Judge Decides Racial Case Trial At Tesla Can Continue

Many racial cases have arisen at Tesla. (photo; doc. pixabay)

JAKARTA - Tesla Inc was unable to stop a lawsuit by California's civil rights agency alleging widespread racial discrimination at its assembly plant, while the electric car maker separately challenged the agency's ability to sue owners. The verdict was read out by a judge on Wednesday, June 8.

California Superior Court Judge Evelio Grillo in Oakland said during the trial that Tesla could continue its claim that the Department of Fair Jobs and Housing (DFEH) failed to meet various requirements before suing the company in February, but defending the lawsuit was inappropriate.

Tesla's attorneys argued that the case should be adjourned so the department could give the company a chance to settle the claim out of court, but Grillo said he didn't have the power to do that.

"We can't normally order an agency to use its discretion in any particular way," the judge said, as quoted by Reuters. "That's a bit unlikely."

The judge's decision is expected after Grillo in a written order on Tuesday, June 7, said he was inclined to let the case proceed.

Tesla and its lawyers did not immediately respond to a request for comment from Reuters on the decision. The Department of Labor and Fair Housing did not respond to requests for comment either.

DFEH in its lawsuit claims Tesla's flagship factory in Fremont, California, tolerates racial behavior and black workers are harassed and discriminated against in terms of job duties, discipline and pay. Tesla itself has denied any wrongdoing and said the lawsuit was politically motivated.

Tesla on Tuesday, June 7 filed a complaint with the California Office of Administrative Law claiming DFEH routinely violates requirements that must be met under state law before suing an employer for such discrimination.

At Wednesday's hearing, Grillo said Tesla could still win over its claim that DFEH violated state law. But the judge said he would not determine that before taking Tesla's pending motion to dismiss the case, which is the subject of a hearing scheduled for August.

The lawsuit is one of several pending in California courts that accuse Tesla of tolerating sexual discrimination and harassment at its factories.

A state judge in April reduced the jury's $137 million fine to $15 million in a black worker lawsuit claiming he was subjected to severe racial abuse at a Fremont factory. The judge on Tuesday rejected the worker's motion for permission to appeal the damages suffered.

Tesla is facing a class-action lawsuit that makes similar claims of racial bias and at least seven lawsuits over sexual harassment of female employees.

Tesla has denied the claims and said it has policies in place to prevent and punish workplace misconduct.