Tesla Faces New Class Action Lawsuit Over Wage Law Violations in California

Tesla hikes U.S. prices across car models

Tesla is embroiled in a fresh class action lawsuit alleging numerous wage law violations for its California factory and warehouse workers, amidst ongoing accusations of workplace discrimination and anti-union practices. The lawsuit seeks over $5 million in damages, highlighting issues such as unpaid overtime and lack of meal breaks.

Tesla is currently embroiled in a newly proposed class action lawsuit alleging the company of violating several wage laws concerning its factory and warehouse employees in California. 

This legal challenge emerges amidst ongoing accusations of workplace discrimination and anti-union practices against the electric vehicle manufacturer.

On Thursday, two ex-employees from Tesla’s Fremont, California, manufacturing facility initiated the lawsuit in a Sacramento federal court, demanding over $5 million in damages for thousands of Tesla employees statewide. 

The lawsuit accuses Tesla of not compensating for overtime, failing to allow for meal and rest breaks, neglecting to provide paid sick leave or reimburse for job-related expenses, and not furnishing written explanations of employee quotas.

Tesla has yet to comment on these allegations.

Tesla hikes U.S. prices across car models

This legal action coincides with Tesla’s efforts to counter several other lawsuits alleging the company of ignoring widespread racial discrimination and harassment, particularly towards Black employees at its Fremont plant and other locations in California. Tesla has refuted these accusations.

Additionally, a federal judge recently chose not to dismiss a lawsuit by the U.S. Equal Employment Opportunity Commission, which enforces federal laws against workplace discrimination. 

Moreover, Tesla faces litigation from a California civil rights body and a collective of 6,000 workers. The company also reached an undisclosed settlement with a Black former factory worker, following a jury’s decision to award him $3.2 million.

Tesla is also contending with accusations of CEO Elon Musk violating employee labor rights through a 2018 tweet, implying workers would forfeit stock options if they chose to unionize. 

Furthermore, claims have been made against the company for unlawfully obstructing unionization efforts at a New York facility. 

While Tesla has disputed these allegations in New York, it insists Musk’s tweet simply highlighted that unionized employees typically do not receive stock options.

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