In a recent development, Tesla is seeking to halt a federal lawsuit filed by a government agency alleging racial bias against Black workers at its Fremont assembly plant.
Tesla contends that such simultaneous legal actions could lead to substantial duplication of effort, the risk of inconsistent court rulings, and more judicial resources.
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AUSTIN, TEXAS - DECEMBER 13: A Tesla dealership is seen on December 13, 2023 in Austin, Texas.
Requesting to Halt Lawsuit
Tesla has requested a pause in the federal lawsuit filed by a government agency, alleging racial bias against Black workers at its Fremont assembly plant.
In a filing on Monday in a San Francisco federal court, TechCrunch reported that Tesla accused the U.S. Equal Employment Opportunity Commission (EEOC) of hastily initiating the lawsuit in September.
Tesla claims this was part of a "toxic interagency competition" with a California civil rights agency that sued the automaker for similar reasons the previous year.
The EEOC's lawsuit contends that Tesla violated federal law by permitting widespread racial harassment against its Black employees and retaliating against some workers for opposing the harassment.
Tesla argues against opening a third lawsuit concurrently with existing cases, citing potential drawbacks such as substantial duplication of effort, the risk of inconsistent court rulings, and the wastage of judicial resources.
The automaker invokes the Colorado River abstention doctrine, a legal principle allowing a federal court to refrain from hearing a case if a parallel proceeding in state court covers the same issues, aiming to prevent redundant litigation and enhance judicial efficiency.
The filing includes accounts from Black workers who endured the casual use of slurs, epithets, and racist graffiti inciting violence. As stated in Law360, the California Civil Rights Department also presents comparable instances of harassment in its claims against Tesla.
Both cases, currently in state court, allege that Tesla violated California's anti-discrimination laws. The EEOC's lawsuit additionally claims a violation of federal law prohibiting workplace race discrimination and harassment.
Tesla is also confronting a proposed class action filed by workers in 2017, alleging racial harassment.
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Reuters reported that the filing refers to a turf war between the U.S. Equal Employment Opportunity Commission (EEOC) and the California Civil Rights Department (CRD), previously the Department of Fair Employment and Housing.
Historically, both agencies coordinated efforts to avoid subjecting entities to dual litigation. However, Tesla contends that the EEOC and CRD's recent eagerness for headline-grabbing complaints and substantial settlements has eroded their historical coordination and cooperation.
Labeling Accusations as False
Despite facing multiple allegations of racial discrimination, Tesla continues to assert its innocence, labeling the accusations as "false" in its recent court filing on Monday.
The automaker accuses the U.S. Equal Employment Opportunity Commission (EEOC) of hastily concluding a purportedly inadequate pre-suit investigation. Concurrently, Tesla is contesting a $3.2 million award granted in a separate racial bias lawsuit filed by a Black former contractor at the Fremont plant.
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