A California state judge has tentatively ruled that nearly 6,000 Black factory workers are permitted to sue Tesla (TSLA.O) as a collective entity. The lawsuit alleges the electric vehicle maker failed to address pervasive race discrimination and harassment at its Fremont plant.
California Superior Court Judge Noel Wise, based in Oakland, stated in a written order issued on Wednesday that the lawsuit raises common questions concerning all Black workers at the plant regarding Tesla’s awareness of the alleged misconduct and its failure to take preventive measures.
The lead plaintiff, former assembly line worker Marcus Vaughn, initiated the lawsuit in 2017, alleging that Black factory workers endured various forms of racist behavior, including slurs, graffiti, and nooses displayed at their workstations. Tesla has not yet responded to requests for comment regarding the ruling.
Lawrence Organ, legal representative for Vaughn, expressed satisfaction with the decision, stating, “I think the numerous complaints over time show how Tesla failed to prevent racial harassment of its Black employees.”
Tesla has consistently asserted a zero-tolerance policy towards workplace harassment and asserts it has terminated employees found to have engaged in racial harassment.
The tentative ruling precedes a hearing scheduled for Friday, where Tesla has the opportunity to contest Wise’s decision, although judicial reversals at this stage are uncommon.
This ruling poses a significant setback for Tesla, potentially exposing the company to a substantial financial judgment. The class encompasses individuals who self-identified as Black and were employed at the Fremont factory since November 2016.
Wise indicated plans to proceed with a trial in October, coinciding with another trial involving similar allegations against Tesla by a California state civil rights agency.
In addition to the state lawsuit, Tesla is grappling with race bias allegations in federal court brought by the U.S. Equal Employment Opportunity Commission (EEOC). Tesla seeks to dismiss or pause the federal case, contending that the resolution of other lawsuits should take precedence.
Simultaneously, the company 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 initial verdict of $137 million was deemed excessive by a judge, prompting a retrial.
