A U.S. civil rights agency initiated a lawsuit against Tesla Inc (NASDAQ:TSLA), Thursday, alleging that the electric car manufacturer has allowed persistent harassment against Black workers at its assembly plant in Fremont, California.
The U.S. Equal Employment Opportunity Commission (EEOC) has asserted that, from 2015 to the present, Black employees working at the Tesla plant have been consistently exposed to offensive racial slurs and defacement, which includes symbols like swastikas and nooses.
According to the lawsuit, the EEOC has alleged that the electric automaker has consistently failed to investigate complaints of racist conduct and has reportedly fired or retaliated against workers reporting harassment.
This lawsuit introduces federal charges alongside existing claims of discrimination made by the state of California and legal actions initiated by Tesla employees.
Tesla is currently dealing with multiple race discrimination lawsuits that share similar allegations. These include a class action lawsuit filed by employees at the Fremont plant and a lawsuit from a California civil rights agency. In response to these cases, the company has asserted that it does not condone discrimination and treats worker complaints with utmost seriousness.
The EEOC, as mentioned in the lawsuit, initiated its investigation into Tesla following an internal complaint filed by the chair of the five-member commission, Charlotte Burrows, against the company.
Burrows released a statement saying that fighting widespread workplace harassment is a key priority for the EEOC.
"Every employee deserves to have their civil rights respected, and no worker should endure the kind of shameful racial bigotry our investigation revealed,” she said.
The EEOC routinely settles lawsuits with employers, and it is relatively rare for the agency’s cases to go to trial.
Shares of TSLA are up 2.45% in early trading Friday morning.