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California's Racial Bias Trial Against Tesla Opens
The state says Black workers faced slurs, racist graffiti and lower pay, and that California law allows uncapped damages.
The California Civil Rights Department's lawsuit against Tesla began today in Alameda County Superior Court, where Superior Court Judge Peter Borkon will oversee a bench trial regarding allegations of rampant racial discrimination at the company's Fremont factory.
Black workers at the Fremont plant earned about $1,533 a month less than white colleagues between June 2018 and June 2024, according to CRD analysis; the agency claims managers ignored documented complaints while employees described the factory as a "plantation."
Tesla faces this trial without a jury to sway or arbitration clauses to utilize, unlike previous individual cases; the complaint highlights staffing disparities, noting roughly one HR person for every 604 to 740 employees at the assembly plant.
California law permits uncapped damages, potentially leaving Tesla on the hook for many millions if it loses. Tesla argued it "does not tolerate discrimination" and fires offenders, though the lawsuit alleges some were later rehired through contract work.
Separately, the Equal Employment Opportunity Commission is in mediation over federal claims of "systematic racial harassment and retaliation against Black workers." This case involves more than 6,000 workers and represents one of the most significant employment discrimination trials against a major U.S. company in recent years.