Tesla being investigated by federal agency for alleged workplace discrimination

Tesla filed a report with the SEC on Monday that revealed the Equal Employment Opportunity Commission (EEOC) issued a cause finding against the company that is similar to a civil complaint the state of California filed alleging the electric car giant cultivated a culture of workplace discrimination.

Tesla will now start the mandatory pre-filing conciliation process with the federal agency, which enforces civil rights laws in the workplace.

A Tesla vehicle drives past the company’s factory in Fremont, California, on May 11, 2020. (REUTERS/Stephen Lam/Reuters Photos)

In February, the California Department of Fair Employment and Housing (DFEH) filed a complaint against Tesla alleging “systemic race discrimination, hostile work environment and pay equity claims.”

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The California agency alleged that Tesla segregated black workers to “the lowest levels of the workforce” and ignored complaints about the “near-constant use of racial slurs” in the workplace.

Tesla

A Tesla charging station in a Tesla showroom features the manufacturer’s logo. (Christophe Gateau/picture alliance via Getty Images / Getty Images)

The EEOC’s cause finding “closely parallels” what was filed by the California DFEH, Tesla said in Monday’s filing.

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A judge denied Tesla’s motion to stay the California case last month. The next hearing on a motion to strike is scheduled for Aug. 24.

Tesla did not respond to a request for comment on Monday.

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