Tesla settles racial discrimination lawsuit with black female employee
Tesla has reached a settlement in a racial discrimination lawsuit filed by a black female employee at its Fremont, California plant. Raina Pierce, who worked on installing latches on car doors, alleged that a manager at the plant made racially insensitive remarks, including saying “welcome to the plantation” or “welcome to the slave house” to workers.
The terms of the settlement were not disclosed, and both parties are finalizing the agreement, as per a joint filing in San Francisco federal court. The agreement was proposed by a mediator.
According to Pierce, she faced pervasive harassment, including racial slurs written throughout the plant and gender-based insults. She also claimed that she was treated unfairly compared to non-black workers, often being yelled at or disciplined for behavior that others were excused for.
One incident cited in Pierce’s complaint involved a fellow Tesla employee urging her to report mistreatment to HR. This further highlighted the toxic work environment she experienced.
It’s not the first time Tesla has been accused of racial discrimination at the Fremont plant. Owen Diaz, an elevator operator, settled a discrimination lawsuit in March 2024 after a jury initially awarded him $137 million in damages in 2021. The case was retried, resulting in a $3.2 million settlement.
Despite these challenges, Tesla has not publicly commented on the settlement or the allegations. The case, Pierce v Tesla Inc et al, is ongoing in the U.S. District Court for the Northern District of California.
