Tesla face class action claims by 6,000 US workers in race bias case

CALIFORNIA: A California state judge tentatively ruled that nearly 6,000 Black factory workers can sue Tesla (TSLA.O), opens new tab as a group for the electric vehicle maker's alleged failure to address rampant race discrimination and harassment at its Fremont plant.

California Superior Court Judge Noel Wise in Oakland said in a written order issued on Wednesday that the lawsuit presents questions common to all Black workers at the plant of whether Tesla was aware of the alleged misconduct and refused to take steps to prevent it.

Tesla and lawyers for the plaintiffs did not immediately respond to requests for comment on Thursday.

The named plaintiff, former assembly line worker Marcus Vaughn, first sued in 2017, alleging that Black factory workers were subjected to a range of racist conduct including slurs, graffiti and nooses hung at their workstations.

Tesla has maintained it does not tolerate workplace harassment and that it has fired employees who were found to have engaged in racial harassment.

The tentative ruling comes ahead of a hearing scheduled for Friday where Tesla can contest Wise's decision, though judges are typically unlikely to change their minds.

The decision represents a major blow to Tesla as it opens the company up to a potential multimillion-dollar judgment. The class includes people who self-identified as Black and worked at the Fremont factory going back to November 2016.

Wise said she planned to hold a trial in the case beginning in October, when she also will preside over a trial in a case involving similar claims against Tesla by a California state civil rights agency.

Tesla is also facing race bias claims in federal court in California brought by the U.S. Equal Employment Opportunity Commission, which enforces federal anti-discrimination laws. Tesla has moved to dismiss that case or alternatively to pause it, claiming the other lawsuits should be resolved first.

The company, meanwhile, is appealing a $3.2 million jury verdict awarded to a Black former elevator operator at the Fremont plant in a separate racial harassment lawsuit. The worker, Owen Diaz, had won a $137 million jury verdict after an initial 2021 trial, but a judge ordered a second trial after ruling the award was excessive.