The United States Justice Department has initiated legal action against SpaceX on Thursday, alleging that the rocket company, led by Elon Musk, has engaged in discriminatory hiring practices against asylum seekers and refugees.

The lawsuit asserts that SpaceX’s actions violated federal law by not fairly considering or hiring individuals based on their citizenship status.

Assistant Attorney General Kristen Clarke stated, “Our investigation found that SpaceX failed to fairly consider or hire asylees and refugees because of their citizenship status and imposed what amounted to a ban on their hire regardless of their qualification.”

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The investigation also revealed that SpaceX recruiters and higher-ranking officials discouraged asylees and refugees from pursuing employment opportunities within the company.

The Justice Department claimed that from September 2018 to May 2022, SpaceX dissuaded asylum seekers and refugees from applying for positions due to their citizenship status.

The company purportedly erroneously cited ‘export control laws’ as the basis for only hiring US citizens and lawful permanent residents, even though these regulations do not impose such restrictions.

The Justice Department’s lawsuit seeks remedies including compensation for those asylum seekers and refugees who were dissuaded or denied employment opportunities due to alleged discrimination, as well as imposing civil penalties on SpaceX.

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Clarke emphasized the significance of fair competition in job opportunities and highlighted that the lawsuit aims to hold SpaceX accountable for any unlawful employment practices.