financetom
Economy
financetom
/
Economy
/
Lawsuit says Musk's Tesla hires visa holders instead of Americans so it can pay less
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Lawsuit says Musk's Tesla hires visa holders instead of Americans so it can pay less
Sep 12, 2025 12:33 PM

(Reuters) -Tesla, the electric vehicle company led by billionaire Elon Musk, was accused in a lawsuit on Friday of favoring visa holders over Americans when making employment decisions so it can pay less.

According to a proposed class action filed in San Francisco federal court, Tesla violates federal civil rights law through its "systematic preference" to hire visa holders, and fire U.S. citizens at disproportionate rates compared with visa holders.

The complaint said Tesla is dependent on holders of H-1B visas for skilled workers, including in 2024 when it hired an estimated 1,355 visa holders while laying off more than 6,000 workers domestically, "the vast majority" believed to be U.S. citizens.

Tesla, based in Austin, Texas, did not immediately respond to requests for comment.

The lawsuit was brought by software engineer Scott Taub and human resources specialist Sofia Brander, who said Tesla refused to hire them after learning they would not need sponsorship for employment, an indication they were U.S. citizens.

Taub said he was dissuaded from seeking one job after being told it was for "H1B only," and not invited to interview for a second job. Brander said Tesla wouldn't interview her for two jobs though she had twice been a contract employee.

"While visa workers make up just a fraction of the United States labor market, Tesla prefers to hire these candidates over U.S. citizens, as it can pay visa-dependent employees less than American employees performing the same work, a practice in the industry known as 'wage theft,'" the complaint said.

Friday's complaint quoted a December 27, 2024, post on X by Musk, a naturalized U.S. citizen who was born and raised in South Africa and has held an H-1B visa.

"The reason I'm in America along with so many critical people who built SpaceX, Tesla and hundreds of other companies that made America strong is because of H1B," Musk wrote.

It is unclear how the plaintiffs plan to show Tesla's alleged systemic discrimination in hirings and firings.

Daniel Kotchen, a lawyer for the plaintiffs, declined additional comment.

The lawsuit seeks damages for all U.S. citizens who applied for Tesla jobs in the United States and were not hired, or worked for Tesla there and were fired.

The case is Taub et al v Tesla Inc, U.S. District Court, Northern District of California, No. 25-07785.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
New Zealand Dollar Shows Stability Amid US Economic Concerns
New Zealand Dollar Shows Stability Amid US Economic Concerns
Jun 5, 2024
By RoboForex Analytical Department The NZD/USD pair is stable, consolidating around 0.6189 on Wednesday. The New Zealand dollar maintains a sideways trend and appears relatively robust in the current market environment. Recent pressure on the US dollar, triggered by disappointing employment statistics, has led to speculation that the US Federal Reserve might reduce interest rates after the September meeting. The...
Walmart to pay US hourly store workers bonuses for first time ever
Walmart to pay US hourly store workers bonuses for first time ever
Jun 5, 2024
(Reuters) - Walmart ( WMT ) will, for the first time ever, pay bonuses to its U.S. hourly store workers, including those at its pharmacy and Vision Center stores, the retailer said on Wednesday, in a move that could boost wages for 700,000 front-line staff. Both part-time and full-time associates will be eligible for the annual bonus program, the idea...
US Dollar Rallies After ISM Services PMI Recovers to Expansionary Level
US Dollar Rallies After ISM Services PMI Recovers to Expansionary Level
Jun 5, 2024
10:22 AM EDT, 06/05/2024 (MT Newswires) -- The US dollar rallied against all major currencies in North American trade on Wednesday after a sharp recovery lifted the Institute for Supply Management Services PMI back to an expansionary level. EUR/USD and GBP/USD fell from intraday highs around 1.0888 and 1.2795 respectively, while USD/JPY and USD/CAD rose to new intraday highs around...
Yellen to warn of 'significant risks' from use of AI in finance
Yellen to warn of 'significant risks' from use of AI in finance
Jun 5, 2024
WASHINGTON (Reuters) - U.S. Treasury Secretary Janet Yellen will warn that the use of artificial intelligence in finance could lower transaction costs, but carries significant risks, according to excerpts from a speech to be delivered on Thursday. In the remarks to a Financial Stability Oversight Council and Brookings Institution AI conference, Yellen says AI-related risks have moved towards the top...
Copyright 2023-2026 - www.financetom.com All Rights Reserved