Feb 11, 2022 06:05 AM EST
California Sues Tesla Over Allegations of Racial Discrimination and Harassment of Black Workers

Tesla Inc. found itself in hot water after the state of California sued them on Wednesday, February 9, over allegations of racial discrimination and harassment of Black employees at the company's San Francisco Bay area factory, as per a report on Manufacturing.net.

According to Kevin Kish, the head of California's Department of Fair Employment and Housing (DFEH), the lawsuit filed against Tesla in Alameda County Superior Court was sparked by hundreds of complaints from its workers.

Kish issued a statement regarding the suit, saying that his department found evidence that Tesla's factory in Fremont, California is a racially segregated workplace where Black workers are subjected to racial slurs by fellow employees and discriminated against in terms of discipline, pay, promotion, and job assignments. These factors create a hostile work environment.

Tesla strongly denies allegations in a blog post

The lawsuit's details have yet to be released, and Tesla did not immediately respond to the suit filed against them. California suing them was not a complete surprise as the world's leading electric carmaker had warned of this possibility in Tesla's annual filing to the U.S. Securities and Exchange Commission just days earlier.

Tesla did post a blog entry on its website entitled "The DFEH's Misguided Lawsuit" before the filing of the case. Tesla called California's lawsuit misguided and said that the DFEH did not raise any concern about its workplace practices in Fremont following the agency's three-year investigation.

According to the blog post, the lawsuit appears to focus on alleged misconduct by Tesla production associates at the Fremont factory between 2015 and 2019. Tesla denies the agency's accusation, saying that the company "strongly opposes all forms of discrimination and harassment and has a dedicated Employee Relations team that responds to and investigates all complaints."

The blog entry emphasizes that on every single occasion that DFEH closed an investigation regarding racial discrimination and harassment at Tesla's Fremont factory over the past five years, the agency did not find misconduct against them. Tesla said that it strains the credibility of the DFEH that the agency now alleges that systematic racial discrimination and harassment somehow existed at the company after investigating for three years.

Related Article: Toyota Posts Record Net Profit for April to December; Weaker Yen Boosts Firm's Earnings for FY 2021

Jury awards $137 million in damages to former Tesla worker over racism claims

Tesla said in the posting that it "will be asking the court to pause the case and take other steps to ensure that facts and evidence will be heard" once the suit has been filed. Tesla concluded its blog entry by saying that attacking the company that has done so much good for California should not be the overriding aim of the DFEH.

The lawsuit comes just months after a San Francisco jury awarded nearly $137 million to a former Black contract worker of Tesla who said he encountered "daily racist epithets," including the "N-word," at the Fremont plant back in 2015 and 2016 before quitting his job. According to The Verge, Tesla is still appealing that verdict, with the company denying any knowledge of racist conduct that Owen Diaz said took place at the Fremont plant, which employs around 10,000 workers.

READ MORE ON AWN: 

Nissan Lifts Net Profit Outlook for FY 2021 to $1.8 Billion; Weaker Yen Helps Automaker Boost Profits 

SEC Issues Another Subpoena to Tesla as Row on CEO Elon Musk's Tweets Intensifies 

See Now: OnePlus 6: How Different Will It Be From OnePlus 5?

 PREVIOUS POST
NEXT POST 

EDITOR'S PICK    

Hyundai to Invest $16.1 Billion for EV Business; Sets Annual Sales Goal of 1.87M Electric Cars by 2030

World's Most Expensive and Most Heavily-optioned Porsche 928 GTS is Coming Home to the U.S.

Major Boost as Tesla Giga Berlin Facility in Final Phase of Approval Process; Delivery Event Set This Month

Audi Looking for e-tron Electric Vehicles to Spur Car Brand's Growth in India in 2022

Toyota Offers Free EV Charging to Owners of 2023 bZ4X After Partnership Agreement with EVgo

2022 Suzuki Baleno Finally Unveiled in India: What are the Specs and Features of this City Car?