The US Equal Employment Opportunity Commission has brought a lawsuit against Tesla, citing the alleged allowance of racist harassment of African-American employees, as well as retaliatory measures taken against those who objected to this behaviour. The federal agency is charged with protecting individuals from unequal treatment in the workplace. California's state civil rights organisation has taken legal action against Tesla prevously, and a jury has awarded Owen Diaz, a former Black employee from 2015, $3.2 million in damages due to racial discrimination.
The U.S. Equal Employment Opportunity Commission (EEOC) has filed a lawsuit against Tesla alleging that Elon Musk's electric car maker violated federal law by not preventing or responding to racial harassment of Black employees and retaliating against some of the workers who spoke up about the harassment. CNBC has reached out to Tesla for comment but an immediate response was not received.
The EEOC is claiming in the complaint that Tesla was allowing "slurs and epithets" to be openly used in areas with high levels of employee traffic and that supervisors and managers witnessed this behavior but failed to intervene. Additionally, Black workers who reported the incidents to human resources departments and other go-to personnel were purportedly ignored by Tesla.
The state of California previously sued Tesla for similar discriminatory behavior and a jury ordered the company to pay former employee Owen Diaz $3.2 million after ruling that he was subject to racist discrimination in 2015. A financial filing from Tesla revealed that the EEOC issued a cause finding against the company last year, yet the mandatory conciliation process with the federal agency was unsuccessful, leading to the lawsuit announced Thursday.
The suit is asking for compensation and damages, back pay, and court injunctions to reform Tesla's employment practices in order to prevent future discrimination. The EEOC v Tesla, Inc. case is taking place in the U.S. District Court for the Northern District of California.
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