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Federal Agency Sues Tesla for Racial Discrimination

Electric car manufacturer Tesla continues to face legal actions for its supposed mistreatment of Black workers at its factory in Fremont, California. The most recent claims are also the most serious yet: the Equal Employment Opportunity Commission (EEOC) has sued the carmaker for allegedly enabling “severe or pervasive racial harassment” of Black employees and perpetuating a hostile work environment. 

This is just the latest in a series of lawsuits Tesla has faced in regards to the treatment of its workers. Other claims include individual claims made by workers and a lawsuit filed by the California Civil Rights Department (CRD). All the claims state that Black workers and other people of color experienced egregious harassment and discrimination while employed at the plant. Some of the worst examples include:

  • Frequent use of slurs during casual conversations in high-traffic areas.
  • Managers and supervisors refer to the plant as a “slave ship” or “plantation.”
  • Racially motivated graffiti, including slurs, swastikas, depictions of nooses, and even threats scrawled everywhere from bathrooms to elevators to production equipment and the vehicles produced by the factory. 
  • Segregated working conditions, where Black workers were typically restricted to the plant floor and assigned more physically taxing and unpleasant duties than other workers.
  • Unequal treatment of minor employment violations, including harsher penalties for Black employees.

All claims highlight that workers who spoke up about problems in the workplace frequently faced retaliation, having their hours cut or losing their jobs altogether.

While individual and CRD lawsuits are proceeding, the EEOC stepping in demonstrates that this is more than just a state-level dispute. It indicates that the federal government has determined there is reasonable cause to believe that employees faced discrimination. It also suggests that the agency has failed to resolve the matter through the standard conciliation process. 

But what does this mean for the workers themselves? That’s an excellent question. Let’s break down what EEOC lawsuits accomplish, their benefits and limitations, and how to effectively pursue a racial discrimination claim. 

What Happens When the EEOC Takes Action Against Employers?

The EEOC is responsible for enforcing federal anti-discrimination and fair employment laws nationwide. Any employee who wants to file a discrimination lawsuit under federal law must file a charge with the EEOC first. This notifies the agency of a potential violation and permits them to begin an investigation into the incident. 

EEOC investigations are complex, in-depth affairs. The agency will collect evidence and testimony from both the party filing a claim (the “Charging Party”) and the employer (the “Respondent”). The employer is expected to cooperate with the agency’s investigator, respond to requests for information, and facilitate witness interviews with current staff and on-site visits. 

These investigations aim to determine if there is reasonable cause to believe that an employer discriminated against an employee. If so, the agency’s primary goal is to conciliate between the parties to achieve a fair settlement for the victim. In rare cases, the agency will file a lawsuit if conciliation fails. However, the EEOC only sues when there is an extremely strong case due to its limited resources. For context, the agency only filed 91 lawsuits across FY 2022. If the EEOC files a lawsuit, it indicates that the agency believes it has an extremely strong case against the employer.

In many cases, EEOC investigations are inconclusive. If this is the case, the agency will issue the Charging Party a Notice of Right to Sue. Only once that occurs can the Charging Party file an independent lawsuit. 

Do You Have to Go Through the EEOC?

Not every workplace discrimination claim needs to go through the EEOC. However, most cases that rely on federal law do. The only exception is for lawsuits filed under the Equal Pay Act (EPA). The EEOC must be involved if the discriminatory actions do not directly violate the EPA. 

However, you do not necessarily need to wait for the agency to finish investigating to file an independent lawsuit. You may request a Notice of Right to Sue at any time. If it has been more than 180 days since you filed your charge, the EEOC must provide you the Notice upon request. If it has been fewer than 180 days, the agency will give you the Notice once the 180-day limit is reached or the investigation is closed, whichever is sooner. 

Lawsuits filed under state law work slightly differently. For example, in California, you must file a complaint with the CRD instead. However, alongside your initial complaint, you may request an immediate Right-to-Sue notice. There’s no need to wait half a year to file your lawsuit. As such, it is often easier to file discrimination claims under state law than federal law. 

Should You Pursue a Racial Discrimination Claim Independently?

While the EEOC and CRD are important institutions for protecting workers’ rights, they are far from the most efficient way to address workplace discrimination. These agencies have limited resources and typically focus most heavily on complex cases that could set important precedents. If your case doesn’t meet those standards, it’s likely better to pursue your case independently.

Filing independently under California state law has several other benefits, including:

  • Broader protections: California has some of the most comprehensive employment protections in the country, making it more likely your case is covered. 
  • A longer statute of limitations: State law permits discrimination claims to be filed up to three years after an incident, while the EEOC limitation period lasts just 300 days.
  • Less waiting: There’s no need to wait 180 days for the right to sue. 

However, every case is different. If you believe you have faced unlawful racial discrimination at work, you should talk to a skilled employment law attorney as soon as possible. The experts at the Law Offices of Todd M. Friedman, P.C., can help. Schedule your consultation today to get started.

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