Tesla Sued by DFEH Over Unfair Workplace Treatment of Employees

Sophie Webster, Tech Times 10 February 2022, 09:02 am

The California Department of Fair Employment and Housing (DFEH) has filed a lawsuit against Tesla on Thursday, Feb. 10.

The civil rights agency is accusing the automaker of harassing and racially discriminating against its employees at its Fremont factory.

Tesla Sued by DFEH

According to a report by The Wall Street Journal, the DFEH received hundreds of complaints from Tesla employees.

The agency found evidence that the automaker's Fremont factory segregates the workplace based on race.

Kevin Kish, the director of DFEH, said in a statement that African American employees were exposed to racial slurs, with one employee admitting to having been harassed up to 100 times a day.

Also Read: Uber And Lyft Address Discrimination Concerns, Explaining Their Practices: Here's The Deal

Kish said that employees who belong to minorities are subjected to discrimination and racial slurs, and they get unfair pay, too many job assignments compared, unjustified discipline and promotions are even held from them, thus creating a toxic work environment.

Tesla responded to the lawsuit and called it unfair and unproductive in a blog post. The company wrote that it opposes all forms of discrimination and harassment and has a strong and dedicated Employee Relations team that investigates employees' complaints to ensure that their well-being is prioritized.

The automaker also revealed that they are California's last remaining automobile manufacturer. Its Fremont factory has a majority-minority workforce, and it provides good-paying jobs to more than 30,000 people.

Tesla added that around 50 DFEH investigations in the past five years were forced to shut down due to the lack of evidence.

According to Engadget, in October 2021, the automaker had to pay $137 million in damages to a former African American employee after he accused them of not doing anything to help him when he was facing discrimination and racism in the workplace in 2015 and 2016.

Although Tesla denied the accusation, it eventually admitted that the company was not perfect, especially at the time when the case happened. However, the automaker insisted that its management has come a long way since then.

Tesla moved its headquarters to Texas from California, but it expanded its manufacturing activities by 50% in California, offering more jobs to its residents.

The automaker has had issues with California, especially over COVID-19-related factory closures.

But the state and the company have since worked things out as the automaker was allowed to continue its operations despite the rise in COVID-19 cases.

Discrimination Accusations

Tesla has been sued by several of its former employees, and the issue has always been the same: discrimination.

According to the Times of San Diego, an African American man, Naymon Frank, sued Tesla last month over harassment accusations. He also revealed that the company deliberately excluded him from promotions because of his race.

Frank worked as an assistant manager at Tesla's UTC showroom. He said that Tesla's CEO, Elon Musk, instructed management to fire him if he did not resign after he appeared in an Audi commercial, even though the company gave him the green light to do it.

The Audi ad aired during the 2020 Super Bowl. Frank's lawsuit allegations include harassment, discrimination, intentional infliction of emotional distress, constructive discharge, fraud, and various state labor code violations.

In 2017, a Tesla employee filed a lawsuit against the company due to gender discrimination.

Last year, six women filed a lawsuit against Tesla because of sexual harassment in the workplace.