Ex-Tesla Worker Must Arbitrate Claims Around Bias, Termination

A former Tesla Inc. employee will have to arbitrate his discrimination, retaliation, and wrongful termination claims against the automaker, a magistrate judge ruled.

Jeremiah Chee signed an employment offer with Tesla in 2021, which included an arbitration provision—a point he doesn’t dispute. But Chee does argue the agreement was “procedurally and substantively unconscionable and, therefore, unenforceable,” Magistrate Judge Thomas S. Hixson said in an opinion for the US District Court for the Northern District of California.

The agreement had “some degree of procedural unconscionability,” Hixson said. But, as a whole, it wasn’t sufficiently substantively unconscionable to render it unenforceable, he ...