Tesla halts lawsuit over racial bias at factory brought by US agency, seeks pause.

Tesla Asks Judge to Pause EEOC Lawsuit

Tesla Seeks Delay in Harassment Lawsuit

Tesla (NASDAQ:) Inc has requested a U.S. judge to put on hold a federal agency’s lawsuit alleging the electric carmaker engaged in severe harassment of Black workers at its California assembly plant. The company argues that two similar cases should take precedence in the legal system.

Allegations of Racial Harassment

The U.S. Equal Employment Opportunity Commission (EEOC) filed a lawsuit in September, accusing Tesla of subjecting Black workers at its Fremont, California plant to racist slurs, graffiti, and retaliation for complaining. The EEOC claims these incidents occurred from 2015 to the present.

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Competing Claims

Tesla contends that the EEOC rushed to file the lawsuit as part of competition with a California civil rights agency that made similar accusations last year. The company believes the existing state court cases should resolve before the federal court becomes involved.

Legal Landscape

Tesla is also facing a lawsuit from California’s Civil Rights Department (CRD) and a proposed class action filed by its own workers. The company has denied any wrongdoing and is currently appealing a separate race harassment case.

Request for Delay

In its filing, Tesla urged the federal court to avoid simultaneous prosecution of the state court actions and the EEOC lawsuit. The company’s lawyers argued that this approach would lead to duplication of effort and an inefficient use of resources.

Denial of Allegations

Tesla reiterated its denial of the allegations, stating that they are a “false narrative” that disregards its commitment to equal employment opportunity.

By Daniel Wiessner

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