Following a three-year investigation, California’s Department of Fair Employment and Housing (DFEH) sued Tesla Motors and fifty representatives Thursday, alleging its work environment violated the Fair Employment and Housing Act (FEHA) and other laws with regard to Black employees.
In a complaint filed at the Alameda County Superior Court, the DFEH alleged “unchecked racism” in Tesla’s Fremont factory. This stands in contrast to the progressive brand of the company and of its head, Elon Musk. DFEH alleged that Black and/or African American workers were relegated to the lowest rungs of the factory’s hierarchy. These workers comprise over 20 percent of its factory operatives but zero percent of executives and only three percent of professionals. Black employees were denied promotions and routinely assigned less-paying tasks. The factory, the DFEH found, was even physically segregated, with one side referred to as “the dark side.”
Hundreds of complaints by Black employees since 2012 against hateful expressions, such as the usage of racial slurs against them and the etching of racist graffiti onto walls and machinery, have proved futile. While supervisors were active participants or witnesses to such instances, Tesla avoided responsibility for complaints from contract staff since they were not direct employees. Complaints by direct employees were also discouraged. According to DFEH, they were terminated in retaliation while those found to be harassers remained employed, a human resource investigator concluded a racial slur was simply a “nickname” and Musk told employees in 2017 to be “thick-skinned” against harassment. DFEH found that investigations were procedurally flawed and records of complaints were not maintained. Several Black employees resigned out of a lack of faith in the fairness in internal investigations.
In all, the suit includes causes of action relating to racial employment discrimination (harassment, assignment, discipline, promotion and termination) and retaliation, all under §12940 of the California Government Code. It also includes causes of action for the failure to prevent discrimination under the FEHA and for unequal pay under the Labor Code. It was filed against Tesla, Inc and 50 employees who were allegedly both jointly and severally responsible for damages and shall remain anonymous until their identities are ascertained. The suit, filed on behalf of the state and all Black workers who constitute the group, asks for compensatory and punitive damages and equitable relief, including reinstatement, among other forms of relief.
The Fremont factory, which employs over 15,000 workers, is the only major US automotive plant to remain non-union. While a federal jury ordered Tesla to pay $137 million to an employee at the same factory for racial discrimination, the presiding judge recently indicated he might reduce this amount.
