Tesla loses challenge to California agency suing for race bias

An worker of a Tesla Inc’s U.S. automobile manufacturing facility is seen at a safety gate in Fremont, California, U.S., March 18, 2020. REUTERS/Stephen Nellis/File Picture

Aug 22 (Reuters) – A California administrative company has declined to assessment Tesla Inc’s (TSLA.O) declare that the state’s civil rights watchdog suing the corporate for race bias at an meeting plant is dashing to sue companies with out conducting full investigations.

California’s Workplace of Administrative Legislation in a letter denied Tesla’s petition, filed in June, to find out whether or not the Division of Civil Rights (DCR) had adopted “underground laws” that flout necessities it should meet earlier than suing employers. learn extra

The letter obtained by Reuters is dated August 8 however was acquired by the division final week.

The OAL, which critiques state company laws and might suggest modifications, didn’t give a purpose for the denial and stated Tesla can nonetheless pursue its claims in court docket.

The division in a pending lawsuit filed in February says Tesla’s flagship Fremont, California, plant was a racially segregated office the place Black workers had been harassed and discriminated towards by way of job assignments, self-discipline and pay. learn extra

A consultant of Tesla, which has denied wrongdoing within the race bias case, had no fast remark.

A spokesperson for the DCR didn’t instantly reply to a request for remark. The company was referred to as the Division of Honest Employment and Housing earlier than altering its identify final month.

Tesla’s petition with the OAL was an try and rein within the division’s authority to pursue discrimination circumstances by forcing it to take further steps earlier than suing, akin to offering companies with detailed explanations of alleged authorized violations and making efforts to settle outdoors of court docket.

Within the pending lawsuit, Tesla has argued that the DCR sued with out first notifying the corporate of all the claims or giving it an opportunity to settle.

A California state decide is scheduled to carry a listening to on Wednesday on Tesla’s movement to dismiss the case.

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

A state decide in April reduce a jury verdict for a Black employee who alleged racial harassment from $137 million to $15 million. The employee, Owen Diaz, rejected the decreased award and opted for a brand new trial, which is scheduled for March 2023. learn extra

Reporting by Daniel Wiessner in Albany, New York, modifying by Deepa Babington

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