Tesla is facing a major California trial over allegations that Black workers were subjected to systemic JPMorgan Faces 21-Count Bias and Retaliation Suit, in a case brought by the California Civil Rights Department following a nearly three-year investigation.
The bench trial is scheduled before Alameda County Superior Court Judge Peter Borkon in Oakland and is expected to run through 30 October. Because the case will be tried without a jury, Borkon will determine whether Tesla is liable for violations of California civil rights laws. The case is Department of Fair Employment and Housing v. Tesla Inc., No. 22CV006830.
The Civil Rights Department filed the lawsuit in February 2022 under California’s Fair Employment and Housing Act and Equal Pay Act. The agency alleges that Black workers experienced pervasive racial harassment, including racial slurs and discriminatory graffiti, and that Tesla failed to prevent or adequately address the conduct. It also alleges discrimination involving job assignments, compensation, discipline and promotion opportunities. Tesla denies wrongdoing and has said it does not tolerate discrimination and has dismissed workers found to have engaged in misconduct.
Although the Fremont manufacturing plant is central to the case, the Civil Rights Department’s claims extend more broadly to Tesla’s employment practices in California. The agency alleges that Black employees were concentrated in lower-level and more labour-intensive roles and were underrepresented among executives, senior officials and managers.
The department has also relied on compensation data in support of its unequal-pay allegations. It said an analysis covering June 2018 to June 2024 showed average monthly compensation for Black workers was $1,533 lower than for white workers. The figure forms part of the agency’s case and remains disputed by Tesla.
The case reached trial after Borkon rejected Tesla’s attempt to dispose of the claims before trial. In May, the Civil Rights Department said the court had concluded that factual disputes remained concerning alleged harassment, discrimination and retaliation. More recent pre-trial proceedings have also involved discovery disputes, with Borkon rejecting Tesla objections to recommendations arising from that process.
The state proceedings are separate from a federal lawsuit brought by the EEOC and DOJ Shift Title VII Enforcement | Lawyer Monthly in 2023. The EEOC alleges that Black employees at Tesla’s Fremont facilities were subjected to widespread racial harassment from at least 2015 and that some workers faced retaliation after opposing the alleged conduct. Tesla has denied wrongdoing in that litigation as well.
Tesla has also faced individual and group claims involving alleged Fifth Circuit Reverses $8M Hutto Bias Verdict. In a separate case, more than 6,000 Black workers lost class-action status in 2025 after Borkon reversed an earlier certification decision. A California appeals court subsequently allowed groups of former workers to pursue related claims through multi-plaintiff lawsuits.
One of the best-known individual cases involved former contractor Owen Diaz, who initially secured a $137 million jury award over racial harassment allegations. That award was later substantially reduced through further proceedings before the dispute was ultimately resolved. The Civil Rights Department case is different because the state agency is pursuing allegations of systemic practices affecting a much larger group of workers.
The potential financial exposure is also significant. Unlike the federal employment-discrimination regime, California law does not impose the same statutory cap on damages in these claims. Reuters reported that Tesla could therefore face substantial monetary liability if the Civil Rights Department establishes its case.
Beyond damages, the department is seeking injunctive relief aimed at changing employment practices if liability is established. The trial will require the court to assess years of worker evidence, company records and competing accounts of how Tesla responded to allegations of harassment and discrimination.
No liability has been established. Tesla continues to contest the allegations, while Civil Rights Department director Kevin Kish has said the agency intends to pursue accountability for the practices it alleges occurred at the company.