Tesla Discrimination Lawsuit: $137 Million Verdict

Tesla Faces $137 Million Judgment in Racial Discrimination Case

A substantial $137 million in damages has been awarded against Tesla following a lawsuit brought by a former Black employee. The case centers around allegations of a hostile work environment marked by discrimination and racial abuse at the electric vehicle manufacturer’s facility in Fremont, California, as reported by the Washington Post.

Details of the Lawsuit and Jury Award

The judgement, considered one of the largest in an individual race discrimination employment case, was granted to Owen Diaz. He served as a contract elevator operator at the plant during 2015 and 2016.

Diaz’s lawsuit detailed experiences of discrimination reminiscent of the “Jim Crow era.” He claimed to have been subjected to racial slurs during his employment.

The complaint further alleged that Tesla employees displayed drawings containing swastikas, racist graffiti, and offensive cartoons throughout the plant. Supervisors, according to the suit, failed to intervene and stop this abusive behavior.

The lawsuit asserted that “Tesla’s progressive image was a façade papering over its regressive, demeaning treatment of African-American employees.”

Breakdown of the Damages

The jury awarded Diaz $6.9 million to cover emotional distress. However, the significant majority of the award—$130 million—was designated as punitive damages levied against Tesla.

Lawrence Organ, the attorney representing Diaz, stated, “It’s a great thing when one of the richest corporations in America has to have a reckoning of the abhorrent conditions at its factory for Black people.”

Diaz himself expressed relief, telling the New York Times, “It took four long years to get to this point. It’s like a big weight has been pulled off my shoulders.”

Tesla’s Response

Tesla responded to the verdict with a blog post authored by Valerie Capers Workman, VP of Human Resources.

Workman acknowledged that several witnesses, all non-Tesla contract employees, testified to hearing racial slurs, including the N-word, on the factory floor.

However, she also noted that these witnesses generally agreed the language was often used in a “friendly” manner, and frequently by African-American colleagues.

Actions Taken and Future Plans

Tesla stated that the company had taken action in response to Diaz’s complaints. This included the termination of two contractors and the suspension of another employee.

Workman conceded that while the facts did not support the magnitude of the verdict, the company was “not perfect” in 2015 and 2016. She emphasized that improvements have since been made.

As of now, Tesla has not indicated whether it intends to appeal the jury’s decision.

Editor’s note: This article originally appeared on Engadget.