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Tesla Settles Racial Discrimination Lawsuit Filed by Employee at Fremont Plant
Electric vehicle manufacturer Tesla has reached a settlement in a racial discrimination lawsuit brought forth by a Black female employee. The employee alleged that a manager at its Fremont, California, production facility routinely used offensive language, including terms reminiscent of slavery, when addressing staff.
Details of the Settlement
Raina Pierce, a former Tesla worker who was responsible for installing door latches, and the automotive company led by entrepreneur Elon Musk, have agreed to a mediated settlement. The joint announcement was made in a filing submitted to a San Francisco federal court on Thursday.
The specifics of the agreement remain confidential as both parties are in the process of finalizing the settlement documentation, according to the court filing.
Allegations of Harassment
Attorneys representing both Ms. Pierce and Tesla have not yet issued public statements regarding the settlement. Mr. Musk was not named as a defendant in the lawsuit.
In her complaint, Ms. Pierce detailed experiencing pervasive harassment. This included the frequent appearance of a racial slur throughout the factory premises, notably in restrooms, along with instances of gender-based insults.
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She further claimed that she faced reprimands and disciplinary actions for conduct that was reportedly overlooked when exhibited by non-Black colleagues.
According to Ms. Pierce’s legal complaint, a Tesla employee who briefly joined her production line expressed concern over the remarks being made about her, advising her to report the matter to Human Resources.
Prior Discrimination Claims Against Tesla
Tesla has faced numerous previous allegations concerning racial discrimination and harassment at its Fremont manufacturing plant.
Other Lawsuits and Settlements
In a separate case, another plaintiff, Owen Diaz, an elevator operator, also reached a settlement with Tesla in March 2024 with undisclosed terms. This followed a prior jury verdict awarding him $3.2 million in damages. Initially, Mr. Diaz had been awarded $137 million by a jury in 2021, but the case was retried after he declined a reduced settlement amount proposed by the presiding judge.
The case reference is Pierce v Tesla Inc et al, U.S. District Court, Northern District of California, No. 22-03177.