Tesla is facing yet another legal challenge with a proposed class action lawsuit accusing the electric carmaker of multiple wage law violations against factory and warehouse workers in California.
Filed by two former employees at Tesla’s Fremont assembly plant, the lawsuit seeks over $5 million in damages on behalf of thousands of Tesla workers across the state.
The plaintiffs allege that Tesla violated various California labor laws, including failure to pay overtime, provide meal and rest breaks, offer paid sick leave, reimburse work-related expenses, and furnish written descriptions of required work quotas.
Tesla has not responded to requests for comment on the accusations. This lawsuit adds to the company’s legal woes, as it battles claims of race discrimination and harassment against Black workers at its Fremont plant and other California facilities. Despite denying wrongdoing, Tesla faces multiple lawsuits, including those from the U.S. Equal Employment Opportunity Commission, a California civil rights agency, and a class of 6,000 workers. Additionally, the company recently settled a lawsuit with a former Black factory worker.
CEO Elon Musk’s involvement in labor disputes has also drawn attention. Musk’s 2018 tweet suggesting that employees could lose stock options if they unionized has led to allegations of violating workers’ labor rights. Moreover, Tesla has been accused of illegally interfering with a union drive at a New York facility, although the company denies any wrongdoing in this matter.
While Tesla has faced legal challenges regarding labor practices, a U.S. appeals court ruled in November that the company did not violate federal labor law by prohibiting factory workers from wearing T-shirts supporting a union campaign.
Amidst these legal battles, Tesla continues to operate and produce electric vehicles, navigating the complexities of labor laws and workplace regulations.