Threat or not? Elon Musk gets new hearing on tweet about Tesla workers’ stock options

A federal appeals courtroom Friday mentioned it’s going to rethink its March ruling that Tesla CEO Elon Musk unlawfully threatened to remove workers’ inventory choices in a 2018 Twitter publish amid an organizing effort by the United Auto Workers union.

Three judges on the fifth U.S. Circuit Court of Appeals in New Orleans upheld a National Labor Relations Board order to delete the tweet. The panel additionally upheld an order to rehire a fired Tesla worker, with again pay.

But Friday’s transient order says a majority of the courtroom’s full-time judges have voted to listen to the matter once more – this time earlier than the total courtroom. The March ruling was vacated – snatching away, a minimum of for now, a UAW authorized victory.

The case arose amid UAW organizing efforts at a Tesla facility in Fremont, California, and years earlier than Musk purchased the platform in 2022.

On May 20, 2018, Musk tweeted: “Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues and give up stock options for nothing? Our safety record is 2X better than when plant was UAW & everybody already gets healthcare.”

The fifth Circuit panel dominated in March that “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 additionally mentioned there was proof that the terminated worker “was fired for lying about protected union activity and not related to his job performance or Tesla’s legitimate business interests or workplace rules.” The fifth Circuit at the moment has 16 full-time judges and one emptiness, pending Senate affirmation of a choose nominated by President Joe Biden.

In March, the judges that dominated on the panel had been James Dennis, who was nominated to the courtroom by former President Bill Clinton and now has part-time senior standing; Leslie Southwick, nominated by former President George H.W. Bush; and Cory Wilson, nominated by former President Donald Trump.

A UAW spokesperson didn’t instantly reply Friday afternoon to an e mail question.

Tesla attorneys have argued that the March panel resolution conflicted with Supreme Court and appellate courtroom precedents concerning First Amendment free speech protections. And they mentioned the worker within the case was correctly fired for giving false data throughout an investigation of worker harassment.

Stay on prime of expertise and startup news that issues. Subscribe to our each day e-newsletter for the newest and must-read tech news, delivered straight to your inbox.