Civil Rights Agency Files Lawsuit Against Tesla Alleging Racial Harassment
The US Equal Employment Opportunity Commission (EEOC) has taken legal action against Tesla Inc., asserting that the electric vehicle manufacturer has permitted a persistent environment of racial harassment targeting Black employees at its main assembly plant in Fremont, California. These allegations bear a striking resemblance to complaints raised by both the state of California and Tesla’s own workers.
Racist Slurs and Offensive Graffiti
According to a Reuters report, the EEOC initiated the lawsuit in a federal court in California. The lawsuit alleges that from 2015 to the present day, Black workers at the Tesla plant have endured frequent racist slurs and offensive graffiti, including disturbing symbols such as swastikas and nooses.
Neglecting Complaints and Retaliation
The lawsuit further claims that Tesla failed to conduct thorough investigations into complaints of racist behavior and, in some cases, retaliated against employees who reported harassment. This federal lawsuit adds to the discrimination claims made by the state of California and lawsuits filed by Tesla employees.
Settlement Talks Break Down
The lawsuit comes after settlement negotiations between Tesla and the EEOC faltered following the agency’s formal expression of concerns last year. Typically, the EEOC resolves cases with employers through settlements, making it relatively uncommon for their cases to proceed to trial.
Tesla’s Response
Tesla is currently facing multiple race discrimination lawsuits with similar allegations. These include a class action lawsuit filed by employees at the Fremont plant and a lawsuit initiated by a California civil rights agency. In response to these legal actions, Tesla has publicly stated that it condemns discrimination and takes workers’ complaints seriously.
Concerns Raised by Legal Experts
Legal experts are watching this case closely. Stephen Diamond, a law professor at Santa Clara University, notes that federal involvement adds credibility to the claims. Major institutional investors like pension funds are likely to be concerned about such allegations, he adds.
EEOC Investigation
The EEOC began its investigation into Tesla following an internal complaint, or charge, filed against the company by Charlotte Burrows, the chair of the five-member commission. Last year, the agency found sufficient evidence to suggest that Tesla had violated federal laws prohibiting racial discrimination in the workplace, prompting their attempt to reach a settlement with the company.
Seeking Damages and Policy Changes
The EEOC’s lawsuit seeks compensatory and punitive damages for an undisclosed number of Black workers. It also requests an order mandating that Tesla revise its policies regarding discrimination and retaliation.
Parallel State-Level Lawsuit
Tesla faces similar allegations from the California Civil Rights Department, the state-level equivalent of the EEOC. This department alleges that Tesla engaged in discriminatory practices against Black employees in areas such as salary determinations, promotions, and job assignments. It’s important to note that the California department’s lawsuit is based on violations of state law, while the EEOC case pertains to analogous federal laws.
Tesla’s Response to California Department Lawsuit
Tesla has countered the lawsuit brought by the California department, claiming that it was politically motivated. The company has also argued that the agency violated state law by initiating legal proceedings without providing prior notice of all the allegations or affording Tesla an opportunity to reach a settlement.
Ongoing Legal Disputes
In 2021, a California judge declined Tesla’s request to dismiss the case brought by the California Civil Rights Department. The judge is currently reviewing various matters related to pre-trial discovery in this ongoing legal dispute.
Former Employee Seeks Third Trial
Additionally, a Black former elevator operator at the Fremont plant, Owen Diaz, is pursuing a third trial in his 2017 lawsuit alleging severe racial harassment. A jury initially awarded Diaz $137 million in 2021, but a federal judge later deemed this amount excessive. Diaz opted for a new trial rather than accepting a reduced award of $15 million.
Class Action Lawsuit
Tesla is also facing a class action lawsuit in a California state court concerning mistreatment of Black factory workers. Around 240 workers have expressed their intent to join this legal action.
The outcome of these legal proceedings will have significant implications for both Tesla and the broader discourse on workplace discrimination and civil rights in the United States.