California Sues Tesla For 'Racial Discrimination Against Black Workers In Assembly Plant

California’s state civil rights agency, the Department of Fair Employment and Housing (DFEH), announced on Thursday (Feb 10) that it sued electric vehicle maker Tesla alleging that the company tolerated racial discrimination of a section of its black workforce at an assembly plant.

The lawsuit alleges that black workers are subjected to racial slurs by managers and supervisors, segregated to the lowest levels of the workforce, including the contracted workforce, and are severely under-represented in the ranks of executives, senior officials, and managers.

In addition to race-based segregation in the terms and conditions of employment, DFEH alleged that Tesla ignored complaints from Black workers protesting the near-constant use of racial slurs and derogatory language in the workplace, and the presence of racist writing and graffiti in common areas of the workplace, including swastikas and other hate symbols.

The suit alleged that black employees were subject to racial slurs including the "N-word," and "hood rats" on a daily basis.

The DFEH said Black workers are assigned difficult, menial jobs in segregated areas of the factory known as "the dark side," and are less likely to be promoted to management positions.

Tesla's human resources department is "understaffed and inadequately trained," leading to a failure to address complaints by workers, the lawsuit said.

The lawsuit was filed against Tesla for violating the provisions of the Fair Employment and Housing Act and the California Equal Pay Act.

"After receiving hundreds of complaints from workers, DFEH found evidence that Tesla’s Fremont factory is a racially segregated workplace where Black workers are subjected to racial slurs and discriminated against in job assignments, discipline, pay, and promotion creating a hostile work environment,” said DFEH Director Kevin Kish said in a statement

“DFEH will continue to take steps to keep workplaces free of harassment and racism." the statement added.

In Dec 20, Tesla released its first ever Diversity, Equity and Inclusion Impact Report. According to the report, EV maker's leadership was 83 percent male and 59 percent white while its wider workforce comprise of 79 percent male and 34 percent white.

The report states that "Black, African American, Hispanic, Latinx, Asian, Pacific Islander, Native American, Native Hawaiian and Alaska Native communities are typically underrepresented in the U.S and that "this group collectively represents 60 percent of Tesla's workforce".