Securities, Exchange Commission, Twitter, CNBC, SEC, U.S, Supreme, National Labor Relations Board, NLRB, Southern, Southern District of, Attorneys, . Constitution, Starbucks Locations: Warsaw, Poland, U.S, Southern District, Southern District of Texas, Brownsville, .
Elon Musk's SpaceX has filed suit against the NLRB, arguing its proceedings are unconstitutional. The suit follows an NLRB accusation that SpaceX illegally fired employees who complained about Musk. SpaceX's suit could have wide-reaching impacts on federal agencies if successful, an expert told BI. Eight SpaceX employees were wrongfully terminated for their involvement in drafting and posting the letter, the NLRB alleged in its complaint against the billionaire's spacecraft manufacturing company. AdvertisementThe NLRB, in response to SpaceX's suit, has argued the case should be heard in California.
Persons: Elon, , Musk, Musk's, SpaceX's, David Wimmer, Jerry Cutler, Cutler, Wimmer, they've Organizations: SpaceX, Service, National Labor Relations Board, Court, Southern, Southern District of Texas, Musk ., NLRB, Business Insider, Elon, Twitter, SpaceX Microsoft, CBS, United States, Supreme, Circuit, Columbia University, National Labor Relations Act, Federalist Society Locations: Brownsville, Southern District, Texas, California
AdvertisementAdvertisementGoogle contractors with Accenture, who write Google Help articles and review AI-generated content from the Bard chatbot, voted on Monday to unionize with the Alphabet Workers Union, which represents Google employees and contractors. The vote comes after a coalition of 118 Accenture workers announced their union in June. Google is currently appealing the NLRB's September ruling that it is joint employer of Accenture contractors. Accenture contractors worked on BardGoogle rushed its release of Bard in an effort to make a product to compete with OpenAI's ChatGPT. Other Google contractors have unionizedMonday's vote marks the second time this year that contractors for Google successfully voted to unionize with the NLRB.
Persons: Cognizant, , Bard chatbot, Monday's, Bard, Organizers, Jen Hill, Courtenay Mencini, Bard Google, OpenAI's, Hill, Laura Greene, Greene, OpenAI Organizations: Accenture, Service, Alphabet Workers Union, Google, National Labor Relations, Alphabet Workers, Bloomberg, Workers, . Workers, Meta Locations: Manila
A group of Google contractors, some of whom have worked on Search and Google's artificial intelligence chatbot Bard, have successfully voted to unionize. The group, from Google contractor Accenture, filed for unionization efforts in June after claiming Google asked them to help train the generative AI answers offered in Search and Bard, and that they felt underprepared for their work. The Alphabet Workers Union teamed up with the Communications Workers of America in 2021 as a minority union. "We have no objection to these Accenture workers electing to form a union," said Google spokesperson Courtenay Mencini in a statement to CNBC. The decision marks the second ruling to classify Google as a joint employer with its contractor for a subset of employees.
Persons: Bard, Courtenay Mencini, Jen Hill, Hill Organizations: Accenture, Google, Bloomberg, Alphabet Workers Union, Communications Workers of America, U.S . National Labor Relations Board, Workers, NLRB, CNBC, CWA, YouTube, Cognizant Technology Solutions, CNBC PRO Locations: London, England, Francisco
The NLRB alleged that X fired Yu after she attempted to organize other Twitter workers who were upset about Musk's sudden change to the company's work requirements. Five days later, Yue was fired and told that she was violating an unspecified company policy, the legal document said. The NLRB alleges that X has "been interfering with, restraining, and coercing employees in the exercise of the rights guaranteed" under national labor law. "After 12 amazing years and 3 weeks of chaos, I'm officially fired by Twitter," Yue said in a tweet on Nov. 15. WATCH: Elon Musk has "cut off the good guys, empowered the bad guys" on X
Persons: Elon Musk, Recep Tayyip Erdogan, Fatih Aktas, Elon Musk's X, management's, Yao Yue, Musk, X, Yu, Yue, Slack, Yue's, Twitter, X didn't, I'm Organizations: United Nations, UN, Anadolu Agency, Getty Images, National Labor Relations Board, Twitter, San, National Labor Relations, NLRB, CNBC Locations: New York, United States, San Francisco
[1/2] Starbucks workers attend a rally as they go on a one-day strike outside a store in Buffalo, New York, U.S., November 17, 2022. Federal law only allows NLRB members, who are appointed by the president and confirmed by the Senate, to be removed for "neglect of duty or malfeasance in office." The Buffalo store is one of more than 360 Starbucks locations in the U.S. to unionize since 2021. The labor board is currently considering more than 100 cases accusing Starbucks of unlawful conduct, including firing union supporters, barring organizing in stores and refusing to bargain with unions. An NLRB official dismissed Cortes' petition in May, saying no election could be held until cases accusing Starbucks of unfair labor practices at the Buffalo store were resolved.
Persons: Lindsay DeDario, Ariana Cortes, Cortes, Kayla Blado, Daniel Wiessner, Alexia Garamfalvi, Deepa Babington Organizations: REUTERS, Starbucks Corp, U.S . National Labor Relations Board, Work Foundation, U.S . Constitution, Starbucks, NLRB, Senate, Democratic, Democrat, Buffalo, Thomson Locations: Buffalo , New York, U.S, New York, Washington ,, U.S ., Buffalo, unionize, Albany , New York
The National Labor Relations Board said Tuesday it found merit to charges that Amazon violated labor laws by refusing to bargain with a fledgling union representing employees at one of its New York warehouses. Workers at one of the retail giant's Staten Island warehouses, known as JFK8, voted last April to join the Amazon Labor Union, a grassroots organization started by current and former employees. The NLRB complaint comes as the ALU has faced setbacks since its landmark victory on Staten Island. The ALU lost two elections at other Amazon warehouses last year, and rifts have formed between some leaders and members of the union. On Monday, a group of former ALU members sued the union, accusing it of violating the ALU's constitution and asking a Brooklyn court to compel it to hold an election for union officers.
Organizations: National Labor Relations Board, Amazon Labor Union, Workers, Amazon, Democratic Reform Caucus, The New York Times Locations: New York, Brooklyn, Staten, Staten Island
Noncompete clauses likely violate federal labor law, NLRB's general counsel wrote Tuesday. Criticism from across the aisleWorker advocates have long maintained that noncompete clauses are an unjust infringement on liberty that reduces employees' earning potential. But noncompete clauses have also attracted critics on the right. The criticism from both sides of the political spectrum comes as noncompete clauses have expanded from high-salary workers in fields such as technology and finance to lower-wage professions, such as fast food. That proposed rule, which will be subject to a legal challenge if and when it is finalized, came after the White House encouraged the commission to tackle noncompete clauses, framing them as a barrier to healthy competition and wage growth.
Persons: NLRB's, , Joe Biden, Jennifer Abruzzo, Biden, Najah Farley, John Lettieri, Insider's Juliana Kaplan Organizations: Workers, Service, Companies, National Labor Relations Board, National Labor Relations Act, Worker, National Employment Law, American Enterprise Institute, Federal Trade Commission, House Locations: Abruzzo, California , Massachusetts, Illinois
Employees at Star Garden Topless Dive Bar in North Hollywood California voted to unionize. Employees including dancers, entertainers, and DJs want to be represented by the Actors Equity Association. They will become the first union of strippers in the US in a decade. "I'm excited that all of my beautiful coworkers will finally have a seat at the table and a voice to discuss safety and other issues," Sinder, a Star Garden dancer told CNN. Insider reached out to Star Garden, the NLRB, Actors Equity Association, and Stripper Strike Noho but did not immediately hear back outside of regular working hours.
Elon Musk broke labor law with a 2018 tweet about Tesla employees' stock options, a court ruled. The US 5th Circuit Court of Appeals said Musk threatened staff in the wake of a unionization drive. But why pay union dues & give up stock options for nothing? Tesla argued that because Musk said there was nothing stopping Tesla workers joining a union, it couldn't be regarded as a threat. "Because stock options are part of Tesla's employees' compensation, and nothing in the tweet suggested that Tesla would be forced to end stock options or that the UAW would be the cause of giving up stock options, substantial evidence supports the NLRB's conclusion that the tweet is as an implied threat to end stock options as retaliation for unionization," the panel wrote in its conclusion.
SummarySummary Law firms Laid-off workers can't sign away labor rights, board saysDecision overrules Trump-era precedentFeb 22 - The National Labor Relations Board has ruled that laid-off workers cannot be required to sign agreements that contain confidentiality clauses and other provisions that could deter them from exercising their rights under federal labor law in exchange for receiving severance. The board in a 3-1 decision on Tuesday overturned a pair of Trump-era rulings that said severance agreements only violate federal labor law when employers engage in other unlawful conduct when asking workers to sign them. The NLRB's Democratic majority said those rulings were misguided and "granted employers carte blanche to offer employees severance agreements that include unlawful provisions." The board said it was illegal for the company to offer the workers severance agreements that included confidentiality and non-disparagement provisions because they could be discouraged from filing complaints with the NLRB or publicizing labor disputes. He said there was no evidence that the decisions tossed out by the majority had led the board to uphold illegal severance agreements.
Companies can't require employees to waive their rights as part of a severance agreement. In a ruling on Tuesday, the National Labor Relations Board said such requirements are "unlawful." Workers can't be forced to "choose between receiving benefits and exercising their rights," NLRB's Lauren McFerran said. Nondisparagement clauses, it reasoned, could prevent former workers from being able to assist investigations into ongoing labor law violations. In a statement, McFerran said Thursday's ruling reflected an understanding that "employers cannot ask individual employees to choose between receiving benefits and exercising their rights under the National Labor Relations Act."
Amazon workers arrive with paperwork to unionize at the NLRB office in Brooklyn, New York, October 25, 2021. A federal labor agency on Wednesday certified an independent union's landmark victory at Amazon 's Staten Island warehouse and threw out a litany of objections filed by the e-retailer. In April, a majority of the roughly 8,300 workers at Amazon's Staten Island warehouse, known as JFK8, voted to join the Amazon Labor Union, becoming the company's first unionized facility in the U.S. Amazon sought to overturn the results of the election, alleging the National Labor Relations Board office that oversaw the election interfered in the union drive. "As we've said since the beginning, we don't believe this election process was fair, legitimate, or representative of the majority of what our team wants," Nantel said. Workers at a nearby facility on Staten Island rejected unionization in May, and the ALU lost an election at an Albany warehouse in October.
The National Labor Relations Board (NLRB) director of the agency's Region 31 office issued a finding of merit in an unfair labor practice charge brought by the student athletes against USC, the National Collegiate Athletic Association (NCAA) and the Pac-12 athletic conference. The parties to the case were informed of the decision on Thursday, according to NLRB spokesperson Kayla Blado. read moreA separate case filed by college athletes in Indianapolis against the NCAA and others has been held in abeyance pending the outcome of the USC case. The judge's ruling could then be appealed to the full NLRB, which would render a decision as to whether USC, NCAA and Pac-12 are employers under labor law, and could order its own remedies. The National College Players Association, which brought the charges on behalf of 113 USC athletes, also could not be reached for comment.
An Atlanta NLRB director found merit to allegations that Apple violated labor law. Apple, which did not respond to Insider's request for comment, has previously denied wrongdoing in a complaint with similar allegations concerning a New York Apple Store. We commend the NLRB for recognizing captive audience meetings for exactly what they are: a direct violation of labor rights." The Atlanta Apple Store in Cumberland Mall became the first Apple retail location to file for a union election in April. The employees in Atlanta eventually withdrew their call for a union vote days before the election, alleging intimidation from Apple.
Companies are using surveillance technologies to keep tabs on remote workers. Under current law, some level of employee surveillance is generally allowed. Some experts have called this "productivity paranoia" a sentiment that's led some companies to expand the use of various surveillance technologies. These are among the reasons Abruzzo's memo called on the NLRB to review companies' surveillance technologies and assess whether they restrict workers' rights. While the emergence of remote work has brought this surveillance into the spotlight in recent years, the legal landscape remains murky.
Amazon CEO Andy Jassy violated federal labor laws when he remarked in recent interviews that employees could be negatively affected by unions, a federal labor agency said. He echoed those comments in the Bloomberg interview, saying workers would be "better off without a union." The complaint also requests that Amazon mail and email workers a notice informing them of their labor rights. Last week, Amazon workers at a fulfillment center near Albany rejected unionization. WATCH: Watch CNBC's full interview with Amazon CEO Andy Jassy on his first annual letter to shareholders
Amazon is about to lose its bid to overturn its workers' vote to form their first labor union. With the objections cleared, the labor union would be free to pursue certification with the NLRB. The warehouse workers had been the first in the e-commerce company's history to successfully form a union, voting in April to join the newly founded Amazon Labor Union. With Thursday's decision, the Amazon Labor Union is now cleared to pursue certification as the first recognized labor unit in the logistics giant — four months after workers voted to do so. Amazon and the Amazon Labor Union did not immediately respond to Insider's requests for comment.
The NLRB has accused Starbucks of using "illegal tactics" to deter workers from unionizing. Starbucks also "repeatedly" closed the Buffalo stores early "to hold anti-union meetings," which reduced staff's earnings, the NLRB wrote. Workers United – the union that the Starbucks stores are organizing with – previously said Starbucks' actions were affecting staff's stance on unionizing. Starbucks workers in Buffalo first announced plans to unionize last August, citing understaffing, product shortages, and their experiences working during the pandemic. In May, the NLRB also petitioned for injunctive relief for seven former Starbucks employees in Memphis, Tennessee it said were "unlawfully fired" for organizing.
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