Tesla Enters Mediation Over Racial Harassment Claims at California Plant

Tesla agreed to enter mediation with the U.S. Equal Employment Opportunity Commission over a lawsuit alleging racial harassment at its Fremont plant. Filed in San Francisco federal court, mediation discussions could begin by March or April 2024. If unsuccessful, both parties will propose next steps by June 17.

Tesla has agreed to engage in mediation with the U.S. Equal Employment Opportunity Commission (EEOC) following allegations of racial harassment at its Fremont, California, assembly plant. The lawsuit accuses the electric car manufacturer of tolerating severe racial discrimination, including racial slurs and racist graffiti such as swastikas.

Filed in a San Francisco federal court, mediation is expected to commence by March or April, as the EEOC and Tesla work to select a mediator. If the mediation fails, both sides will make recommendations to the presiding judge by June 17. The agency requested that certain evidence-gathering deadlines be postponed to give priority to mediation efforts.

The EEOC initially sued Tesla in September 2023, asserting that the company's employment practices violate federal law. Despite Tesla denying any knowledge of the harassment, it continues to face multiple lawsuits over the alleged mistreatment of workers at its California plant. Recently, a legal ruling prevented a class action suit involving more than 6,000 Black workers, as many were unwilling to testify.