Tesla (NASDAQ: TSLA) has settled a racial discrimination lawsuit filed by Raina Pierce, a black female employee, who alleged workplace harassment at its Fremont, California, factory. According to court filings in San Francisco federal court, both parties agreed to settle the case following mediation. The terms of the settlement remain undisclosed, as a final agreement is being completed.
Pierce, who worked installing car door latches, claimed she was subjected to repeated racial and gender-based harassment. Her complaint detailed instances of a supervisor greeting employees with phrases like “welcome to the plantation” or “welcome to the slave house.” The lawsuit also cited the presence of racial slurs throughout the plant, including in restrooms, and alleged that Pierce faced unfair disciplinary actions compared to her white colleagues.
The lawsuit is part of a series of racial discrimination claims against Tesla’s Fremont facility. The company, led by CEO Elon Musk, who is not named as a defendant, has faced multiple accusations from black workers concerning a hostile work environment.
Pierce’s complaint also referenced a fellow Tesla worker who advised her to report to HR due to inappropriate remarks made by team leads. Legal representatives for both sides have not commented on the resolution.
In a related case, former elevator operator Owen Diaz settled with Tesla in March 2024 after initially winning a $3.2 million USD jury verdict. Diaz had originally been awarded $137 million USD in 2021, but that verdict was later reduced and retried.
The case is titled Pierce v. Tesla Inc et al., filed in the US District Court for the Northern District of California under case number 22-03177. Tesla has not issued a public statement on the settlement.
Photo credit: Blomst from Pixabay.
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