Tesla Breach Litigation Over Staff Data Leak Sent to Arbitration

Claims that Tesla Inc. failed to protect its employees’ personal data, enabling a data breach that exposed the information of 75,000 workers, are headed to arbitration.

The incorporation of JAMS arbitration rules in the Tesla contract was a “clear and unmistakable” agreement to send all arbitrable disputes to an arbitrator, Judge James Donato said in an order filed Tuesday in the US District Court for the Northern District of California.

Named plaintiff Benson Pai and others sued in September 2023, alleging that former Tesla workers accessed a swath of employees’ personally identifiable information on Tesla’s servers.

The car manufacturer ...