What the SpaceX Sexual Harassment Lawsuit Tells Us About Worker Protections in California

For many workers, coming forward about sexual harassment or discrimination feels like a losing proposition from the start. They fear retaliation or simply not being believed. Even when they do speak up, there is no guarantee their case will ever reach a courtroom. A recent California appellate court decision involving SpaceX speaks directly to those concerns, showing how state and federal law can determine whether claims are heard in court or pushed into private arbitration.

In November 2025, the California Court of Appeal upheld a ruling denying SpaceX’s motion to force a former employee into arbitration. Her lawsuit alleges sex discrimination, harassment and retaliation. The case is Michelle Dopak v. Space Exploration Technologies Corp. d/b/a SpaceX, et al., Case No. 24STCV005506, filed in Los Angeles Superior Court in 2024. The Court of Appeal’s decision means the case may proceed in court rather than being arbitrated privately.

Allegations against SpaceX

The former employee joined SpaceX in 2017 in a production manager role. According to her lawsuit, she was paid less than a male colleague hired at the same time for the same role. She and other female employees raised concerns with HR about unequal treatment, being passed over for opportunities, and demeaning rumors circulated by male coworkers. She allegedly faced retaliation each time she spoke up.

The lawsuit also alleges that a male supervisor pressured her into a sexual relationship and later promoted her in return for continued compliance. She felt her career depended on staying silent. The alleged coercion began in 2019 and continued until the supervisor left SpaceX in 2022. 

She further alleges she later became pregnant and that the supervisor offered her money to terminate the pregnancy, which she refused. According to the complaint, management was aware of the pregnancy but took no action.

What protections does FEHA offer?

The California Fair Employment and Housing Act (FEHA) is one of the strongest workplace discrimination laws in the country. The law prohibits employers from discriminating against workers based on sex, gender identity, gender expression and sexual orientation. It also prohibits harassment that creates a hostile work environment and protects employees from retaliation after reporting misconduct. Pregnancy-related discrimination is also covered under FEHA.

Many FEHA claims depend on whether a reasonable person would find the conduct severe or pervasive enough to alter working conditions. Quid pro quo harassment, where a worker is pressured into a sexual relationship in exchange for job security or advancement, is one of the clearest violations when supported by evidence. The allegations in the SpaceX case reflect that type of conduct.

How arbitration affects workers’ rights

The former SpaceX worker signed an arbitration agreement at the start of her employment. Arbitration agreements typically require workplace disputes to be resolved through a private process instead of in court.

Arbitration tends to favor employers in several important ways. Arbitrators are sometimes selected and compensated by the employer, potentially creating financial incentives that influence outcomes. Additionally, arbitration rulings generally cannot be appealed. The results stay private, keeping workplace misconduct out of the public record and away from juries who might otherwise hold employers accountable. When employees succeed in arbitration, their awards tend to be lower than what juries award in court.

Intersection with federal law

In 2022, Congress passed a law known as the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA). This law allows employees to pursue their sexual harassment claims in court regardless of previously signed arbitration agreements. The timing of the alleged misconduct was central to the court’s analysis in the SpaceX case. The California Court of Appeal allowed the case to proceed in court rather than be resolved in private arbitration.

Talk to an experienced employment lawyer

If you are dealing with sexual harassment, discrimination or retaliation at work, you have legal protections and should not have to navigate them alone. McCormack Law Firm represents workers throughout the San Francisco Bay Area in workplace disputes. Contact us today at 415.925.5161 for a free initial consultation.

Disclaimer: This article is for information purposes only. McCormack Law Firm is not involved in this case.