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Tesla Facing EEOC Scrutiny in Racial Discrimination Probe

July 26, 2022, 4:45 PM

Tesla Inc. is under scrutiny by the federal government’s civil rights watchdog for alleged employment discrimination, the company disclosed in a financial filing.

The US Equal Employment Opportunity Commission issued a cause finding against the electric car giant in June that “closely parallels” allegations by the agency’s California counterpart, Tesla disclosed Monday. The company disclosed in April that it was under investigation by the EEOC.

California’s Department of Fair Employment and Housing sued Tesla in February for “pervasive” racial discrimination after finding widespread harassment of Black workers at the electric car-maker’s factory near San Francisco. Black workers are subjected to racial slurs and discriminated against in job assignments, discipline, pay and promotion creating a hostile work environment, according to the DFEH.

Tesla in a blog post called the DFEH suit “misguided.” The company didn’t immediately respond to an email request for comment on the EEOC investigation.

The EEOC issues a “cause finding” if a completed investigation backs up allegations of discrimination. The company is now trying to reach a settlement with the agency. If an accord isn’t reached, the EEOC can then decide to sue Tesla.

The EEOC didn’t immediately respond to an email request for comment.

To contact the reporter on this story: J. Edward Moreno in Washington at jmorenodelangel@bloombergindustry.com

To contact the editors responsible for this story: Martha Mueller Neff at mmuellerneff@bloomberglaw.com; Genevieve Douglas at gdouglas@bloomberglaw.com