The U.S. Equal Employment Opportunity Commission filed a lawsuit on Thursday in the U.S. District Court for the Northern District of California against electric car maker Tesla. The lawsuit accuses Tesla of violating workplace discrimination laws after Black staffers in Fremont, California, production facilities were subjected to stereotyping and a hostile work environment.
The EEOC maintains that Tesla violated Title VII of the Civil Rights Act of 1964. Under this federal law, employees and job applicants are protected against discrimination by their employers. However, the EEOC says that Tesla tolerated “widespread and ongoing racial harassment of its Black employees” and that some of these workers were subjected to retaliation for opposing the harassment.
According to the EEOC, Black employees were subjected to racial epithets including the N-word, “monkey,” “boy,” and “black b*tch.” Workers were allegedly subjected to this behavior casually in areas of high traffic including worker hubs. Additionally, graffiti on bathroom stalls, elevators, and other locations throughout the production plants were branded with variations of the n-word, nooses, swastikas, and other discriminatory slurs and imagery.
When employees complained about the discriminatory behavior, Tesla “unlawfully retaliated against Black employees who opposed actions they perceived to constitute unlawful employment discrimination.” Some of the retaliatory behaviors Black workers were subjected to included modified job duties and work schedules, unjustified write-ups, transfers, and terminations.
“The allegations in this case are disturbing,” explains Roberta L. Steele, regional attorney for the EEOC San Francisco District Office. “No worker should have to endure racial harassment and retaliation to earn a living six decades after the enactment of Title VII.”
Although Tesla maintains that it does not engage in discriminatory practices against its employees, this is not the first lawsuit against the popular automaker alleging such claims. In a 2022 discrimination lawsuit brought against the carmaker by California’s Department of Fair Employment and Housing, Tesla defended itself saying that they were a company that “strongly opposes” any and all forms of discrimination. In that case, Tesla maintained that the lawsuit was politically motivated and that the California Department of Fair Employment and Housing violated state law by suing them before notifying them of the claims or giving them a chance to engage in settlement discussions.
Additionally, In 2017, a former Black elevator operator, Owen Diaz, who also worked at the Fremont plant sued and won his lawsuit which accused Tesla of severe racial harassment. In April, Diaz was awarded $3.2 million.
Finally, Tesla is also navigating a class action lawsuit in California State Court over claims that it mistreated its Black workers. Roughly 240 workers have joined in on that lawsuit, and litigation is still pending.
According to the EEOC, the investigation into these latest discrimination claims against Tesla began after EEOC Chair Charlotte A. Burrows filed a commissioner’s charge that the automaker was violating federal anti-discrimination law.
The lawsuit comes after the EEOC’s first attempt to reach a pre-litigation settlement through conciliation. The lawsuit is seeking compensatory damages for workers who were discriminated against, back pay for the affected workers, and punitive damages. The lawsuit is also seeking to have Tesla reform its employment practices to prevent discrimination behavior from happening in the future.
