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Elon Musk’s electric car maker Tesla was sued on Thursday by U.S. civil rights agencies, which accused the company of tolerating “open hostility and racism” against black employees.
The Equal Employment Opportunity Commission, which enforces federal employment discrimination laws, filed a lawsuit in California federal court alleging that black employees at Tesla’s Fremont Assembly Plant have suffered “severe or pervasive racial harassment” since 2015, in violation of the 1964 Civil Rights Act. Act”.
The EEOC lawsuit is the latest in a series of legal actions targeting the company over allegations of anti-Black racism. In April, a federal jury awarded Owen Diaz, who is black, nearly $3.2 million in damages after he sued for racial discrimination. He said he experienced racial discrimination while working as an elevator operator at the Fremont factory in 2015.
In February 2022, California civil rights regulators sued Tesla, alleging “rampant racism” among black factory workers in the state.
The EEOC lawsuit alleges that racism at the company was “frequent, persistent, inappropriate, unwelcome, and occurred across all shifts, departments and positions.”
The agency said black Tesla employees faced “racial abuse, pervasive stereotypes and hostility” and were called “variations of the N-word, ‘monkey,’ ‘boy,’ and ‘black bitch.'”
Swastika graffiti, racially motivated threats and nooses appeared on production equipment, office desks, newly assembled cars, bathroom stalls and elevators, according to the civil rights agency.
The complaint also alleges that the company had “actual or constructive knowledge” of racial harassment but “failed and refused to take steps to address such conduct.”
The government said an EEOC investigation found that Black employees who reported harassment faced retaliation, including being fired or reassigned to other jobs.
Musk and Tesla did not immediately respond to requests for comment. In response to another lawsuit last year, the company said it “strongly opposes all forms of discrimination and harassment and has a dedicated employee relations team to respond to and investigate all complaints.”
District Attorney Roberta Steele of the Equal Employment Opportunity Commission’s San Francisco District Office called the allegations “disturbing” in a statement.
Tesla said it was investigated by the Equal Employment Opportunity Commission over a financial filing last year but was working to reach a settlement through the agency’s mandatory mediation process. Those negotiations failed, the Equal Employment Opportunity Commission said in a statement.
The agency’s lawsuit seeks monetary damages, back pay to affected Black employees and a court order forcing Tesla to change its practices to prevent further racism, the statement said.
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