financetom
Economy
financetom
/
Economy
/
US labor board wrongly ordered Tesla's Musk to delete anti-union tweet, court rules
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US labor board wrongly ordered Tesla's Musk to delete anti-union tweet, court rules
Oct 28, 2024 2:13 AM

(Reuters) - A divided U.S. appeals court on Friday ruled that the National Labor Relations Board went too far by ordering Tesla CEO Elon Musk to delete a 2018 tweet stating employees of the electric vehicle maker would lose stock options if they unionized.

The New Orleans-based 5th U.S. Circuit Court of Appeals on a 9-8 vote threw out an NLRB order from 2021 that had concluded the tweet amounted to an unlawful threat after the court concluded the tweet amounted to free speech protected by the U.S. Constitution's First Amendment.

"Deleting the speech of private citizens on topics of public concern is not a remedy traditionally countenanced by American law," the court held in an unsigned opinion joined by eight of the nine judges in the majority.

That finding was enough to warrant overturning the NLRB's 2021 decision, according to those judges, who were all appointed by Republican presidents. As a result meant, it did not decide whether the tweet itself violated the National Labor Relations Act.

The court also directed the NLRB to reconsider its decision ordering Tesla to reinstate a pro-union employee who was fired. U.S. Circuit Judge James Dennis, in a dissenting opinion joined by seven other judges, including all of the court's Democratic appointees, called the ruling "light on law and facts."

Representatives for Tesla and the NLRB did not respond to requests for comment.

The case predated Musk's purchase of Twitter, now known as X, in 2022 for $44 billion, a platform the world's richest man has long prolifically used.

Amid an organizing campaign at Tesla's Fremont, California, plant by the United Auto Workers union, Musk tweeted: "Nothing stopping Tesla team at our car plant from voting union... But why pay union dues & give up stock options for nothing?"

Tesla argued the tweet was not a threat and merely reflected the fact that union workers at other auto companies did not receive stock options. A three-judge 5th Circuit panel disagreed in March 2023, but the full appeals court elected to rehear the case.

Musk's rocket company SpaceX is separately suing the NLRB, claiming its in-house enforcement proceedings are unconstitutional.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Sticky Feb US CPI inflation raises questions about June Fed cut
Sticky Feb US CPI inflation raises questions about June Fed cut
Mar 12, 2024
NEW YORK (Reuters) - U.S. consumer prices increased solidly in February amid higher costs for gasoline and shelter, suggesting some stickiness in inflation that could delay an anticipated June interest rate cut from Federal Reserve. The consumer price index (CPI) rose 0.4% last month after climbing 0.3% in January, the Labor Department said on Tuesday. Gasoline and shelter, which includes...
US small business optimism falls to lowest in 9 months, NFIB says
US small business optimism falls to lowest in 9 months, NFIB says
Mar 12, 2024
NEW YORK (Reuters) - U.S. small business sentiment fell in February to the lowest level since May due to continued concerns around inflation, according to a report published on Tuesday. The monthly National Federation of Independent Business sentiment index fell to 89.4 in February from 89.9 in January. The reading marks the 26th-straight-month where the index remained below its 50-year...
Inflation Rises More Than Expected To 3.2% In February, Rebuffs Expectations Of June Fed Rate Cut
Inflation Rises More Than Expected To 3.2% In February, Rebuffs Expectations Of June Fed Rate Cut
Mar 12, 2024
The U.S. consumer price index exceeded expectations in February, mirroring the robust performance seen in January and casting doubt on the imminent commencement of interest rate cuts by the Federal Reserve. In February 2024, the inflation rate climbed to 3.2% compared to the previous year, as disclosed by the Bureau of Labor Statistics on Tuesday. Here are the key highlights...
Gasoline, shelter costs lift US consumer prices in February
Gasoline, shelter costs lift US consumer prices in February
Mar 12, 2024
(Refiles to insert dropped word in paragraph one) WASHINGTON (Reuters) -U.S. consumer prices increased solidly in February amid higher costs for gasoline and shelter, suggesting some stickiness in inflation that could delay an anticipated June interest rate cut from the Federal Reserve. The consumer price index (CPI) rose 0.4% last month after climbing 0.3% in January, the Labor Department's Bureau...
Copyright 2023-2025 - www.financetom.com All Rights Reserved