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.
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.
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.