California on Wednesday sued Tesla Inc over allegations of discrimination and harassment of black employees at its San Francisco Bay area factory.
The lawsuit, filed in Alameda County Superior Court, was sparked by hundreds of worker complaints, California Department of Fair Employment and Housing Director Kevin Kish said.
‘RACIALLY SEGREGATED’
The department, which enforces state civil rights laws, “found evidence that Tesla’s Fremont factory is a racially segregated workplace where black workers are subjected to racial slurs and discriminated against in job assignments, discipline, pay and promotion, creating a hostile work environment,” Kish said in a statement reported by the Wall Street Journal and Bloomberg.
Details of the lawsuit have yet to be released and Tesla did not immediately issue a response to the lawsuit, which the electric vehicle maker had said was coming several days earlier in an annual filing to the US Securities and Exchange Commission.
However, in a blog post before the filing, Tesla called the suit misguided and said that the state agency had “never once raised any concern” about its workplace practices following a three-year investigation.
The lawsuit appears to focus on accusations by production associates at the factory, who said misconduct took place between 2015 and 2019, the blog post said.
It also said that Tesla would ask the court to “pause the case, and take other steps to ensure that facts and evidence will be heard.”
“Attacking a company like Tesla that has done so much good for California should not be the overriding aim of a state agency with prosecutorial authority,” the blog said.
‘DAILY RACIST EPITHETS’
In October, a San Francisco jury awarded nearly US$137 million to a black contract worker, Owen Diaz, who said that he faced “daily racist epithets,” including the “N-word,” at the plant in 2015 and 2016 before quitting.
Diaz said that employees drew swastikas, workers left racist graffiti and drawings around the plant, and supervisors failed to stop the abuse.
Tesla is appealing that verdict and has denied any knowledge of the racist conduct that Diaz said took place at the plant, which has about 10,000 workers.
Tesla’s blog post said that it “has always disciplined and terminated employees who engage in misconduct, including those who use racial slurs or harass others.”
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