On Thursday, the California Department of Fair Employment and Housing (DFEH), filed suit against Tesla Inc. alleging that the company subjects Black employees to adverse working conditions. The agency’s press release said that the DFEH was prodded to action after receiving hundreds of complaints from workers from Tesla’s Fremont, California electric vehicle assembly factory.
Specifically, the lawsuit says that Black workers face racial slurs by managers and supervisors, are relegated to the lowest rungs of the workforce, including the contracted workforce, and are deeply under-represented in the ranks of management and executives. As evidence, the filing cites complaints dating back to 2012 when Black Tesla workers expressed distress over managers’ use of racial slurs.
Additionally, racist writings are etched on the walls of restrooms, lunch tables, and even factory machinery, the lawsuit says. The Alameda County Superior Court filing also draws support from complaints stating that Black employees were assigned more physically demanding roles, denied advancement opportunities, and more harshly disciplined than non-Black workers.
The state accuses Tesla of deflecting and ducking responsibility by, in part, limiting investigations. The filing also points to a comment by CEO Elon Musk advising workers that they should be “thick-skinned” about racial harassment. Finally, it argues that Tesla’s move to shift its headquarters from California to Texas was a further attempt to make its problems disappear.
The enforcement action states claims for employment discrimination because of race as to harassment, assignment, compensation, discipline, promotion, termination, and constructive discharge. It also states claims for retaliation and failure to retain records, among others. The DFEH seeks a variety of remedial compensation including punitive damages, declaratory and injunctive relief, and its attorneys’ fees and costs.
In a blog post published before the filing of the complaint, Tesla called the lawsuit “misguided.” Tesla refuted the DFEH’s discriminatory allegations and insisted that it disciplines and fires employees who exhibit racist behavior towards others.
The statement also noted that Tesla is the last remaining automobile manufacturer in California, providing employment to 30,000 state residents and the best-paying automotive jobs available. “It therefore strains credibility for the agency to now allege, after a three-year investigation, that systematic racial discrimination and harassment somehow existed at Tesla,” the blog post said, concluding that there is no proof that the allegations are true.
