Tesla settles long-running racial discrimination court battle with former worker

Owen Diaz's lengthy court battle against Tesla is officially over, now that both parties have agreed on a settlement. Attorney Lawrence Organ, Diaz's lawyer, told CNBC that that the "parties have reached an amicable resolution of their disputes," but that the "terms of the settlement are confidential." If you've been following this case for a while now, that means you won't get to find out how much Diaz is getting after the massive $137 million in damages he was originally awarded got dramatically lowered to $3.2 million. 

The former elevator operator famously sued the automaker for enabling a racist workplace, saying that he faced discrimination "straight from the Jim Crow era" as a Black individual. He said his fellow workers left left drawings of swastika and racist graffiti, such as ones of Inki the Caveman, on his workspace and around Tesla's Fremont assembly plant. Diaz also said that he and other Black workers were subjected to racial slurs, and that the company failed to address thes behaviors despite repeated complaints. 

In 2021, a San Francisco court ordered Tesla to pay $137 million in damages to its former worker, which was one of the highest amounts awarded to a plaintiff suing on the basis of discrimination. However, a judge during the appeals that followed found the amount excessive and lowered it to $15 million, even though he upheld the original jury's verdict. The parties went back into trial after Diaz refused the lowered amount, but a jury lowered the damages Tesla must pay even further to $3.2 million. At the time, Diaz's lawyer said he was wrongly attacked by the defense and that they had already requested a new trial due to misconduct. It looks like both parties have since agreed to negotiate behind closed doors. 

While Diaz's case is done, Organ also represents Marcus Vaughn, who filed another lawsuit against the automaker for racial harassment. Vaughn called Tesla's Fremont plant a "hotbed for racist behavior" and petitioned the court last year to give his lawsuit class action status so that he could add 240 Black colleagues to his complaint. 

This article originally appeared on Engadget at https://www.engadget.com/tesla-settles-long-running-racial-discrimination-court-battle-with-former-worker-133036456.html?src=rss

Tesla settles long-running racial discrimination court battle with former worker

Owen Diaz's lengthy court battle against Tesla is officially over, now that both parties have agreed on a settlement. Attorney Lawrence Organ, Diaz's lawyer, told CNBC that that the "parties have reached an amicable resolution of their disputes," but that the "terms of the settlement are confidential." If you've been following this case for a while now, that means you won't get to find out how much Diaz is getting after the massive $137 million in damages he was originally awarded got dramatically lowered to $3.2 million. 

The former elevator operator famously sued the automaker for enabling a racist workplace, saying that he faced discrimination "straight from the Jim Crow era" as a Black individual. He said his fellow workers left left drawings of swastika and racist graffiti, such as ones of Inki the Caveman, on his workspace and around Tesla's Fremont assembly plant. Diaz also said that he and other Black workers were subjected to racial slurs, and that the company failed to address thes behaviors despite repeated complaints. 

In 2021, a San Francisco court ordered Tesla to pay $137 million in damages to its former worker, which was one of the highest amounts awarded to a plaintiff suing on the basis of discrimination. However, a judge during the appeals that followed found the amount excessive and lowered it to $15 million, even though he upheld the original jury's verdict. The parties went back into trial after Diaz refused the lowered amount, but a jury lowered the damages Tesla must pay even further to $3.2 million. At the time, Diaz's lawyer said he was wrongly attacked by the defense and that they had already requested a new trial due to misconduct. It looks like both parties have since agreed to negotiate behind closed doors. 

While Diaz's case is done, Organ also represents Marcus Vaughn, who filed another lawsuit against the automaker for racial harassment. Vaughn called Tesla's Fremont plant a "hotbed for racist behavior" and petitioned the court last year to give his lawsuit class action status so that he could add 240 Black colleagues to his complaint. 

This article originally appeared on Engadget at https://www.engadget.com/tesla-settles-long-running-racial-discrimination-court-battle-with-former-worker-133036456.html?src=rss

Tesla sued by federal agency for racial harassment at California factory

Tesla has been tolerating racial harassment at its factory in Fremont, California since at least 2015 until today, according to the lawsuit filed by the US Equal Employment Opportunity Commission (EEOC). The automaker has violated federal law by tolerating the "widespread and ongoing racial harassment of its Black employees," the agency said. Further, affected workers who raised concerns about the abuse they were getting were apparently subjected to various forms of retaliation: They were transferred, their duties were changed, or they were terminated. 

The EEOC's lawsuit says Black employees were regularly called variations of the N-word, "monkey," "boy" and "black b*tch" throughout the factory, even in hubs were workers gathered. These employees also encountered drawings of racial graffiti, including swastikas and nooses, on desks, as well as on the walls of bathroom stalls and elevators throughout the factory. If these allegations sound familiar, it's because they're identical to the complaints filed by plaintiffs who previously sued Tesla for racial harassment. 

One of those plaintiffs was Melvin Berry, who accused Tesla supervisors of using racial slurs against him. And there was Owen Diaz, who said he was subjected to racial slurs and was made to feel unsafe at work with racist graffiti on his workspace, such as drawings of Inki the Caveman. Diaz was originally granted $137 million in damages, which was one of the highest amounts awarded to an individual suing on the basis of discrimination. However, it was significantly lowered following several appeals, until it was reduced to $3.2 million earlier this year. 

The EEOC filed its lawsuit after doing an investigation on the automaker and trying to reach pre-litigation settlement through conciliation. Now, it's seeking both compensatory and punitive damages, as well as backpay for all affected workers. It's also asking the court for an injunction "designed to reform Tesla's employment practices to prevent such discrimination in the future."

This article originally appeared on Engadget at https://www.engadget.com/tesla-sued-by-federal-agency-for-racial-harassment-at-california-factory-053220563.html?src=rss

Amazon employees in Illinois file federal complaint over workplace racism

On Wednesday, former Amazon employee Tori Davis and 25 other workers filed complaints with the Equal Employment Opportunity Commission (EEOC) alleging the company forced them to work in a dangerous environment, reports the Chicago Tribune. Davis raised concerns about Amazon's handling of a racist death threat, and claims the retailer fired her after she threatened legal action if it did not address the incident.

In May, workers at the company’s MDW2 warehouse in Joliet, Illinois — a city 35 miles outside of Chicago — found two racist messages using the N-word scribbled on the wall of one of the facility’s bathrooms, according to the complaint filed with the EEOC. Davis, who is Black, left work without pay after her co-workers discovered the graffiti. After police investigated the incident, Amazon allegedly sent a text message to staff stating law enforcement “did not identify threats to the site’s safety."

According to the complaint, Amazon also allowed white employees at MDW2 to wear clothing that displayed the Confederate flag. One individual allegedly had a shirt where workers could see the flag “prominently” on both the garment’s back and sleeves.

“Amazon works hard to protect our employees from any form of discrimination and to provide an environment where employees feel safe,” an Amazon spokesperson told Engadget. “Hate or racism have no place in our society and are certainly not tolerated by Amazon.”

At a press conference, Davis said she would like to see Amazon implement additional safety policies at MDW2 and improve Black worker representation at the facility. She is also appealing her termination. Amazon has faced allegations of allowing racism in the workplace before. Last year, a manager with the company’s AWS division said she was subjected to harassment from a supervisor who used racial tropes. The company also has a history of terminating employees who have sought to improve conditions at its workplaces

Tesla faces new lawsuit over claims of racism and harassment at its Fremont factory

Tesla is facing another lawsuit by a group of former and current workers at its Fremont factory who allege that it knew about but failed to stop racist slurs, harassment and more, The San Francisco Chronicle reported. The employees were "subjected to offensive racist comments and offensive racist behavior and discipline by colleagues, leads, supervisors, managers, and/or human resources personnel on a daily basis," the complaint states. 

One plaintiff named in the suit, Jasmine Wilson, worked as a quality inspector from August 2021 to March 2022. She alleges that she was the victim of racial epithets and sexual harassment from supervisors. In addition, they assumed she was a production associate because she was African-American, and berated her for not doing that job and wearing the wrong uniform, according to the suit. When she informed human resources, it was skeptical of her claims and never launched a promised investigation. 

Other employees also alleged racial slurs and graffiti on Tesla restroom walls, and said they were retaliated against after complaining. Some said they were given more strenuous positions than non-minority workers and passed over for promotions. 

Late last year, Tesla was sued by six women who accused it of "rampant" sexual harassment at the Fremont factory with catcalling, inappropriate touching, sexual comments and more. In December, a jury awarded former elevator operator Owen Diaz $137 million over racial abuse. The award was later reduced to $15 million, but that was rejected by Diaz and a federal judge ordered a new damages trial. Tesla has yet to comment on the latest lawsuit and eliminated its press relations department in 2020. 

Amazon will perform a racial equality audit of its hourly workers

Amazon will perform a racial equity audit of its nearly one million hourly employees, the company said last week in a statement to shareholders. The company is hiring a law firm to conduct the audit, which will be led by former US Attorney General Loretta Lynch and released to the public. But some critics say the audit should extend to the corporate level, instead of Amazon’s traditionally more diverse warehouse workers.

“Before you applaud this step, read the fine print. This audit will not include Amazon’s negative practices impacting Black employees at the corporate level. That’s a major carve out,” tweeted tech entrepreneur Charlotte Newman, a former corporate employee who once sued the company for racial and gender discrimination.

Amazon made clear that the purpose of the audit would be to study if there was any disparate racial impacts from its policies. "The focus of the audit will be to evaluate any disparate racial impacts on our nearly one million US hourly employees resulting from our policies, programs and practices," the company said in its statement.

The decision comes a year after Amazon investors rejected a number of shareholder proposals focused on racial equity and diversity at the company. One of the rejected proposals would invite an hourly employee to join Amazon’s board.

“Amazon’s board lacks representation from hourly employees, who thoroughly understand the company’s daily operations. Women and racial minorities, which constitute a large percentage of Amazon’s hourly associates, are also comparatively underrepresented at the board level, which remains predominantly male and white,” wrote the proposal’s author.

Amazon’s board of directors recommended against voting for the proposal. “Our current process to identify and nominate directors has successfully recruited diverse and qualified directors with extensive human capital management experience,” wrote the board.

Another rejected proposal called for a more extensive racial audit of Amazon’s corporate and hourly workforce. A large percentage of Amazon’s hourly associates are women and racial minorities and its corporate workforce is overwhelmingly white. Nearly 60 percent of Amazon’s lowest-paid hourly workers are Black or Hispanic, according to a 2021 company report that looked at the past two years of demographic data. More than half of Amazon’s hourly workers are women. Meanwhile, Amazon’s highest-paid workers are white or Asian and male.

The company has faced multiple lawsuits from former and current employees who allege they faced race and gender discrimination at work. Back in February, a New York federal judge dismissed a class action racial discrimination lawsuit made by a former Amazon warehouse manager regarding its Covid-19 policies.

Amazon plans to hold its annual shareholder’s meeting on May 25th, where investors will vote on a number of proposals on racial equity and healthcare. Amazon has advised shareholders to vote against a proposal that would call for a full, top-down racial equity audit of the entire company.

“There is no public evidence that Amazon is assessing the potential or actual negative impacts of its polices, practices, products and services through a racial equity lens,” stated the shareholder’s proposal.

California is suing Tesla over ‘racial discrimination and harassment’

A California civil rights agency has filed a lawsuit against Tesla for alleged racial discrimination and harassment at its Fremont factory, according to The Wall Street Journal. "After receiving hundreds of complaints from workers, DFEH found evidence that Tesla’s Fremont factory is a racially segregated workplace," said California Department of Fair Employment and Housing director Kevin Kish in a statement. 

The DFEH said Black employees were frequently exposed to racial slurs and graffiti, with one worker saying they heard such slurs 50 to 100 times per day. "Black workers are subjected to racial slurs and discriminated against in job assignments, discipline, pay, and promotion creating a hostile work environment," said Kish.

Tesla called the lawsuit "unfair and unproductive" in a blog released prior to the complaint being made public. "Tesla strongly opposes all forms of discrimination and harassment and has a dedicated Employee Relations team that responds to and investigates all complaints," the company wrote. "Tesla is also the last remaining automobile manufacturer in California. The Fremont factory has a majority-minority workforce and provides the best paying jobs in the automotive industry to over 30,000 Californians." It also said that over 50 previous DFEH investigations over the last five years were closed without any findings of misconduct.

Last October, Tesla was ordered to pay $137 million in damages to a former Black worker who accused the company of turning a blind eye to discrimination and racial abuse in 2015 and 2016. Tesla disagreed with the verdict, with a spokesperson saying the company was "not perfect" at that time but has "come a long way" since then. Tesla recently moved its corporate headquarters to Texas from California, but has also said it would expand its manufacturing activities by 50 percent in California. 

Tesla has previously tussled with the state of California over COVID-19 related plant closures, and isn't the only high-profile company in the DFEH's crosshairs. The agency recently sued Activision Blizzard for alleged harassment and discrimination against female employees. 

Tesla must pay $137 million in discrimination lawsuit

Tesla has been ordered to pay $137 million in damages to a former Black worker who accused the company of turning a blind eye to discrimination and racial abuse at the company's EV plant in Fremont California, The Washington Post has reported. A San Francisco federal court jury awarded the judgement — reportedly one of the largest in an individual race discrimination employment case — to Owen Diaz, an elevator operator who worked as a contract employee in 2015 and 2016.

In the lawsuit, Diaz alleged that he faced discrimination "straight from the Jim Crow era," in which he was subjected to racial slurs. He alleged that Tesla employees left drawings of swastikas, racist graffiti and offensive cartoons around the plant, while supervisors neglected to halt the abuse. "Tesla's progressive image was a façade papering over its regressive, demeaning treatment of African-American employees," according to the lawsuit. 

The jury awarded Diaz $6.9 million for emotional distress, but the majority, $130 million, was punitive damages against Tesla. "It's a great thing when one of the richest corporations in America has to have a reckoning of the abhorrent conditions at its factory for Black people," said the lawyer for Diaz, Lawrence Organ. 

"It took four long years to get to this point,” Diaz told The New York Times. “It’s like a big weight has been pulled off my shoulders.”

In response to the verdict, Tesla downplayed the allegations in a blog post written by human resources VP Valerie Capers Workman. "In addition to Mr. Diaz, three other witnesses (all non-Tesla contract employees) testified at trial that they regularly heard racial slurs (including the N-word) on the Fremont factory floor,” she wrote. “While they all agreed that the use of the N-word was not appropriate in the workplace, they also agreed that most of the time they thought the language was used in a ‘friendly’ manner and usually by African-American colleagues.”

Tesla added that it was responsive to Mr. Diaz's complaints, firing two contractors and suspending another. She said that while the facts didn't justify the verdict, the company was "not perfect" in 2015 and 2016, "but we have come a long way." The company has yet to say whether it plans to appeal.