Judge Will Reject Tesla's Claim, Racial Lawsuit Can Go On

Tesla is accused of racially abusing black employees. (photo: twitter @tesla)

JAKARTA - A California state judge said Wednesday, August 24, that he may reject Tesla Inc's offer to drop a lawsuit by the state's civil rights agency. The lawsuit accuses the electric car maker of widespread racial discrimination at its assembly plants over the years.

California Superior Court Judge Evelio Grillo in Oakland in a written order temporarily dismissed Tesla's claims that the lawsuit could not proceed because it involved thousands of employees, and that the state's Department of Civil Rights (CRD) had failed to notify the company of all of the earlier claims brought against it. in February.

During Wednesday's hearing, Grillo said he needed more time to make a final decision.

California judges often issue tentative written decisions before court hearings. It's not clear when Grillo will make that final decision on the lawsuit against the Elon Musk-led automaker.

In a lawsuit filed in February, CRD said Tesla's flagship factory in Fremont, California, was a racially segregated workplace where black employees were harassed and discriminated against in terms of job duties, discipline, and pay.

Tesla, however, denied any wrongdoing, but its lawyers said they did not immediately comment.

A CRD spokesman also declined to comment. The agency until last month was still called the Department of Fair Work and Housing.

Reuters reported that Austin, Texas-based Tesla faces a string of racial and sex discrimination cases, most involving the Fremont factory. A state judge in April reduced the jury's verdict for a black worker accused of racial harassment from $137 million to just $15 million. The plaintiffs rejected the reduction of the award and opted for a new trial, scheduled for March 2023.

In its motion to dismiss the CRD case, Tesla said the agency violated its obligations under state law by filing a lawsuit without first notifying the company of all claims or giving it a chance to resolve them.

Tesla in June filed a complaint with a different state agency, the California Administrative Law Office. They claim allegations of CRD irregularities are widespread and the procedures adopted by the agency are unlawful. OAL earlier this month declined to review Tesla's petition without providing a reason for doing so.