Tesla is facing a new proposed class action lawsuit over alleged numerous wage law violations against its California factory and warehouse workers amid recent accusations of workplace bias and union interference.
Two former Tesla assembly plant employees in Fremont, California, filed the lawsuit in a federal court in Sacramento on Thursday, demanding over $5 million in damages on behalf of numerous Tesla workers statewide.
Tesla's Breach of Contract and Unfair Labor Practices
According to the lawsuit, Tesla breached multiple California labor laws by neglecting overtime compensation, offering meal and rest breaks, providing paid sick leave, reimbursing work-related expenses, and furnishing written descriptions of quotas employees had to meet.
Tesla has not provided a comment in response to the allegations when requested.
Series of Tesla's Class-Action Lawsuits
The lawsuit comes amid Tesla's accusations of permitting widespread racial discrimination and harassment against Black employees at its Fremont plant and other facilities in California, which it has vehemently denied.
A case filed by the US Equal Employment Opportunity Commission (EEOC), which is responsible for enforcing federal anti-discrimination laws, was dismissed by a federal judge last week.
Tesla faces lawsuits from a California civil rights agency and a class of 6,000 workers. Tesla recently reached a lawsuit settlement brought by a former Black factory worker, whose terms were not disclosed after a jury awarded him $3.2 million.
Tesla is also confronted with allegations that CEO Elon Musk violated workers' labor rights by implying in a 2018 tweet that employees could lose stock options if they unionized and that it unlawfully impeded a unionization effort at a New York facility.
As per The National Labor Relations Board, Tesla breached labor regulations by terminating a union activist, tweeting: "Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing?"
Tesla has refuted wrongdoing in the New York case and clarified that Musk's tweet was meant to highlight that most unionized workers typically do not receive stock options. However, the federal agency instructed the CEO to remove his tweet and reinstate the terminated employee, Richard Ortiz. Additionally, the company must compensate Ortiz for lost wages, benefits, and any adverse tax outcomes resulting from his dismissal, as directed by the regulator.
The board also directed Tesla to distribute notices nationwide and conduct meetings at its primary US car plant in Fremont, California, to educate workers about their protected rights. During these meetings, either Musk himself or a board agent in Musk's presence must read the notice to workers, security guards, managers, and supervisors.
In another case in November, a US appeals court ruled that Tesla did not breach federal labor law by prohibiting factory workers from wearing T-shirts endorsing a union campaign.
