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Tesla Asks Judge to Pause Federal Lawsuit: Cites ‘Toxic Interagency Competition’

Background

Tesla Inc has filed a request with a U.S. judge to temporarily halt a lawsuit by a federal agency, which accuses the company of severe harassment towards Black workers at its assembly plant in California. Tesla argues that two similar cases should be resolved first before pursuing this lawsuit. The filing, made in San Francisco federal court on Monday, suggests that the U.S. Equal Employment Opportunity Commission (EEOC) hurriedly filed the lawsuit as part of a “toxic interagency competition” with a California civil rights agency that made similar allegations the previous year. The EEOC has not yet responded to Tesla’s request for comment.

The Allegations

According to the EEOC, Black workers at Tesla’s Fremont, California plant have endured ongoing racist slurs, graffiti featuring hateful symbols such as swastikas and nooses, as well as retaliation for reporting these incidents since 2015. The California’s Civil Rights Department (CRD) also filed a lawsuit in 2022, accusing Tesla of tolerating similar conditions and discriminating against Black workers when it comes to pay, promotions, and work assignments.

Tesla’s Defense

In their filing, Tesla’s lawyers argue that the federal court should not proceed with a third lawsuit until the existing cases are resolved. They claim that pursuing all three simultaneously would lead to duplicated efforts, the potential for inconsistent rulings, and an inefficient use of judicial resources. Furthermore, Tesla maintains its denial of any wrongdoing in the ongoing cases and reiterates its commitment to equal employment opportunity. The company is currently appealing a separate race harassment lawsuit, in which a Black former elevator operator at the Fremont plant was awarded $3.2 million.


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