March 28 (Reuters) - A federal judge in California on
Thursday appeared poised to reject Tesla's bid to toss
out a U.S. agency's lawsuit accusing the electric carmaker of
tolerating rampant harassment of Black workers at its Fremont,
California assembly plant.
U.S. District Judge Jacqueline Scott Corley in San Francisco
during a hearing repeatedly disagreed with claims by Tesla's
lawyers that the U.S. Equal Employment Opportunity (EEOC) failed
to include any facts in its lawsuit backing up its claim of
pervasive unlawful race bias.
The EEOC in a 10-page lawsuit filed last year said that from
2015 to the present, Black workers at the Tesla plant have
routinely been subjected to racist slurs and graffiti, including
swastikas and nooses, and Tesla has failed to investigate
complaints.
Tesla, whose CEO is billionaire businessman Elon Musk, is
facing similar claims in a separate lawsuit by a California
civil rights agency and a class action on behalf of 6,000 Black
workers. The company has denied wrongdoing in all three cases.
Raymond Cardozo, a lawyer for Tesla, told Corley during the
hearing that the EEOC had not met a requirement of showing that
its claims were "plausible" and can move forward. The lawsuit
did not include the names of workers who allegedly faced
discrimination or details about when or where in the factory the
misconduct occurred, Cardozo said.
It is not plausible "when someone is saying that every
single person not of that race, from 2015 to 2024, discriminated
against every single (Black) person," Cardozo said.
"That's not what it's saying," the judge replied. "It's
saying this racism ... was ubiquitous such that it created a
hostile environment for Black workers. Maybe it's untrue, but
why doesn't that state a claim?"
Corley cited a paragraph in the lawsuit that states that an
unidentified worker told the EEOC that a highly offensive racial
slur was "both his white co-workers' and supervisors' preferred
pronoun on the production line."
"That you don't know his name doesn't mean it's not
plausible," the judge said, adding that Tesla will be able to
obtain more information during the discovery process leading up
to a trial.
Cardozo said that without more details, Tesla could not
attempt to address the alleged discrimination.
Corley seemed unmoved.
"I'm not persuaded at all, I have to say," the judge said.
Corley did not say when she would issue a ruling. The judge
also seemed skeptical of Tesla's bid to alternatively pause the
case pending the outcome of the class action and the lawsuit by
the California agency.
The EEOC's lawsuit seeks unspecified compensatory and
punitive damages for an unspecified number of Black workers,
along with an order requiring Tesla to overhaul its policies
prohibiting discrimination and retaliation.