A Black former assembly line staffer at Tesla Inc. is moving to add hundreds of other workers to his 2017 lawsuit in which he called the electric-car maker’s production floor a “hotbed for racist behavior.” The suit seeks class-action status to address what plaintiff Marcus Vaughn says was Tesla’s failure to stop a “pattern and practice of race discrimination” and a hostile work environment at the factory in Fremont, California. Vaughn’s request in a court filing Monday is backed by sworn statements from almost 240 other Black former Tesla employees and contractors who claim they were offended by racist graffiti sprawled on common areas at the facility and that their supervisors routinely used the N-word when speaking to them.
Tesla’s attempt to force the lawsuit into arbitration has failed, potentially clearing the way for the case to move forward in state court. The court ruled that an arbitration clause in employment letters signed by two plaintiffs did not cover events that occurred before they signed those documents.
According to the complaint, when Black employees complained about racial discrimination at the company, they were treated more harshly than their non-Black coworkers. For example, the plaintiffs say they were denied promotions, forced to work more hours, and denied access to training opportunities. They also allege they were subjected to a “hostile workplace culture” that included hearing the N-word and seeing racist graffiti on the factory walls and that their supervisors refused to investigate the claims of discrimination or retaliation that they made.
The lawsuit comes days after a jury awarded a former contract worker over $3 million for his claims of anti-Black racial abuse at the company. In addition, Owen Diaz was awarded $175,000 for his emotional distress and $3 million in punitive damages meant to deter Tesla from allowing such conduct to continue. The award was the third largest ever in a US racial discrimination case brought by an individual.
The company could face millions in fines if it is found to have violated California’s Fair Employment and Housing Act and the Equal Pay Act. In addition, it could be required to change its internal policies and provide back pay to victims of discrimination. In a public blog post, Tesla dismissed the new lawsuit as “misguided,” but the odds do not look suitable for the company. State agencies have limited resources and are typically only interested in taking on cases with “clear evidence of wrongdoing,” said Dubal.
In addition, it has lost several other discrimination suits brought by individuals in the past few years. The decision on the current lawsuit will be handed down in about a month. A judge will decide whether to grant Vaughn’s motion for a class-action trial and how many Black Tesla workers will be allowed to join it. Vaughn is seeking general, punitive, and compensatory damages. The company could also be required to compensate other employees for any financial harm they might have suffered due to the alleged discrimination.
