6,000 black US workers eligible to sue Tesla over racial bias

6,000 black US workers eligible to sue Tesla over racial bias

The decision is a major blow to the EV maker and exposes it to a potential multimillion-dollar judgment.

Tesla is also facing race bias claims in a federal court in California brought by the US Equal Employment Opportunity Commission. (AP pic)
OAKLAND:
A California state judge tentatively ruled that nearly 6,000 black factory workers can sue Tesla TSLA.O as a group for the electric vehicle maker’s alleged failure to address rampant race discrimination and harassment at its Fremont plant.

California Superior Court judge Noel Wise in Oakland said in a written order issued yesterday that the lawsuit presents questions common to all black workers at the plant of whether Tesla was aware of the alleged misconduct and refused to take steps to prevent it.

Tesla and lawyers for the plaintiffs did not immediately respond to requests for comment today.

The named plaintiff, former assembly line worker Marcus Vaughn, first sued in 2017, alleging that black factory workers were subjected to a range of racist conduct including slurs, graffiti and nooses hung at their workstations.

Tesla has maintained it does not tolerate workplace harassment and that it has fired employees who were found to have engaged in racial harassment.

The tentative ruling comes ahead of a hearing scheduled tomorrow where Tesla can contest Wise’s decision, though judges are typically unlikely to change their minds.

The decision represents a major blow to Tesla as it opens the company up to a potential multimillion-dollar judgment. The class includes people who self-identified as black and worked at the Fremont factory going back to November 2016.

Wise said she planned to hold a trial in the case beginning in October when she also will preside over a trial in a case involving similar claims against Tesla by a California state civil rights agency.

Tesla is also facing race bias claims in a federal court in California brought by the US Equal Employment Opportunity Commission, which enforces federal anti-discrimination laws. Tesla has moved to dismiss that case or alternatively to pause it, claiming the other lawsuits should be resolved first.

The company, meanwhile, is appealing a US$3.2 million jury verdict awarded to a black former elevator operator at the Fremont plant in a separate racial harassment lawsuit. The worker, Owen Diaz, had won a US$137 million jury verdict after an initial 2021 trial, but a judge ordered a second trial after ruling the award was excessive.

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