Electric car trailblazer Tesla has found itself in the spotlight, but not for its vehicles — rather, a federal workplace watchdog alleges that Tesla tolerated pervasive mistreatment of Black employees and retaliated against those who complained.
The U.S. Equal Employment Opportunity Commission recently filed a lawsuit against the automaker, saying that mistreatment of Black employees at Tesla’s Fremont, California manufacturing facilities had persisted at least since 2015. The employees faced harassment in the form of racial abuse, stereotyping, hostility, verbal slurs and threatening graffiti, the EEOC alleges. Anyone who objected was fired, transferred, got a change in job duties, or suffered other negative consequences, it says.
And Tesla isn’t alone. The EEOC has been cracking down on harassment and discrimination at sites of Chipotle, Dollar General, and various other recognizable brands.
Simultaneously, the EEOC is proposing updates to workplace harassment guidance, which protects employees from harassment based on race, color, religion, national origin, disability, age, genetic information, or sex — a category that covers sexual orientation, transgender status and pregnancy. The change would be the first update in nearly 25 years.
The allegations against various high-profile employers serve as a startling reminder that toxic problems linger in America’s workplaces.
Harassment hasn’t abated despite increased awareness in recent years. Between fiscal 2016 and 2022, the EEOC said, more than a third of charges it received included harassment allegations.
Federal and California law prohibit workplace harassment, including sexual harassment, against employees, applicants, interns, volunteers or contractors in protected categories. They also prohibit retaliation against employees who report suspected violations of the law.
If the EEOC’s new Strategic Enforcement Plan is finalized, updates would include protecting more categories of workers, addressing changing technology use, and discuss waivers that are overly broad, releases, non-disclosure agreements, or non-disparagement agreements.
California also has been cracking down on employers who use NDAs to keep employees quiet.
The public has an opportunity to comment on the proposed guidance update until Nov. 1. Although the proposal would not be legally binding, it could be cited in court.
A previous update effort stalled in 2017, but the renewed push indicates a broad desire to protect vulnerable workers.
If you have been mistreated at work, contact Keller Grover for a free and confidential consultation. With our proven track record of advocating for workers, we can help you understand all your options, protections, and best next steps. In more than 25 years litigating fraud and employment cases, Keller Grover has recovered billions for its clients.