👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Tesla moves to pause US agency lawsuit alleging race bias at factory

Published 12/19/2023, 12:42 PM
Updated 12/19/2023, 02:25 PM
© Reuters. FILE PHOTO: A Tesla sign is displayed over a Tesla showroom in Malmo, Sweden, December 14, 2023. REUTERS/ Tom Little/File Photo
TSLA
-

By Daniel Wiessner

(Reuters) - Tesla (NASDAQ:TSLA) Inc has asked a U.S. judge to pause a federal agency's lawsuit accusing the electric carmaker of severe harassment of Black workers at its California assembly plant, saying two similar cases should play out first.

Tesla, in a filing in San Francisco federal court on Monday, said the U.S. Equal Employment Opportunity Commission (EEOC) rushed to file the lawsuit in September as part of a "toxic interagency competition" with a California civil rights agency that made similar claims last year.

The EEOC did not immediately respond to a request for comment on Tuesday.

The EEOC alleges that from 2015 to the present, Black workers at Tesla's Fremont, California plant have routinely been subjected to racist slurs and graffiti, including swastikas and nooses, and have faced retaliation for complaining.

California's Civil Rights Department (CRD) in its 2022 lawsuit accused Tesla of tolerating similar conditions and discriminating against Black workers when making decisions about pay, promotions and work assignments. A pending proposed class action filed by Tesla workers in 2017 also alleges racial harassment.

Both of those cases are in state court and allege violations of California anti-discrimination laws. The EEOC lawsuit involves a separate federal law banning workplace race discrimination and harassment.

In Monday's filing, Tesla said the federal court should decline to wade into a third lawsuit until the existing cases are resolved.

"Simultaneous prosecution of the state court actions and this case will involve substantial duplication of effort, create a significant risk of inconsistent court rulings, and result in an inefficient and wasteful use of judicial resources," Tesla's lawyers wrote.

© Reuters. FILE PHOTO: A Tesla sign is displayed over a Tesla showroom in Malmo, Sweden, December 14, 2023. REUTERS/ Tom Little/File Photo

Tesla has denied wrongdoing in the pending cases and repeated those claims in Monday's filing, calling the allegations "a false narrative that ignores Tesla's track record of equal employment opportunity."

The company, meanwhile, is appealing a $3.2 million award granted to a Black former elevator operator at the Fremont plant in a separate race harassment lawsuit.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.