Tesla Must Face Workers’ Forced Labor Suit, But Not Wage Claims

Tesla Inc. and Eisenmann Corp. must continue to litigate federal labor trafficking claims brought by 14 workers from foreign countries who were hired to work on a construction project at its California manufacturing plant, a federal judge in San Jose ruled.

The workers put forth sufficient evidence that Tesla and Eisenmann financially benefited from the “coerced labor,” and knew or should’ve known about it, Judge Lucy H. Koh said.

Tesla contracted with Eisenmann to perform construction work at its plant in Fremont, Calif., and Eisenmann subcontracted with ISM Vuzem, a mechanical installation company based in Slovenia, to provide the labor ...