Tesla Sued by California Company for Alleged Racial Discrimination, Harassment

“After receiving lots of of complaints from staff, DFEH discovered proof that Tesla’s Fremont manufacturing facility is a racially segregated office the place Black staff are subjected to racial slurs and discriminated towards in job assignments, self-discipline, pay, and promotion making a hostile work setting,”

Kevin Kish,

the company’s director, mentioned in a press release.

Tesla didn’t instantly reply to a request for remark.

The corporate criticized the civil-rights company’s investigation in a weblog submit that pre-empted the lawsuit. “Tesla strongly opposes all types of discrimination and harassment and has a devoted Worker Relations group that responds to and investigates all complaints,” the corporate mentioned Wednesday.

Tesla, within the weblog submit, additionally raised its standing as a producing employer within the state. “Tesla can also be the final remaining car producer in California. The Fremont manufacturing facility has a majority-minority workforce and offers the perfect paying jobs within the automotive business to over 30,000 Californians,” the corporate mentioned, including authorized motion was “unfair and counterproductive.” Tesla moved its headquarters to Texas from California final 12 months, although it nonetheless makes a big portion of its vehicles in California.

The Division of Honest Employment and Housing mentioned Black staff routinely heard Tesla supervisors and managers utilizing racial slurs and had been confronted with racist graffiti within the manufacturing facility. One Black employee heard racial slurs as typically as 50 to 100 instances a day, the company mentioned.

Black staff additionally reported being assigned to extra bodily demanding roles, being subjected to extra extreme self-discipline and being handed over for skilled alternatives, the company mentioned. Black staff had been severely underrepresented in managerial and different skilled roles, the company mentioned. Tesla mentioned in a 2020 variety report that Black workers made up 10% of its U.S. workforce and 4% of individuals in management roles.

The Division of Honest Employment and Housing mentioned the grievance could be accessible on-line Thursday morning.

A federal jury in San Francisco final 12 months discovered that Tesla had subjected a Black former contract employee to a racially hostile work setting, awarding him roughly $137 million in damages. Tesla has mentioned that it doesn’t imagine the decision is justified and has requested for a brand new trial or for the damages to be decreased.

Greater than half a dozen present and former Tesla staff sued the corporate late final 12 months alleging that Tesla failed to stop sexual harassment at its amenities, amongst different claims. Tesla has mentioned it intends to attempt to transfer these circumstances into personal arbitration, court docket data present.

The Division of Honest Employment and Housing has introduced different high-profile circumstances. The California regulator final 12 months sued

Activision Blizzard Inc.,

accusing the videogame firm of paying feminine workers lower than their male counterparts, amongst different claims. The corporate pushed again towards the allegations.

Microsoft Corp.

in January agreed to purchase Activision.

This isn’t the primary time Tesla has clashed with California officers. Practically two years in the past, within the early days of the coronavirus pandemic, Elon Musk took intention at a high-ranking county well being official in California over authorities orders that the corporate’s Fremont vehicle-assembly plant stay briefly closed to sluggish the unfold of Covid-19.

Write to Rebecca Elliott at rebecca.elliott@wsj.com