Tesla CEO Elon Musk is one of the wealthiest people in the United States, but his auto manufacturing company is also being recognized as a potential hotbed for discriminatory activity. Not only have there been many complaints of racial segregation within the company with respect to specific job placement, they are now being sued based on the practice in a class action case. This will also garner attention in their new home in Texas. There have been some general across-the-board claims of discrimination in the past, but now one group of employees has come forward and filed against the company.
The prior DFEH investigation
Tesla had been the target of many complaints to the California Department of Fair Employment and Housing before moving their headquarters to Texas where they will eventually transfer most manufacturing as well. The DFEH conducted an investigation into company practices that has been ongoing for three years. It culminated in a DFEH discrimination lawsuit filed in February 2022.
New discrimination case
While the investigation did reveal multiple instances of discrimination, they are general issues that generated the need for an in-depth look at company practices. Now comes a specific issue that will be evaluated in court alleging overall discriminatory actions by the company detailing specific promotion denials and a lack of minority consideration for higher paying company positions, and especially for black employees.
This is the first of what may be many future claims against the company, which could also be a focus in Texas at the new facilities the company is planning to build. While they will be a welcome addition to the Texas economy, there will assuredly be close attention paid at company hiring and promotion practices.