(NEW YORK) — As the summer winds down, Labor Day weekend travel is about to get underway. Here’s what you need to know before hitting the road or heading to the airport.
The skies
Labor Day weekend is projected to be the third-busiest travel weekend of the year, according to the Federal Aviation Administration.
Expedia expects Friday, Sept. 1 and Monday, Sept. 4 to be the weekend’s busiest days to fly.
Domestic flights are averaging $226 per ticket this Labor Day weekend, down 11% from last year and down 20% from 2019, according to Hopper.
American Airlines and United Airlines both said their busiest travel days of the weekend will be Thursday, Aug. 31 and Friday, Sept. 1.
The Transportation Security Administration said it expects an 11% increase in passengers this Labor Day weekend compared to last year. The agency projects its busiest day to be Friday, Sept 1.
The TSA added that this summer has been the busiest summer travel period on record
The roads
The busiest time on the roads over Labor Day weekend will be between 2 p.m. and 6 p.m. on Thursday, Aug. 31, according to transportation analytics company INRIX. But on Sept. 1, drivers should still expect worse-than-normal traffic between 11 a.m. and 9 p.m.
Car rentals are averaging $41 per day, down 14.5% from this time last year, according to Hopper. The most popular cities for rental car pickups are Orlando, Florida; Las Vegas; and Los Angeles.
(NEW YORK) — Low water levels at the Panama Canal are causing a traffic jam at the historic trading route that connects the Atlantic and Pacific Oceans, threatening to ensnarl the holiday shipping season and raising alarm among canal officials.
The 109-year-old canal works through a water lock system that move ships up or down as they make it to the other side. Each ship that goes through the canal uses millions of gallons of water that gets sucked in from nearby lakes. Without this fresh water, the canal can’t operate.
There’s always been enough rainfall flowing to these lakes, but this year a longer dry season and a shorter rainy season have led to a shortage of freshwater to feed the canal, according to canal officials.
ABC News foreign correspondent Matt Rivers spoke to “START HERE” about his visit to the canal, how authorities are instituting new rules to help conserve water and concerns about the potential impact on supply chains and consumer prices.
BRAD MIELKE: Remember when the Suez Canal in Egypt backed up because of a boat accident, basically? Hundreds of ships patiently lined up for days while the world’s freight traffic just stopped?
Well now, a similar situation is playing out closer to home. The famed Panama Canal is now home to the planet’s biggest traffic jam, but this time it’s not because of a ship, but because of the water.
ABC’s foreign correspondent Matt Rivers is on the ground in Panama right now. Matt ,maybe I should have said not water, it’s a lack of water, right? What’s happening?
MATT RIVERS: Yeah, that’s exactly right. So basically, you have the Panama Canal. Everyone knows that it connects the Pacific Ocean to the Atlantic Ocean. And right now, there are huge delays. You can enter the canal from either the Atlantic or the Pacific, and we took a boat out on to the Pacific the other day and there are just ship after ship after ship stuck waiting.
And the reason why has to do with the way this canal is structured. So, basically, the way this works is that as you enter one side, a series of locks, so think of them as like water elevators – they have to move ships either up or down as they make it to the other side.
In order to do that, the canal sucks water in from nearby lakes. These are freshwater sources. So basically, it’s rainfall that comes down, feeds the rivers, the rivers feed down into the canal.
Each ship that goes through the canal uses about 55 million gallons of water, most of which then gets flushed out to sea as the ship makes its way through the canal. In a place like Panama, which is one of the wettest countries in the world, that has never really been a problem – until now, because when you think about what I just said, you have to have a lot of fresh water.
Well, what happens this year? From January to about March, April, I would say, is typically the dry season in Panama. But that dry season was extended by a few months this year where they didn’t get the amount of rain they needed. It was hotter, a more extended dry season. And when the wet season started, let’s say around June until now, it’s been a less wet than usual wet season.
Basically, with all that adds up to is that there’s less fresh water. The levels in the canal are much lower than where they need to be, and so as a result, canal authorities have less water to work with when they’re moving each one of these ships through.
They’ve had to implement water saving, water conserving measures. So what that’s meant is that not only are they allowing less ships to go through the canal every day, from 36 on average down to about 32 on average, but each ship also has weight restrictions now.
They have to actually have less cargo on board. So what that means is delays. The number of ships that are going through each day is less, but the number of ships arriving same as ever before, and so that’s why on both sides, in the Atlantic and the Pacific, you’ve got ships waiting. Right now, we’re approaching about 150 ships, more or less waiting to transit through.
MIELKE: So how bad is that? Like, what does that mean for consumers, I guess? Like, how bad is it getting as far as the shipments?
RIVERS: Sure. So, basically, think about what these ships carry through. It’s everything from consumer electronics to raw materials used to make other goods. The shipping companies, the companies that are paying for these shipments, they incur more fees. The longer these delays go on, ultimately, their costs go up. And as we saw during the pandemic, what happens when companies incur more costs? Do they eat it in the public good? No.
Generally speaking, they say let’s just pass those costs right along to the consumer. And that is the fear here. We’re not really seeing that yet, but this is the start of the peak season for shipping. And it might I mean, don’t get mad at me for talking about Christmas this early. I’m not someone who likes to see Christmas trees in Target this early, but these shipping companies are thinking about Christmas.
So there could be delays in those goods getting to stores, and you could see prices go up a little bit as a result. Again, we’re not seeing that now, but if these companies decide to pass costs incurred here at the Panama Canal on to your average American, then you could see prices go up.
That said, let me just say, this is not going to be, at least for now, as bad as the kind of supply chain issues that we saw during the global pandemic.
MORE: Drought monitor spells good news for California, but ‘not out of the woods’ on megadrought
MIELKE: Well, and I guess this raises this larger worry, which is like, if there’s a boat accident there, that can get fixed in a day. If there’s part of the canal is destroyed, you could reconstruct that in a week or a month or whatever. Droughts can last for years, Matt. So what happens going forward if the problem is just how much it rains in a country?
RIVERS: Yeah, and those are the questions that we posed to Panama Canal authorities, and they’re taking it one step at a time.
During the wet season, which is where we are now, that’s when normally the feeder system for this canal fills back up. So when dry season comes around again in the early part of next year, they’ve got enough water to work with, they get through the dry season, then the wet season comes again and everything is OK. But if the wet season doesn’t fill back up their supplies enough, then they’re going to be starting off next year on the back foot.
Without fresh water, this canal cannot operate. It’s that simple. So what keeps the authorities here at the Panama Canal up? The long-term viability of the canal. If they don’t get more fresh water, then they can’t operate the canal the same way they have since it opened more than a century ago.
We’re not there yet. We don’t hope, no one hopes, we get to that point. But these are the kinds of conversations that are being had here at the Panama Canal within the official community that have literally never happened before.
(MIAMI) — Fast food chain Burger King is facing a lawsuit that claims its signature Whopper is marketed on restaurant menu boards as a bigger sandwich than it is in reality.
Consumers in the proposed class-action lawsuit claim Burger King misleads customers and has allegedly committed a breach of contract by showing its bestselling burger with ingredients that “overflow over the bun,” which make the sandwich appear 35% larger, and with more than double the amount of meat than what it actually serves customers.
“These people aren’t looking to get $5 million dollars because they bought a hamburger that didn’t look like what they were advertised. The consumers really want to bring about change. They have a lot of choices. They just want to just be told truthfully what their choices are,” Anthony Russo, an attorney for the plaintiffs, told Good Morning America.
A Burger King spokesperson told ABC News in a statement, “The plaintiffs’ claims are false. The flame-grilled beef patties portrayed in our advertising are the same patties used in the millions of Whopper sandwiches we serve to Guests nationwide.”
ABC News legal analyst and The Cochran Firm managing partner Channa Lloyd explained, “Essentially, this lawsuit boils down to, ‘You sold me something that wasn’t exactly what I got.’ Burger King is just gonna have to show that they were not in a contractual agreement and that what they advertised was what they gave to consumers, and that any hyperbole on their part or exaggeration was what a reasonable consumer would expect.”
Past efforts to mediate a settlement between the plaintiffs and Burger King on this issue have been unsuccessful.
Burger King isn’t the only fast food giant facing such legal trouble.
Taco Bell was sued last month in New York for allegedly selling Crunchwrap Supremes and Mexican Pizzas with half as much filling as its promotions suggest. The chain has not responded to ABC News’ request for comment.
Joe Burbank/Orlando Sentinel/Tribune News Service via Getty Images
(NEW YORK) — As Hurricane Idalia slams parts of Florida, the state’s huge tourism industry is also being impacted.
The storm made landfall in Florida’s Big Bend region, north of Tampa, on Wednesday morning as an “extremely dangerous” Category 3 storm, according to the National Weather Service.
Idalia is the strongest hurricane to make landfall in the Big Bend region since 1896.
Here is what to know about how the storm is impacting Florida’s major theme parks and airports.
Orlando International Airport remains open
Orlando International Airport, the state’s busiest airport, is open as of Wednesday morning.
The airport tweeted Wednesday that it remains “open and operational,” but noted that flight disruptions “are expected.”
Tampa International Airport closes ahead of storm
On the other side of the state, Tampa International Airport closed its operations as of 12:01 a.m. local time Tuesday due to Idalia.
The airport tweeted Wednesday morning that it hopes to announce reopening plans later in the day.
Walt Disney World remains open amid Idalia
Walt Disney World Resort, located near Orlando, said its resorts and theme parks are open and “operating under normal conditions” while they are “closely monitoring the path of the projected weather.”
Due to rain in the Orlando area, Disney’s Typhoon Lagoon water park and its two outdoor miniature golf courses were closed Wednesday.
The company also asked guests staying at Fort Wilderness Resort & Campground to “remove and stow” outside items like decor, tents and camper awnings by 6 p.m. local time on Tuesday.
Guests may go online to modify or cancel their Disney Resort hotel reservations.
The company said it is currently waiving its change and cancellation fees for reservations with check-in dates between Aug. 28 and Sept. 4.
Under its hurricane cancellation policies, Walt Disney World states that if the National Hurricane Center issues a hurricane warning for either the Orlando area or where you live within seven days of your planned arrival date, you may reschedule or cancel most hotel room reservations without any change or cancellation fees.
Busch Gardens closes early due to Idalia
Busch Gardens, a Tampa-based theme park, closed at 12 p.m. local time Tuesday ahead of Idalia.
The theme park said it would remain closed Wednesday and planned to reopen Thursday.
Universal Studios remains open
Universal Studios in Orlando said it is staying open as it continues to monitor the path of Hurricane Idalia.
“Universal Orlando Resort theme parks including Universal Studios Florida, Universal Islands of Adventure and Universal Volcano Bay are planning to open and operate as normal at 9:00 am on Wednesday, Aug. 30,” the company said in a statement Tuesday. “However, we will not offer our usual Early Park Admission benefit for on-site hotel guests, select Annual Passholders and other select travel trade clients on this day while our teams prepare the parks for opening after the storm. Our hotels remain operational as they focus on taking care of our guests.”
Like Disney, Universal Orlando Resort’s severe weather policy states that if a state of emergency or a hurricane or tropical storm warning is issued by the National Hurricane Center for the Orlando area or your place of residence, you can reschedule or cancel your Universal reservations with “no cancellation or change fees imposed.”
The Walt Disney Co. is the parent company of ABC News.
Citigroup CEO Jane Fraser testifies during a Senate Banking, Housing, and Urban Affairs Committee hearing on Capitol Hill, Sept. 22, 2022 in Washington, DC. — Drew Angerer/Getty Images, FILE
(NEW YORK) — Dozens of the nation’s most prominent business leaders called for federal aid and speedy processing of work permits to address an influx of asylum seekers in New York City.
The arrival of more than 100,000 migrants from the Southern border has pitted some local and state officials against President Joe Biden, setting off a high-profile dispute over proper treatment of the asylum seekers and who should pay for it.
More than 120 executives — including JPMorgan Chase CEO Jamie Dimon, Pfizer CEO Albert Bourla and BlackRock CEO Larry Fink — signed a letter to Biden and Congressional leaders that characterized the New York business community as “deeply concerned” over the “humanitarian crisis.”
The business leaders backed a request made by Democratic New York Gov. Kathy Hochul on Thursday calling on Biden to provide funds for the migrants’ healthcare, transportation, education and housing costs as well as expedited work authorizations.
Government support for migrants will cost $12 billion over the next three years, New York City Mayor Eric Adams, who has also called for federal aid, said earlier this month.
The estimate came days after a line of migrants formed on the sidewalk outside of an intake center in midtown Manhattan at the Roosevelt Hotel. The migrants slept outside for days before they gained temporary shelter elsewhere.
In the letter published on Monday, top executives said responsibility for addressing the migrant crisis should fall entirely on the federal government.
“Immigration policies and control of our country’s border are clearly a federal responsibility; state and local governments have no standing in this matter,” the executives said.
Citing a persistent labor shortage, the executives said migrants bearing expedited work permits could access jobs in a host of industries.
The U.S. economy held 8.8 million job openings last month, data released by the Bureau of Labor Statistics on Tuesday showed.
“Employers are prepared to offer training and jobs to individuals who are authorized to work in the United States,” the executives said.
The call from executives arrived on the same day that reports surfaced of letters sent by the Biden administration to Adams and Hochul rebuking criticism that the federal government had fallen short in efforts to help address the crisis. Politico first reported on the letters.
Rather, the struggle to accommodate the asylum seekers owes primarily to “structural issues” of “governance and organization” in the day-to-day operations within the city and state, Homeland Security Secretary Alejandro Mayorkas reportedly said.
Aiming for a comprehensive resolution, the executives on Monday called for “bipartisan action” in Washington D.C. but acknowledged that such a solution would “take time.”
“In the interim, we urge you to take immediate action to better control the border and the process of asylum and provide relief to the cities and states that are bearing the burdens posed by the influx of asylum seekers,” the executives said.
The letter drew backing from additional high-profile CEOs, such as Blackstone CEO Stephen Schwarzman, Ernst & Young CEO Carmine Di Sibio and Citi CEO Jane Fraser.
It comes as business leaders face an increasingly fraught political environment as they weather Republican-led attacks over issues like socially conscious investing and diversity, equity and inclusion programs, former company executives and advocacy group leaders previously told ABC News, drawing on conversations with C-suite officials at large companies.
This month, a rating agency downgraded U.S. credit for the second time in the nation’s history. Fitch Ratings cited the ballooning U.S. debt load and a weakening of governance, as well as the Jan. 6 attack on the U.S. Capitol, as considerations in their decision.
Joe Burbank/Orlando Sentinel/Tribune News Service via Getty Images
(NEW YORK) — As Hurricane Idalia makes its way towards Florida, one area at risk is the state’s huge tourism industry.
The storm is forecast to make landfall Wednesday morning in Florida’s Big Bend area, north of Tampa.
Idalia is expected to strengthen further as it nears the Sunshine State, possibly becoming a major Category 3 hurricane by Tuesday night.
Here is what to know about how the storm is impacting Florida’s major theme parks and airports.
Orlando International Airport remains open
Orlando International Airport, the state’s busiest airport, is open as of Tuesday morning.
The airport tweeted around 9 a.m. local time Tuesday that it remains “open and operational” and expects to stay that way.
“We do not foresee any significant impact to our operations at this time,” the tweet said.
Tampa International Airport closes ahead of storm
On the other side of the state, Tampa International Airport closed its operations as of 12:01 a.m. local time Tuesday due to Idalia.
The airport said in a statement Monday that it will remain closed “until it can assess any damages later in the week.”
“The closure will allow the Airport and its partners to prepare the airfield and terminals, including the securing of jet bridges, ground equipment and any remaining aircraft before Idalia’s expected landfall early Wednesday as a potential major hurricane,” the statement said.
Walt Disney World remains open ahead of Idalia
Walt Disney World Resort, located near Orlando, said that as of Tuesday, its resorts and theme parks are open and “operating under normal conditions.”
“We are closely monitoring the path of the projected weather as we continue to prioritize the safety of our Guests and Cast Members,” the resort said in a statement Tuesday morning.
The only Walt Disney World guests currently impacted by Hurricane Idalia are those staying at Fort Wilderness Resort & Campground. The company is asking those guests to “remove and stow” outside items like decor, tents and camper awnings by 6 p.m. local time on Tuesday.
Guests may go online to modify or cancel their Disney Resort hotel reservations.
The company said it is currently waiving its change and cancellation fees for reservations with check-in dates between Aug. 28 and Sept. 4.
Under its hurricane cancellation policies, Walt Disney World states that if the National Hurricane Center issues a hurricane warning for either the Orlando area or where you live within seven days of your planned arrival date, you may reschedule or cancel most hotel room reservations without any change or cancellation fees.
Busch Gardens closes early due to Idalia
Busch Gardens, a Tampa-based theme park, is closing at 12 p.m., local time on Tuesday ahead of Idalia.
The theme park said it will also remain closed Wednesday and plans to reopen Thursday.
Universal Studios remains open
Universal Studios in Orlando said it is staying open but continuing to monitor the path of Hurricane Idalia.
“At this time, our park operations and hours are continuing as normal. We are closely monitoring the weather,” the resort said in a statement Monday.
Like Disney, Universal Orlando Resort’s severe weather policy states that if a state of emergency or a hurricane or tropical storm warning is issued by the National Hurricane Center for the Orlando area or your place of residence, you can reschedule or cancel your Universal reservations with “no cancellation or change fees imposed.”
The Walt Disney Co. is the parent company of ABC News.
(NEW YORK) — Chipotle Mexican Grill has agreed to a six-figure settlement after an investigation in the nation’s capital “identified over 800 potential violations of Washington, D.C.’s child labor laws over the past three years,” D.C. Attorney General Brian L. Schwalb announced on Monday.
Schwalb’s office alleges that since April 2020, the popular restaurant chain violated several child labor laws, with employees under the age of 18 working more than eight hours in a day, more than 48 hours in a week and more than six consecutive days in a work week.
The settlement also accuses Chipotle of violating the city’s laws by allowing children to work after 10 p.m. local time.
Chipotle operates 20 stores in the district. The investigation by Schwalb’s office was launched in May 2022.
Chipotle will pay D.C. $322,400 and has agreed to a new training and workplace compliance plan, according to prosecutors.
However, according to the settlement, the company “denies the District’s allegations regarding violations of any child labor laws. Nothing contained in this Settlement Agreement is or may be construed to be an admission by the Company of any violation of law or regulation, any other matter of fact or law, or any liability or wrongdoing.”
Spokespeople for the company did not immediately respond to ABC News’ request for comment.
Chipotle has previously been accused of similar infractions. In 2020, the company paid the state of Massachusetts $1.4 million for 13,253 alleged violations of child labor laws.
In September, the company also settled with the state of New Jersey for $7.75 million for what New Jersey Attorney General Matthew Platkin described at the time as “alleged widespread and persistent violations of the state’s child labor laws.”
The allegations in New Jersey included “Chipotle’s failure to abide by limits on the number of hours minors are allowed to work and its failure to provide them timely and sufficient meal breaks,” Platkin said in a statement last year.
Chipotle didn’t admit to any wrongdoing in settling the Massachusetts case and a Chipotle official said in a statement to reporters at the time of the New Jersey settlement “We have reached a settlement with the New Jersey Office of the Attorney General for the events dating back to 2017, and have implemented an enhanced labor program in our restaurants, creating a more efficient, consistent and compliant environment.”
Chipotle Mexican Grill Chief Corporate Affairs Officer Laurie Schalow told ABC News in a statement “We are committed to ensuring that our restaurants are in full compliance with applicable laws and regulations and we believe that in hiring workers beginning at age 16, we can provide younger employees with valuable experiences and an opportunity for advancement. We have reached a settlement with the Washington, D.C. Office of the Attorney General for the events dating back to 2020, and have implemented an enhanced labor scheduling program in our restaurants, creating a more efficient, consistent and compliant environment.”
(WASHINGTON) — As Secretary of Commerce Gina Raimondo’s plane touches down in Beijing, the goal of the trip, according to the Secretary, is to promote “healthy competition” between the two countries but also walk a fine line between holding China accountable for the national security issues the country engages in.
“I want to be clear with you around what my goal is for the visit, which is to promote a healthy competition,” Raimondo told reporters before she left for China. “And by that, I mean a competition on a level playing field, playing by the rules, because on a level playing field, nobody can outcompete American businesses or American workers.”
Raimondo is the third cabinet-level official from the Biden Administration to visit China and the first Commerce Secretary to travel to the country in seven years.
She said the U.S. and China share a “large dynamic, growing economic relationship,” and the administration wants China to succeed.
“The entire world needs us to manage that relationship responsibly. That’s good for America. That’s good for China, and that’s good for the rest of the world. And so we want to have a stable commercial relationship. And core to that is regular communication. So another piece of my message will be that we need to communicate to avoid conflict,” Raimondo said.
Raimondo says she plans to outline the U.S.’ national security strategy and promote business interests, but above all, she’s going to stress the important interests of national security.
The Secretary was the target of a Chinese hack in May related to her email account. She didn’t mention it to reporters in the remarks she gave.
“I want to raise key commercial issues on behalf of U.S. businesses and labor in an effort to be candid with the issues on the table and find solutions to address these concerns.”
Raimondo also said she’s heard from businesses who speak about how difficult it is to do business in China, and she hopes to have substantive conservations about that.
“I’ve spoken with numerous high-level labor leaders and over 100 senior leaders in U.S. industry, and they are open to opportunities that they see which come from doing business with China and trading with China. But they are increasingly concerned by the challenges and China’s continued commitment to using nonmarket trade and investment practices.”
Raimondo said her “direct and practical style” will lend well to expressing to China the United States’ interest.
“We do not want to contain or hold back China. We do need to protect,” she said.
“We do need to protect our national security and we’re going to use our export controls to the fullest extent possible to do that,” she added.
(NEW YORK) — The union representing approximately 150,000 workers at the Big Three U.S. automakers — General Motors, Ford and Stellantis — has voted to authorize a strike if no deal is reached amid ongoing contract negotiations.
Across the three companies, United Auto Workers union members voted a combined average of 97% in favor of a strike authorization, with votes still being tallied, the union said Friday. The vote does not mean a strike will be called, but that the union has the right to call one if they see fit.
“Our union’s membership is clearly fed up with living paycheck-to-paycheck while the corporate elite and billionaire class continue to make out like bandits,” UAW President Shawn Fain said in a statement. “The Big Three have been breaking the bank while we have been breaking our backs.”
The union’s demands include double-digit pay raises, eliminating tiered wages and benefits, restoring cost-of-living allowances, the right to strike over plant closures, more paid time off and increased retiree benefits.
“Our members’ expectations are high because Big Three profits are so high,” Fain said. “The Big Three made a combined $21 billion in profits in just the first six months of this year. That’s on top of the quarter-trillion dollars in North American profits they made over the last decade. While Big Three executives and shareholders got rich, UAW members got left behind.”
UAW represents 46,000 workers at GM, 57,000 workers at Ford and 44,000 workers at Stellantis, according to the union. Its contract with the three automakers expires on Sept. 14.
In a statement earlier this month, GM said it’s been “working hard with the UAW every day to ensure we get this agreement right for all our stakeholders. “
“We know that our U.S. economic impact supports more than six jobs for every job created by GM,” the statement said. “We take that responsibility very seriously, and we continue to bargain in good faith each day to support our team members, our customers, the community and the business.”
Stellantis said discussions with the union’s bargaining team “continue to be constructive and collaborative with a focus on reaching a new agreement that balances the concerns of our 43,000 employees with our vision for the future — one that better positions the business to meet the challenges of the U.S. marketplace and secures the future for all of our employees, their families and our company.”
Ford said it looks “forward to working with the UAW on creative solutions during this time when our dramatically changing industry needs a skilled and competitive workforce more than ever.”
In 2019, nearly 50,000 UAW workers walked off their jobs in a nationwide strike at GM that lasted over a month before the union voted to ratify a new contract that in part established bonuses for employees.
(WASHINGTON) — The Department of Justice is suing SpaceX, the aerospace company owned by Elon Musk, over alleged discriminatory practices against people living in the country under asylum and refugees.
The federal government contends in its civil lawsuit, which was filed Thursday, that the company violated the Immigration and Nationality Act between September 2018 and May 2022 by discouraging asylees and refugees from applying to the company and refusing to hire or consider them.
The complaint contends that Musk and SpaceX’s leadership repeatedly made false claims that the company couldn’t hire anyone who wasn’t a U.S. citizen or green card holder, because of “export control laws,” but the Department of Justice argued that those laws do not enforce such restrictions.
“Asylees and refugees have overcome many obstacles in their lives, and unlawful employment discrimination based on their citizenship status should not be one of them,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said in a statement.
SpaceX didn’t immediately respond to requests for comment on the lawsuit.
The Department of Justice’s Immigrant and Employee Rights Section opened an investigation into SpaceX in May 2020.
The company recruits and hires for different white and blue-collar positions including welders, cooks, crane operators, baristas and dishwashers, IT specialists, software engineers, business analysts, rocket engineers and marketing professionals, the suit contends.
From at least September 2018 to at least May 2022, SpaceX posted at least 14 public job announcements and postings that stated “SpaceX can only hire U.S. citizens and lawful permanent residents due to ITAR [International Traffic in Arms Regulations]” laws.
The suit also cites a 2016 video of Musk claiming “a normal work visa is insufficient to work at SpaceX unless the company can obtain ‘special permission from the Secretary of Defense or Secretary of State,” and a June 2020 post he made on X, formerly Twitter, where he claimed “U.S. law requires at least a green card to be hired at SpaceX, as rockets are advanced weapons technology.”
The Justice Department argued that under ITAR and Export Administration Regulations (EAR), which is another export control law, do not prohibit asylees or refugees.
ITAR laws “restrict an employer’s ability to export certain goods, software, technology, and technical data,” according to the suit.
“‘U.S. persons’ working for U.S. companies can access export-controlled items without authorization from the U.S. government,” the Department of Justice said in the civil complaint. “A ‘U.S. person’ under ITAR and EAR, includes a U.S. citizen or national, a lawful permanent resident, a refugee, or an asylee.”
The Dept. of Justice claimed from Sept. 2018 to March 2022, SpaceX job applications asked potential candidates to identify their citizenship status and had the options “U.S.; citizen or national of the United States,” “U.S. lawful permanent resident,” “refugee under 8 U.S.C. 1157,” “asylee under 8 U.S.C. 1158,” or “other.”
The company’s hiring managers and recruiters allegedly rejected candidates who were listed as a refugee or a asylee with rejection codes such as “not authorized to work/ITAR ineligible,” according to the complaint.
The suit claimed a recruiter used that rejection code for an asylee “who had more than nine years of relevant engineering experience and had graduated from Georgia Tech University.”
Data from SpaceX showed that from Sept. 2018 to May 2022, the company hired 10,000 people and only one was an asylee, according to the Dept. of Justice. That asylee was hired four months after the Department of Justice began its investigation, the suit alleged.
The lawsuit asks a federal judge to order SpaceX to cease its practices, implement fair consideration practices and provide backpay for asylees who were denied employment at the company, as well as civil monetary penalties determined by the court.
