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SpaceX, the private aerospace manufacturer and space transportation company led by Elon Musk, is facing a lawsuit alleging discrimination in pay practices. The proposed class action lawsuit, citing California’s Equal Pay Act, was filed in Los Angeles Superior Court by Ashley Foltz, a former base-level engineer at SpaceX. The lawsuit claims that women and minority employees at SpaceX were paid less than their male and White counterparts.
Allegations of Unjust Pay Disparities
Ashley Foltz, the plaintiff in the case, contends that she was hired as an engineer at SpaceX with a starting salary of $92,000, while men with similar or even less experience were offered salaries as high as $115,000. The complaint states that Elon Musk’s company and its executives have no valid justification for these discriminatory pay practices. It further asserts that Ms. Foltz received lower compensation than her male peers for performing equivalent or substantially similar job responsibilities throughout her employment.
The Impact of California’s Pay Transparency Law
The pay gap at SpaceX came to light when a new California pay transparency law took effect. This law mandates that employers disclose salary ranges in job listings. In response to this law, SpaceX increased Foltz’s salary but only to the lowest tier of her salary band, which was $95,000, despite the band’s upper limit being $115,000.
Uncovering a Scheme
The lawsuit also alleges that SpaceX employs a scheme that categorizes jobs into positions and levels, such as “technical writer,” “engineer 1,” and “engineer 2.” According to Foltz, this categorization is intended to create a seemingly neutral pay structure. However, she claims that women and minorities are unfairly assigned to roles with lower pay, such as “technical writer,” even when performing engineering tasks, to justify paying them less. Additionally, the lawsuit asserts that women and minorities are promoted at lower rates than their male and White counterparts and are paid at the lower end of the salary band when promotions occur.
Ongoing Discrimination Allegations
This lawsuit against SpaceX is not an isolated incident. The company has recently faced discrimination-related lawsuits from former employees, covering allegations of age, race, and disability discrimination. In August, a former SpaceX technician sued the company, alleging physical disability harassment and workplace retaliation.
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Broader Gender Disparities in Corporate America
The lawsuit against SpaceX highlights broader issues of gender disparities in corporate America. A report based on research from 276 companies in the US and Canada revealed that, in 2022, only 87 women were promoted to manager roles for every 100 men promoted. The Women in the Workplace report, conducted by LeanIn.Org and McKinsey & Co., indicated that while the number of women promoted had slightly increased from the previous year, women continue to be underrepresented in leadership positions despite seeking promotions at a similar rate as men.
SpaceX and Tesla Inc. Under Scrutiny
SpaceX is not the only company under Elon Musk’s umbrella to face allegations of discrimination. Tesla Inc., Musk’s electric vehicle manufacturing company, has encountered complaints from Black workers and California state agencies. These complaints allege that Tesla managers at its Fremont factory allowed racial slurs and a hostile work environment to persist.
Legal Proceedings Continue
The lawsuit against SpaceX, filed as “Foltz v. Space Exploration Technologies Corp,” continues to unfold in the Superior Court of California, Los Angeles County. Meanwhile, SpaceX and Elon Musk have argued that previous discrimination complaints against the company are unjust and should be dismissed.
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