Tesla ordered to pay over $130 million to ex-worker over racism allegations

According to the Wall Street Journal, a federal jury on Monday ordered Tesla Inc to pay more than $130 million in damages to a Black former employee, ruling that he was subjected to a racially hostile work environment. According to the newspaper, the jury decided that the business failed to take reasonable precautions to avoid racial harassment of Owen Diaz, a contract worker who worked as an elevator operator at Tesla's Fremont facility in 2015 and 2016. According to a letter to employees posted on Tesla's website, the trial involved racial insults heard on the manufacturing floor and racist graffiti in the restrooms.

It further stated that Diaz complained about harassment three times, and that Tesla intervened and ensured that staffing agencies take action. According to the newspaper, the jury gave Diaz $6.9 million in compensatory damages and $130 million in punitive damages. "While we strongly feel that these facts do not support the decision made by the jury in San Francisco," Tesla added, "we do accept that we were not flawless in 2015 and 2016." Tesla did not immediately reply to a Reuters inquiry about whether it will appeal the judgement. Diaz's lawyers did not reply quickly to a request for comment.

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Before the trial began, presiding judge William Orrick rejected Tesla's request to remove one member from the panel, stating the action was racially motivated and "purposefully discriminatory." Tesla stated in a blog post that while Diaz worked at the Fremont facility, the firm has implemented improvements such as establishing teams devoted to reviewing employee concerns and ensuring employees have equitable chances. In its inaugural US diversity report last year, Tesla revealed that Black employees made up only 4% of Tesla's American leadership roles and 10% of the company's overall workforce in the nation.

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• Tesla
• graffiti
• racial insult
• racism
• harassment