The United States Department of Justice on Thursday said that it filed a lawsuit against Elon Musk-owned SpaceX for allegedly ‘discriminating’ against refugees and asylees in their hiring process.

The lawsuit alleges that the company routinely discouraged refugees and asylees from applying and refused to consider them between September 2018 and May 2022.

“Our investigation found that SpaceX failed to fairly consider or hire asylees and refugees because of their citizenship status and imposed what amounted to a ban on their hire regardless of their qualification, in violation of federal law,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, in a statement.

The department alleges that SpaceX wrongly claimed that it can only hire US citizens and lawful permanent residents (green card holders), saying it was mandated by “export control laws.” As per the department, export control laws don’t call for such hiring restrictions.

Elon Musk refuted the department’s claims. “The fundamental principle of ITAR law is that US companies who have advanced weapons technology, such as rockets with intercontinental range, must hire people who are permanent American residents, so that the technology does not fall into the hands of countries who wish us harm,” Musk said in a post on X.

The Department of Justice is a federal executive department of the US government that is tasked with the enforcement of federal law in the country. The department is headed by US Attorney General Merrick Garland, who reports to the President.