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| THE FACE OF HUBRIS |
Jacob Knutson
Mon, February 7, 2022
Tesla said Monday that a California state agency warned it has grounds for a civil complaint over allegations of race discrimination and harassment at the company.
Why it matters: A federal jury in California last year ordered Tesla to pay $137 million in damages to a Black former employee who accused the company of ignoring racist abuse he endured from other workers.
The company disclosed the notice from the California Department of Fair Employment and Housing in an annual regulatory filing with the Securities and Exchange Commission.
The big picture: The filing also included a disclosure that the company received a subpoena from the SEC in November to ensure compliance with a previous 2018 settlement deal that required lawyers to vet all of Elon Musk's tweets about the company before they go out.
The SEC has accused Musk of violating the terms of the deal on at least two occasions, saying he has sent unauthorized tweets regarding Tesla's solar roof production volume and its stock price.
Lawyers for Musk have previously criticized the SEC over the settlement, saying it trampled "on Musk's First Amendment rights" in an "unconstitutional power grab" that "smacks of retaliation and censorship."
Go deeper: Tesla agrees to fix "rolling stop" software feature over safety fears
California warns Tesla it may sue over race discrimination and harassment allegations
Jessica Guynn, USA TODAY
Mon, February 7, 2022
A California state agency warned Tesla it has grounds for a civil complaint over charges of race discrimination and harassment, the automaker disclosed Monday.
Tesla disclosed the notice from the California Department of Fair Employment and Housing in an annual regulatory filing with the Securities and Exchange Commission. The automaker said it received the notice on Jan. 3.
The state investigated “undisclosed allegations of race discrimination and harassment at unspecified Tesla locations,” the company said in the SEC filing.
“The DFEH gave notice that, based upon the evidence collected, it believes that it has grounds to file a civil complaint against Tesla,” Tesla said.
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Jessica Guynn, USA TODAY
Mon, February 7, 2022
A California state agency warned Tesla it has grounds for a civil complaint over charges of race discrimination and harassment, the automaker disclosed Monday.
Tesla disclosed the notice from the California Department of Fair Employment and Housing in an annual regulatory filing with the Securities and Exchange Commission. The automaker said it received the notice on Jan. 3.
The state investigated “undisclosed allegations of race discrimination and harassment at unspecified Tesla locations,” the company said in the SEC filing.
“The DFEH gave notice that, based upon the evidence collected, it believes that it has grounds to file a civil complaint against Tesla,” Tesla said.
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DFEH declined to comment.
Last year a federal jury in California ordered Tesla to pay $137 million in damages in a racial harassment lawsuit brought by a Black former employee at the company’s factory in Fremont, California.
“The Company does not believe that the facts and law justify the verdict,” Tesla said in the SEC filing. It said a court decision in its request for a new trial or a reduction in damages is expected soon.
“Tesla will pursue next steps, including an appeal, if necessary,” the company said.
The company's diversity track record has been under scrutiny for some time.
At the automaker’s annual meeting in October, the majority of Tesla investors voted for the automaker to release detailed data about the demographics of its workforce.
Although the resolution to force disclosure of the company's EEO-1 report was supported by the majority of shareholders, it is up to Tesla whether or not to adopt it.
A Tesla charges at a station in Topeka, Kansas, on April 5, 2021.
The EEO-1 report, which breaks down the race and gender of a company’s workforce by job categories, is filed annually with the Equal Employment Opportunity Commission. The report is private unless a company discloses it.
USA TODAY gathered EEO-1 reports from 83 of the nation’s top 100 companies and found deep racial inequities despite corporate pledges to do better after George Floyd's killing in 2020.
White and male employees remain overrepresented in positions that pay the highest salaries, offer the best benefits and provide a path to promotions in the Standard & Poor's 100. Black workers, particularly women, tend to be concentrated in the lowest ranks of America’s leading corporations.
Tesla previously disclosed that its U.S. workforce is diverse but 83% of those in company leadership roles are men and 59% are white. Tesla also said that 79% of the workforce, 75% of new hires and 77% of promotions in 2020 were men.
Black and African American employees comprised 10% of the workforce but 4% of leadership, 12% of new hires and 10% of promotions in 2020. Hispanic and Latino employees were 22% of the workforce, 4% of leadership, 27% of new hires and 24% of promotions.
This article originally appeared on USA TODAY: California warns Tesla it may sue over race discrimination, harassment
DFEH declined to comment.
Last year a federal jury in California ordered Tesla to pay $137 million in damages in a racial harassment lawsuit brought by a Black former employee at the company’s factory in Fremont, California.
“The Company does not believe that the facts and law justify the verdict,” Tesla said in the SEC filing. It said a court decision in its request for a new trial or a reduction in damages is expected soon.
“Tesla will pursue next steps, including an appeal, if necessary,” the company said.
The company's diversity track record has been under scrutiny for some time.
At the automaker’s annual meeting in October, the majority of Tesla investors voted for the automaker to release detailed data about the demographics of its workforce.
Although the resolution to force disclosure of the company's EEO-1 report was supported by the majority of shareholders, it is up to Tesla whether or not to adopt it.
A Tesla charges at a station in Topeka, Kansas, on April 5, 2021.
The EEO-1 report, which breaks down the race and gender of a company’s workforce by job categories, is filed annually with the Equal Employment Opportunity Commission. The report is private unless a company discloses it.
USA TODAY gathered EEO-1 reports from 83 of the nation’s top 100 companies and found deep racial inequities despite corporate pledges to do better after George Floyd's killing in 2020.
White and male employees remain overrepresented in positions that pay the highest salaries, offer the best benefits and provide a path to promotions in the Standard & Poor's 100. Black workers, particularly women, tend to be concentrated in the lowest ranks of America’s leading corporations.
Tesla previously disclosed that its U.S. workforce is diverse but 83% of those in company leadership roles are men and 59% are white. Tesla also said that 79% of the workforce, 75% of new hires and 77% of promotions in 2020 were men.
Black and African American employees comprised 10% of the workforce but 4% of leadership, 12% of new hires and 10% of promotions in 2020. Hispanic and Latino employees were 22% of the workforce, 4% of leadership, 27% of new hires and 24% of promotions.
This article originally appeared on USA TODAY: California warns Tesla it may sue over race discrimination, harassment
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